Borealis announces fourth quarter results.INCLINE VILLAGE, Nev.--(BUSINESS WIRE)--Jan. 30, 1997--Borealis(TM) Technology Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BRLS BRLS Bachelor of Recreation and Leisure Studies ) today reported operating results for the fourth quarter and twelve months ending December 31, 1996. Revenues for the fourth quarter of 1996 were $25,260, down from $76,246 for the comparable quarter of 1995. Net loss for the fourth quarter of 1996 was $(2,045,498) or $(0.64) per share on 3,184,506 weighted average shares outstanding, compared to a net loss of $(311,997) or $(0.45) per share on 690,944 weighted average shares outstanding for the comparable quarter of 1995. Revenues for the twelve months ended December 31, 1996 were $176,941, compared with $736,152 for the comparable period in 1995. Net loss for the twelve months ending December 31, 1996 was $(6,027,081) or $(3.11) per share on 1,935,984 weighted average shares outstanding, compared to a net loss of $(592,792), or $(0.86) on 690,944 weighted average shares outstanding for the comparable period in 1995. The decrease in revenues and net income between the fourth quarter and the twelve months ended December 31, 1996 and 1995 was primarily due to the Company's ceasing sales of prior products in order to focus its development and sales and marketing efforts on its new sales force automation Automating the sales activities within an organization. A comprehensive SFA package provides such functions as contact management, note and information sharing, quick proposal and presentation generation, product configurators, calendars and to-do lists. product, Arsenal. In order to facilitate its development of Arsenal and expansion of the Company's sales and marketing efforts, the Company completed an initial public offering of 2,000,000 shares of its common stock in June of 1996, receiving net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $8,352,400. Additionally, in July of 1996, the Company sold an additional 291,050 shares of common stock pursuant to the exercise of an over-allotment option granted by the Company to the underwriter of its initial public offering. After deducting underwriter's discounts and offering expenses, the Company received net proceeds of $1,237,172 from the exercise of the over-allotment. About Arsenal from Borealis Arsenal from Borealis is designed to be a fully customizable, enterprise-wide, sales automation application to meet the constantly evolving needs of mobile sales people, and the I/T I/T Inner Tank organizations that support them. Arsenal's flexible software technology is designed to enable a phased implementation strategy that takes the complexity and risk out of sales automation projects. "Arsenal is currently in beta test with several large customer sites and with members of Borealis' Solution Provider network," said Curtis Faith, Borealis' chairman. "As a result, we have been able to get very valuable feedback on the product." Greg Silence, a partner at the Solution Provider firm of Charles H. Mack and Associates commented, "This (Arsenal) is one of the most solid beta products I've ever seen. We expect Arsenal will provide many of our customers with the flexibility they are looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. when implementing sales automation solutions." Headquartered in Incline Village, Nevada, and founded in 1988, Borealis Technology Corporation is a leading innovator of rapidly deployable and customizable SFA See sales force automation. SFA - Sales Force Automation solutions. Borealis can be reached at 888-4-ARSENAL or on the worldwide web at www.brls.com r -0-
The preceding statements contain forward looking statements which
involve risks and uncertainties, including but not limited to those
statements involving the success of Arsenal Beta testing and the
successful introduction and market acceptance of Arsenal. Actual
results could differ materially from those anticipated in such
forward looking statements as a result of certain factors including,
but not limited to, the successful and timely development of Arsenal,
the market acceptance of Arsenal and the Company's ability to achieve
profitability.
Borealis and Arsenal are trademarks of Borealis Technology
Corporation. All trademarks are the property of the respective
owners.
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BOREALIS TECHNOLOGY CORPORATION CONDENSED STATEMENTS OF OPERATIONS Three Months Ended Twelve Months Ended December 31, December 31, 1996 1995 1996 1995 Total revenues $ 25,260 $ 76,246 $ 176,941 $ 736,152 Cost of revenues 7,567 28,857 66,140 214,325 Gross profit 17,693 47,389 110,801 521,827 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. 2,118,461 341,749 6,183,414 1,085,472 Loss from operations (2,100,768) (294,360) (6,072,613) (563,645) Interest income (expense) 55,270 (17,637) 45,532 (29,147) Net loss $ (2,045,498) $(311,997) $(6,027,081) $ (592,792) Net loss per common and common share equivalent $ (0.64) $ (0.45) $ (3.11) $ (0.86) Weighted average common and common equivalent shares outstanding 3,184,506 690,944 1,935,984 690,944 -0- BOREALIS TECHNOLOGY CORPORATION CONDENSED BALANCE SHEETS December 31, December 31, 1996 1995 ASSETS 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. : Cash and cash equivalents $ 3,921,506 $ 158,840 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying 2,000 36,188 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 136,073 7,080 Total current assets 4,059,579 202,108 Long term investment 650,000 --- Property and equipment, net 856,653 128,989 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 40,850 --- Total assets $ 5,607,082 $ 331,097 LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. (DEFICIT) 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. : Accounts payable $ 258,377 $ 82,310 Accrued employee compensation 298,492 75,218 Notes payable to stockholder --- 221,311 Other current liabilities Other Current Liabilities A balance sheet entry used by companies to group together current liabilities that are not assigned to common liabilities such as debt obligations or accounts payable. 320,739 198,178 Total current liabilities 877,608 577,017 Long-term obligations 738,800 353,628 Total liabilities 1,616,408 930,645 Stockholders' equity (deficit): Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , $.001 par value: Authorized shares - 5,000,000 Issued and outstanding - none Common stock, $.001 par value: Authorized shares - 10,000,000 Issued and outstanding shares - 3,184,506 and 651,658 at December 31, 1996 and December 31, 1995, respectively 3,185 652 Additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements 10,777,241 162,471 Accumulated deficit (6,789,752) (762,671) Total stockholders' equity (deficit) 3,990,674 (599,548) Total liabilities and stockholders' equity (deficit) $ 5,607,082 $ 331,097 CONTACT: BOREALIS TECHNOLOGY CORPORATION Elizabeth J. Gasper gasp·er n. Chiefly British Slang A cigarette. , 702/832-0300 egasper@brls.com or WOLFE AXELROD ASSOCIATES Stephen D. Axelrod, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. Joel Herskovits Susan T. Bolen (Media) 212-370-4500, 212-370-4500 fax e-mail: 76015.440@compuserve.com |
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