Life-Exchange Reports Third Quarter 2009 Financial Results
May 18, 2009 10:24:00 AM
Copyright Business Wire 2009
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View Additional ProfilesMIAMI--(BUSINESS WIRE)-- Life-Exchange, Inc., (OTCBB:LFXG), the nation's leading trading platform for the life settlement industry, announced today its third quarter 2009 financial results for the three months ended March 31, 2009.
"We are pleased to see the stabilization and resilience of the life settlement market and signs that its growth trajectory is moving back towards its previous path in 2007. Life-Exchange continues to grow with the market and we see more industry participants opting for the benefits of transacting life settlements on an electronic platform. We believe that within the next five years better than 80% of all life settlement transactions will be conducted electronically," commented David C. Dorr, President & CEO, Life-Exchange, Inc.
The Company's primary financial information is shown below, comparing the three months ending March 31, 2009 with the three months ending March 31, 2008. The discussion of the Company's financial results should be read in conjunction with the Company's consolidated financial statements and the notes thereto and the other financial information appearing in the Company's Form 10-Q filing with the Securities and Exchange Commission.
Results of Operations
Revenues increased $58,207 (18.6%) to $370,925 for the three months ended March 31, 2009 compared to $312,718 for the three month period ended March 31, 2008. The increase is attributable to the recovering life settlement industry after several quarters, which saw a worsening economy. The Company currently operates three service lines, its original exchange transaction platform service line, specialty auctions and a new service line of brokerage services, which commenced operations during the first quarter of fiscal 2009.
Costs of Revenue increased $5,398 (76.9%) to $12,420 for the three month period ended March 31, 2009 from $7,022 for the three month period ended March 31, 2008. Cost of revenues consists of product development expenses, internet hosting services and related expenses. The increase was primarily due to a combined increase in Internet Hosting costs and other cost.
Sales and Marketing Expense increased $89,712 (151.1%) to $149,071 from $59,359 for the three month period ended March 31, 2009 and 2008, respectively. Sales and marketing expenses consist of travel, communications, subscriptions and memberships. The increase was due to increased commissions and decreases in other categories as result of efforts to reduced costs.
Administration Expense increased $123,825 (73.3%) to $292,645 from $168,820 for the three month periods ending March 31, 2009 and 2008, respectively. Administration expenses consist of payroll expenses, professional fees, office expenses and other general and administrative expenses.
The increase was primarily due to increases in:
-- professional fees (legal, consulting and accounting) of $116,829 due to
legal and licensing matters related to establishing additional companies
-- issuance of stock for employees and consultants
The increases were partially offset by decreases in:
-- payroll of $93,997 as a result of salary reductions in response to the
weakening economy
Other Income (Expense) reported an increased expense of $6,556 (76.8%) to $15,084 from $8,528 for the three month periods ending March 31, 2009 and 2008, respectively. Other income (expense) consists of refunds received, interest income and interest expense. The decreased expense is primarily due to increased interest on the note.
Net Income (Loss) decreased by $167,284 (242%) to a $98,295 net loss from a $68,989 net income for the three month periods ending March 31, 2009 and 2008, respectively. The decrease is primarily due to a decrease in exchange revenue due to disruptions in the economy during the past year. However, this quarter has seen an increase in revenues over the previous quarters, although expenses to create these revenues have increased over those of the same quarter in the previous year.
Please reference the Company's Form 10-Q to access the notes which are an integral part of the consolidated financial statement. The company's most recent 10Q can be downloaded at EDGAR's Online.
About Life-Exchange
Life-Exchange, Inc. is the largest and only independent, electronic trading platform for the life settlement industry. Designed by industry leaders, Life-Exchange serves the secondary life insurance market by bringing buyers and sellers of life settlement policies together in a virtual, online marketplace. The features of Life-Exchange are specifically designed to improve regulatory compliance, increase customer value, reduce transaction costs, create new revenue models, and add efficiency to an otherwise inefficient market. Founded in 2004, Life-Exchange is headquartered in Miami, Florida.
For additional information on Life-Exchange, Inc., visit www.life-exchange.com or call 866-907-9766.
Except for factual statements made herein, this news release consists of forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. Words such as "believe," "intends," "expects," "plans," "anticipates" and variations thereof, identify forward-looking statements, although their absence does not mean that a statement is not forward looking. Forward-looking statements are based on the Company's current expectations, and are not guarantees of performance. The Company's actual results could differ materially from its current expectations. Factors that could contribute to such differences include risks and uncertainties associated with the Company's ability to effectively manage schedule changes or cancellation of customer orders, control costs and expenses, and obtain additional financing, if needed.
Reference is also made to other factors described in the Company's periodic reports filed with the SEC, including the Company's most current Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. These forward-looking statements speak only as of the date of this release. Life-Exchange does not intend to update these forward-looking statements.
Source: Life-Exchange, Inc.
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Life-Exchange
Inc.
Miami
Carline Gele
866-907-9766
