LION Inc./Lioninc.com Announces Financial Results for 3rd Quarter 1999
/FROM PR NEWSWIRE SAN FRANCISCO 415-543-7800/
TO BUSINESS AND TECHNOLOGY EDITORS:
LION Inc./Lioninc.com Announces Financial Results for 3rd Quarter 1999
SEATTLE, Nov. 16 /PRNewswire/ -- LION Inc., formerly Plenum
Communications, Inc., (OTC Bulletin Board: LINC) and its wholly owned
subsidiary, Lioninc.com, a leading developer of Internet products and services
for the mortgage industry, announced today financial results for the third
quarter of 1999. Revenue for the third quarter ended September 30,1999 was a
record $1,174,000, an increase of 127% over revenue of $517,000 for the third
quarter of 1998. Revenue for the nine months ended September 30, 1999 was a
record $2,838,000, an increase of 123% over revenue of $1,271,000 for the same
period in the prior year.
Net losses for the third quarter were $433,000 as compared to $381,000 for
the same quarter in the prior year. As a percent of sales, net losses for the
third quarter improved to 37% from 74% for the same quarter in the prior year.
Net losses for the nine months ended September 30, 1999 were $1,053,000 as
compared to $904,000 for the comparable period in the prior year. As a
percent of sales, net losses for the nine months ended September 30,
1999 improved to 37% from 71% for the same period in the prior year.
Sam Ringer, President/CEO of Lioninc.com stated, "I am very pleased that
our sales have continued to double and our losses as a percent of sales has
declined."
LION Inc. and Subsidiary
Consolidated Statements of Operations
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Revenues $1,174,228 $517,125 $2,837,725 $1,271,033
Expenses
Marketing and
administrative 571,623 335,856 1,470,355 853,261
Salaries and
payroll taxes 923,777 423,096 2,209,904 1,067,033
Depreciation
and amortization 68,817 21,081 135,516 55,953
1,564,217 780,033 3,815,775 1,976,247
Operating loss (389,989) (262,908) (978,050) (705,214)
Other income (expense)
Interest expense (62,322) (120,054) (112,649) (201,875)
Interest income 6,564 2,190 24,307 3,585
Other income 12,954 -- 12,954 --
NET LOSS $(432,793) $(380,772)
$(1,053,438) $(903,504)
Loss per common share $(.02) $(.02) $(.04) $(.04)
LION Inc. and Subsidiary
Consolidated Balance Sheets
September 30, December 31,
1999 1998
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $185,791 $566,767
Accounts receivable - net 395,086 121,302
Prepaid expenses and other 271,179 12,705
Total current assets 852,056 700,774
Property and equipment - net 893,851 212,179
Goodwill - net 529,015 --
Other assets 35,576 6,351
Total assets $2,310,498 $919,304
LIABILITIES
Current liabilities:
Line of credit $206,750 $--
Accounts payable 291,532 45,016
Accrued liabilities 414,116 183,626
Deferred revenue 231,852 97,828
Related party payables -- 26,188
Convertible debentures -- 85,032
Total current liabilities 1,144,250 437,690
Stockholders' equity:
Preferred stock, par value $.001
per share; authorized 5,000,000 shares;
none outstanding -- --
Common stock - authorized, 50,000,000
shares of $.001 par value; 27,398,497
and 24,671,355 shares issued and
outstanding in 1999 and 1998, respectively 27,398 24,671
Additional contributed capital 7,625,316 5,879,970
Notes receivable from stockholders (217,813) (207,812)
Accumulated deficit (6,268,653) (5,215,215)
1,166,248 481,614
Total liabilities
and stockholders' equity $2,310,498 $919,304
ABOUT LION Inc. and Lioninc.com
LION has been helping mortgage professionals grow and prosper their
businesses since October of 1990. In May of 1995, LION was one of the first
businesses to extend its services nationally over the Internet. Drawing upon
its extensive technological expertise and its mortgage industry background,
LION has now emerged as one of the premier providers of cutting-edge Internet
products and services for the $1+ trillion mortgage industry.
LION-Pro Products
LION-Pro helps mortgage professionals (brokers and lenders) create
profitable business-to-business transactions over the Internet. Beginning in
1990, LION began creating what is now one of the largest databases of home
loan products on the Internet. This database allows over 5,300 subscribing
mortgage brokers and 450 lenders to easily transact business, electronically,
each day. LION-Loan Search(TM), a key feature of the LION-Pro product, allows
mortgage broker members to perform comprehensive searches on this extensive
database to quickly find the right product for their customer. The database
represents over 17 million pricing variants from over 17,000 loan programs in
38 defined regions around the country. The database is updated every day.
Another popular feature of the LION-Pro service is LION-Loan Link(TM), which
allows the subscribing mortgage brokers to submit harder-to-place loan
requests to "sub-prime lenders" throughout the nation.
Other LION-Pro services highly valued by subscribing members include LION
News-Now(TM), which gives subscribers access to important industry news and
lets them easily track interest rate changes throughout the day, and LION
Documents-On-Demand(TM), which gives access to lender's daily rate sheets and
other documents via fax or a PDF download.
Web sites
In addition to the many services provided for LION-Pro subscribers, LION
also develops and hosts web sites for wholesale lenders (#1 in nation),
mortgage brokers (#2 in nation), mortgage associations (#1 in nation), and
co-brands electronic mortgage centers for real estate company web sites
(2,050+).
In addition to the creation of web sites, LION provides Internet Traffic
Strategies to drive traffic to these sites and Ad Banner Sales.
LION's web sites include Lioninc.com, LionAu.com, LionChoice.com,
Mortgage-101.com, and AMO-mortgage.com. Investor information can be found at
lioncorp.net.
LION-Choice Products
Whereas LION-Pro services help mortgage brokers and lenders use the
Internet to create business-to-business relationships, LION-Choice products
help mortgage brokers develop their Internet strategy to serve their
borrowers. Through its LION-Choice Internet services, LION helps borrowers
determine if they can afford to buy a home (mortgage101.com), what loan might
best meet their needs (amo-mortgage.com), and how to find a local or national
mortgage broker to help them in the mortgage process. LION-Choice offerings
also include e-commerce solutions with full featured, highly interactive and
content rich web sites for mortgage brokers.
LION is currently constructing a new consumer site, which will leverage
the LION database, wholesale lenders and local mortgage brokers into a
powerful mortgage site available to consumers. Consumers will have the best of
both worlds: 1) searching a comprehensive, nation-wide mortgage database, and
2) the choice of performing the transaction on-line, in person with a local
company, or a combination of both.
LION-AU Products
There is an electronic revolution occurring in the mortgage industry. The
older paper-driven mortgage loan process is being rapidly replaced with fast,
efficient electronic processes. "Automated underwriting" (AU) is driving much
of this electronic revolution. AU makes electronic underwriting decisions in
seconds, as opposed to days, and vastly simplifies the mortgage loan process.
LION is developing the Internet technology that allows mortgage brokers
and lenders to successfully create, receive and submit loan applications
"electronically" for quick AU approval. By creating these cutting-edge
Internet products and providing an Internet portal for AU providers, LION is
enabling its customers to compete in the new Internet environment.
Research and Development
LION recently created a new R&D department so that Internet products and
services can be developed and quickly deployed to meet its customers' needs.
These customers include (a) borrowers who want to use the Internet to become
more informed about the home loan process and those who want to shop for home
loans over the Net; (b) real estate companies who want to use the Internet to
more efficiently help their customers find and buy (finance) homes; (c)
brokers who use the Internet to find great loans for their customers, and who
want to make the home loan process fast and convenient for their customers;
(d) lenders who want to have "electronic docking and launching stations"
custom built so they can do business electronically over the Internet with
brokers, borrowers, and AU providers; and (e) GSEs, such as Fannie Mae, who
are leading many of the electronic Internet initiatives in the $1+ trillion
mortgage industry.
This press release includes statements that may constitute
"forward-looking" statements. These statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and uncertainties that
could cause actual results to differ materially from the forward-looking
statements. Factors that would cause or contribute to such differences
include, but are not limited to, continued acceptance of the Company's
products in the marketplace, competitive factors, and other risks. By making
these forward-looking statements, the Company undertakes no obligation to
update these statements for revisions or changes after the date of this
release. More information about the potential factors that could affect the
company's business and financial results is included in the company's Annual
Report on Form 10-KSB for the year ended December 31, 1998 and the Quarterly
reports on Form 10-QSB for the quarters ended March 31, 1999, June 30, 1999
and September 30, 1999 which are on file with the Securities and Exchange
Commission.
SOURCE LION Inc.
/CONTACT: Sam Ringer, President/CEO of LION, 800-546-6463; or DavidCharnock,
Stockholder Relations of Plenum, 888-541-5466/
/Web site: lioninc.com
/Web site: lioncorp.net
Nov-16-1999 09:15 GMT
Symbols:
US;LINC
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