World Surveillance Group Inc (fka WSGI)

[Mt bigsky]

Sanswire Corp. Announces Third Quarter 2010 Financial Results

AVENTURA, FL--(Marketwire - 11/12/10) - Sanswire Corp. (OTC.BB:SNSR) today announced unaudited financial results for its third quarter ended September 30, 2010.

For the quarter ended September 30, 2010, the Company reported a net loss of $2.9 million, or $0.01 per share, an increase of 96% compared to $1.5 million, or $0.01 per share, for the quarter ended September 30, 2009. The net loss for the quarter ended September 30, 2010 is primarily due to increased operating expenses, resulting from an increase in research and development expense due to the charge off of previously recognized work in process related to the Company's Sanswire-Tao joint venture. The net loss also resulted from a non-cash charge for the change in the fair value of derivative financial instruments.

The Company's total assets at September 30, 2010 were $1.6 million compared to $3.7 million at December 31, 2009, a decrease of 56%, primarily as a result of a decrease in inventories. The decreased inventories resulted from the Company's determination that the work in process related to the Company's airship should be charged as research and development expense. This determination was caused by the Company's decision not to sell its prototype airship but rather to use it to engage in further research and development for purposes of completing necessary flight testing, demonstrations and data gathering required to further develop and sell next generation airships. A decrease in intangible assets resulting from amortization also contributed to the decrease in total assets. Due largely to the factors discussed above, the Company's stockholder deficit increased to $142.4 million at September 30, 2010 from $134.7 million at December 31, 2009.

Highlights from the Company's recent operations include:

* The completion of construction and outfitting of a newly built, Company owned, 172,000 cubic foot hangar facility in Easton, Maryland to house our STS-111 and SkySat autonomous lighter-than-air (LTA) unmanned aerial vehicles (UAVs) during continued develop, testing, demonstrations and integration of systems and payloads.
* The initiation of the integration with our technical partner, Eastcor Engineering, of systems, payloads and specialized intelligence, surveillance and reconnaissance (ISR) related electronic systems, advanced avionics packages and telemetry solutions provided to the Company by a defense based systems integrator collaborating with the Company, into a newly designed payload bay on the STS-111 LTA UAV.
* The completion of initial U.S. based test flights of the Company's STS-111 LTA UAV using a newly developed sensor electronics pod and an internal gas bag arrangement under flight tower control provided by Easton Airport in Easton, Maryland.
* The sponsorship of the High Altitude and Near Space Conference in Colorado Springs, Colorado, an industry leading forum focused on the rapid development and growth of the near space market supported by major government related and commercial entities. Michael Clark, our Chairman of the Board, gave the keynote address to open the conference and the Company was able to showcase its technology roadmap in the near space market.
* The submission of an offer of settlement to the Securities and Exchange Commission (SEC) to potentially resolve the SEC's outstanding lawsuit against the Company, upon which the Company is currently awaiting approval from the SEC, based in part on a $300,000 payment to the SEC ($250,000 of which was provided to the Company by its Chairman of the Board and which is currently in escrow).
* The hiring of a new Vice President, General Counsel and Secretary of the Company, who was a former partner in several large law firms in Boston, Massachusetts and who has extensive expertise in public company reporting, operations, corporate governance, control procedures and ethics, to work with the Company's Board of Directors and senior management team.

Glenn Estrella, President and Chief Executive Officer of Sanswire, said, "While we continue to report a net loss for the third quarter and need to work to strengthen our balance sheet, I am pleased with the progress the Company has made. We have made significant strides in the development, testing and integration of systems and ISR payloads on our UAV airships. We are primarily focused on the development and commercialization of our airships as well as the strengthening of our corporate organization and controls in an effort to move the Company toward a stronger operational and financial position."

Chairman Michael K. Clark added, "We are beginning to see results from the Company's efforts to implement the necessary changes and improvements in the Company's infrastructure and operations in order to execute on our strategy to provide our shareholders value through further product development and proactive corporate responsibility."

http://sanswire.ir.stockpr.com/company-news/detail/623