MARINA DEL REY, Calif., Nov. 14 /PRNewswire-FirstCall/ -- Leading
online media and search marketing firm InfoSearch Media, Inc.
(OTC:ISHM) (BULLETIN BOARD: ISHM) today announced financial results
for its third quarter ended September 30, 2005. For the third
quarter, InfoSearch reported revenue of $2.7 million, compared to
$1.2 million for the third quarter ended September 30, 2004, an
increase of 131 percent. In accordance with generally accepted
accounting principles (GAAP), InfoSearch reported a profit of $0.1
million, or $0.00 per share (basic and diluted) for the third
quarter, compared to a net loss of $(1.1 million), or $(0.03) per
share (basic and diluted) for the third quarter ended September 30,
2004. The net profit for the third quarter of 2005 included
non-cash equity compensation expenses in the amount of $247,367
related to options and restricted stock grants provided to
consultants, members of the Board of Directors and employees.
InfoSearch implemented several important changes during the third
quarter and continued to build on its two product lines,
ContentLogic and ArticleInsider. For ContentLogic customers,
InfoSearch launched a month-to- month content licensing program and
made changes to the cost structure which are expected to improve
both cash flow and revenue recognition. On the personnel side,
Claudio Pinkus and George Lichter joined InfoSearch as Chairman and
CEO, respectively. Both previously held senior positions at
AskJeeves. Steve Lazuka, InfoSearch Media's former CEO remains on
the Board of Directors and assumed the role of Chief Strategy
Officer. "We are pleased to have managed InfoSearch to its first
profitable quarter and believe that the changes we have been making
to the business model will lay a stronger foundation for future
growth," said George Lichter, CEO of InfoSearch. "InfoSearch is
better positioned and expects benefit from the secular market
increase towards online marketing and advertising," he concluded.
About InfoSearch Media InfoSearch Media
(http://www.infosearchmedia.com/) helps businesses succeed on the
web by implementing content-based solutions that can simultaneously
increase online search engine rankings and website sales
performance. Priced for the small and medium sized business,
Infosearch Media drives website performance through its two
products: ContentLogic and ArticleInsider. ContentLogic is targeted
content developed by InfoSearch Media and implemented directly on
our client's website. Utilizing sophisticated content and keywords
analytics, ContentLogic provides new customers to the website
through improved search engine rankings. Upon arriving on our
client's website, our content solution provides an information
appropriate environment engineered to stimulate a sale. InfoSearch
Media offers this product primarily on a month-to-month leasing
plan. Many small business owners prefer the month-to-month plan
which provides lower upfront cost without a long term commitment.
ArticleInsider is for clients who want to provide increased and
improved traffic to their existing website in the form of highly
qualified leads. Unlike ContentLogic, this product is not
implemented on the client's website, but rather on InfoSearch
Media's http://www.articleinsider.com/ website. Using the same
InfoSearch content and keyword analytics, this product is written
in the form of a general informational article, focused on the
customer's business topic. Our clients sponsor a prominent link on
that page, achieve significantly higher click-through rates than
industry averages and pay in the now traditional cost per click
method. Between ContentLogic and ArticleInsider, InfoSearch Media
currently has over 5,000 clients, primarily small and medium sized
business but also large companies such as Netflix, Newegg.com,
Pitney Bowes, Cardservice International and Price.com, among
others. Safe Harbor Statement This release contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, including, without limitation, those
statements regarding the expected closing of the private placement
financing. Such statements speak only as of the date of this
release, and we will not necessarily provide updates of our
projections or other forward-looking statements. Such
forward-looking statements involve risks and uncertainties that, if
realized, could materially impair the InfoSearch Media's results of
operations, business, and financial condition. These
forward-looking statements may be affected by the risks and
uncertainties inherent in the search engine market and in the
InfoSearch Media's business including decreased demand for our
products and services; flaws inherent in our products or services;
intense competition; failure to maintain relationships with
strategic partners and content providers, and general economic
conditions that could cause actual results to differ materially
from those projected. This information is qualified in its entirety
by cautionary statements and risk factor disclosures contained in
the InfoSearch Media's reports filed with the Securities and
Exchange Commission, copies of which are available at the website
maintained by the SEC at http://www.sec.gov/. We undertake no
obligation to revise or update publicly any forward-looking
statement for any reason. Media Contact: InfoSearch Media, Inc.
Frank Knuettel, II Chief Financial Officer 310-822-1103 INFOSEARCH
MEDIA, INC. BALANCE SHEET SEPTEMBER 30, 2005 (Unaudited) ASSETS
CURRENT ASSETS: Cash $1,178,246 Accounts receivable 30,275 Due from
related parties 25,000 Prepaid expenses and other current assets
269,112 TOTAL CURRENT ASSETS 1,502,633 PROPERTY AND EQUIPMENT
321,052 CONTENT DEVELOPMENT 392,059 SECURITY DEPOSIT 37,500 TOTAL
ASSETS $2,253,244 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT
LIABILITIES: Accounts payable and accrued expenses, payroll and
taxes $385,902 Current portion of deferred revenue 1,890,182
Provision for refunds payable/bad debts 265,389 Current portion of
capital lease obligations 32,481 TOTAL CURRENT LIABILITIES
2,573,954 CAPITAL LEASE OBLIGATIONS 26,573 DEFERRED REVENUE
2,310,222 TOTAL LIABILITIES 4,910,750 STOCKHOLDERS' DEFICIT:
Preferred stock, undesignated, par $0.001 per share, 25,000,000
shares authorized; no shares issued and outstanding; -- Common
stock, $0.001 par value, authorized 200,000,000 shares; issued and
outstanding 33,918,400 33,919 Additional paid in capital 4,306,728
Accumulated deficit (6,998,153) TOTAL STOCKHOLDERS' DEFICIT
(2,657,506) TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIT $2,253,244
INFOSEARCH MEDIA, INC. STATEMENTS OF OPERATIONS Three Months Ended
Nine Months Ended Sep. 30, Sep. 30, 2005 2004 2005 2004 (Unaudited)
(Unaudited) (Unaudited) (Unaudited) NET SALES $2,685,510 $1,162,059
$6,496,249 $2,295,049 COST OF SALES 628,464 526,502 1,441,380
1,220,980 GROSS PROFIT 2,057,046 635,557 5,054,869 1,074,069 COSTS
AND EXPENSES: Selling expenses 661,355 794,279 1,703,062 1,776,307
General and administrative 1,279,901 897,034 3,733,332 1,942,401
TOTAL COSTS AND EXPENSES 1,941,256 1,691,313 5,436,394 3,718,708
LOSS FROM OPERATIONS 115,790 (1,055,756) (381,525) (2,644,639)
INTEREST INCOME/EXPENSE (2,299) -- 26,042 (4,829) NET INCOME/(LOSS)
$113,491 $(1,055,756) $(355,483) $(2,649,468) LOSS PER SHARE -
BASIC AND DILUTED $0.00 $(0.03) $(0.01) $(0.08) BASIC WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING 33,850,390 33,560,275
33,832,548 33,560,275 DILUTED WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 34,393,608 33,560,275 34,375,766 33,560,275
INFOSEARCH MEDIA, INC. STATEMENTS OF CASH FLOWS Nine months ended
September 30, 2005 2004 (Unaudited) (Unaudited) CASH FLOWS FROM
OPERATING ACTIVITIES: Net loss $(355,483) $(2,649,468) Adjustments
to reconcile net loss to net cash (used in) provided by operating
activities: Depreciation and amortization 210,067 53,871 Stock
based compensation 642,385 -- Changes in assets and liabilities:
Accounts receivable 104,751 (441,948) Prepaid expenses and other
current assets (220,056) (9,697) Accounts payable, accrued expenses
and other liabilities (262,076) 239,184 Amounts refunded to
customers (533,421) (72,361) Deferred revenue (3,035,684) 4,290,687
Total adjustments (3,094,034) 4,059,736 NET CASH (USED IN) AND
PROVIDED BY OPERATING ACTIVITIES (3,449,517) 1,410,268 CASH FLOWS
FROM INVESTING ACTIVITIES Capital expenditures - Fixed assets
(150,528) (137,792) Capital expenditures - Content development
(480,930) -- NET CASH USED IN INVESTING ACTIVITIES (631,458)
(137,792) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments
of capital lease obligations (23,605) (39,163) Loan to stockholders
-- (768,533) Gross proceeds from private placement and sale of
Common Stock 3,949,868 -- Employee advances 4,000 (9,000) NET CASH
PROVIDED BY AND (USED IN) FINANCING ACTIVITIES 3,930,263 (816,696)
NET (DECREASE)/INCREASE IN CASH (150,712) 455,780 CASH - BEGINNING
OF PERIOD 1,328,958 210,407 CASH - END OF PERIOD $1,178,246
$666,187 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash
paid for interest $10,256 $4,829 DATASOURCE: InfoSearch Media, Inc.
CONTACT: Frank Knuettel, II, Chief Financial Officer of InfoSearch
Media, Inc., +1-310-822-1103, Web site:
http://www.articleinsider.com/ Web site:
http://www.infosearchmedia.com/
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