I apologize ahead of time but I don't think alot of you are looking at the numbers. Also alot of you seem new here and are simply bashing imo.
Look at the following. Obviously things have greatly improved. I would guess that if you removed the Russian deal expenses would be cut in half. There are alot of consulting, lawyer, bank fees. I'm cool with that especially since revenues were 3 times higher.
I would love a real accountant to comment here......!!!
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the 12 months Ended December 31, 2005 2004
----------------------------------------------------------------------
REVENUES EARNED $ 81,143,838 $ 28,996,213
COST OF REVENUES EARNED 80,730,141 29,187,414
----------------------------------------------------------------------
GROSS MARGIN (LOSS) 413,697 (191,201)
----------------------------------------------------------------------
EXPENSES
Payroll and related taxes 3,118,676 1,248,562
Consulting and professional fees 6,200,054 2,206,237
Officers' and directors' compensation 12,082,809 6,520,206
Bad debts 1,373,458 1,141,534
Investment banking and financing fees 2,018,985 172,106
Investor and public relations 550,460 117,856
Commissions expense - related party
Carrier Services, Inc. 848,880 404,747
Research and development - Sanswire 2,364,673 260,085
Other operating expenses 826,101 156,011
Telephone and communications 200,129 75,390
Travel and related expenses 882,557 240,862
Rents 480,995 126,424
Insurance and employee benefits 672,700 126,644
Depreciation and amortization 236,018 53,586
----------------------------------------------------------------------
TOTAL EXPENSES 31,856,495 12,850,250
----------------------------------------------------------------------
LOSS BEFORE OTHER INCOME (EXPENSE) AND
INCOME TAXES (31,442,798) (13,041,451)
----------------------------------------------------------------------
OTHER INCOME (EXPENSE)
Net gains on settlement of liabilities - 268,397
Loss on disposition of property and
equipment - (56,804)
Loss on settlement (1,256,873) -
Loss on disposition of unconsolidated
foreign subsidiary - CGI (352,300) -
Loss on equipment deposit (149,558)
Loss on discontinued operations - -
Loss on write-off of receivables and
non-readily marketable securities - -
Interest income 44,368 2,067
Interest expense (175,792) (189,520)
----------------------------------------------------------------------
NET OTHER EXPENSE (1,740,597) (125,418)
----------------------------------------------------------------------
LOSS BEFORE INCOME TAXES (33,183,395) (13,166,869)
INCOME TAXES
Provision for income taxes - -
Tax benefit from utilization of net
operating loss carryforward - -
----------------------------------------------------------------------
TOTAL INCOME TAXES - -
----------------------------------------------------------------------
NET LOSS ($33,183,395) ($13,166,869)
======================================================================
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
BASIC 75,072,487 49,892,551
DILUTED 75,072,487 49,892,551
======================================================================
NET LOSS PER SHARE
BASIC ($0.442) ($0.264)
DILUTED ($0.442) ($0.264)
======================================================================
GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 2005
December 31, 2005 December 31, 2004
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,228,180 $ 601,559
Restricted cash 1,122,000 -
Accounts receivable, less
allowance for doubtful
accounts of $409,100 and
$1,505,731 371,618 1,740,883
Loans to employees 46,068 6,885
Prepaid expenses 370,394 58,900
Inventory 67,525 63,976
Deposits on equipment purchase 124,993 88,994
Deferred tax asset, less
valuation allowance of
$9,828,700 and $5,163,407 - -
TOTAL CURRENT ASSETS 3,330,778 2,561,197
PROPERTY AND EQUIPMENT, net 7,028,422 445,756
OTHER ASSETS
Investment in unconsolidated
foreign subsidiary -
Consolidated Global
Investments, Ltd. - 352,300
Intangible assets 9,907,550 2,778,000
Deposits 52,322 50,712
Prepaid expenses - 8,012
TOTAL OTHER ASSETS 9,959,872 3,189,024
TOTAL ASSETS 20,319,072 6,195,977
LIABILITIES AND STOCKHOLDERS'
EQUITY
COMMITMENTS AND CONTINGENCIES
(NOTES 6, 7, 17, AND 18) - -
LIABILITIES
CURRENT LIABILITIES
Accounts payable 907,211 456,248
Current portion of long-term
debt - 2,846
Due to related party - Carrier
Services, Inc. 901,606 -
Due to former employee payable
in GTEL stock 237,600 -
Due to related party payable in
GTEL Stock - Hotzone Wireless,
Inc. - short-term portion 2,451,834 -
Accrued officers' and
directors' compensation 97,382 198,333
Accrued expenses and other
liabilities 545,636 93,436
Deferred revenues - 46,319
Related party payables 57,500 117,500
TOTAL CURRENT LIABILITIES 5,198,769 914,682
LONG-TERM LIABILITIES
Due to related party payable in
GTEL Stock - Hotzone Wireless,
Inc. 4,708,167 -
Capital lease obligations - 4,718
TOTAL LONG-TERM LIABILITIES 4,708,167 4,718
TOTAL LIABILITIES 9,906,934 919,400
