InkSure Technologies Releases 2008 Results
Although total revenues decreased 25% to
Revenues for the year decreased by
Operating Loss for the year was reduced by 13% reaching
Net Loss for the year totaled
The company ended 2008 with
About InkSure Technologies Inc.
InkSure Technologies Inc., with its corporate headquarters in
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Although InkSure (the "Company") believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. Important factors that could cause actual results to differ materially from the forward-looking statements include the Company's need to obtain substantial additional capital (through financings or otherwise) to fund its operations, the progress of development, government and regulatory approvals and licensing/commercialization of the Company's technologies, and other factors noted in the Company's periodic report filings with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
INKSURE TECHNOLOGIES INC. AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEET U.S. dollars in thousands (except share and per share data) DEC 31, DEC 31, 2008 2007 AUDITED AUDITED ASSETS CURRENT ASSETS: Cash and cash equivalents $1,826 $820 Restricted Cash 365 - Trade receivables 104 453 Other accounts receivable and prepaid expenses 73 225 Deferred charges 400 385 Inventories 322 399 TOTAL CURRENT ASSETS 3,090 2,282 PROPERTY AND EQUIPMENT, NET 279 352 GOODWILL - 271 LONG TERM DEPOSIT 9 17 TOTAL ASSETS $3,378 $2,922 LIABILITIES AND STOCKHOLDERS' DEFICIENCY CURRENT LIABILITIES: Trade payables $225 $284 Employees and payroll accruals 133 204 Accrued expenses and other payables 648 362 Convertible notes, net 7,087 5,691 TOTAL CURRENT LIABILITIES 8,093 6,541 Commitments and other contingent liabilities - - TOTAL LIABILITIES 8,093 6,541 STOCKHOLDERS' DEFICIENCY: Capital Stock : Preferred stock of $0.01 par value - Authorized: 10,000,000 shares; Issued and outstanding: 0 shares as of December 31, 2008 (0 shares as of December 31, 2007) - - Common stock of $0.01 par value - Authorized: 50,000,000; Issued and outstanding: 16,472,968 shares as of December 31, 2008 (15,972,688 shares as of December 31, 2007) 164 161 Additional paid-in capital 16,708 14,279 Accumulated other comprehensive income 118 118 Accumulated deficit (21,705) (18,177) TOTAL STOCKHOLDERS' DEFICIENCY (4,715) (3,619) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY $3,378 $2,922 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands (except share and per share data) Year ended December 31 2008 2007 Revenues $2,158 $2,890 Cost of revenues 504 1,108 Gross profit 1,654 1,782 Operating expenses: Research and development, net 1,747 1,308 Selling and marketing 912 1,678 General and administrative 908 1,294 Impairment of Goodwill 271 - Total operating expenses 3,838 4,280 Operating loss (2,184) (2,498) Financial income (expense), net (462) (209) Financial income (expenses) related to convertible notes (882) (316) Total financial income (expenses), net (1,344) (525) Net loss before taxes (3,528) (3,023) Taxes on income - (55) Net loss $(3,528) $(3,078) Basic and diluted net loss per share $(0.21) $(0.19) Weighted average number of Common stocks used in computing basic and diluted net loss per share 16,383,487 15,912,774 INKSURE TECHNOLOGIES INC. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands (except share and per share data) Year ended December 31 2008 2007 Cash flows from operating activities: Net loss $(3,528) $(3,078) Adjustments required to reconcile net loss to net cash used in operating activities: Depreciation and amortization 305 236 Increase in restricted cash balances (365) - Capital loss from sale of property - (1) Decrease (increase) in trade receivables 350 (209) Non cash financial income related to convertible notes, net 670 173 Increase in other accounts receivable and prepaid expenses 152 212 Decrease in inventories 77 107 (Decrease) increase in trade payables (59) 56 Increase (decrease) in employees and payroll accruals (72) 60 Non cash financial expenses related to implementation of SFAS No. 123 (R) 159 536 Amortization of Goodwill 271 - Increase in accrued expenses and other payables 286 170 Net cash used in operating activities (1,755) (1,738) Cash flows from investing activities: Purchase of property and equipment (22) (102) Proceeds from sales of property - 5 Proceeds from short-term bank deposits 8 1,992 Net cash provided from (used in) investing activities (14) 1,895 Cash flows from financing activities: Exercise of options to Common Stock - 127 Exercise of warrants to Common Stock - 133 Issuance of convertible notes, net 2,775 - Net cash provided by financing activities 2,775 260 Increase in cash and cash equivalents 1,006 417 Cash and cash equivalents at the beginning of the year 820 403 Cash and cash equivalents at the end of the year $1,826 $820
Company Contact: Don Taylor, General Manager, InkSure Inc. +1-954-772-8507 firstname.lastname@example.org
SOURCE InkSure Technologies, Inc.