C2 Global Technologies Inc. ("C2" or the "Company") (OTCBB: COBT) today reported its financial results for the third quarter ended September 30, 2007. All amounts are stated in US dollars.
The Company had a net loss of $0.4 million, or $0.02 per share, for the third quarter of 2007 compared to a net loss of $1.8 million or $0.09 per share, for the third quarter of 2006.
The Company had a loss from continuing operations of $1.4 million, or $0.06 per share, for the nine months ended September 30, 2007 compared to a loss of $7.9 million, or $0.42 per share, for the nine months ended September 30, 2006. For the nine months ended September 30, 2007, the Company had a net loss of $1.4 million, or $0.06 per share, compared to a net loss of $3.6 million, or $0.19 per share, for the nine months ended September 30, 2006.
In the third quarter the Company began investing in Internet-based e-commerce businesses by acquiring minority positions in MyTrade.com, Inc., Buddy Media, Inc. and LIMOS.com LLC.
Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2006, filed with the SEC on March 16, 2007, and the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2007, filed with the SEC on November 6, 2007, for further information.
About C2 Global Technologies Inc.
C2's business is focused on licensing its patents, which include two foundational patents in Voice over Internet Protocol ("VoIP") technology. C2 plans to realize value from its intellectual property by offering licenses to service providers, equipment companies and end-users that are deploying VoIP networks for phone-to-phone communications. C2 also invests in Internet-based e-commerce businesses. For further information, please visit C2's website at www.c-2technologies.com.
Forward-Looking Statements
This 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 Exchange Act, as amended, that are based on management's exercise of business judgment as well as assumptions made by, and information currently available to, management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend", and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted in our securities and other regulatory filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.
C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share September 30, December 31, amounts) 2007 2006 ----------------------------------------- ------------ ----------- (unaudited) ASSETS Current assets: Cash and cash equivalents $ 8 $ 3 Other current assets 16 70 ------------ ----------- Total current assets 24 73 Other assets: Intangible assets, net 25 40 Goodwill 173 173 Investments 575 1,100 ------------ ----------- Total assets $ 797 $ 1,386 ------------ ----------- ------------ ----------- LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable and accrued liabilities $ 511 $ 550 Convertible note payable, net of unamortized discount - 1,299 Note payable to a related party 2,003 6 ------------ ----------- Total liabilities 2,514 1,855 ------------ ----------- Stockholders' deficit: Preferred stock, $10.00 par value, authorized 10,000,000 shares; issued and outstanding 612 shares; liquidation preference of $612 at September 30, 2007 and December 31, 2006 6 6 Common stock, $0.01 par value, authorized 300,000,000 shares; issued and outstanding 23,094,850 shares at September 30, 2007 and 23,084,850 shares at December 31, 2006 231 231 Additional paid-in capital 274,636 274,499 Accumulated deficit (276,590) (275,205) ------------ ----------- Total stockholders' deficit (1,717) (469) ------------ ----------- Total liabilities and stockholders' deficit $ 797 $ 1,386 ------------ ----------- ------------ ----------- The notes contained in our Quarterly Report on Form 10-Q are an integral part of these condensed consolidated financial statements. C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------- (In thousands, except per share amounts) 2007 2006 2007 2006 ------------------------- --------- ---------- --------- --------- Revenue $ - $ - $ - $ - --------- ---------- --------- --------- Operating costs and expenses: Selling, general and administrative 318 306 911 1,047 Depreciation and amortization 5 5 15 15 --------- ---------- --------- --------- Total operating costs and expenses 323 311 926 1,062 --------- ---------- --------- --------- Operating loss (323) (311) (926) (1,062) --------- ---------- --------- --------- Other income (expense): Interest expense (52) (1,448) (147) (6,999) Other income (expense) 3 6 (289) 122 --------- ---------- --------- --------- Total other expense (49) (1,442) (436) (6,877) --------- ---------- --------- --------- Loss from continuing operations (372) (1,753) (1,362) (7,939) Income(loss) from discontinued operations (net of $0 tax) (3) (3) (23) 4,348 --------- ---------- --------- --------- Net loss $ (375) $ (1,756) $ (1,385) $ (3,591) --------- ---------- --------- --------- --------- ---------- --------- --------- Weighted average shares outstanding 23,095 19,237 23,095 19,237 Net income(loss) per common share: Loss from continuing operations $ (0.02) $ (0.09) $ (0.06) $ (0.42) Income from discontinued operations - - - 0.23 --------- ---------- --------- --------- Net loss per common share $ (0.02) $ (0.09) $ (0.06) $ (0.19) --------- ---------- --------- --------- --------- ---------- --------- --------- The notes contained in our Quarterly Report on Form 10-Q are an integral part of these condensed consolidated financial statements.
Contacts: C2 Global Technologies Inc. Stephen A. Weintraub Executive Vice President, Secretary & CFO (416) 866-3058 Email: sweintraub@c-2technologies.com Website: www.c-2technologies.com