COMPANY PRESS RELEASE May 10, 1999
Monday May 10, 08:04 PM Eastern time
Company Press Release
SOURCE:
WorldWide Web NetworX Reports Results for First Six
Months of 1999
CHERRY HILL, N.J., May 10 /PRNewswire/ -- WorldWide Web NetworX Corporation (OTC
Bulletin Board: WWWX) today reported results for the six months ended March 31, 1999.
Robert Kohn, President and Chief Executive Officer of WorldWide Web NetworX, said, "The
revenues and net loss that we reported for the first six months do not accurately reflect our business
model. Our intention is to become an incubator of leading-edge, e-commerce solutions. We foresee
developing some of these solutions, such as ATMcenter and Vision Technologies, into core
revenue-generating operations and plan to spin others off or sell them to other companies in order to
build shareholder value. As we begin our transition from a developmental company into an operational
company, we expect that the revenue results will become more meaningful."
Mr. Kohn noted that the Company reported assets of approximately 12.0 million on March 31, 1999,
up more than 12-fold from the 986,000 reported on September 30, 1998. He said, "We are pleased to
announce the increase in assets, which primarily reflects the value-building transactions that we have
announced since the beginning of the year."
Mr. Kohn pointed out the increase in assets includes:
-- $3.0 million in Internet software as a result of its 50% interest in
Jencom Digital Technologies' proprietary WebCamera, SNapp(TM),
PowerBroker(TM) and TrueSound(TM) products, which are aimed at the
business-to-business e-commerce market. In addition, WorldWide Web
NetworX loaned $900,000 to the WWWX-Jencom LLC joint venture in
connection with the transaction.
-- $2.3 million in investments held for sale, including asseTrade.com and
entrade, both of which are under contract to be sold to Artra Group
(NYSE: ATA) for 1.8 million shares of Artra common stock and a total
of $5.4 million of funding.
-- $1.8 million as its share of a joint venture in ATMcenter.com, a
business-to-business e-commerce web site which will enable companies
to facilitate the disposal of surplus merchandise to a network of
retailers, wholesalers and other purchasers.
-- $675,000 of investments in securities of OneWorld Direct Inc., a
celebrity website.
-- A $650,000 deposit in connection with the Vision Technologies
acquisition.
During the six-month period, the Company raised $3 million through a
private placement of two million restricted shares and 989,500 through the issuance of Series A 6
Cumulative Convertible Debentures.
Michael Norton, Vice President, Finance, and Chief Financial Officer, said, "We have used the
proceeds of our fund-raising activities for acquisitions and investments in Internet-related
business-to-business e-commerce businesses. We expect that we will further build shareholder value
through our operating businesses, such as ATMcenter.com and Vision Technologies, and through the
sale of companies that have been developed or acquired, such as asseTrade and entrade."
WorldWide Web NetworX, based in Cherry Hill, New Jersey, is an incubator of leading edge,
e-commerce solutions. The Company acquires advanced technologies, which it either develops into
operating businesses or spins off and sells to other companies.
Forward-Looking Statements
Statements contained in this press release, which are not historical facts, are forward-looking
statements. Such forward-looking statements are necessary estimates reflecting the best judgment of the
party making such statements based upon current information and involve a number of risks and
uncertainties. Forward-looking statements contained in this press release or in other public statements of
the parties should be considered in light of those factors. There can be no assurances that such factors
or other factors will affect the accuracy of such forward-looking statements.
WORLDWIDE WEB NETWORX CORPORATION AND SUBSIDIARY
Consolidated Statements of Operations
Six Months Ended
March 31,
1999 1998
(unaudited)
Revenue $79,000 $ 3,000
Cost of revenue 61,000 6,000
Gross profit (loss) 18,000 (3,000)
General and administrative expenses 188,000 45,000
Loss from operation (170,000) (48,000)
Other income (expenses):
Loss from joint venture (40,000) ---
Interest income 10,000 ---
Interest expense (6,000) ---
Amortization of debt issuance costs (12,000) ---
Net Loss $(218,000) $(48,000)
Loss per share:
Basic and diluted ($0.01) ($0.01)
Weighted average shares outstanding:
Basic and diluted 15,359,000 6,000,000
WORLDWIDE WEB NETWORX CORPORATION AND SUBSIDIARY
Consolidated Balance Sheets
March 31, September 30,
1999 1998
unaudited
ASSETS
Current Assets
Cash and cash equivalents $1,771,000 $792,000
Accounts receivable
(principally from
unconsolidated subsidiary) 260,000 49,000
Total current assets 2,031,000 841,000
Investment in technology 3,036,000 ---
Loans receivable 900,000 ---
Investment and receivable
($500,000) from subsidiary
held for sale 2,341,000 ---
Investment and advances to
joint ventures 1,800,000
Deposits for Investments 731,000 1,000
Investment in securities 676,000
Debt issuance costs, net
accumulated amortization of
$12,000 432,000 ---
Furniture and equipment , net 82,000
Other assets 42,000 117,000
$12,013,000 $986,000
LIABILITIES
Current Liabilities
Accounts payable and
accrued expenses $ 37,000 $63,000
Amounts payable for
acquisition of investments 894,000 ---
Convertible debentures payable 985,000 ---
Total 1,916,000 63,000
STOCKHOLDERS' EQUITY
Common stock - authorized
100,000,000 shares, $0.01 par
value: 29,754,116 and
10,618,500 shares issued
and to be issued at March 31,
1999 and September 30, 1998,
receptively 30,000 11,000
Additional paid-in-capital 10,568,000 1,138,000
Deficit (439,000) (221,000)
Subscription receivable (5,000) (5,000)
10,154,000 923,000
$12,070,000 $986,000
SOURCE WorldWide Web NetworX Corporation
Contact:
Laura Kohn, Vice President, Operations of WorldWide Web
NetworX, 609-489-4455; General Info, Mike Dunn, or Analysts, Elisa Mailman,
both at the Financial Relations Board, 212-661-8030 |
