mary
Dormant account
Casinos are leaving Starnet/Worldgaming for Futurebet; Leaving Cryptologic, Microgaming, and Realtime Gaming for Playtech; leaving Microgaming for AquaOnline.
Here you can see that DCEG was forced to lower their royalties to a large customer:
Tuesday August 13, 7:02 am Eastern Time
Press Release
SOURCE: dot com Entertainment Group, Inc.
dot com Reports Financial Results For 2nd Quarter 2002 And Authorization To Repurchase Common Stock
OAKVILLE, Ontario--(BUSINESS WIRE)--Aug. 13, 2002--dot com Entertainment Group, Inc. (OTCBB: DCEG - News)
(all financial results referred to in this release are reported in $U.S.)
dot com Entertainment Group, Inc. ("dot com") (OTCBB: DCEG - News) a developer of Internet based gaming systems, today announced its results for the three-month period and the six-month period ended June 30, 2002.
Financial highlights for the three-month period and the six-month period ended June 30, 2002:
--------------------------------------------------------------------
Three-months ended Six-months ended
June 30, June 30,
------------------ ----------------
(in thousands)
2002 2001 2002 2001
---- ---- ---- ----
Revenue $829 $834 $2,063 $1,639
Net income (loss) (203) 113 27 257
Earnings (loss) per share (0.02) 0.01 0.00 0.02
(in whole dollars)
--------------------------------------------------------------------
Total revenue decreased by 1% for the three-month period ended June 30, 2002 to $829,289 compared to $833,866 in Q2 2001. Net income decreased to a loss of $202,861 or $0.02 per share (basic and fully diluted) for the three-month period ended June 30, 2002 compared to net income of $113,004 or $0.01 per share (basic and fully diluted) for Q2 2001.
As discussed below, included in net loss for the three-month period ended June 30, 2002 was a loss on contractual settlement with a principal customer in the amount of $345,207. Had this loss not occurred, net income for the three-month period ended June 30, 2002 would have been approximately $4,000.
Total revenue increased by 26% for the six-month period ended June 30, 2002 to $2,063,324 compared to $1,638,702 in the prior period in fiscal 2001. Net income decreased to $26,643 or $0.00 per share (basic and fully diluted) for the six-month period ended June 30, 2002 compared to net income of $256,756 or $0.02 per share (basic and fully diluted) for the prior period in fiscal 2001.
During the three-month period ended June 30, 2002, dot com successfully concluded negotiations with certain of its licensees to introduce standard business arrangements. Scott F. White, President and CEO explained "Within the e-gaming marketplace, pricing pressure is evidencing itself by reductions in royalty rates and increased awareness of market rates amongst customers. Certain of our license agreements provided for royalty structures that were not supportable in the present marketplace. We have addressed this concern by offering to standardize our royalty arrangements with all our customers to market rates effective July 1, 2002. With our principal customer, the royalty rate reduction was phased in commencing June 1, 2002 and included an agreement that certain royalty income billed in prior quarters and included in accounts receivable would not be collected. The total impact on the three-month period ended June 30, 2002 from the changed arrangement with our principal customer is to record a loss on contractual settlement of $345,207 with a reduction in royalty revenue earned in the quarter of approximately $50,000. This restructured agreement will result in the continuation of our relationship with our principal customer through 2011. However, the short-term consequence of this development is an aggregate loss for the quarter and a reduction in royalty revenue for the balance of 2002 from that previously anticipated. The value of this development will be the strengthening of relationships with all licensees."
Under the new arrangement, dot com's principal customer was required to make payments on outstanding receivables aggregating approximately $184,000 and these amounts were received on July 4, 2002. The remaining accounts receivable from this customer at June 30, 2002 of $227,000 is scheduled for payment in three installments through September 30, 2002 with the first such installment in the amount of $80,000 being received on July 30, 2002 Accordingly, the payment for all amounts owed by this customer as of June 30, 2002 will be recorded in the third quarter of fiscal 2002.
The increase in total revenue represented increases in dot com's revenue sources from installation fees and e-digital and support services, offset by a reduction in royalty revenue. The overall increase arises from the growing market for dot com's products and services as well as continuing increases in the number of licensees generating royalties for dot com. Notwithstanding these overall increases, certain installations which were completed during the three-month period ended March 31, 2002 are continuing to generate lower royalties than anticipated due to delays in the commencement of the full operation of these sites. In addition, during fiscal 2001, dot com signed a new license agreement with its principal customer. This new agreement reduced the royalty rate for this customer and together with the effect of the agreement reached with this party during Q2 2002, royalty revenue from this customer decreased by approximately $310,000 for the three-month period ended June 30, 2002 compared to Q2 2001 and by approximately $516,000 for the six-month period ended June 30, 2002 compared to the same period in 2001. This reduction in royalty revenue has been substantially offset by royalty revenue generated from new licensees. e-digital services fees in the three-month period ended June 30, 2002 were $51,875 compared to $23,000 in Q2 2001.
As at June 30, 2002, dot com has completed the installation of its software at 20 licensee sites compared with 13 at the end of Q2 2001. Of these totals, 18 licensee sites contributed to royalties during the three-month period ended June 30, 2002 compared to 10 in Q2 2001. The 2 sites which did not contribute to royalties in Q2 2002 are anticipated to generate royalty revenue in Q3 2002. Management continues to monitor the activity levels of all licensees.
Expenses increased by 77% to $1,140,483 for the three-month period ended June 30, 2002 compared to $645,525 for Q2 2001. Approximately $345,000, or 70%, of this increase represents the loss on contractual settlement discussed above. The remainder of the increase was as a result of the consequences of continuing to increase the number of employees required to service the growing demand realized, and anticipated, by dot com. At June 30, 2002 dot com had 44 full-time employees and consultants compared to 32 at June 30, 2001.
During the six month-period ended June 30, 2002, dot com's operating activities provided cash of approximately $37,000, compared to approximately $142,000 for the comparable period in 2001. The decrease in cash flow generation from operating activities primarily represents the remittance of income tax liabilities relating to fiscal 2001 and 2002. Cash and cash equivalents as at June 30, 2002 increased 11% to approximately $1,073,000 from approximately $965,000 as at December 31, 2001.
Trade accounts receivable at June 30, 2002 have improved 39% to approximately $797,000 compared to approximately $1,307,000 as at December 31, 2001. Deferred revenue at June 30, 2002 decreased 4% to approximately $207,000 compared to approximately $215,000 as at December 31, 2001 reflecting the reduction in installations in process over the quarter end.
In addition, dot com also announced today that its board of directors has authorized the expenditure of up to $500,000 to repurchase up to 1 million shares of common stock.
Under the plan, stock purchases may be made over the next 12-month period, commencing immediately, in the open market in privately negotiated transactions, subject to market conditions, applicable legal requirements and other factors.
"This decision to repurchase our common shares shows our board of director's confidence in the growth of our company and our intention to return value to our shareholders" said Scott F. White. "The repurchases will be funded from available working capital."
dot com is a SEC reporting company which is focused on the development, delivery and support of Internet entertainment software systems, such as on-line Bingo, on-line Casino and other related products and services.
dot com ENTERTAINMENT GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
ASSETS 2002 2001
---------- ----------
Current assets:
Cash and cash equivalents $ 1,073,207 $ 965,041
Accounts receivable:
Trade, net 797,305 1,306,931
Other 11,140 8,964
Income taxes recoverable 145,294 -
Prepaid expenses and deposits 10,456 26,578
---------- ----------
Total current assets 2,037,402 2,307,514
Fixed assets - net 106,962 105,114
Deferred tax asset 122,000 122,000
---------- ----------
$ 2,266,364 $ 2,534,628
---------- ----------
---------- ----------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $ 104,751 $ 96,544
Accounts payable - officers 300 50,000
Income taxes payable - 338,968
Deferred revenue 206,504 214,701
---------- ----------
Total current liabilities 311,555 700,213
---------- ----------
Stockholders' equity:
Common stock, $0.001 par
value, 50,000,000
shares authorized,
10,912,500 shares issued
and outstanding
(10,787,500 - 2001) 10,913 10,788
Additional paid in
capital 1,548,513 1,454,887
Retained earnings 395,383 368,740
---------- ----------
1,954,809 1,834,415
---------- ----------
$ 2,266,364 $ 2,534,628
---------- ----------
---------- ----------
dot com ENTERTAINMENT GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND RETAINED
EARNINGS (ACCUMULATED DEFICIT)
(Unaudited)
Three-Months Ended Six-Months Ended
June 30 June 30
2002 2001 2002 2001
---------- ---------- ---------- ----------
Revenues:
Royalties $ 684,193 $ 687,249 $1,347,738 $1,247,802
Installation fees 84,771 76,392 490,996 235,617
e-digital and support
services 60,325 70,225 224,590 155,283
---------- ---------- ---------- ----------
829,289 833,866 2,063,324 1,638,702
---------- ---------- ---------- ----------
Expenses:
Sales, marketing and
services to licensees 205,346 182,873 421,927 329,245
Research, software
development
and support services 371,405 207,668 744,507 400,364
General and
administrative 218,525 254,984 480,371 481,166
Loss on contractual
settlement 345,207 - 345,207 -
---------- ---------- ---------- ----------
1,140,483 645,525 1,992,012 1,210,775
---------- ---------- ---------- ----------
Income (loss) before
income taxes (311,194) 188,341 71,312 427,927
Income tax provision
(benefit) (108,333) 75,337 44,669 171,171
---------- ---------- ---------- ----------
Net income (loss) (202,861) 113,004 26,643 256,756
Retained earnings
(accumulated deficit),
beginning of period 598,244 (197,661) 368,740 (341,413)
---------- ---------- ---------- ----------
Retained earnings
(accumulated
deficit), end of period $ 395,383 $ (84,657) $ 395,383 $ (84,657)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income (loss) per
share:
Basic $ (0.02) $ 0.01 $ 0.00 $ 0.02
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Diluted $ (0.02) $ 0.01 $ 0.00 $ 0.02
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Weighted average number
of common shares
outstanding:
Basic 10,870,833 10,755,000 10,829,167 10,742,500
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Diluted 10,870,833 11,808,952 11,138,218 11,479,557
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
dot com ENTERTAINMENT GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three-Months Ended Six-Months Ended
June 30 June 30
2002 2001 2002 2001
---------- ---------- ---------- ----------
Cash flows from
operating activities:
Net income (loss) $(202,861) $ 113,004 $ 26,643 $ 256,756
Adjustments to
reconcile net
income (loss) to
net cash provided
(used) by operating
activities:
Depreciation 11,164 5,573 20,974 9,163
Deferred income tax
expense - 44,500 - 101,000
Changes in non-cash
working capital items:
Accounts receivable 535,498 (119,800) 507,450 (232,763)
Prepaid expenses and
deposits 14,793 5,928 16,122 (10,780)
Accounts payable and
accrued expenses (13,499) (64,570) 8,207 (4,742)
Accounts payable -
officers (27,200) (66,000) (49,700) (75,805)
Income taxes
recoverable / payable (261,328) 30,837 (484,262) 58,171
Deferred revenue (7,571) 27,608 (8,197) 41,383
---------- ---------- ---------- ----------
Net cash provided (used)
by operating activities 48,996 (22,920) 37,237 142,383
---------- ---------- ---------- ----------
Cash flows from
investing activities:
Purchases of fixed
assets (13,342) (28,611) (22,822) (31,350)
---------- ---------- ---------- ----------
Net cash used in
investing activities (13,342) (28,611) (22,822) (31,350)
---------- ---------- ---------- ----------
Cash flows from
financing activities:
Proceeds from issuance
of common stock 93,751 37,500 93,751 37,500
---------- ---------- ---------- ----------
Net cash provided by
financing activities 93,751 37,500 93,751 37,500
---------- ---------- ---------- ----------
Net increase (decrease)
in cash and
cash equivalents during
the period 129,405 (14,031) 108,166 148,533
Cash and cash
equivalents, beginning
of period 943,802 817,973 965,041 655,409
---------- ---------- ---------- ----------
Cash and cash
equivalents, end of
period $1,073,207 $ 803,942 $1,073,207 $ 803,942
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Supplemental cash flow
activities
Income taxes paid $ 152,995 $ - $ 528,931 $ 12,000
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Certain statements in this news release, including, but not limited to, statements containing the words "anticipates", "believes", "expects", 'intends", "will", "may" and similar words constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the Company's current expectations and involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from any future results or performance expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include the uncertainty relating to the lawfulness of Internet gaming, dot com's ability to profitably expand its products and services to new markets and customers, continued industry acceptance of, and the risk of technological obsolescence related to, dot com's game systems and the risk associated with the generation by a single customer of a significant percentage of dot com's revenue, including the risk of non-payment of outstanding receivables, among others.
--------------------------------------------------------------------------------
Contact:
dot com Entertainment Group, Inc.
Scott White, 888/250-3312
swhite@dceg.com
or
Frank Ricciuti, 888/250-3312
fricciuti@dceg.com
Here you can see that DCEG was forced to lower their royalties to a large customer:
Tuesday August 13, 7:02 am Eastern Time
Press Release
SOURCE: dot com Entertainment Group, Inc.
dot com Reports Financial Results For 2nd Quarter 2002 And Authorization To Repurchase Common Stock
OAKVILLE, Ontario--(BUSINESS WIRE)--Aug. 13, 2002--dot com Entertainment Group, Inc. (OTCBB: DCEG - News)
(all financial results referred to in this release are reported in $U.S.)
dot com Entertainment Group, Inc. ("dot com") (OTCBB: DCEG - News) a developer of Internet based gaming systems, today announced its results for the three-month period and the six-month period ended June 30, 2002.
Financial highlights for the three-month period and the six-month period ended June 30, 2002:
--------------------------------------------------------------------
Three-months ended Six-months ended
June 30, June 30,
------------------ ----------------
(in thousands)
2002 2001 2002 2001
---- ---- ---- ----
Revenue $829 $834 $2,063 $1,639
Net income (loss) (203) 113 27 257
Earnings (loss) per share (0.02) 0.01 0.00 0.02
(in whole dollars)
--------------------------------------------------------------------
Total revenue decreased by 1% for the three-month period ended June 30, 2002 to $829,289 compared to $833,866 in Q2 2001. Net income decreased to a loss of $202,861 or $0.02 per share (basic and fully diluted) for the three-month period ended June 30, 2002 compared to net income of $113,004 or $0.01 per share (basic and fully diluted) for Q2 2001.
As discussed below, included in net loss for the three-month period ended June 30, 2002 was a loss on contractual settlement with a principal customer in the amount of $345,207. Had this loss not occurred, net income for the three-month period ended June 30, 2002 would have been approximately $4,000.
Total revenue increased by 26% for the six-month period ended June 30, 2002 to $2,063,324 compared to $1,638,702 in the prior period in fiscal 2001. Net income decreased to $26,643 or $0.00 per share (basic and fully diluted) for the six-month period ended June 30, 2002 compared to net income of $256,756 or $0.02 per share (basic and fully diluted) for the prior period in fiscal 2001.
During the three-month period ended June 30, 2002, dot com successfully concluded negotiations with certain of its licensees to introduce standard business arrangements. Scott F. White, President and CEO explained "Within the e-gaming marketplace, pricing pressure is evidencing itself by reductions in royalty rates and increased awareness of market rates amongst customers. Certain of our license agreements provided for royalty structures that were not supportable in the present marketplace. We have addressed this concern by offering to standardize our royalty arrangements with all our customers to market rates effective July 1, 2002. With our principal customer, the royalty rate reduction was phased in commencing June 1, 2002 and included an agreement that certain royalty income billed in prior quarters and included in accounts receivable would not be collected. The total impact on the three-month period ended June 30, 2002 from the changed arrangement with our principal customer is to record a loss on contractual settlement of $345,207 with a reduction in royalty revenue earned in the quarter of approximately $50,000. This restructured agreement will result in the continuation of our relationship with our principal customer through 2011. However, the short-term consequence of this development is an aggregate loss for the quarter and a reduction in royalty revenue for the balance of 2002 from that previously anticipated. The value of this development will be the strengthening of relationships with all licensees."
Under the new arrangement, dot com's principal customer was required to make payments on outstanding receivables aggregating approximately $184,000 and these amounts were received on July 4, 2002. The remaining accounts receivable from this customer at June 30, 2002 of $227,000 is scheduled for payment in three installments through September 30, 2002 with the first such installment in the amount of $80,000 being received on July 30, 2002 Accordingly, the payment for all amounts owed by this customer as of June 30, 2002 will be recorded in the third quarter of fiscal 2002.
The increase in total revenue represented increases in dot com's revenue sources from installation fees and e-digital and support services, offset by a reduction in royalty revenue. The overall increase arises from the growing market for dot com's products and services as well as continuing increases in the number of licensees generating royalties for dot com. Notwithstanding these overall increases, certain installations which were completed during the three-month period ended March 31, 2002 are continuing to generate lower royalties than anticipated due to delays in the commencement of the full operation of these sites. In addition, during fiscal 2001, dot com signed a new license agreement with its principal customer. This new agreement reduced the royalty rate for this customer and together with the effect of the agreement reached with this party during Q2 2002, royalty revenue from this customer decreased by approximately $310,000 for the three-month period ended June 30, 2002 compared to Q2 2001 and by approximately $516,000 for the six-month period ended June 30, 2002 compared to the same period in 2001. This reduction in royalty revenue has been substantially offset by royalty revenue generated from new licensees. e-digital services fees in the three-month period ended June 30, 2002 were $51,875 compared to $23,000 in Q2 2001.
As at June 30, 2002, dot com has completed the installation of its software at 20 licensee sites compared with 13 at the end of Q2 2001. Of these totals, 18 licensee sites contributed to royalties during the three-month period ended June 30, 2002 compared to 10 in Q2 2001. The 2 sites which did not contribute to royalties in Q2 2002 are anticipated to generate royalty revenue in Q3 2002. Management continues to monitor the activity levels of all licensees.
Expenses increased by 77% to $1,140,483 for the three-month period ended June 30, 2002 compared to $645,525 for Q2 2001. Approximately $345,000, or 70%, of this increase represents the loss on contractual settlement discussed above. The remainder of the increase was as a result of the consequences of continuing to increase the number of employees required to service the growing demand realized, and anticipated, by dot com. At June 30, 2002 dot com had 44 full-time employees and consultants compared to 32 at June 30, 2001.
During the six month-period ended June 30, 2002, dot com's operating activities provided cash of approximately $37,000, compared to approximately $142,000 for the comparable period in 2001. The decrease in cash flow generation from operating activities primarily represents the remittance of income tax liabilities relating to fiscal 2001 and 2002. Cash and cash equivalents as at June 30, 2002 increased 11% to approximately $1,073,000 from approximately $965,000 as at December 31, 2001.
Trade accounts receivable at June 30, 2002 have improved 39% to approximately $797,000 compared to approximately $1,307,000 as at December 31, 2001. Deferred revenue at June 30, 2002 decreased 4% to approximately $207,000 compared to approximately $215,000 as at December 31, 2001 reflecting the reduction in installations in process over the quarter end.
In addition, dot com also announced today that its board of directors has authorized the expenditure of up to $500,000 to repurchase up to 1 million shares of common stock.
Under the plan, stock purchases may be made over the next 12-month period, commencing immediately, in the open market in privately negotiated transactions, subject to market conditions, applicable legal requirements and other factors.
"This decision to repurchase our common shares shows our board of director's confidence in the growth of our company and our intention to return value to our shareholders" said Scott F. White. "The repurchases will be funded from available working capital."
dot com is a SEC reporting company which is focused on the development, delivery and support of Internet entertainment software systems, such as on-line Bingo, on-line Casino and other related products and services.
dot com ENTERTAINMENT GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
ASSETS 2002 2001
---------- ----------
Current assets:
Cash and cash equivalents $ 1,073,207 $ 965,041
Accounts receivable:
Trade, net 797,305 1,306,931
Other 11,140 8,964
Income taxes recoverable 145,294 -
Prepaid expenses and deposits 10,456 26,578
---------- ----------
Total current assets 2,037,402 2,307,514
Fixed assets - net 106,962 105,114
Deferred tax asset 122,000 122,000
---------- ----------
$ 2,266,364 $ 2,534,628
---------- ----------
---------- ----------
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $ 104,751 $ 96,544
Accounts payable - officers 300 50,000
Income taxes payable - 338,968
Deferred revenue 206,504 214,701
---------- ----------
Total current liabilities 311,555 700,213
---------- ----------
Stockholders' equity:
Common stock, $0.001 par
value, 50,000,000
shares authorized,
10,912,500 shares issued
and outstanding
(10,787,500 - 2001) 10,913 10,788
Additional paid in
capital 1,548,513 1,454,887
Retained earnings 395,383 368,740
---------- ----------
1,954,809 1,834,415
---------- ----------
$ 2,266,364 $ 2,534,628
---------- ----------
---------- ----------
dot com ENTERTAINMENT GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND RETAINED
EARNINGS (ACCUMULATED DEFICIT)
(Unaudited)
Three-Months Ended Six-Months Ended
June 30 June 30
2002 2001 2002 2001
---------- ---------- ---------- ----------
Revenues:
Royalties $ 684,193 $ 687,249 $1,347,738 $1,247,802
Installation fees 84,771 76,392 490,996 235,617
e-digital and support
services 60,325 70,225 224,590 155,283
---------- ---------- ---------- ----------
829,289 833,866 2,063,324 1,638,702
---------- ---------- ---------- ----------
Expenses:
Sales, marketing and
services to licensees 205,346 182,873 421,927 329,245
Research, software
development
and support services 371,405 207,668 744,507 400,364
General and
administrative 218,525 254,984 480,371 481,166
Loss on contractual
settlement 345,207 - 345,207 -
---------- ---------- ---------- ----------
1,140,483 645,525 1,992,012 1,210,775
---------- ---------- ---------- ----------
Income (loss) before
income taxes (311,194) 188,341 71,312 427,927
Income tax provision
(benefit) (108,333) 75,337 44,669 171,171
---------- ---------- ---------- ----------
Net income (loss) (202,861) 113,004 26,643 256,756
Retained earnings
(accumulated deficit),
beginning of period 598,244 (197,661) 368,740 (341,413)
---------- ---------- ---------- ----------
Retained earnings
(accumulated
deficit), end of period $ 395,383 $ (84,657) $ 395,383 $ (84,657)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Net income (loss) per
share:
Basic $ (0.02) $ 0.01 $ 0.00 $ 0.02
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Diluted $ (0.02) $ 0.01 $ 0.00 $ 0.02
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Weighted average number
of common shares
outstanding:
Basic 10,870,833 10,755,000 10,829,167 10,742,500
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Diluted 10,870,833 11,808,952 11,138,218 11,479,557
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
dot com ENTERTAINMENT GROUP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three-Months Ended Six-Months Ended
June 30 June 30
2002 2001 2002 2001
---------- ---------- ---------- ----------
Cash flows from
operating activities:
Net income (loss) $(202,861) $ 113,004 $ 26,643 $ 256,756
Adjustments to
reconcile net
income (loss) to
net cash provided
(used) by operating
activities:
Depreciation 11,164 5,573 20,974 9,163
Deferred income tax
expense - 44,500 - 101,000
Changes in non-cash
working capital items:
Accounts receivable 535,498 (119,800) 507,450 (232,763)
Prepaid expenses and
deposits 14,793 5,928 16,122 (10,780)
Accounts payable and
accrued expenses (13,499) (64,570) 8,207 (4,742)
Accounts payable -
officers (27,200) (66,000) (49,700) (75,805)
Income taxes
recoverable / payable (261,328) 30,837 (484,262) 58,171
Deferred revenue (7,571) 27,608 (8,197) 41,383
---------- ---------- ---------- ----------
Net cash provided (used)
by operating activities 48,996 (22,920) 37,237 142,383
---------- ---------- ---------- ----------
Cash flows from
investing activities:
Purchases of fixed
assets (13,342) (28,611) (22,822) (31,350)
---------- ---------- ---------- ----------
Net cash used in
investing activities (13,342) (28,611) (22,822) (31,350)
---------- ---------- ---------- ----------
Cash flows from
financing activities:
Proceeds from issuance
of common stock 93,751 37,500 93,751 37,500
---------- ---------- ---------- ----------
Net cash provided by
financing activities 93,751 37,500 93,751 37,500
---------- ---------- ---------- ----------
Net increase (decrease)
in cash and
cash equivalents during
the period 129,405 (14,031) 108,166 148,533
Cash and cash
equivalents, beginning
of period 943,802 817,973 965,041 655,409
---------- ---------- ---------- ----------
Cash and cash
equivalents, end of
period $1,073,207 $ 803,942 $1,073,207 $ 803,942
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Supplemental cash flow
activities
Income taxes paid $ 152,995 $ - $ 528,931 $ 12,000
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Certain statements in this news release, including, but not limited to, statements containing the words "anticipates", "believes", "expects", 'intends", "will", "may" and similar words constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the Company's current expectations and involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from any future results or performance expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include the uncertainty relating to the lawfulness of Internet gaming, dot com's ability to profitably expand its products and services to new markets and customers, continued industry acceptance of, and the risk of technological obsolescence related to, dot com's game systems and the risk associated with the generation by a single customer of a significant percentage of dot com's revenue, including the risk of non-payment of outstanding receivables, among others.
--------------------------------------------------------------------------------
Contact:
dot com Entertainment Group, Inc.
Scott White, 888/250-3312
swhite@dceg.com
or
Frank Ricciuti, 888/250-3312
fricciuti@dceg.com