Full Press Release Details
Spatializer Audio Laboratories Announces Year End and Fourth Quarter Financial Results
Wednesday March 28, 8:30 am ET
LOS ANGELES, March 28 /PRNewswire-FirstCall/ Spatializer Audio Laboratories, Inc. (OTC Bulletin Board: SPAZ News; the Company ) announced its
financial results for the fourth quarter and fiscal year ended December 31, 2006.
Revenues decreased to $333,000 for the year ended December 31, 2006 compared to $1,192,000 for the year ended December 31, 2005, a decrease of 72%. Revenue
decreased in the fourth quarter ended December 31, 2006 to $72,000 from $161,000 in the comparable quarter last year, a decrease of 56%. The decrease in
revenue resulted partially from the absence of recognition of deferred revenue in the current year, as compared to 2005, in which a royalty advance
received during 2004 was recognized. In addition, programs were not renewed or extended due to the termination of operations of the Company in January
2006. Existing revenues are derived from legacy licensing programs and are expected to wind down.
The net loss was $353,000, ($0.01 per share basic) for the year ended December 31, 2006, compared to net loss of $82,000 ($0.00 per share basic) for the
year ended December 31, 2005. The increased net loss for the current period is primarily the result of lower revenue, partially offset by lower overhead.
The net loss in the fourth quarter ended December 31, 2006 was $54,000, ($0.00 per share basic), compared to a net loss of $186,000, ($0.00 per share
basic), in the comparable period last year. The reduced net loss results from sharply reduced expenses.
At December 31, 2006, the Company had $229,000 in cash and cash equivalents as compared to $551,000 at December 31, 2005. The decrease in cash primarily
resulted from the net loss. We had working capital of $242,000 at December 31, 2006 as compared with working capital of $560,000 at December 31, 2005. In
February 2007, a licensee exercised its right to purchase additional usage of our technology, under an original license signed in August 2004. As a result,
we received approximately $563,000 after commissions and local country and city income tax.
Spatializer Audio Laboratories Inc. was a developer, licensor and marketer of next-generation audio technologies for the consumer electronics, computing
and mobile communication markets. The company s advanced audio technology has been incorporated into consumer electronics audio and video products, PC and
mobile phone handsets from several global brand leaders. The Company has ceased operations and is awaiting stockholder approval for the sale of its assets.
Spatializer stock is traded on the OTC Bulletin Board under the symbol: SPAZ. The company is headquartered in Thousand Oaks, CA. Further information may be
obtained from Spatializer s SEC filings, and by contacting the company s Investor Relations Department at investor@spatializer.com.
Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this press release are forward looking
statements that are based on management s belief, as well as assumptions made by, and information currently available to management. While the company
believes that its expectations are based upon reasonable assumptions, there can be no assurances that the company s financial goals will be realized.
Numerous uncertainties and risk factors may affect the company s actual results and may cause results to differ materially from those expressed in
forward-looking statements made by or on behalf of the company. These uncertainties and risk factors include, but are not limited to the continued need for
additional capital, loss of key personnel, dependence on new technology and intellectual property, dependence on the PC and consumer electronics
industries, dependence on product shipments of third-party licensees, dependence on third-party technology integrators or chip suppliers, competition and
and other risks detailed from time to time in the company s periodic reports filed with the Securities and Exchange Commission.
NOTE: Desper Products Inc. is a wholly owned subsidiary of Spatializer
Audio Laboratories Inc. Spatializer is a registered trademark of Desper
Products Inc. All other trademarks are the property of their respective
SPATIALIZER AUDIO LABORATORIES, INC.
CONSOLIDATED BALANCE SHEETS
| December 31, | December 31, | |||||||
| 2006 | 2005 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and Cash Equivalents | $ | 228,940 | $ | 550,633 | ||||
| Accounts Receivable | 74,828 | 155,233 | ||||||
| Prepaid Expenses and Other Current Assets | 25,073 | 34,104 | ||||||
| Total Current Assets | 328,841 | 739,970 | ||||||
| Property and Equipment, Net | 3,477 | 18,403 | ||||||
| Intangible Assets, Net Held for Sale | 131,258 | 138,548 | ||||||
| Total Assets | $ | 463,576 | $ | 896,921 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Notes Payable | 9,670 | 10,443 | ||||||
| Accounts Payable | 32,136 | 14,195 | ||||||
| Accrued Wages and Benefits | 3,169 | 48,095 | ||||||
| Accrued Professional Fees | 41,900 | 34,000 | ||||||
| Accrued Commissions | 200 | 31,917 | ||||||
| Accrued Expenses | 0 | 40,869 | ||||||
| Total Current Liabilities | 87,075 | 179,519 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders Equity (Deficit): | ||||||||
| Common shares, $0.01 par value; | ||||||||
| 65,000,000 shares authorized; | ||||||||
| 48,763,383 shares issued and outstanding at December 31, 2006 and 2005, respectively | 469,772 | 469,772 | ||||||
| Additional Paid-In Capital | 46,441,755 | 46,430,030 | ||||||
| Accumulated Deficit | (46,535,026 | ) | (46,182,400 | ) | ||||
| Total Stockholders Equity | 376,501 | 717,402 | ||||||
| Total Liabilities and Stockholders Equity | $ | 463,576 | $ | 896,921 |
SPATIALIZER AUDIO LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended December 31, | ||||||||||||
| 2006 | 2005 | 2004 | ||||||||||
| Revenues: | ||||||||||||
| Royalty Revenues | $ | 333,201 | $ | 1,192,447 | $ | 1,105,923 | ||||||
| Cost of Revenues | 897 | 106,062 | 111,395 | |||||||||
| 332,304 | 1,086,385 | 994,528 | ||||||||||
| Operating Expenses: | ||||||||||||
| General and Administrative | 526,865 | 670,124 | 615,412 | |||||||||
| Research and Development | 157,739 | 354,138 | 393,004 | |||||||||
| Sales and Marketing | 1,241 | 152,473 | 137,889 | |||||||||
| 685,845 | 1,176,735 | 1,146,305 | ||||||||||
| Operating Loss | (353,541 | ) | (90,350 | ) | (151,777 | ) | ||||||
| Interest Income | 6,730 | 13,230 | 4,982 | |||||||||
| Interest Expense | (2,266 | ) | (5,269 | ) | (10,295 | ) | ||||||
| Other Income (Expense), Net | 1,251 | 0 | 0 | |||||||||
| 5,715 | 7,961 | (5,313 | ) | |||||||||
| Loss Before Income Taxes | (347,826 | ) | (82,389 | ) | (157,090 | ) |
| Income Taxes | (4,800 | ) | 874 | (400 | ) | |||||||
| Net Loss | $ | (352,626 | ) | $ | (81,515 | ) | $ | (157,490 | ) | |||
| Basic and Diluted Loss per Share: | $ | (.01 | ) | $ | (.00 | ) | $ | (.00 | ) | |||
| Weighted-Average Shares Outstanding | 48,763,385 | 46,990,059 | 46,975,363 |