BarPoint.com Announces Results for Fourth Quarter and Fiscal Year Ended December 31, 2002; Also Announces Signing of Patent License Agreement.Business Editors/High-Tech Writers FORT LAUDERDALE Fort Lauderdale (lô`dərdāl), residential, commercial, and resort city (1990 pop. 149,377), seat of Broward co., SE Fla., on the Atlantic coast; settled around a fort built (c.1837) in the Seminole War, inc. 1911. , Fla.--(BUSINESS WIRE)--March 31, 2003 BarPoint.com (Nasdaq:BPNT), an online and wireless product information and shopping service provider and applications developer, has announced results for the fourth quarter and its fiscal year ended December 31, 2002. During the course of the year, the Company was issued U.S. Patent No. 6,430,554 for its "INTERACTIVE SYSTEM FOR INVESTIGATING PRODUCTS ON A NETWORK." The issued patent protects technology related to the utilization of unique identifiers With reference to a given (possibly implicit) set of objects, a unique identifier is any identifier which is guaranteed to be unique among all identifiers used for those objects and for a specific purpose. such as UPC (Universal Product Code) The standard bar code printed on retail merchandise, which is administered by GS1 US, Brussels, Belgium and Lawrenceville, NJ (www.gs1.org). numbers, barcodes, manufacturers' codes and other coded input to gather product-related information from a database and the Internet Internet Publicly 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 from both wired and wireless devices. This technology is underlying the core BarPoint product information and shopping service as well as other applications. In November 2002, BarPoint filed a 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. suit against Fullplay Media Systems, Inc. in the United States District Court for the Southern District of Florida The United States District Court for the Southern District of Florida (S.D.Fl.) is the federal district court covering the southern part of the state of Florida. The court's jurisdiction comprises the following counties: Broward, Dade, Highlands, Indian River, Martin, Monroe, . The suit was directed at the Fullplay product marketed as the "Interactive Merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. System" currently in use at FYE FYE For Your Entertainment FYE First Year Experience FYE Fiscal Year End FYE Funding Your Education FYE For Your Eyes (CSD-TV magazine) FYE For Your Enjoyment FYE Full Year Effect FYE First Year Enrichment FYE For Your Edification retail stores throughout the country. FYE is operated by Trans World Entertainment Trans World Entertainment Corporation is a chain of entertainment media retail stores in the United States. It currently operates over 800 freestanding and shopping mall-based stores under several brand names. Corporation. Trans World Trans World is an economic simulation game for the Commodore 64 published by Starbyte Software in 1990. The player takes control of a new trucking company and competes against up to either three other human or computer players to make the most money. was also named in the suit. BarPoint has announced that it has entered into a License Agreement with FullPlay Media Systems, and in conjunction with the signing of the agreement the lawsuit lawsuit: see procedure; tort. against FullPlay and Trans World Entertainment is scheduled to be dismissed. Fullplay subsequently filed bankruptcy in the United States The United States Constitution (Article 1, Section 8, Clause 4), authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." Congress has exercised this authority several times since 1801, most recently by adopting the Bankruptcy Reform Act of bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. , western district of Washington at Seattle. It has not been determined what effect, if any, such filing will have on the agreement. Also during the fiscal year ended December 31, 2002, BarPoint substantially completed the implementation of its restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan, including a substantial reduction in operating costs operating costs npl → gastos mpl operacionales as the Company continues to evaluate strategic alternatives for the future. There were no revenues for the fourth quarter of 2002 due to the fact that the Company had not generated any revenues from its core business and had licensed the Synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. Solutions software and sold all remaining scanning devices See scanner. prior to the fourth quarter. For the quarter ended December 31, 2001, net revenue was $197,347, Approximately 82% of revenue from the fourth quarter of 2001 was derived from BarPoint services and related sales of scanning devices; the remaining 18% of revenues for the quarter were from sales of software applications. Net revenue for the year ended December 31, 2002, was $449,777 as compared to $1,651,557 for the year ended December 31, 2001 The majority of revenues from 2002 and 2001 came from BarPoint services and related sales of scanning devices. The remaining revenues were derived from sales of Synergy software. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Jeffrey Sass, BarPoint President and 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. : "During fiscal 2002 we substantially reduced our 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. in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with our restructuring plans. We continue to explore various alternatives to maximize shareholder value, including the active pursuit of the sale of certain or all of the Company's principal operating assets Operating Assets Another term for working capital. . At the same time, we are pleased that our patent 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. against FullPlay Media Systems has resulted in a License Agreement with them, and we will continue to evaluate ways to leverage our intellectual property in the best interest of our Company and shareholders." The loss from operations for the quarter ended December 31, 2002 was $3,681,784 as compared to a loss from operations of $4,364,267 for the quarter ended December 31, 2001. The net loss for the quarter ended December 31, 2002 was $3,440,941, or $0.18 per share basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. as compared to net loss for the quarter ended December 31, 2001 of $5,040,155, or $0.29 per share basic and diluted. The net loss for the quarter ended December 31, 2002 included non-cash impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges related to fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → of approximately $2.2 million. In the fourth quarter of 2001 we incurred non recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. charges of approximately $2.1 million, including a $927,000 write down of our inventory of scanning devices, goodwill impairment of approximately $407,000 as well as restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of approximately $815,000 related to the streamlining of our business as outlined in the Company's restructuring plan. The loss from operations for year ended December 31, 2002, was $10,949,673 as compared to $18,031,005 for the year ended December 31, 2001 The net loss for the year ended December 31, 2002 was $10,071,454, or $0.54 per share basic and diluted as compared to net losses of $15,330,692 or $0.88 per share basic and diluted for the year ended December 31, 2001. It should be noted that the loss from operations for the year ended December 31, 2002 of $10,949,673 includes approximately $5.7 million of 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. consisting primarily of approximately $2.5 million of depreciation and amortization, $2.2 million of fixed asset impairment charges, approximately $474,000 of non-cash restructuring charges and $325,000 impairment of goodwill. During the year ended December 31, 2002, the Company significantly reduced operating expenses through the streamlining of its operations. The total decrease in cash from December 31, 2001 through December 31, 2002 was approximately $6.9 million. It is important to note however that approximately 65% or $4.5 million of those funds were returned to shareholders in the form of dividend payments and not utilized by the Company to fund its operations. In the year ended December 31, 2002 the Company had cash used in operating activities of approximately $2.5 million versus cash used in operating activities of approximately $7.9 million for the year ended December 31, 2001. The average monthly cash burn from operating activities for the year ended December 31, 2002 was approximately $206,000 as compared to $658,000 for the year ended December 31, 2001. The large reduction is attributable to the Company's execution of its restructuring plan from August 2001. "During the year we experienced continued softness in the wireless commerce marketplace and lack of widespread commercial adoption of mobile commerce services. We have made significant progress in continuing to reduce our operating expenses, including the termination of our long-term lease for our former Deerfield Beach Deerfield Beach, town (1990 pop. 46,325), Broward co., SE Fla., on the Atlantic coast; inc. 1925. The development of high-technology industry and commerce expanded the town and more than doubled its population between 1970 and 1990. headquarters. We will continue to aggressively explore strategic opportunities," stated Sass. To maintain low overhead and operating costs, the Company had a headcount of 7 as of the end of the year. In addition, the Company terminated all long-term real property lease obligations as of June 30, 2002 and has consolidated all offices into its new Fort Lauderdale, Florida Fort Lauderdale, known as the "Venice of America" due to its expansive and intricate canal system, is a city in Broward County, Florida, United States. The city's population is described as metropolitan, where diverse culture is commonplace. According to 2006 U.S. headquarters. The Company's lease at its Fort Lauderdale headquarters provides for a month-to-month term which is terminable ter·mi·na·ble adj. 1. Possible to terminate: terminable activities; terminable employees. 2. Terminating after a designated date: a terminable annuity. with 30 days notice by either party. As a result, the Company has substantially completed its restructuring program. The Company reiterates that business conditions in its primary markets continue to be soft, and visibility regarding the near-term and long-term opportunities in key areas such as wireless Internet adoption, mobile commerce, handheld software applications, consumer scanning, and Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. and promotion remains limited. Understanding the potential limitations of our business model in the current environment, the Company will continue to explore various strategic alternatives to maximize shareholder value, including the enforcement and licensing of our issued patent, the active pursuit of strategic opportunities for our mobile commerce and database technology platforms, pursuit of new business direction as well as the potential to sell some or all of our principal operating assets. About BarPoint.com BarPoint.com is an online and wireless product information and commerce platform as well as an applications developer and a pioneer in the use of unique product identifiers, such as the UPC barcode number, and patented "reverse-search" technology to simplify the process of finding meaningful product information. BarPoint.com is located at: 800 Corporate Drive, Suite 600, Fort Lauderdale, FL 33334. For information, contact BarPoint.com at: 954/492-4003 or via the web: http://www.barpoint.com. BarPoint.com's common stock is traded on NASDAQ under the symbol BPNT. This press 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. within the meaning 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, regarding the Company's business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These and other important factors, including the Company's ability to find acceptable strategic opportunities, sell certain or all of its principal operating assets, prosecute To follow through; to commence and continue an action or judicial proceeding to its ultimate conclusion. To proceed against a defendant by charging that person with a crime and bringing him or her to trial. and defend its patent, attract new customers, maintain the Company's relationships with strategic partners and acquire new strategic partners, the Company's ability to raise additional capital and other factors mentioned in various Securities and Exchange Commission filings made periodically by the Company, may cause the Company's actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company's expectations or future events. BarPoint, BarPoint.com and My BarPoint are trademarks or registered trademarks of BarPoint.com, Inc.
BarPoint.com, Inc. and Subsidiaries
(A Development Stage Company)
Consolidated Balance Sheets
ASSETS
December 31,
-----------------------
2002 2001
---------- -----------
CURRENT ASSETS
Cash and cash equivalents $5,727,207 $12,614,583
Marketable securities 179,162 468,444
Restricted investments - 1,500,000
Accounts receivable, net - 394,761
Inventories, net - 475,826
Prepaid expenses 206,249 332,788
Other current assets 128,725 152,300
---------- -----------
Total current assets 6,241,343 15,938,702
---------- -----------
PROPERTY AND EQUIPMENT 236,070 5,445,970
---------- -----------
OTHER ASSETS
Goodwill, net of accumulated amortization - 325,000
Other, net - 46,471
---------- -----------
Total other assets - 371,471
---------- -----------
TOTAL $6,477,413 $21,756,143
========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $447,291 $965,205
Dividends payable - 2,234,586
Income taxes payable 475,520 478,424
Current portion of obligations under capital
leases 201,054 144,451
---------- -----------
Total current liabilities 1,123,865 3,822,666
---------- -----------
OTHER LIABILITIES
Obligations under capital leases - 142,305
Other long-term liabilities - 112,500
---------- -----------
Total other liabilities - 254,805
---------- -----------
TOTAL LIABILITIES 1,123,865 4,077,471
---------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock: $.001 par value; authorized
5,000,000 shares; 3 shares issued and
outstanding - -
Common stock: $.001 par value; authorized
100,000,000 shares in 2002 and 2001; issued
and outstanding 18,642,599 in 2002 and
18,630,599 in 2001 18,643 18,631
Additional paid-in capital 34,434,892 34,433,089
Deferred stock-based compensation - (82,242)
Deficit accumulated during development stage (29,033,654) (16,726,528)
Accumulated other comprehensive (loss) income (66,333) 35,722
---------- -----------
Total stockholders' equity 5,353,548 17,678,672
---------- -----------
TOTAL $6,477,413 $21,756,143
========== ===========
See notes to consolidated financial statements
BarPoint.com, Inc. and Subsidiaries
(A Development Stage Company)
Consolidated Statements of Operations
Year Ended Year Ended
December 31, December 31,
----------- -----------
2002 2001
----------- -----------
Revenue
BarPoint Services and related sales $387,735 $1,248,978
Applications 62,042 402,579
----------- -----------
Total Revenue 449,777 1,651,557
Cost of sales 355,925 955,820
----------- ----------
Gross profit 93,852 695,737
----------- ----------
Operating Expenses:
Selling, general and administrative 7,420,835 14,804,577
Research and development - 703,874
Depreciation and amortization 2,469,281 2,402,796
Restructuring charges 1,153,409 815,495
----------- ----------
Total Operating Expenses 11,043,525 18,726,742
----------- ----------
Loss from operations (10,949,673) (18,031,005)
----------- ----------
Other Income:
Interest and other income 580,088 756,612
Net gains on sales of marketable securities 45,844 23,946
----------- ----------
Total Other Income 625,932 780,558
----------- ----------
Loss before income tax benefit (10,323,741) (17,250,447)
Income tax benefit 252,287 1,919,755
----------- ----------
Net loss $(10,071,454) $(15,330,692)
=========== ==========
Loss per common share--
Basic and Diluted $(0.54) $(0.88)
========== ==========
Weighted average common shares outstanding
- Basic and Diluted $18,634,431 $17,478,090
========== ==========
See notes to consolidated financial statements
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