LAS VEGAS, March 28, 2011 (GLOBE NEWSWIRE) -- Ideal Financial Solutions, Inc. (Pink Sheets:IFSL), a creator of various financial products and services for businesses and individuals, today reported that it has filed its Form 10-K with related financial statements and disclosures for the year ended December 31, 2010. The information is available on the OTC Disclosure & News Service at and the SEC's EDGAR website.
"As expected, 2010 proved to be a very challenging year for Ideal. The online merchant environment has been tumultuous with increased costs, fast-changing rules and draconian penalties," stated Ben Larsen, Chief Financial Officer, Ideal Financial Solutions. "This had the immediate effect of temporarily reducing our ability to monetize new customers, particularly in the last half of the year, and was also magnified by increased expenses as we ramped up customer service, operations, and marketing using the new eCheck payment processing system."
"Though the past nine months have been difficult for Ideal and its shareholders, we are extremely proud of the way our team has responded to these unprecedented challenges. We believe such challenges can produce opportunities for growth and innovation and we are poised to position ourselves to increase revenue, provide even better service to our customers, and more value to our shareholders," said Larsen.
Financial highlights from the Form 10-K Filing:
- Net revenue was mostly stable in 2010 with a total of $7,048,583 compared to $7,096,052 net revenue in 2009, despite our marketing efforts being shut down most of the second half of the year.
- In 2010, Ideal posted a net loss of $936,685 compared with net income of $680,921 in 2009. The loss can be largely attributed to two areas; one being the additional ramp-up costs as we restarted our new marketing efforts and two, the accrual of a contingent liability for what management believes to be an unwarranted merchant processor claim of $707,500, the reduction of which could then have a positive impact on our bottom line in a future quarter.
- Our primary source of cash has continued to derive from operations, as we have neither taken out debt nor sold stock for operating cash in over three years. Cash and cash equivalents decreased from $328,856 at December 31, 2009 to $64,727 on December 31, 2010. For the year ended December 31, 2010, we used $248,841 in cash for operations compared to the year ended December 31, 2009 when we generated $736,465 of cash from operations.
"Despite the difficult year, Ideal is optimistic about the future as we focus our attention on marketing directly to corporations rather than only individuals through our new H.R. platform as well as working with lenders using our new Lender Assistance Program (LAP)," said Steve Sunyich, Chief Executive Officer. "We are excited to now have a more durable payment system as well as outstanding new verticals to add to historic revenue lines. The future will see Ideal working directly with lenders, employee benefit providers and other corporate partners who will offer our software and solutions to their customers. With more financially healthy employees and borrowers, these companies will benefit from improved collection rates, employees with fewer distractions, and provide a much-needed service with Ideal as a valued partner."
About Ideal Financial Solutions
Based in Las Vegas, Nevada, Ideal Financial Solutions () provides the education, support and automated tools to create additional cash resources, rapidly eliminate all non-asset-building debt and build financial independence. As a leader in debt relief services, Ideal uses its automated CashFlow Management© tools () and its Credit to Wealth Systems to assist individuals, families and small businesses in building financial independence. To view more information on Ideal's new humanitarian program soon to be launched please visit . To view a short video demo of our services go to:
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Forward Looking Statements. This release may contain forward-looking statements as well as historical information. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks include, without limitation, the risk that the company's revenues will not continue to grow and that they may not meet projections because of a down turn in its new marketing efforts and that the company will not become, or will be significantly delayed in becoming, a fully reporting company for one or more reasons, including a decision by the company not to pursue fully reporting status, absence of capital or other resources to satisfy compliance status, an adverse action or decision by a regulatory agency or other events. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein.
CONTACT: Ideal Financial Solutions, Inc. Paul Currie 678-772-3456 ir@idealfsi.com www.idealfsi.com www.idealfinancialhr.com