LOD, Israel, December 7 /PRNewswire-FirstCall/ -- FutureIT Inc. (FITI.OB), a leading provider of software solutions for the automated and effective management of Microsoft SQL servers, today reported it was notified by its parent company, DataSafe Group Ltd., that DataSafe Group Ltd. will cease to provide financing to FutureIT, subject to DataSafe Group Ltd.'s receipt of additional financing. In November 2009, the Company signed an agreement with DataSafe Group Ltd., pursuant to which DataSafe Group Ltd. agreed to provide $500,000 in loans to the Company, effective as of October 1, 2009, bearing annual interest of 10%. To date, DataSafe Group Ltd. the owner of 65% of the Company's outstanding shares of common stock, has advanced approximately $1.85 million in loans to the Company.
While the Company hopes that DataSafe will be successful in its financing activity, the Company's Board of Directors has instructed management to seek alternative financing that will allow FutureIT to continue in business and reach break-even operations. There can be no assurance given that FutureIT will be successful in its efforts or that DataSafe will provide future financing to FutureIT. Previously, FutureIT's independent public accounting firm issued an opinion on the Company's consolidated financial statements that states that the Company's consolidated financial statements were prepared assuming it will continue as a going concern and further states that its recurring losses from operations, stockholders' deficit and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern.
About FutureIT
FutureIT is engaged in the development, marketing, sale and support of software products that provide easy-to-use comprehensive database management, backup and monitoring solutions for both small and medium sized enterprises, or SMEs, and larger enterprises, running different Microsoft Structured Query Language, or SQL servers, versions 2000, 2005 and 2008, as well as Microsoft SQL Server Desktop Engine, or MSDE and SQL Express.
Safe Harbor Statement
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The Company undertakes no obligation to publicly release updates to these forward-looking statements made to reflect new events or circumstances after the date hereof. Neither the Company nor its agents assume responsibility for the accuracy and completeness of the forward-looking statements.
Consolidated Balance Sheet September 30, December 31, 2009 2008 (U.S. dollars) (Unaudited) ASSETS Current assets Cash and cash equivalents $ 22,836 $44,445 Trade account receivable 29,133 43,846 Other receivables and prepaid expenses 6,849 20,443 Total current assets 58,818 108,734 Property and equipment Cost 56,249 54,695 Less - Accumulated depreciation and amortization 42,422 31,552 Property and equipment, net 13,827 23,143 Long-term deposits 20,976 4,163 Total assets $93,621 $136,040 LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities Short-term loans from shareholders $657,628 $234,210 Current maturities of long-term debt 654,168 491,773 Trade accounts payable 81,830 43,540 Other payables and accrued expenses 854,540 582,037 Deferred revenue 218,979 155,399 Total current liabilities 2,467,145 1,506,959 Long term loans Loan from bank 125,000 250,146 Loan from related party 162,499 324,997 Total long term loans 287,499 575,143 Accrued severance pay, net 5,407 5,225 Stockholders' deficiency Share Capital - Common Stock of $ 0.0001 par value: Authorized -35,000,000 as of December 31, 2008 and as of September 30, 2009; Issued and Outstanding - 24,340,000 as of December 31, 2008 and 24,390,000 as of September 30, 2009 2,437 2,434 Additional paid in capital 2,194,428 2,090,892 Accumulated deficiency (4,863,295) (4,044,613) Total Stockholders' deficiency (2,666,430) (1,951,287) Total liabilities and Stockholders' deficiency $93,621 $136,040 Consolidated Statement of Operations (Unaudited) For the Three For the Nine Months Months Ended September 30, Ended September 30, 2009 2008 2009 2008 Revenues $ 160,698 $ 140,483 $442,981 $493,554 Cost of revenues 12,464 45,171 68,713 112,673 Gross profit 148,234 95,312 374,268 380,881 Research and development expenses 38,074 65,866 149,471 178,494 Selling and marketing expenses 106,238 104,760 280,697 347,136 General and administrative 157,301 266,129 539,459 738,518 Operating loss before financial expenses, net (153,379) (341,443) (595,359) (883,267) Financial expenses (income), net 120,965 (48,845) 216,817 52,685 Loss before taxes 274,344 292,598 812,176 935,952 Taxes 3,088 - 6,506 1,261 Loss for the (818,682) (937,213) period (277,432) (292.598) Basic and diluted net loss per share $(0.01) $(0.01) $(0.03) $(0.04) Number of shares used in computing basic and diluted net loss per share 24,382,663 24,340,000 24,354,744 24,340,000 Contacts: FutureIT, Inc. Shmuel Bachar, Chairman of the Board +972-8-925-8070 Shmuelb@futureitsoft.com Sherry Kagan Segal, Marketing and PR Manager, +972-8-925-8156 sherryks@futureitsoft.com
FutureIT Inc.
CONTACT: Contacts: FutureIT, Inc., Shmuel Bachar, Chairman of the
Board, +972-8-925-8070, Shmuelb@futureitsoft.com; Sherry Kagan Segal,
Marketing and PR Manager, +972-8-925-8156, sherryks@futureitsoft.com
