Affinity Announces Second Quarter Results.COLUMBIA, S.C. -- Affinity Technology Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AFFI) today announced financial results for the second quarter and six months ended June 30, 2006. Revenues for the quarter were $8 thousand, with a net loss of $220 thousand, or $0.00 per share. Second quarter 2005 revenues were $4 thousand and the Company reported a net loss of $165 thousand or $0.00 per share. The weighted average number of shares outstanding during the three months ended June 30, 2006 was 44.2 million, compared to 42.2 million for the same period in 2005. For the first six months of 2006, revenues were $17 thousand, with a net loss of $310 thousand, or $0.01 per share. Revenues for the comparable period in 2005 were $9 thousand, with a net loss of $295 thousand, or $0.01 per share. The weighted average number of shares outstanding during the six months ended June 30, 2006, was 43.2 million, compared to 42.2 million for the same period in 2005. Joe Boyle, Chairman, President and Chief Executive Officer of Affinity, stated, "We believe that we have made significant progress during the first six months of 2006. The highlight was the successful conclusion in March of the reexamination re·ex·am·ine also re-ex·am·ine tr.v. re·ex·am·ined, re·ex·am·in·ing, re·ex·am·ines 1. To examine again or anew; review. 2. Law To question (a witness) again after cross-examination. of our financial and credit account patent (U.S. Patent No. 6,105,007). That event has created forward momentum for the Company, and since that time we have secured the services of Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. Keegan to assist us in raising capital, restructured our legal services legal services n. the work performed by a lawyer for a client. agreement to include the McBride Law firm and engaged Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. Behle & Latimer and Dr. Mark Glick as part of our legal team. "Additionally, the stays on the lawsuits with Ameritrade, Federated Connected and treated as one. See federated database and federated directories. Department Stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. and Household have been lifted and the lawsuits are proceeding. As announced last week, we have also extended the maturity of our convertible notes, which resolves their default status. In the near future our objective is to continue to explore capital raising options with Morgan Keegan and to attract new capital to further strengthen the financial base of the Company." About Affinity Technology Group, Inc. Through its subsidiary, decisioning.com, Inc., Affinity Technology Group, Inc. owns a portfolio of patents that covers the automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. processing and establishment of loans, financial accounts and credit accounts through an applicant-directed remote interface, such as a personal computer or terminal touch screen. Affinity's patent portfolio includes U.S. Patent No. 5,870,721C1, No. 5,940,811C1, and No. 6,105,007C1. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this news release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. We cannot offer any assurances that Affinity will prevail on its claims of patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. against third parties or that such claims will result in monetary damages Monetary damages, in civil law, refers to compensation given to an injured party by a liable party. Monetary damages may be restitution, a penalty, or both. to Affinity. Investors are cautioned that our business is subject to several substantial risks and uncertainties, including the Company's very limited capital resources and the possibility that we may be unable to raise additional capital in amounts sufficient to permit us to continue operations; the risk that we may lose all or part of the claims covered by our patents as a result of challenges to our patents; the risk that our patents may be subject to additional reexamination by the U.S. Patent and Trademark Office or challenge by third parties; the result of ongoing litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , including patent litigation; and unanticipated costs and expenses affecting the Company's cash position. If the Company is not able to raise additional capital immediately, it may be forced to consider alternatives for winding down its business, which may include offering its patents for sale or filing for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most protection. These and other factors may cause actual results to differ materially from those anticipated.
Affinity Technology Group, Inc.
Statements of Operations
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenues:
Patent license
revenue $ 8,334 $ 4,412 $ 16,667 $ 8,824
Costs and expenses:
Cost of revenues 834 441 1,667 882
General and
administrative
expenses 206,458 145,259 278,177 255,506
----------- ----------- ----------- -----------
Total costs
and
expenses 207,292 145,700 279,844 256,388
----------- ----------- ----------- -----------
Operating loss (198,958) (141,288) (263,177) (247,564)
Other income (expense):
Interest income 478 - 722 61
Interest
expense (21,485) (24,042) (47,456) (47,452)
----------- ----------- ----------- -----------
Net loss $ (219,965) $ (165,330) $ (309,911) $ (294,955)
=========== =========== =========== ===========
Net loss per share -
basic and diluted: $ (0.00) $ (0.00) $ (0.01) $ (0.01)
=========== =========== =========== ===========
Shares used in
computing net loss
per share 44,217,651 42,215,096 43,235,883 42,187,348
=========== =========== =========== ===========
Balance Sheets June 30,
2006 2005
----------- -----------
Cash and Short
Term Investments $ 72,101 $ 26,429
Total Current
Assets 103,689 54,225
Total Assets 106,708 61,474
Total Liabilities 1,925,853 1,839,513
Stockholders'
Deficiency (1,819,145) (1,778,039)
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