BUGS Reports Record Breaking 2005 Financial Results; Total Revenues up 186%, Gross Profits up 205%, Net Losses Cut 25% from Prior Year.CARLSBAD Carlsbad, cities, United States Carlsbad (kärlz`băd). 1 City (1990 pop. 63,126), San Diego co., S Calif., on the Pacific coast; settled in the 1880s, inc. 1952. , Calif. -- U.S. Microbics, Inc., (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BUGSE) today announced audited financial results for fiscal year 2005 ended September September: see month. 30, 2005. BUGS CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Brehm commented, "BUGS made significant financial progress this year by reducing expenses while increasing revenue in our environmental clean-up clean-up n → nettoyage m clean-up clean n to give sth a clean-up → etw gründlich sauber machen clean-up n subsidiary, Sub-Surface Waste Management of Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). , Inc. (OTCBB:SSWM SSWM Surface and Storm Water Management ). We are fortunate to have loyal and seasoned employees and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. shareholders who support our continuing efforts and foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. the bright future we are building for ourselves in Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. with our approved remediation technology, excellent strategic partners and government leaders intent on attracting foreign investment, stimulating their local economies and creating more jobs by embracing pro-active pro·ac·tive or pro-ac·tive adj. Acting in advance to deal with an expected difficulty; anticipatory: proactive steps to prevent terrorism. environmental policies meeting international standards. Brehm continued, "These financial improvements have been no easy task to achieve as we continue to rely on debt, equity and project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. to continue our business development efforts, helping stimulate local economic growth in a healthier environment for the people of Mexico. The significant revenue increase in FY 2005 signifies financial validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. of our new international business model and sets the pace for major future growth and expansion for BUGS and SSWM. If we can obtain the growth financing needed to cover our overhead, continue the SSWM success in Mexico and fund our BI-AGRA(TM) agricultural products, I believe we can become a positive cash flow company, generating positive earnings for shareholders in FY 2006/2007." 2005 Financial Results Year Ended September 30, 2005, Compared to Year Ended September 30, 2004: The Company had revenues of $1,199,334 for fiscal year ended September 30, 2005, compared with revenues of $419,318 during the fiscal year ended September 30, 2004. This represents an increase in revenue for 2005 over 2004 of 186%. The Company incurred a net loss of $2,997,661 in the fiscal year ended 2005, compared to a net loss of $4,041,046 in the fiscal year ended 2004. The loss incurred in fiscal 2005 was approximately 25.8% less than that of 2004. Selling, general and administrative ("SG&A") expenses for the fiscal year ended 2005 totaled $3,707,426 compared to $4,937,649 in the fiscal year ended 2004. SG&A expenses decreased in 2005, 24.9% over SG&A expenses in 2004. SG&A expenses consisted of accounting, legal, consulting, public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most , subsidiary startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. and organization and fund raising expenses. SG&A expenses also included non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. from the issuance of stock in the amounts of $1,101,820 for fiscal year 2005 and $695,212 for the fiscal year ended 2004, a year-to-year increase of $406,608. In addition, the company issued common stock for compensation of $25,500 in fiscal 2005 and $104,800 in 2004. Depreciation expense for 2005 and 2004 were $59,659 and $45,692, respectively. The remaining SG&A expenses which required cash amounted to approximately $2,918,484 for the fiscal year ended 2005 and $4,137,637 for the fiscal year ended 2004. The Company used stock in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. cash to conserve its cash resources. Interest expense for the fiscal year ended 2005 was $133,198, compared to $169,361 for fiscal year 2004. The decrease in interest expense of $36,163 was due primarily to a decrease in outstanding notes payable. As a result of the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. expenses, the net loss for fiscal 2005 was $2,997,661, compared to $4,041,046 for the fiscal year ended 2004. This represents a decrease in the net loss for 2005 over 2004 of $1,043,385, or a 25.8% decrease. Net loss per share decreased to a net loss per share of $0.017 in the fiscal year ended 2005 from a net loss per share of $0.031 in the fiscal year ended 2004. The decrease in the net loss per share was due to the increase in weighted average common shares outstanding to 173,078,669 as of September 30, 2005, from 128,711,681 as of September 30, 2004. Liquidity and Capital Resources Cash and cash equivalents totaled $108,498 on September 30, 2005, compared to $38,699 for the prior fiscal year ended September 30, 2004. During the fiscal year ended 2005, net cash used by operating activities totaled $(1,946,995) compared to $(2,338,515) for the fiscal year ended 2004. Operating activities included payments for accounting, legal fees and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. . Net cash provided by financing activities for the fiscal year ended 2005 totaled $2,041,206, compared to $2,351,793 for the prior fiscal year. In 2004, the Company raised funds by issuing stock under the Employee Stock Option Plan of $586,196, by a subsidiary Employee Stock Option Plan of $114,750, and from proceeds of notes payable of $1,060,043. In 2005, the Company raised funds by issuing stock under the Employee Stock Option Plan of $596,000, by a subsidiary Employee Stock Option Plan of $526,926, by proceeds from notes payable of $161,690, and by issuance of common stock of $140,000. Net working capital (current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. less current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. ) was a negative $1,381,177 as of September 30, 2005, and negative $1,609,690 as of September 30, 2004. Negative working capital decreased by $228,513, or 14.2%, from fiscal 2005 to 2004. Total Shareholders' deficit increased to $6,450,519 during the fiscal year ended 2005 from $5,223,835 for the fiscal year ended 2004, or an increase of $1,226,684. The increase was the result of a net loss of approximately $2,997,661 less increases resulting from issuance of common stock and stock options in exchange for services of $577,739, issuance of common stock and stock options in settlement of notes payable and accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. of $40,579, issuance of common stock and stock options for employee compensation of $25,500, issuance of common stock in private placement and through equity and other increases net of $140,000. A financial recap re·cap 1 tr.v. re·capped, re·cap·ping, re·caps 1. To replace a cap or caplike covering on: recapped the bottle. 2. of results for FY 2005, 2004 and 2003 are shown in the following table:
BUGS Audited 2005-2004 % %
Financial Results % Change 2005 Rev 2004 Rev
Revenue 186.0% $1,199,334 100% $419,318 100%
Cost of Rev 176.4% $769,569 64% $278,449 66%
Gross profit 205.1% $429,765 36% $140,869 34%
SG & A -24.9% $3,707,426 309% $4,937,649 1178%
Depreciation 30.6% $59,659 5% $45,692 11%
Total operating
expenses -24.4% $3,767,085 314% $4,983,341 1188%
Loss from Operations -31.1% -$3,337,320 -278% -$4,842,472 -1155%
Other Income/expense
Interest Income -43.9% $2,010 0% $3,580 1%
Interest Expense -21.4% -$133,198 -11% -$169,361 -40%
Loss on Sale of
Assets
Realized Gain on
Sale of Security $7,063
Total other -17.3% -$131,188 -11% -$158,718 -38%
Net Loss Before
Taxes and
Discontinued
Operations -30.6% -$3,468,508 -289% -$5,001,190 -1193%
Minority Interest in
Earnings of
Consolidated
Subsidiaries -51.0% $470,847 39% $960,144 229%
Net Loss Before
Income taxes -25.8% -$2,997,661 -250% -$4,041,046 -964%
Income Tax Expenses $0 $0
Net Loss -25.8% -$2,997,661 -250% -$4,041,046 -964%
Net Loss Per Common
Share (Basic and
Diluted) -44.8% -$0.017 -$0.031
Weighted Average
Shares Outstanding 173,078,669 128,711,681
Balance Sheet
Current Assets 8.9% $549,641 $504,514
Fixed Assets -19.5% $145,153 $180,401
Other Assets 203.5% $72,373 $23,844
Total Assets 8.2% $767,167 $708,759
Current Liabilities -8.7% $1,930,818 $2,114,203
Long-Term
Liabilities $0 $0
Total Liabilities -8.7% $1,930,818 $2,114,203
Minority Interest 38.5% $5,286,868 $3,818,391
Total Stockholders
Equity 23.5% -$6,450,519 -$5,223,835
Total Liabilities
and Stockholder
Equity 8.2% $767,167 $708,759
Net Working Capital -14.2% -$1,381,177 -$1,609,689
%
BUGS Audited Financial Results 2003 Rev
Revenue $568,607 100%
Cost of Rev $312,184 55%
Gross profit $256,423 45%
SG & A $4,395,610 773%
Depreciation $49,464 9%
Total operating expenses $4,445,074 782%
Loss from Operations -$4,188,651 -737%
Other Income/expense
Interest Income $6,672 1%
Interest Expense -$79,588 -14%
Loss on Sale of Assets -$12,216
Realized Gain on Sale of Security
Total other -$85,132 -15%
Net Loss Before Taxes and Discontinued Operations -$4,273,783 -752%
Minority Interest in Earnings of Consolidated
Subsidiaries $194,202 34%
Net Loss Before Income taxes -$4,079,581 -717%
Income Tax Expenses $0
Net Loss -$4,079,581 -717%
Net Loss Per Common Share (Basic and Diluted) -$0.05
Weighted Average Shares Outstanding 81,099,423
Balance Sheet
Current Assets $529,867
Fixed Assets $84,112
Other Assets $28,402
Total Assets $642,381
Current Liabilities $1,853,751
Long-Term Liabilities $20,290
Total Liabilities $1,874,041
Minority Interest $484,995
Total Stockholders Equity -$1,716,655
Total Liabilities and Stockholder Equity $642,381
Net Working Capital -$1,323,884
The consolidated financial data above has been derived from the Company's Financial Statements for the periods ending 2003, 2004 and 2005 as shown. For additional information and a discussion of risk factors, please see BUGS's current 10-Q and past 10-K reports at www.sec.gov . About U.S. Microbics, Inc. U.S. Microbics is a business development and holding company that acquires, develops and deploys innovative environmental technologies for soil, groundwater and carbon remediation, air pollution reduction, modular drinking water drinking water supply of water available to animals for drinking supplied via nipples, in troughs, dams, ponds and larger natural water sources; an insufficient supply leads to dehydration; it can be the source of infection, e.g. leptospirosis, salmonellosis, or of poisoning, e.g. systems and agriculture enhancement. For more information on the company, contact Robert Brehm at 760-918-1860 x102 or visit the website at www.bugsatwork.com. The information contained in this press release includes 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 usually contain the words "estimate," "anticipate," "believe," "expect" or similar expressions that involve risks and uncertainties. These risks and uncertainties include the company's status as a startup company The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. with uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments and protection of its intellectual property. The company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial or Plan of Operation" and other sections of the company's Form 10-KSB and other publicly available information regarding the company on file with the Securities and Exchange Commission. The company will provide you with copies of this information upon request. |
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