Energy Telecom Reports 1st Quarter 2013 Results
ST. AUGUSTINE, Fla., May 13, 2013 (GLOBE NEWSWIRE) -- Energy Telecom (OTCBB:ENRG) ("Energy Telecom" or the "Company"), developer of the world's first hands-free two-way, sound attenuating wireless telecommunication eyewear today announced financial results for the fiscal year 2013 first quarter ended March 31, 2013. In the first quarter, Energy Telecom generated revenue of $61,500 compared to $16,751 in the same period of 2012. Net sales increased in 2013 principally due to delivery of the Company's telecommunication eyewear to its global distribution partner. Energy's distribution partner is selling the eyewear product in the United States and Europe.
Net income was $7,110 in the first quarter of 2013 compared to a loss of $167,432 in the same period of 2012. In connection with the sale of series A convertible preferred stock, the conversion feature of the preferred stock is considered a derivative financial instrument that is accounted for as a derivative liability. The Company is required to determine the fair value of this liability, with the change in fair value recorded in the financial results each period as a non-cash charge or gain. In the first quarter of 2013, Energy Telecom recorded a non-cash gain of $158,628 for the change in fair value of the derivative liability.
"We are exceptionally pleased to enter a period of sustained revenues after multiple years of product development. Our sales growth in the first quarter of 2013 is greater than sales in all prior periods combined, providing us with a favorable start for the year," commented Tom Rickards, President& CEO. Mr. Rickards continued: "In addition, our backlog of $307,500 at March 31, 2013, which we anticipate recognizing over the next few months, demonstrates the market acceptance and demand for our eyewear. Delivery of product in increasing volume to our current Protective Equipment distribution partner, ongoing new product development, and expansion into new territories and new market channels other than PPE should help mitigate the uncertainty that is expected to persist in the overall economy for the remainder of the year."
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