Message #75 From:
NewsBot Date: January 16, 2007 11:48:00 AM
BUGS News SSWM Reports 2006 Financial Results
CARLSBAD, Calif.--(BUSINESS WIRE)--Sub-Surface Waste Management of Delaware, Inc., (OTCBB:SSWM) today
announced audited financial results for fiscal year 2006 ended September
30, 2006.
SSWM CEO Bruce Beattie commented, “FY 2006 was
clearly a transition year as we made the decision to close five retails
gas station cleanups in the U.S. in favor of environmental
infrastructure projects in Mexico where our full resources were
successfully spent securing significant new contract work that will
build and sustain a steady revenue stream in 2007 and beyond. Our
current $2.4MM in projects in progress in Mexico already surpasses the
2006 total fiscal year revenues by almost 400% and we expect to increase
this revenue rate as additional contracts with the State of Puebla, CFE
(Comision Federal de Electricidad) and other clients begin in 2007. We
have set the stage for significant growth in 2007 and beyond based upon
proven technology, government enforcement, political support, and new
financial and technical partnerships."
Results of Operations For Year Ended
September 30, 2006
The Company's revenues for year ended September 30, 2006 were $508,460
compared to $1,094,775 for the year ended September 30, 2005; a decrease
of 54 percent. Revenues decreased primarily due to the Company’s
withdrawal from its projects in South Carolina and from the time delay
resulting from the startup of its operations in Mexico. Revenues for the
year ended September 30, 2006, consisted primarily of bio-remediation of
hydro-carbons in contaminated soil for the projects in Mexico. The
Company incurred a gross profit loss for the year ended September 30,
2006 of $174,883 compared to $287,092 gross profit for the year ended
September 30, 2005 primarily due to the write off of $201,641 of costs
and estimated profits associated with the closure of the five active
projects in South Carolina.
The Company incurred a net loss of $2,283,895 for the year ended
September 30, 2006, compared to $1,627,719 for the year ended September
30, 2005. The Company had negative cash flows from operations of
$740,675 for the year ended September 30, 2006, compared to negative
cash flows from operations of $887,591 for the year ended September 30,
2005. Basic and diluted net loss per share was $0.03 for the year ended
September 30, 2006 and $0.04 for the year ended September 30, 2005.
Weighted average common shares outstanding increased from 43,249,462 for
the year ended September 30, 2005 to 76,536,237 for the year ended
September 30, 2006.
During the year ended September 30, 2006, the Company incurred
$2,031,547 in selling, general and administrative expenses, compared to
$1,762,396 for the year ended September 30, 2005. The increase in
selling, general and administrative expenses of approximately $269,151
was primarily due to increases in legal, accounting, payroll expenses
and business development expenses in Mexico.
Depreciation expense for the year ended September 30, 2006 was $24,714
compared to $13,233 for the year ended September 30, 2005. The increase
was due principally to the purchase of equipment related to the startup
of operations in Mexico. Interest expense for the years September 30,
2006 and 2005 respectively were $53,509 and $141,027. During this year
notes payable decreased by $57,321 and therefore there was a decrease in
interest expense.
Liquidity and Capital Resources:
As of September 30, 2006, the Company had a negative working capital of
$117,746 compared to working capital of $430,810 at September 30, 2005,
or a decrease of $548,556 in the working capital. During the year ended
September 30, 2006, the Company incurred a cash flow deficit of $740,675
from operating activities. Cash flows used in investing activities
resulted in a deficit of $57,032 during the year ended 2006. The Company
met its cash requirements during this period through the issuance of
common and preferred stock totaling $741,503 in proceeds. $345,000 was
also drawn from a $500,000 line of credit to provide additional funds.
Cash totaled $310,809 as of September 30, 2006.
A consolidated financial recap of results for FY 2006, 2005 and 2004 are
shown in the following table:
The consolidated financial data above has been derived from the
Company's Financial Statements for the periods ending 2004, 2005 and
2006 as shown. For the full financial report and additional information
and a discussion of risk factors, please see the SSWM current 10Q & past
10K reports at www.sec.gov .
About Sub-Surface Waste Management
Sub-Surface Waste Management Inc. is a majority owned subsidiary of U.S.
Microbics, Inc. (OTCBB:BUGS) and provides comprehensive civil and
environmental engineering project management services including
specialists to design, permit, build and operate environmental waste
clean-up treatment systems using conventional, biological and filtration
technologies. SSWM is capitalizing on its patented technologies
registered in Mexico with SEMARNAT a Federal regulatory agency
overseeing environmental compliance nationwide.
The information contained in this press release includes forward-looking
statements. Forward-looking statements usually contain the words
"estimate," "anticipate," "believe," "expect" or similar expressions
that involve risks and uncertainties. These risks and uncertainties
include the company's status as a startup company with uncertain
profitability, need for significant capital, uncertainty concerning
market acceptance of its products, competition, limited service and
manufacturing facilities, dependence on technological developments and
protection of its intellectual property. The company's actual results
could differ materially from those discussed herein. Factors that could
cause or contribute to such differences are discussed more fully in the
"Risk Factors," "Management's Discussion and Analysis or Plan of
Operation" and other sections of the company's Form 10-KSB and other
publicly available information regarding the company on file with the
Securities and Exchange Commission. The company will provide you with
copies of this information upon request.
