Bingo.com Announces Fourth Quarter and Year End Results.ANGUILLA Anguilla (ăng-gwĭl`ə), island and British dependency (2005 est. pop. 13,300) 35 sq mi (91 sq km), West Indies, northernmost of the Leeward Islands. The capital is the town of The Valley. , British West Indies British West Indies: see West Indies; West Indies Federation. -- Bingo.com, Ltd. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BNGOF), operator of the World's Largest Bingo Hall, today announced its financial results for the fourth quarter and year end December December: see month. 31, 2005. All amounts are presented in United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. dollars and 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 United States Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Highlights of the 2005 fiscal year included: - Revenue increased to $1,981,061, an increase of 71% over revenue of $1,158,620 in 2004 - Fourth quarter revenue increased to $654,438, an increase of 41% over revenue of $465,733 in the third quarter of 2005 - Fourth quarter gaming revenue increased to $353,348, an increase of 79% from third quarter gaming revenue of $197,873 - 2005 Net profit of $120,790 "2005 was a landmark A structure that has significant historical, architectural, or cultural meaning and that has been given legal protection from alteration and destruction. Although landmark preservation laws vary by city and state, they have the same basic purpose: to keep landmarks as close year for Bingo.com," stated Tarrnie Williams, the Company's 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. . "Our online gaming See gaming. strategy was successfully implemented and has recorded strong growth since its initial launch. With our reduced reliance on advertising revenue, Bingo.com is now in a position to increase its marketing efforts and drive significant traffic into the cash games. We expect 2006 to be a record year for online bingo Online bingo is the game of bingo (US|UK) played on the Internet. Online bingo is a multi billion dollar business. Unlike balls used in regular bingo halls, online bingo sites use a random number generator. and Bingo.com." Bingo.com, Ltd. (the "Company") ended the 2005 fiscal year with total revenue of $1,981,061, an increase of 71% over the previous year's revenue of $1,158,620. Revenue for the fourth quarter of 2005 increased to $654,438 from $465,733 in the third quarter of 2005 and $389,921 in the fourth quarter of 2004. During the year ended December 31, 2005, we introduced traditional bingo for cash to our players. Our revenue from the cash bingo gaming operations amounted to $594,582 for the year ended December 31, 2005. Of the $654,438 in revenue for the quarter, the cash bingo operations provided revenue of $353,348, an increase of 79% from revenue of $197,873 in the third quarter of 2005. This increase is due to an increase in the number of cash bingo players. Advertising Revenue increased to $1,386,479 for the year ended December 31, 2005, an increase of 20% over revenue of $1,158,620 for the same period in the prior year. The Company earned advertising revenue of $301,090 in the fourth quarter of 2005, an increase of 12% from advertising revenue of $267,860 in the third quarter of 2005. The Company's advertising revenue was earned from the sale of advertising on its Web portal See portal. , www.bingo.com, which experienced strong traffic throughout the year. Operating costs operating costs npl → gastos mpl operacionales before interest, depreciation and amortization expenses increased in 2005 to $1,409,739, from $692,952 for the prior year, an increase of 103%. Operating costs before interest, depreciation and amortization expenses were $479,781 for the quarter ended December 31, 2005, an increase of 96% compared to costs of $244,628 for the same period in the prior year and an increase of 45% compared to costs of $329,936 in the third quarter of 2005. The increase in operating costs compared to the prior year is primarily due to the commencement of the cash bingo operations during the 2005 fiscal year, especially incentive bonuses used in player acquisition and customer relations staff. Interest, depreciation and amortization totaled $48,160 and $8,066 for the year and quarter ended December 31, 2005, respectively, compared to $341,576 and $7,615 for the year and quarter ended December 31, 2004, respectively. The 85% decrease in interest, depreciation and amortization for the 2005 fiscal year is due to the conversion of both Debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. A and Debenture B into shares of the Company during the year ended December 31, 2005. The Company ended the 2005 fiscal year with a net income of $120,790, or $0.00 per share, an improvement compared to a net loss of $71,640, or $0.00 per share for the prior fiscal year. The net income for the quarter ended December 31, 2005 amounted to $40,095 a 37% decrease over the net income of $63,591 for the same period in the prior year. This decrease in net income is due to the increased costs incurred in the commencement of gaming operations during the 2005 financial year. About Bingo.com Bingo.com, Ltd. operates the popular web portal www.bingo.com offering free games This article is about Free games. For other uses, see Free games (disambiguation). Free games are video games which are free software and contain exclusively free content. Because of this they are freely distributable and often cross-platform compatible. including multiplayer bingo, video poker Video poker is a casino game based on five-card draw poker. It is played on a computerized console which is a similar size to a slot machine. History Video poker first became commercially viable when it became economical to combine a television-like monitor with a , sweepstakes sweepstakes, contest or race, usually a horse race, on which a lottery is run. Prizes are awarded to the holders of winning tickets. In the case of a horse race, the draw is made from the names of all the horses entered in the race and vast numbers of blanks. , slot machines, and more. With over 1,500,000 registered users and more than 800 new users everyday, www.bingo.com is one of the most recognized and most visited Bingo entertainment destinations on the web. 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 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for 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. . Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc anticipated future success of the company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. Specifically, readers should read the Company's Annual Report on Form 10-KSB, filed with the SEC on March 29, 2006, and the prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. filed under Rule 424(b) of the Securities Act on March 9, 2005, for a more thorough discussion of the Company's financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Bingo.com, Ltd. BINGO.COM, LTD. (Formerly Bingo.com, Inc.) Consolidated Balance Sheets -------------------------------------------------------------------- December 31, 2005 2004 -------------------------------------------------------------------- Assets Current assets: Cash $ 1,071,088 $ 74,032 Accounts receivable 166,540 56,588 Inventory 559 864 Prepaid expenses 102,040 19,083 -------------------------------------------------------------------- Total Current Assets 1,340,227 150,567 Equipment, net (Note 3) 96,273 118,933 Other assets 17,310 7,659 Domain name rights and intangible assets (Note 4) 1,284,842 1,294,730 Deferred tax asset, less valuation allowance of $1,004,060 (2004 - $3,140,726) (Note 8) - - -------------------------------------------------------------------- Total Assets $ 2,738,652 $ 1,571,889 -------------------------------------------------------------------- -------------------------------------------------------------------- Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 487,226 $ 466,864 Accrued liabilities 64,657 74,319 Accounts payable and accrued liabilities - related party (Note 9) 71,237 119,260 Unearned revenue 135,252 115,500 -------------------------------------------------------------------- Total Current Liabilities 758,372 775,943 Long term loan payable - related party (Note 9) 9,403 157,042 -------------------------------------------------------------------- Total Liabilities 767,775 932,985 -------------------------------------------------------------------- Commitments (Note 7) Stockholders' equity (Note 6): Common stock, no par value, unlimited shares authorized, 26,775,903 shares issued and outstanding (December 31, 2004 - 24,399,086) 11,284,281 10,095,698 Stock options exercised - subscription shares 22,600 - Accumulated deficit (9,360,584) (9,481,374) Accumulated other comprehensive loss: Foreign currency translation adjustment 24,580 24,580 -------------------------------------------------------------------- Total Stockholders' Equity 1,970,877 638,904 -------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 2,738,652 $ 1,571,889 -------------------------------------------------------------------- -------------------------------------------------------------------- See accompanying notes to consolidated financial statements. BINGO.COM, LTD. (Formerly Bingo.com, Inc.) Consolidated Statements of Operations -------------------------------------------------------------------- Years ended December 31, 2005 2004 -------------------------------------------------------------------- Advertising revenue $ 1,386,479 $ 1,158,620 Cash bingo revenue 594,582 - -------------------------------------------------------------------- Total revenue 1,981,061 1,158,620 Cost of producing revenue 485,419 245,594 -------------------------------------------------------------------- Gross profit 1,495,642 913,026 -------------------------------------------------------------------- Operating expenses: Depreciation and amortization 45,942 26,347 General and administrative 421,162 213,766 Salaries, wages, consultants and benefits 532,654 400,521 Selling and marketing 429,255 51,452 -------------------------------------------------------------------- Total operating expenses 1,429,013 692,086 -------------------------------------------------------------------- Income before other income (expense) and taxes 66,629 220,940 Other income (expense): Foreign exchange losses (25,296) (27,213) Gain on settlement of debt 60,482 42,933 Loss on disposal of equipment (1,372) - Interest expense (2,218) (55,406) Interest expense - warrants - (259,823) Interest income 12,662 6,879 Other income 9,903 50 -------------------------------------------------------------------- Income (loss) before income taxes 120,790 (71,640) Income tax expense - - -------------------------------------------------------------------- Net income (loss) $ 120,790 $ (71,640) -------------------------------------------------------------------- Net income (loss) per common share, basic (Note 2) $ 0.00 $ (0.00) Net income (loss) per common share, diluted (Note 2) $ 0.00 $ (0.00) -------------------------------------------------------------------- Weighted average common shares outstanding, basic (Note 2) 26,066,441 20,183,438 Weighted average common shares outstanding, diluted (Note 2) 29,447,967 20,183,438 -------------------------------------------------------------------- See accompanying notes to consolidated financial statements. BINGO.COM, LTD. (Formerly Bingo.com, Inc.) Consolidated Statements of Cash Flows -------------------------------------------------------------------- Years ended December 31, 2005 2004 -------------------------------------------------------------------- Cash flows from operating activities: Net income (loss) $ 120,790 $ (71,640) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 45,942 26,347 Gain on settlement of debt (60,482) (42,933) Amortization of warrants - debenture discount - 259,823 Loss on disposal of equipment 1,372 - Changes in operating assets and liabilities: Accounts receivable (109,952) 10,986 Prepaid expenses (82,957) (4,854) Inventory 305 (201) Other assets (9,651) 3,138 Accounts payable and accrued liabilities 23,159 (80,771) Unearned revenue 19,752 90,989 -------------------------------------------------------------------- Net cash (used in) provided by operating activities (51,722) 190,884 Cash flows from investing activities: Acquisition of equipment (14,976) (90,146) Acquisition of intangible asset - (49,436) Proceeds on disposal of equipment 210 - -------------------------------------------------------------------- Net cash used in investing activities (14,766) (139,582) Cash flows from financing activities: Exercise of warrant "B" 145,000 - Exercise of stock options 38,833 22,500 Exercise of stock options - subscription shares 22,600 - Private Placement 1,004,750 - Repayment of loans and notes payable (147,639) (33,816) -------------------------------------------------------------------- Net cash provided by (used in) financing activities 1,063,544 (11,316) -------------------------------------------------------------------- Net increase in cash 997,056 39,986 Cash, beginning of year 74,032 34,046 -------------------------------------------------------------------- Cash, end of year $ 1,071,088 $ 74,032 -------------------------------------------------------------------- Supplementary information: Interest paid $ 2,218 $ 2,662 Income taxes paid $ - $ - -------------------------------------------------------------------- See accompanying notes to consolidated financial statements. Bingo.com, Ltd. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :BNGOF) |
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