Thursday June 29, 6:00 am Eastern Time
Company Press Release
SOURCE: U.S. Wireless Corporation
U.S. Wireless Corporation Reports Fiscal 2000 Results
SAN RAMON, Calif., June 29 /PRNewswire/ -- U.S. Wireless Corporation (Nasdaq: USWC; Frankfurt: USP), a provider
of location-based information and services, today reported financial results for the fiscal year ended March 31, 2000.
Net losses for the year ended March 31, 2000 were $7.8 million or $0.62 per share, compared to $7.2 million or $0.83 per
share, for the same period in 1999. Weighted average common shares outstanding for the year ended March 31, 2000 were
12,445,253 compared to 8,762,442 for the prior year. The increase in common shares outstanding included the conversion of
portions of the Series A Preferred stock and Series B Preferred stock by the Company.
``This has been an exceptional year for U.S. Wireless,`` said Dr. Oliver Hilsenrath, Chairman & CEO. ``In fiscal 2000, we
continued to establish our credibility, successfully expanding trial activities with leading wireless carriers. We commenced
the build-out of the first leg of our nationwide deployment in Washington, DC, and won two state intelligent transportation
systems contracts, which provided us with our first revenues.
``As the impending deadline for E-911 caller location approaches, we will continue to build out markets, and focus on
strengthening relationships with wireless carriers who not only wish to meet the FCC mandate, but who also recognize the
value of location information in enhancing their mobile customer offerings.``
Consolidated operating revenues were $249,178 for the year ended March 31, 2000, compared to $40,000 for the prior
year. The increase in operating revenue is mainly attributable to a contract the Company received from Maryland`s
Department of Transportation to provide location enhanced traffic information along the Maryland Beltway. The Company
also received a contract from the Virginia Department of Transportation, which did not contribute revenues during fiscal
2000.
Net cash used for operating activities for the year ended March 31, 2000 were $5.0 million compared to $3.9 million for
1999. Increased costs were primarily attributable to commencement of an Operational Readiness Trial in the
Maryland/Washington DC/Virginia Metro area, where the Company built additional sites to expand coverage and where it
has established an east coast corporate office in Reston, Virginia. Additional expenses were also incurred for engineering
and research and development related to the continued refinement, testing and deployment of the RadioCamera(TM) system,
as well as for stock based compensation.
As of March 31, 2000, the Company had working capital of $4.8 million and cash and cash equivalents of $5.3 million.
Subsequently, in June 2000, the Company raised approximately $22.5 million in a private placement of Series C Preferred
Shares with American Tower Corporation.
Through the deployment of a national location services platform, U.S. Wireless will help wireless carriers meet the Federal
Communication Commission`s requirements for E-911 caller location as well as power next generation Internet and mobility
content services. The Company plans to build and operate a nationwide location service bureau, based on its proprietary
RadioCamera(TM) system, in 100 major markets across the United States, beginning with the Washington, D.C./Baltimore
metro area. For more information about U.S. Wireless and its RadioCamera(TM) network, please visit the Web site at
www.uswcorp.com.
(Refer to Financial Statements)
NOTE: RadioCamera(TM) and the U.S. Wireless logo are trademarks of U.S. Wireless Corporation.
Special Note Regarding Forward-Looking Statements: A number of statements contained in this press release which are not
historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied
in the applicable statements, including, among others, the size and scope of the geo-location services market, the timing of
governmental requirements and the success of the Company in this market. A description of these and other risks and
uncertainties can be found in the Company`s filings with the Securities and Exchange Commission.
Consolidated Balance Sheets
March 31, 2000 1999
Assets
Current Assets
Cash and cash equivalents $5,311,209 $5,788,288
Stock subscription -- 2,300,000
Costs and earnings in excess of billings 110,746 --
Other current assets 9,969 2,323
Total Current Assets 5,431,924 8,090,611
Equipment, Improvements And Fixtures 1,226,693 817,822
Less Accumulated Depreciation (978,210) (436,205)
Equipment, Improvements And Fixtures, net 248,483 381,617
Investment In And Advances To Mantra 8,265 --
Investment In Joint Venture -- 58,630
Capitalized Computer Software
Development Costs 72,500 --
Other assets 143,035 25,035
Total Assets $5,904,207 $8,555,893
See notes to consolidated financial statements filed with the SEC in Form 10-KSB.
Consolidated Balance Sheets
March 31, 2000 1999
Liabilities And Stockholders` Equity
Current Liabilities
Accounts payable and accrued expenses $507,534 $335,543
Dividend payable 50,055 --
Accrued vacation 77,089 --
Capital lease obligations, current portion 11,059 34,486
Total Current Liabilities 645,737 370,029
Capital Lease Obligations, Less Current Portion 33,156 4,632
Total Liabilities 678,893 374,661
Minority Interest In Subsidiary -- 76,434
Commitments and Contingencies and Subsequent Events
Stockholders` equity
Series A preferred stock, convertible,
6% cumulative, $.01 par value
(liquidation preference of $400,000
and $1,400,000) 200 700
Series B preferred stock,
convertible, $.01 par value
(liquidation preference of
$3,840,000 and $5,000,000) 384 500
Common stock, $.01 par value,
40,000,000 shares authorized,
17,100,658 and 13,556,188 shares
issued and outstanding;
1,523,941 and 1,973,699 of
which are subject to vesting 171,007 135,563
Additional paid-in capital 40,708,256 32,504,598
Unearned compensation -- (244,958)
Common stock subscribed 64,476 --
Accumulated deficit (35,719,009) (24,291,605)
Total Stockholders` Equity 5,225,314 8,104,798
Total Liabilities And Stockholders` Equity $5,904,207 $8,555,893
See notes to consolidated financial statements filed with the SEC in Form 10-KSB.
Consolidated Balance Sheets
Years Ended March 31, 2000 1999
Net Revenues $249,178 $40,000
Costs and Expenses:
Cost of revenues 265,445 --
Research and development 2,967,435 4,866,292
Operating expenses 4,766,542 2,491,560
Total Costs and Expenses 7,999,422 7,357,852
Loss Before Other Income
and Minority Interest (7,750,244) (7,317,852)
Other Income (Expense):
Interest income 495,638 310,074
Equity in loss of joint venture (390,208) (341,370)
Equity in loss of Mantra (127,235) --
Loss Before Minority Interest (7,772,049) (7,349,148)
Minority Interest In Net Loss -- 118,871
Net Loss (7,772,049) (7,230,277)
Series A Cumulative Preferred Dividends (131,848) --
Deemed Dividend for
Series B Preferred Stock (3,560,000) --
Net Loss Attributable to Common Shares $(11,463,897) $(7,230,277)
Basic And Diluted Loss Per Common Share
Net loss per common share $(0.92) (0.83)
Weighted average number of
common shares outstanding 12,445,253 8,762,442
See notes to consolidated financial statements filed with the SEC in Form 10-KSB.Consolidated Statements of Cash Flows
Years ended March 31, 2000 1999
Cash Flows From Operating Activities
Net loss $(7,772,049) $(7,230,277)
Adjustments to reconcile net loss
to net cash used for operating activities:
Equity in loss of joint venture 390,208 341,370
Equity in loss of Mantra 127,235 --
Purchased research and development
and compensation expense related
to minority interest acquisition 67,454 2,177,152
Minority interest in losses of subsidiary -- (118,871)
Amortization of unearned compensation 244,958 516,480
Compensation expense related
to stock awards and option grants 1,419,974 48,234
Depreciation expense 542,000 260,000
Increase (decrease) in assets & liabilities:
Cost and earnings in excess of billings (110,746) --
Other current assets (7,646) (2,323)
Other assets (118,000) --
Accounts payable and accrued expenses 249,082 82,835
Net Cash Used For Operating Activities (4,967,530) (3,925,400)
Cash Flows From Investing Activities
Purchases of equipment,
improvements and fixtures (364,654) (241,721)
Capitalized computer
software development costs (72,500) --
Advances to Mantra (69,114) --
Investment in joint venture -- (400,000)
Other (142,818) --
Net Cash Used For Investing Activities $(649,086) $(641,721)
See notes to consolidated financial statements filed with the SEC in Form 10-KSB.
Consolidated Statements of Cash Flows
Years ended March 31, 2000 1999
Cash Flows From Financing Activities
Proceeds from issuance of debentures $-- $2,500,000
Proceeds from issuance
of Series A preferred stock -- 1,400,000
Proceeds from issuance of Series B
preferred stock, net of offering costs 1,000,000 2,700,000
Proceeds from issuance of common stock,
net of offering costs 1,005,001 1,484,851
Proceeds from common stock subscribed 64,476 --
Proceeds from exercise of common stock options 854,479 --
Collection of stock subscription 2,300,000 --
Preferred dividends paid (45,300) --
Principal repayments
on obligations under capital leases (39,119) (15,192)
Net Cash Provided By Financing Activities 5,139,537 8,069,659
Net Increase (Decrease)
In Cash and Cash Equivalents (477,079) 3,502,538
Cash And Cash Equivalents, beginning of year 5,788,288 2,285,750
Cash And Cash Equivalents, end of year $5,311,209 $5,788,288
See notes to consolidated financial statements filed with the SEC in Form 10-KSB.
SOURCE: U.S. Wireless Corporation
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