Oklahoma
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333-150332
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75-1518725
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(State or Other Jurisdiction
of Incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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99.01
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Press Release, dated November 1, 2013, issued by MacroSolve, Inc.
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MACROSOLVE, INC. | |||
Date: November 1, 2013
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By:
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/s/ KENDALL CARPENTER | |
Kendall Carpenter
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|||
Chief Financial Officer
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|||
·
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Net income from continuing operations for the nine months ended September 30, 2013 increased $2,027,000, or 103%, over the same nine month period in 2012; and
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·
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Operating expenses for the first nine months of 2013 decreased by $2,422,000, an 82% decrease over the same period in 2012.
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MACROSOLVE, INC.
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||||||||
BALANCE SHEETS
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||||||||
Unaudited
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||||||||
For the Periods Ended:
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9/30/2013
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12/31/2012
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||||||
ASSETS
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||||||||
CURRENT ASSETS:
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||||||||
Cash
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$ | 757,986 | $ | 659,204 | ||||
Accounts receivable - trade
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67,188 | 74,056 | ||||||
Prepaid expenses and other
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97,919 | 519,330 | ||||||
Total current assets
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923,093 | 1,252,590 | ||||||
PROPERTY AND EQUIPMENT, at cost:
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4,237 | 21,651 | ||||||
Less - accumulated depreciation and amortization
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(1,442 | ) | (19,462 | ) | ||||
Net property and equipment
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2,795 | 2,189 | ||||||
OTHER ASSETS:
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||||||||
Investment in DecisionPoint Systems, Inc.
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442,281 | 579,875 | ||||||
Investment in MEDL Mobile Holdings, Inc.
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46,179 | - | ||||||
Investment in Endexx Corporation
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10,010 | - | ||||||
Other assets
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68,251 | 64,227 | ||||||
Total other assets
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566,721 | 644,102 | ||||||
TOTAL ASSETS
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$ | 1,492,609 | $ | 1,898,881 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
CURRENT LIABILITIES:
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||||||||
Current maturities of long-term debt
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$ | 90,000 | $ | 90,000 | ||||
Accounts payable - trade and accrued liabilities
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139,065 | 84,062 | ||||||
Unearned income
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- | 500,000 | ||||||
Total current liabilities
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229,065 | 674,062 | ||||||
LONG-TERM DEBT, less current maturities
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||||||||
Note Payable - Shareholders
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579,202 | 541,752 | ||||||
Oklahoma Technology Commercialization Center
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57,500 | 125,000 | ||||||
Convertible debentures
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150,000 | 150,000 | ||||||
Total long-term debt, less current maturities
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786,702 | 816,752 | ||||||
COMMITMENTS AND CONTINGENCIES
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- | - | ||||||
STOCKHOLDERS' EQUITY:
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||||||||
Common stock, $.01 par value; authorized 500,000,000 shares;
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||||||||
issued and outstanding 188,644,731 and179,831,987 shares, at
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||||||||
September 30, 2013 and December 31, 2012, respectively
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1,886,447 | 1,798,320 | ||||||
Additional paid-in capital
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13,298,362 | 13,230,111 | ||||||
Accumulated other comprehensive income
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(316,530 | ) | (170,125 | ) | ||||
Accumulated deficit
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(14,391,437 | ) | (14,450,239 | ) | ||||
Total stockholders' equity
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476,842 | 408,067 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 1,492,609 | $ | 1,898,881 | ||||
MACROSOLVE, INC.
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||||||||||||||||
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
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||||||||||||||||
For the Three Months Ended
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For the Nine Months Ended
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|||||||||||||||
For the Periods Ended September 30,
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9/30/2013
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9/30/2012
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9/30/2013
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9/30/2012
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||||||||||||
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||||||||||||||||
Net revenues
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$ | 161,246 | $ | 558,738 | $ | 1,129,597 | $ | 1,980,990 | ||||||||
Cost of revenues
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101,583 | 261,444 | 509,699 | 859,645 | ||||||||||||
Gross profit
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59,663 | 297,294 | 619,898 | 1,121,345 | ||||||||||||
Selling, general and administrative expense
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169,386 | 756,628 | 528,827 | 2,951,163 | ||||||||||||
(Loss) Income from operations
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(109,723 | ) | (459,334 | ) | 91,071 | (1,829,818 | ) | |||||||||
OTHER INCOME (EXPENSE):
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||||||||||||||||
Interest income
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1,637 | 25 | 5,857 | 53 | ||||||||||||
Interest expense
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(12,820 | ) | (21,317 | ) | (38,126 | ) | (138,186 | ) | ||||||||
Total other expense
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(11,183 | ) | (21,292 | ) | (32,269 | ) | (138,133 | ) | ||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS
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(120,906 | ) | (480,626 | ) | 58,802 | (1,967,951 | ) | |||||||||
DISCONTINUED OPERATIONS
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||||||||||||||||
Loss from operations of discontinued Illume Mobile operations
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- | (197,387 | ) | - | (197,387 | ) | ||||||||||
NET INCOME (LOSS)
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(120,906 | ) | (678,013 | ) | 58,802 | (2,165,338 | ) | |||||||||
OTHER COMPREHENSIVE INCOME, net of tax
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||||||||||||||||
Unrealized holding loss arising during the period
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(220,008 | ) | (107,072 | ) | (146,405 | ) | (107,072 | ) | ||||||||
COMPREHENSIVE (LOSS)
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$ | (340,914 | ) | $ | (785,085 | ) | $ | (87,603 | ) | (2,272,410 | ) | |||||
INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS:
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||||||||||||||||
Net income (loss)
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$ | (120,906 | ) | $ | (678,013 | ) | $ | 58,802 | (2,165,338 | ) | ||||||
Income (loss) allocable to common stockholders
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$ | (120,906 | ) | $ | (678,013 | ) | $ | 58,802 | (2,165,338 | ) | ||||||
Weighted average number of common shares outstanding
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186,551,952 | 176,710,333 | 185,026,337 | 162,690,085 | ||||||||||||
Basic and diluted net income (loss) from continuing operations per share
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$ | (0.00 | ) | $ | (0.00 | ) | $ | 0.00 | $ | (0.01 | ) | |||||
Basic and diluted net loss from discontinued operations per share
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$ | 0.00 | $ | (0.00 | ) | $ | 0.00 | $ | (0.00 | ) | ||||||
Basic and diluted net income (loss) per share
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$ | (0.00 | ) | $ | (0.00 | ) | $ | 0.00 | $ | (0.01 | ) | |||||
MACROSOLVE, INC.
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STATEMENTS OF CASH FLOWS (UNAUDITED)
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For the Nine Months Ended September 30,
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9/30/2013
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9/30/2012
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||||||
OPERATING ACTIVITIES:
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Net income (loss)
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$ | 58,802 | $ | (2,165,338 | ) | |||
Adjustments to reconcile net income (loss) to net cash
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||||||||
provided by (used in) operating activities:
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Depreciation and amortization
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2,536 | 516,693 | ||||||
Loss on disposal of fixed assets
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435 | 4,246 | ||||||
Stock based compensation
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106,408 | 303,568 | ||||||
Changes in current assets and liabilities:
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||||||||
Decrease in accounts receivable - trade
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6,868 | 102,944 | ||||||
Decrease in note receivable
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- | 135,577 | ||||||
Decrease in prepaid expenses and other
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421,381 | 235,219 | ||||||
Increase (decrease) in accounts payable - trade and
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||||||||
accrued liabilities
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41,473 | (290,394 | ) | |||||
Increase in accrued debenture interest
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13,530 | 107,641 | ||||||
Increase in accrued shareholder loan interest
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23,950 | - | ||||||
Increase accrued salary - note payable
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13,500 | - | ||||||
(Decrease) increase in unearned income
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(500,000 | ) | 5,571 | |||||
Net cash provided by (used in) operating activities
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188,883 | (1,044,273 | ) | |||||
INVESTING ACTIVITIES:
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||||||||
Cash received from sale of Illume Mobile
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- | 250,000 | ||||||
Investment in Endexx Corporation
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(15,000 | ) | - | |||||
Purchase of equipment
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(1,467 | ) | (8,580 | ) | ||||
Software development costs
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- | (233,390 | ) | |||||
Patent costs
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(6,134 | ) | - | |||||
Net cash (used in) investing activities
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(22,601 | ) | 8,030 | |||||
FINANCING ACTIVITIES:
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Net proceeds from debenture financing
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- | 500,000 | ||||||
Reduction of accrued debenture interest
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- | (233,782 | ) | |||||
Common stock issued for accrued debenture interest
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- | 216,330 | ||||||
Proceeds from shareholder loans, including accrued interest
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- | 790,621 | ||||||
Repayment of shareholder loans, including accrued interest
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- | (115,247 | ) | |||||
Proceeds from sale of common stock
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- | 250,000 | ||||||
Shareholder loans converted to debentures
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- | (320,000 | ) | |||||
Repayment of bank line of credit
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- | (10,000 | ) | |||||
Repayments of notes payable
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(67,500 | ) | - | |||||
Net cash (used in) provided by financing activities
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(67,500 | ) | 1,077,922 | |||||
NET INCREASE IN CASH
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98,782 | 41,679 | ||||||
CASH, beginning of period
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659,204 | 273,132 | ||||||
CASH, end of period
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$ | 757,986 | $ | 314,811 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
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Cash paid during the Nine Months ended September 30:
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||||||||
Interest
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$ | - | $ | 46,631 | ||||
Income taxes
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$ | - | $ | 0 | ||||
Noncash activities for the Nine Months ended September 30:
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||||||||
Stock issued for debenture interest
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$ | $ | 216,330 | |||||
Stock issued for MEDL investment
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$ | 50,000 | $ | - | ||||
Stock received from DecisionPoint Systems for sale of
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||||||||
Illume Mobile assets, less unrealized market loss of $107,072
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$ | - | $ | 642,928 | ||||