Aradyme Reports Fiscal 2005 Results, Significant Revenue Increase.OREM, Utah Orem is an incorporated town in the north-central part of the state of Utah in Utah County. It is adjacent to Provo, Lindon, and Vineyard and is about 45 miles south of Salt Lake City. As of the 2000 census, the city had a total population of 84,324. -- Aradyme Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ADYE) filed its annual report on Form 10-KSB on January January: see month. 13, 2006, reporting fiscal 2005 revenue of $1,130,016 compared to fiscal 2004 revenue of $57,480. This significant increase in revenue resulted from the completion of milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. requirements on several subcontracts in which the Company has been engaged to provide advanced data migration/conversion solutions and services. The Company's fiscal 2005 net loss also increased from $1.8 million in fiscal 2004 to $2.3 million in fiscal 2005, resulting from an increase in total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. from $1.8 million in 2004 to $3.2 million in 2005. Additional staff and consultant services were required to provide the technical resources needed to support the contracts that the Company has secured since November November: see month. 2004. Aradyme has also continued to pursue further development of its technologies, and has expanded its operating, marketing and sales activities over the prior year to support anticipated increases in the sales and delivery of its products and services. "We made significant strides in our emergence from our development stage by increasing our revenues by 1865% compared to fiscal 2004, securing alliances with systems integrators An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. , and expanding our customer base," said James R. Spencer For other persons of the same name, see James Spencer. James Randolph Spencer was born in Florence, South Carolina in 1949. He attended Clark College in Atlanta, Georgia, and graduated with a Bachelor of Arts Degree in 1971. , chief executive officer of Aradyme Corporation. "The increase in expenses we incurred in fiscal 2005 has helped lay the foundation we need to continue to increase our revenues and meet our goals and objectives in 2006. As we continue to emerge from our development stage, we maintain our focus on achieving profitability by expanding our solutions into additional markets and continuing to showcase A showcase, or vitrine, is a glassed-in cabinet or case for displaying delicate or valuable articles such as objects d'art or merchandise in a shop, museum, or house. the value of our technology." Highlights Financial and other highlights from the fiscal year 2005 include: --Revenue grew to $1.1 million in fiscal 2005, compared to revenue of $57,480 in fiscal 2004, a 1865% increase. --Net loss for fiscal 2005 was $2.3 million compared to $1.8 million in fiscal 2004. --Formed relationships with major systems integrators to leverage Aradyme's technology through them and increase the Company's exposure to, and reach within, markets that have data migration needs. --Secured a number of significant contracts to provide data migration/conversion solutions to state government entities and to one energy/utility customer, resulting in thousands of database system conversions to date. --Successfully completed data migration/conversion work on one of the Company's state voter registration Voter registration is the requirement in some democracies for citizens to check in with some central registry before being allowed to vote in elections. An effort to get people to register is known as a voter registration drive. Centralized/compulsory vs. contracts, the first such contract on which Aradyme has completed all migration work and collected all payments due under the agreement. --Raised approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.4 million through the sale of common stock to support operations and expansion as the Company continues to pursue new opportunities to provide its solutions and services to customers involved in complex data migration/conversion or data integration projects. Recently Acquired Funding Management anticipates that the new equity funding Equity funding An investment consisting of a life insurance policy and a mutual fund. The insurance policy is paid by the collateral value of fund shares, giving the investor the advantages of insurance protection with the growth potential of a mutual fund. agreement that Aradyme closed in December December: see month. 2005 with Eagle Rock Capital, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control -- which provided the Company with $1.0 million at closing and allows for a total of up to an additional $2.0 million to be invested in a series of payments over the next 14 months -- will provide the Company with the working capital it needs to continue to advance corporate growth and further strengthen the Company's financial position. Aradyme's management believes that the Eagle Rock funding, together with the revenue advancements Aradyme made in fiscal 2005, places Aradyme in a substantially better position going forward than where it was at the end of the previous fiscal year. About Aradyme Corporation Aradyme Corporation (OTCBB:ADYE) is a data management company that provides world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. solutions in data migration/conversion, data integration and application development. These solutions are made possible through a mix of proprietary next-generation database technologies, methodologies and experience that enables customers to simplify their data management efforts and substantially increase the quality of their data. By leveraging the Company's dynamic-schema database management system, which has been in development for more than 25 years, customers are able to bypass In communications, to avoid the local telephone company by using satellites and microwave systems. the limitations of traditional database technology and achieve greater flexibility in data handling. For more information about Aradyme, call 801-705-5000 or visit the Company's web site at http://www.aradyme.com. This release contains 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. . Forward-looking statements are not guarantees of future revenues, sales, agreements, events, growth or results. Forward looking statements are subject to risks and uncertainties outside Aradyme's control. Actual events or results may differ materially from the forward-looking statements. For a discussion of additional contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. and uncertainties to which information respecting future events is subject, see Aradyme's annual report on Form 10-KSB for the fiscal year ended September September: see month. 30, 2005, and other SEC reports.
ARADYME CORP. AND SUBSIDIARY
Consolidated Balance Sheets
For the Year Ended
Sept. 30,
-------------------------------
ASSETS 2005 2004
------ -------------- --------------
CURRENT ASSETS
Cash $ 84,485 $ 265,259
Accounts receivable 335,499 29,260
Prepaid insurance 68,288 66,917
-------------- --------------
Total Current Assets 488,272 361,436
-------------- --------------
PROPERTY AND EQUIPMENT, NET 138,313 89,212
-------------- --------------
OTHER ASSETS
Prepaid license fees 78,662 33,662
Deposits 21,580 4,960
-------------- --------------
Total Other Assets 100,242 38,622
-------------- --------------
TOTAL ASSETS $ 726,827 $ 489,270
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
CURRENT LIABILITIES
Accounts payable $ 134,147 $ 33,779
Accrued expenses 347,940 172,622
Notes payable - related party 100,794 -
Notes payable 499,896 52,500
-------------- --------------
Total Current Liabilities 1,082,777 258,901
-------------- --------------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock: 50,000,000 shares
authorized of $0.001 par value,
25,229,546 and 23,151,046 shares
issued and outstanding,
respectively 25,230 23,151
Additional paid-in capital 6,209,794 4,465,510
Accumulated deficit (6,590,974) (4,258,292)
-------------- --------------
Total Stockholders' Equity
(Deficit) (355,950) 230,369
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 726,827 $ 489,270
============== ==============
ARADYME CORP. AND SUBSIDIARY
Consolidated Statements of Operations
For the Year Ended
Sept. 30,
-------------------------------
2005 2004
-------------- --------------
REVENUES $ 1,130,016 $ 57,480
OPERATING EXPENSES
Wages and payroll taxes 2,301,012 919,791
Contract services 380,064 252,472
Rent 117,784 48,422
Depreciation and amortization 39,402 58,480
Other operating expenses 362,136 531,637
-------------- --------------
Total Operating Expenses 3,200,398 1,810,802
-------------- --------------
LOSS FROM OPERATIONS (2,070,382) (1,753,322)
OTHER INCOME (EXPENSE)
Loss on sale of assets (39,893) -
Interest expense (222,407) (47,309)
-------------- --------------
Total Other Expense (262,300) (47,309)
-------------- --------------
NET LOSS $ (2,332,682) $ (1,800,631)
-------------- --------------
BASIC LOSS PER SHARE $ (0.10) $ (0.09)
============== ==============
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 24,335,682 19,967,377
============== ==============
ARADYME CORP. AND SUBSIDIARY
Consolidated Statements of Cash Flows
For the Year Ended
Sept. 30,
-------------------------------
2005 2004
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (2,332,682) $ (1,800,631)
Adjustments to reconcile net loss
to net cash used by operating
activities:
Depreciation 39,402 58,480
Common stock issued for services 96,000 16,625
Stock options issued for services - 17,425
Common stock issued for line of
credit 20,000 -
Warrants issued for line of credit
and promissory note 174,443 -
Loss on disposition of assets 39,893 -
Changes in assets and liabilities:
(Increase) in accounts receivable (306,239) (29,260)
(Increase) in prepaids (46,371) (101,580)
(Increase) decrease in deposits (16,620) 259
Increase (decrease) in accounts
payable and related party payable 100,367 (79,821)
Increase in interest payable 18,190 -
Increase in accrued expenses 252,118 4,395
-------------- --------------
Net Cash Used by Operating
Activities (1,961,499) (1,914,108)
-------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of assets 3,811 -
Purchase of fixed assets (132,206) (26,118)
-------------- --------------
Net Cash Used by Investing
Activities (128,395) (26,118)
-------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related-party
notes payable 300,000 -
Payments on related-party
notes payable (200,000) (15,759)
Proceeds from notes payable 632,500 132,500
Payments on notes payable (202,500) (15,000)
Common stock issued for cash 1,379,120 2,075,948
Stock offering costs - (27,500)
-------------- --------------
Net Cash Provided by Financing
Activities 1,909,120 2,150,189
-------------- --------------
NET (DECREASE) INCREASE IN CASH (180,774) 209,963
CASH AT BEGINNING OF PERIOD 265,259 55,296
-------------- --------------
CASH AT END OF PERIOD $ 84,485 $ 265,259
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