AmTec Reports Year End Results; Cellular Subscribers Triple.NEW YORK--(BUSINESS WIRE)--July 14, 1999-- AmTec, Inc. (AMEX AMEX See: American Stock Exchange : ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered ), an international telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. company, today reported results for the year ended March 31, 1999. In this twelve-month period, the Company, through its joint ventures, was able to expand operations from two cellular networks to six, increasing subscribers from 11,000 to 38,000. Most of this expansion was in the last six months of the fiscal year. System-wide revenues for the networks increased from less than $1 million to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3,540,000. The cash flow to the Company's joint venture subsidiary, which is reported as "revenue" by them, increased from $216,000 to $781,745. AmTec changed its accounting method from consolidation to equity reporting; therefore, the subsidiary's revenues are no longer consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: to the parent. Instead, the subsidiary's results are noted under Investment in Unconsolidated Subsidiary. Mr. R. T. McNamar, President of AmTec, said, "The equity method simplifies our balance sheet and does not change our business or bottom line figures. Since our goal is to continue to create alliances, joint ventures and partnerships with other telecommunications companies See telecom company. , this reporting method should be very useful when explaining our diversified diversified (di·verˑ·s operations. In addition, about $30 million of our subsidiary's debt, which is non-recourse to AmTec, will no longer appear on the Company's balance sheet." The Company reported a net loss of $6.2 million or $0.23 per share for the twelve-month period versus a loss of $6.8 million or $0.23 per share on slightly more shares outstanding the year before. The net loss is attributed to costs incurred in developing the cellular operations and pursuing other joint-venture networks in China such as cable television in Hunan Hunan (h  `nän`) [south of the lake], province (1994 est. pop. 63,050,500), c.80,000 sq mi (207,254 sq km), S central China, S of Dongting lake. Changsha is the capital. Province with United GlobalCom as well as launching
Internet InternetPublicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and long distance communications services with two other corporate partners. Looking ahead, Mr. McNamar, stated, "We are building a company that provides value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: telecommunications services worldwide. We are using our experience and operating presence in China to take advantage of evolving regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and market trends. Very recently, we announced the formation of IP.TEL TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom with Fusion Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. International, Inc., a multinational multinational Of, relating to, or being a company with subsidiaries or other operations in a number of countries. The diversity of operations of such companies subjects them to unique risks (for example, exchange rate changes or government nationalization) long-distance long-dis·tance adj. 1. Covering a long distance: a long-distance runner; operating under long-distance supervision. 2. carrier which will provide value-added telecommunications services, initially telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. and data, between the U. S. and Asia. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , we expect it will begin to create a revenue stream in U.S. dollars this year." "In June June: see month. of this year," Mr. McNamar added, "we also announced our entry into the Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. fax services. Traditional faxing in Asia and especially in China is very expensive because of the very high long-distance phone rates. A Dataquest/Gartner Group survey projected that fax traffic over the Internet and related data networks will expand in the Asia/Pacific Rim (Research In Motion Limited, Waterloo, Ontario, www.rim.com) The company that makes the popular BlackBerry device. It was established in 1984. See BlackBerry. See also RDRAM. from 44 million pages in 1997 to 5.6 billion pages by the year 2000 and China is expected to replace Japan as the leader in overall Asian fax traffic. Our subsidiary is already operative OPERATIVE. A workman; one employed to perform labor for another. 2. This word is used in the bankrupt law of 19th August, 1841, s. 5, which directs that any person who shall have performed any labor as an operative in the service of any bankrupt shall be in seven major Asian cities and very shortly we will be adding Internet voice transmission to our Internet faxing Using the Internet to send faxes. Fax servers accept an incoming fax message and route it to a fax server in the same locality as the destination fax machine. The fax server then makes a local telephone call to send the fax. services." In summary, Mr. McNamar concluded, "Our financials for last fiscal year partially reflect our build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. of the cellular telephone network in China. Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes , July July: see month. 26, 1999, noted that demand is growing at more than 1 million new subscribers a month and will reach 200 million subscribers in 2010. China dwarfs Dwarfs Fannie Mae issued mortgage-backed securities pools that have an original maturity of 15 years. everybody with their potential for growth. On average, Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. users spend 400 minutes a month on their cell phones, three times as much as Americans. This fiscal year our goal is to increase shareholder value by not only expanding beyond greater China into Asia, but also to broaden our business into the long-distance traffic arena and to become a very important provider of Internet services." AmTec, Inc. is an international telecommunications service company that provides voice, data and Internet telephony Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. services through IP.TEL, a partnership with Fusion Telecommunications International, and IXS (Integrated XSeries Server) An x86-based xSeries server (motherboard and memory) from IBM that plugs into an iSeries or i5 midrange computer. Running Windows or Linux, the IXS shares disk storage, server management, user administration with its iSeries/i5 host. .NET, and holds joint venture telecom interests in the People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China. Note: 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 press release are necessarily subject to risks and uncertainties that may affect the accuracy of such statements. Such risks may include any political instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability in China, any delays in construction of networks, and market acceptance of and demand for the Company's products. For a discussion of such risks, please refer to the Company's Form 10(k) filed with the Securities Exchange Commission for the fiscal year ending March 31, 1998. The Company undertakes no obligation to update such factors or to publicly announce the result of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to the forward-looking statements contained herein.
AMTEC INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1999 AND 1998
----------------------------------------------------------------------
1999 1998
ASSETS
CURRENT ASSETS:
Cash $ 2,093,141 $ 2,134,662
Accounts receivable -- 114,661
Prepaid expenses and other
current assets 38,805 108,082
------------ ------------
Total current assets 2,131,946 2,357,405
Investments in and advances to
unconsolidated subsidiary 2,496,480 5,074,217
Property, plant and equipment, net 96,926 139,136
Office lease deposit 55,733 112,600
------------ ------------
Total assets $ 4,781,085 $ 7,683,358
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 439,195 $ 541,888
Accrued expenses 528,548 792,006
Loans payable - shareholders -- 1,452,553
------------ ------------
Total current liabilities 967,743 2,786,447
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred Stock: authorized
10,000,000 shares:
Series E Convertible Preferred
Stock: $.001 par value; 74 shares
issued, 73.2 and 29.8 shares
outstanding in 1999 and 1998,
respectively 1 1
Series G Convertible Preferred
Stock: $.001 par value; 20 and 0
shares issued and outstanding in
1999 and 1998, respectively 1 --
Common Stock: $.001 par value,
authorized 100,000,000 shares;
30,736,721 and 26,532,502 issued and
outstanding in 1999 and 1998,
respectively 30,737 26,533
Additional Paid-In Capital 36,947,244 33,149,142
Accumulated deficit (33,646,491) (27,394,590)
Nonrefundable equipment purchase
deposit
Nonemployee deferred option cost, net -- (1,378,125)
Warrants 481,850 493,950
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 3,813,342 4,896,911
------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 4,781,085 $ 7,683,358
============ ============
See notes to consolidated financial statements.
AMTEC INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED MARCH 31, 1999, 1998 AND 1997
----------------------------------------------------------------------
1999 1998 1997
REVENUES $ -- $ -- $ --
------------ ------------ ------------
EXPENSES
Selling, general and
administrative 4,649,770 4,282,613 3,563,568
------------ ------------ ------------
LOSS FROM OPERATIONS (4,649,770) (4,282,613) (3,563,568)
------------ ------------ ------------
OTHER INCOME (EXPENSE):
Amortization of stock
options granted to
non-employees (459,374) (459,375) --
Interest expense -- (125,586) (129,039)
Other - net (85,161) 70,853 (33,216)
Write off of
investment in
affiliate -- -- (198,538)
------------ ------------ ------------
Total other expense (544,535) (514,108) (360,793)
------------ ------------ ------------
LOSS BEFORE EQUITY IN
LOSSES OF UNCONSOLIDATED
SUBSIDIARY (5,194,305) (4,796,721) (3,924,361)
Equity in losses of
unconsolidated
subsidiary (385,139) (606,647) (140,524)
------------ ------------ ------------
NET LOSS (5,579,444) (5,403,368) (4,064,885)
PREFERRED STOCK DIVIDEND 672,457 1,398,686 10,000
------------ ------------ ------------
LOSS APPLICABLE TO COMMON
SHAREHOLDERS $ (6,251,901) $ (6,802,054) $ (4,074,885)
============ ============ ============
BASIC LOSS PER COMMON
SHARE $ (0.23) $ (0.23) $ (0.14)
============ ============ ============
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 27,495,213 29,843,712 29,102,347
============ ============ ============
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31, 1999, 1998 AND 1997
----------------------------------------------------------------------
1999 1998 1997
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $(5,579,444) $(5,403,368) $(4,064,885)
Adjustments to
reconcile net loss
to net cash used in
operating activities:
Amortization of
deferred option cost 459,375 459,375 --
Depreciation 55,250 43,432 28,905
Loss from abandoned
assets -- 87,441 --
Gain from sale of assets 137 -- --
Issuance of warrants for
services rendered -- -- 479,500
Issuance of common stock
in connection with
Series E buyback
transaction 144,375 -- --
Issuance of common
stock and options for
directors' fees and
professional
services rendered 16,500 151,957 725,091
Equity in losses of
unconsolidated
subsidiary 385,139 606,647 140,524
(Increase) decrease in:
Accounts receivable 114,661 (114,661) --
Prepaid expenses and
other current assets 69,277 63,839 (111,243)
Office lease deposit 56,867 (1,100) 55,700
Increase (decrease) in:
Accounts payable and
accrued expenses 540,917 293,027 (485,959)
Loans payable -
stockholders -- (111,000) (150,000)
----------- ----------- -----------
Net cash used in
operating activities (3,736,946) (3,924,411) (3,382,367)
----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in Netmatics -- (87,441) --
Purchase of property
and equipment (13,427) (29,212) (106,028)
Investment in
unconsolidated
subsidiary -- (276,000) (654,000)
Proceeds from sale of
assets 250 -- --
----------- ----------- -----------
Net cash used in
investing activities (13,177) (392,653) (760,028)
----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Warrants issued for
services rendered - net
of charges to APIC -- (215,546) --
Buyback common stock (383,383) -- --
Buyback Series E
convertible preferred
stock (100,000) -- --
Loans payable to
stockholders -- 25,000 --
Repayment from(Advance to)
unconsolidated
subsidiary 2,191,985 (3,724,000) (538,000)
Proceeds from sale
of common stock -- 166,659 2,000,000
Proceeds from sale
of Series B convertible
preferred stock -- -- 2,341,219
Proceeds from sale
of Series D convertible
preferred stock -- -- 1,500,000
Proceeds from sale
of Series C convertible
preferred stock - net -- 2,093,900 --
Proceeds from sale
of Series E convertible
preferred stock -- 6,759,000 --
Proceeds from sale
of Series G convertible
preferred stock 2,000,000 -- --
----------- ----------- -----------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 3,708,602 5,105,013 5,303,219
----------- ----------- -----------
NET (DECREASE) INCREASE
IN CASH AND CASH
EQUIVALENTS (41,521) 787,949 1,160,824
CASH AND CASH
EQUIVALENTS, BEGINNING
OF YEAR 2,134,662 1,346,713 185,889
----------- ----------- -----------
CASH AND CASH EQUIVALENTS,
END OF YEAR $ 2,093,141 $ 2,134,662 $ 1,346,713
=========== =========== ===========
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