Aradyme Reports Quarterly Results of Operations.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) today announced its results of operations for the quarter ending December December: see month. 31, 2006. The most notable trends in the Company's financial performance in the three-month period ended December 31, 2005, compared to the comparable period ended December 31, 2004, is the increased revenue of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 654% over the comparable quarter of the prior year, while 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. increased approximately 28%, and the Company's net loss decreased about 11% for the same comparable period. Revenue for the first fiscal quarter ended December 31, 2005, was $202,155, an increase of approximately 654% over prior year first quarter revenue of $26,800. Total operating expenses increased approximately 28% in the quarter ended December 31, 2005 to $908,042, compared to $710,148 in the comparable quarter of the prior year, as the Company expanded its staff to deliver technology solutions for contracts that were signed since the comparable period in the prior year as well as to support further development of its technology. These increases in revenue and expenses are the result of bringing the Company's initial data migration/integration products and services to market. The Company's net loss decreased from $813,463 in the three-month period ended December 31, 2004, to $722,175 in the three-month period ended December 31, 2005, a decrease of 11%. The Company expects revenues will increase in future quarters over the level recognized in the three-month period ended December 31, 2005, as further progress is made on projects that are currently underway, as well as on new projects for which the Company has recently executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. contracts. Thus, the Company expects that as revenue increases, expenses will not increase at the same rate, resulting in an improvement in the net loss for future periods. Also, although revenue recognized in the three-month period ended December 31, 2005, was substantially higher than revenue from the comparable period in the prior year, it was lower than the Company's initial expectation for the first fiscal quarter due to customer delays in project schedules on several of the Company's current subcontracts. As a result of these project delays, revenue that was projected to be recognized by the Company in the fiscal quarter ended December 31, 2005, is now projected to be recognized in succeeding fiscal quarters, as new extended project schedules are developed. "We have made steady progress over the past year in transforming Aradyme from its development stage to its commerce phase, and in continuing the advancement A gift of money or property made by a person while alive to his or her child or other legally recognized heir, the value of which the person intends to be deducted from the child's or heir's eventual share in the estate after the giver's death. of our technology assets in developing a robust data migration/conversion and data integration suite of products and services," 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. "As acceptance of our data solutions continues to grow in the marketplace, we are very excited about all of the additional opportunities that our individual sales and marketing efforts, and our strategic allies are providing to us, both in the public sector and with private enterprises. We expect to realize results from these expanded opportunities as well as experience an increase in our number of strategic allies throughout fiscal 2006 and beyond." Highlights Financial and other highlights from the three-month quarter ended December 31, 2005 include: --Revenue grew to $202.2 thousand, a 654% increase compared to revenue of $26.8 thousand for the first quarter of fiscal 2005. --Total operating expenses were $908.0 thousand, a 28% increase, compared to total operating expenses of $710.1 thousand for the first quarter of fiscal 2005. --Net loss of $722.2 thousand was down from a net loss of $813.5 thousand in the first quarter of fiscal 2005, a decrease of 11%. --"Net Cash Used by Operating Activities" of $532.6 thousand was 10% lower than the $590.5 thousand "Net Cash Used by Operating Activities" in the first quarter of fiscal 2005. --The Company executed an agreement to secure at least $1.0 million in new equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. in December 2005, with provisions for the investor to provide $2.0 million more through the purchase of common stock by March 2007. For additional information on Aradyme's results of operations, please read the Aradyme 10Q financial schedule filed February February: see month. 16, 2006. Outlook Aradyme management offers the following guidance regarding its outlook for 2006: --Because of the relationships the Company has formed with existing and other strategic allies, and the progress it has made in securing service contracts, management expects the Company's revenues to increase in future quarters. --As the Company continues to make progress on current and new projects, management anticipates that there will be a corresponding increase in its future quarterly revenues. --Management expects that operating expenses will increase as additional employee resources are hired to support growth in providing its data migration/conversion services and data integration solutions. However, management anticipates that operating expenses will grow at a much lower rate than projected revenue increases. --The Company expects its net loss to continue to decrease in future quarters. 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 CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
December 31, September 30,
ASSETS 2005 2005
------ ------------- ------------
(Unaudited)
CURRENT ASSETS
Cash $ 233,976 $ 84,485
Accounts receivable, net of allowance 238,594 335,499
Prepaid insurance 54,250 68,288
------------ -----------
Total Current Assets 526,820 488,272
------------ -----------
PROPERTY AND EQUIPMENT, NET 158,584 138,313
OTHER ASSETS
Prepaid license fees 89,912 78,662
Deposits 21,580 21,580
------------ -----------
Total Other Assets 111,492 100,242
------------ -----------
TOTAL ASSETS $ 796,896 $ 726,827
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
CURRENT LIABILITIES
Accounts payable $ 67,866 $ 134,147
Accrued expenses 501,396 347,940
Notes payable - related party 103,315 100,794
Notes payable 35,000 499,896
------------ -----------
Total Current Liabilities 707,577 1,082,777
------------ -----------
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock: 1,000,000 shares
authorized of $0.001 par value,
0 shares issued and outstanding - -
Common stock: 50,000,000 shares authorized
of $0.001 par value, 30,729,546 and
25,229,546 shares issued and outstanding,
respectively 30,730 25,230
Additional paid-in capital 7,371,738 6,209,794
Accumulated deficit (7,313,149) (6,590,974)
------------ -----------
Total Stockholders' Equity (Deficit) 89,319 (355,950)
------------ -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) $ 796,896 $ 726,827
============ ===========
ARADYME CORPORATION AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended
December 31,
2005 2004
----------- -----------
REVENUES $ 202,155 $ 26,800
----------- -----------
OPERATING EXPENSES
Wages and payroll taxes 733,366 403,175
Contract services 48,069 230,789
Rent 23,333 15,672
Depreciation and amortization 17,568 8,079
Other operating expenses 85,706 52,433
----------- -----------
Total Operating Expenses 908,042 710,148
----------- -----------
LOSS FROM OPERATIONS (705,887) (683,348)
----------- -----------
OTHER INCOME (EXPENSE)
Interest expense (16,288) (130,115)
----------- -----------
Total Other Expense (16,288) (130,115)
----------- -----------
NET LOSS $ (722,175)$ (813,463)
=========== ===========
BASIC LOSS PER SHARE $ (0.03)$ (0.03)
=========== ===========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 26,425,198 23,471,970
=========== ===========
ARADYME CORPORATION AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months Ended
December 31,
2005 2004
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (722,175) $(813,463)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation 17,568 8,079
Common stock issued for services - 96,000
Common stock issued for line of credit - 20,000
Warrants issued for line of credit - 107,787
Changes in assets and liabilities:
Decrease (Increase) in accounts receivable 96,905 (5,200)
Decrease (Increase) in prepaids 2,788 (18,382)
(Increase) in deposits - (21,580)
(Decrease) Increase in accounts payable
and accounts payable related party (66,279) 51,969
Increase (decrease) in accrued expenses 153,456 (15,696)
(Decrease) in interest payable (14,876) -
---------- ---------
Net Cash Used by Operating Activities (532,613) (590,486)
---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (37,839) (8,737)
---------- ---------
Net Cash Used by Investing Activities (37,839) (8,737)
---------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related-party notes payable 270,000 -
Payments on related-party notes payable (270,000) -
Proceeds from notes payable - 16,459
Payments on notes payable (247,500) (24,292)
Common stock issued for cash 1,000,000 550,000
Offering costs (32,557) -
---------- ---------
Net Cash Provided by Financing
Activities 719,943 542,167
NET (DECREASE) INCREASE IN CASH 149,491 (57,056)
CASH AT BEGINNING OF PERIOD 84,485 265,259
---------- ---------
CASH AT END OF PERIOD $ 233,976 $ 208,203
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