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Sanswire: Sanswire Corp. Announces Second Quarter 2009 Results

^{Published on 2009-09-14 11:51:30 - Market Wire}
 

FORT LAUDERDALE, FL--(Marketwire - September 14, 2009) - Sanswire Corp. (OTCBB: [ SNSR ]) today announced that it has filed with the United States Securities & Exchange Commission its quarterly report on Form 10-Q for the quarter ended June 30, 2009.

For the quarter ended June 30, 2009, the Company reported a net loss of ($7,299,396), or ($0.04) per share, with no revenue, compared to a net loss of ($600,122), or ($0.01) per share, with no revenue for the quarter ended June 30, 2008.

The net loss for Q2 2009 is attributed to an operating loss during the quarter of ($4,394,118), compared to an operating loss of ($850,673) for Q2 2008, to interest-related expenses of ($698,705), compared to interest-related expenses of ($227,985) for Q2 2008, and to ($2,206,573) related to derivative financial instruments, compared to a slight gain from derivative financial instruments of $266,877 for Q2 2008.

Captain David Christian, CEO, Sanswire Corp., stated, "When I was appointed Chief Executive Officer this summer, I came on board fully aware of the potential Sanswire has to successfully penetrate the Unmanned Ariel Vehicle (UAV) market with our state of the art STS-111 airship. Our joint venture partners, TAO Corporation, teams of engineers and scientists have been working diligently and thoroughly on testing the airship's airborne systems in preparation for full operational flight. To date, our test results have proven to be very successful and we are encouraged by our continuing progress. In addition to the achievements we have made with our flight testing, our move to the Bulletin Boards this quarter will help us attract a more sophisticated and broader audience of individual and institutional investors, as well as increase our financing options and transparency in the investment community."

Captain Christian continued, "I have become more and more optimistic about Sanswire's future growth. Just recently there have been several initiatives put forth by our government to increase the use of, and the spending for, Unmanned Ariel Vehicles and I intend to take advantage of those opportunities. Sanswire will focus on building relationships in order to provide our national defense and law enforcement agencies with one of the most advanced UAVs on the marketplace, the STS-111. By building these kinds of relationships I am confident I can bring our product to market and truly reward all of our dedicated and committed shareholders."

Additionally, the Company announced that it would be restating its 2008 10-K and subsequent interim reports to account for gains and losses attributable to treating certain of its convertible debentures and warrants as derivatives. These comprise only non-cash gains and losses. The Company expects to provide these reports over the next several days.

Sanswire's Quarterly Report on Form 10-Q is available via its web site, [ www.sanswire.com ].

For more news and information on Sanswire please visit [ http://irgnews.com/coi/SNSR ] where you can find a fact sheet on the company, investor presentations, and more.

About Sanswire Corp.

Sanswire Corp. (OTCBB: [ SNSR ]) develops and provides an integrated suite of aerospace communications products and services, leveraging its relationships with leaders in UAV (Unmanned Aerial Vehicle) technologies. Sanswire Corp. is focused on the design and construction of various aerial vehicles, capable of carrying payloads that provide persistent surveillance and security solutions at various altitudes. For more information, visit [ www.sanswire.com ].

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, any of which could cause the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.

 SANSWIRE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS JUNE 30, 30-Dec-08 2009 (Restated) ============= ============= ASSETS (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 108,671 $ 4,809 Inventories 1,110,700 -- Current assets from discontinued operations 6,406 6,406 ------------- ------------- TOTAL CURRENT ASSETS 1,225,777 11,215 ------------- ------------- NONCURRENT ASSETS Intangible assets, net of accumulated amortization of $565,075 2,663,925 -- Investment in joint venture -- 3,229,000 Deposits 5,400 -- ------------- ------------- TOTAL NONCURRENT ASSETS 2,669,325 3,229,000 ------------- ------------- TOTAL ASSETS $ 3,895,102 $ 3,240,215 ============= ============= LIABILITIES AND STOCKHOLDERS' DEFICIT LIABILITIES CURRENT LIABILITIES Accounts payable (including $577,400 and zero due to joint venture partner at June 30, 2009 and December 31, 2008, respectively) $ 4,206,382 $ 3,802,777 Notes and convertible notes payable, net of discount of $95,707 and $134,423 9,213,351 9,264,732 Accrued expenses and other liabilities (including $2,185,000 due to joint venture partner at June 30, 2009 and December 31, 2008) 3,088,454 3,489,210 Fair value of derivative liabilities 2,884,398 748,244 Current liabilities from discontinued operations 1,387,406 1,387,406 ------------- ------------- TOTAL LIABILITIES 20,779,991 18,692,369 ------------- ------------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' DEFICIT Series E Preferred stock, $.001 par value, 100,000 shares authorized; 100,000 shares issued and outstanding 100 -- Additional paid-in capital - Series E Preferred stock 625,894 -- Common stock, $.00001 par value, 250,000,000 shares authorized; 224,683,775 and 184,704,015 shares issued and outstanding 2,248 1,848 Additional paid-in capital 115,538,605 109,848,580 Accumulated deficit (133,051,736) (125,302,582) ------------- ------------- TOTAL STOCKHOLDERS' DEFICIT (16,884,889) (15,452,154) ------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 3,895,102 $ 3,240,215 ============= ============= SANSWIRE CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 2009 2008 2009 2008 (Restated) (Restated) ============= ============= ============= ============= REVENUES $ -- $ -- $ -- $ -- COST OF REVENUES -- -- -- -- ------------- ------------- ------------- ------------- GROSS MARGIN -- -- -- -- ------------- ------------- ------------- ------------- EXPENSES Payroll and related taxes 142,902 158,664 260,336 531,035 Consulting fees 661,470 585,298 754,629 716,028 Officers' and directors' stock based compensation 2,900,530 52,500 2,900,530 337,500 Amortization 565,075 -- 565,075 -- General and administrative 124,141 54,211 245,632 164,004 ------------- ------------- ------------- ------------- TOTAL EXPENSES 4,394,118 850,673 4,726,202 1,748,567 ------------- ------------- ------------- ------------- LOSS FROM OPERATIONS (4,394,118) (850,673) (4,726,202) (1,748,567) ------------- ------------- ------------- ------------- OTHER INCOME (EXPENSE) Loss on extinguishment of debt -- -- -- (1,096,650) Extinguishment of derivative liabilities -- 211,611 -- 291,534 Change in fair value of derivative liabilities (2,206,573) 266,877 (2,136,154) (334,659) Interest expense, net (698,705) (227,985) (886,798) (437,521) ------------- ------------- ------------- ------------- NET OTHER INCOME (EXPENSE) (2,905,278) 250,503 (3,022,952) (1,577,296) ------------- ------------- ------------- ------------- LOSS FROM CONTINUING OPERATIONS (7,299,396) (600,170) (7,749,154) (3,325,863) GAIN (LOSS) FROM DISCONTINUED OPERATIONS -- 48 -- (196) ------------- ------------- ------------- ------------- NET LOSS $ (7,299,396) $ (600,122) $ (7,749,154) $ (3,326,059) ============= ============= ============= ============= WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC and DILUTED 205,852,582 140,369,224 195,688,165 136,715,497 ============= ============= ============= ============= LOSS PER SHARE FROM CONTINUING OPERATIONS BASIC and DILUTED ($ 0.04) ($ 0.01) ($ 0.04) ($ 0.02) GAIN/LOSS PER SHARE FROM DISCONTINUED OPERATIONS BASIC and DILUTED -- $ 0.00 -- ($ 0.00) ------------- ------------- ------------- ------------- NET LOSS PER SHARE BASIC and DILUTED ($ 0.04) ($ 0.01) ($ 0.04) ($ 0.02) ============= ============= ============= =============