WEB NEWS Comments & Business Outlook
IDEAL FINANCIAL SOLUTIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months
For the Nine Months
Ended September 30,
Ended September 30,
2011
2010
2011
2010
Revenue, net of refunds
$ 3,297,149 $ 595,364 $ 4,661,693 $ 5,606,155
Expenses
Marketing and selling
100,773 5,244 238,034 2,577,464
Customer service
214,464 174,345 686,543 460,080
Professional fees
161,108 113,314 333,955 510,271
Merchant costs
(683,307 ) 521,495 (663,047 ) 2,205,590
General and administrative
1,076,305 (59,998 ) 1,477,976 229,635
Total Expenses
869,342 754,400 2,073,461 5,983,040
Income (Loss) from Operations
2,427,807 (159,036 ) 2,588,232 (376,885 )
Other Income (Expense)
(2,165 ) 25 526 5,252
Net Income (Loss)
$ 2,425,642 $ (159,011 ) $ 2,588,758 $ (371,633 )
Basic Earnings (Loss) Per Share
$ 0.08 $ - $ 0.08 $ (0.02 )
Diluted Earnings (Loss) Per Share
$ 0.07 $ - $ 0.08 $ (0.02 )
Non-GAAP tax adjusted EPS for the 2011 third quarter was $0.03
General Outlook
We have generated net income of $2,425,642 and $2,588,758 during the three and nine months ended September 30, 2011, respectively; compared to the net loss generated in the three and nine months ended September 30, 2010, respectively. Revenues from our services increased dramatically compared to the three months ended September 30, 2010, as we have successfully implemented our new business model from an online system marketed directly to individuals to licensing and providing our services to other companies who offer or “white label” our product to their customers or employees. We also offer customer service and assist client companies with their web presence, online marketing, bookkeeping and merchanting solutions. Our expenses have increased but in a much smaller percentage than our revenue, leading us to increased profitability.
We have completed our registration with the SEC under the Securities Exchange Act of 1934. We are fully reporting with the SEC and are traded on the OTC Market tier: OTC.QB. We have recently completed a Form 211. If such is approved our stock will subsequently be traded on the OTC Bulletin Board. We have increased our customer service footprint by creating an in-house customer service team to better serve our customers and to assist with servicing the users of our products through licensing agreements with corporate client companies.
We have also begun our new marketing plan of bringing our services to the clients of companies that specialize in offering micro-loans including payday loan companies, credit unions and mortgage companies. We believe our services are a good match for these lenders, as it will help individuals improve their financial situation, which in turn helps them become better and more responsible borrowers.
In July 2011, the Board of Directors of the Company authorized a plan to repurchase shares of our common stock in the open market with a value of up to $100,000 in the aggregate, but limited to $10,000 per week and cash availability, profitability and ability to pay obligations. In October, 2011 the Company purchased an additional 6,090 shares of its common stock for $3,060.
