 |
FOR
IMMEDIATE RELEASE
Media
Contact:
Rob
Goldstone/David Wilson
Oui 2 Public Relations 212
541 5698 |
Investor Relations Contact:
650 941 0742 |
FREEHAND
SYSTEMS INTERNATIONAL RELEASES AUDITED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2006 AND 2005.
NEW
YORK, NY / LOS ALTOS, CA, March 27, 2007 – FreeHand Systems
International, Inc. today completed and will post audited financial
statements for the years ended March 31, 2006 and 2005 to its
website as described below.
FreeHand CEO,
Kim Lorz, said “We are pleased to have our fiscal 2006
audited financial statements complete. During fiscal 2007, we
enhanced our internal finance team and expect future annual audited
financial statements to be completed in a timely manner.”
Please
note: the following financial information should be read
in conjunction with the financial statements, footnotes and
independent auditors’ report, that contains an explanatory
paragraph about FreeHand’s ability to continue as a
going concern, that can be downloaded from the Company website
at http://www.freehandsystems.com/investor_relations.html.
FreeHand posted
a net loss of $8.1 million and $9.5 million in fiscal 2006 and
2005, respectively. Cash used in operations was $3.2 million
in fiscal 2006 and $3.1 million in fiscal 2005. Cash provided
by financing activities was $3.4 million in fiscal 2006 and $3.2
million in fiscal 2005.
At March 31,
2006, FreeHand had cash and cash equivalents of $57,000, restricted
cash of $300,000, accumulated losses of $29.3 million, a working
capital deficiency of $15.4 million and a stockholders’ deficit
of $14.2 million. Unaudited billings for the nine month period
ended December 31, 2006 were approximately $700 thousand. The
Company expects net loss for the year ending March 31, 2007 to
be approximately $11 million and cash used in operations to be
approximately $6 million.
Subsequent
to March 31, 2006 through February 2, 2007, FreeHand sold stock
and warrants in a series of private placements for net proceeds
totaling $6.1 million. Also during this period holders of $11.7
million of previously outstanding debt converted that debt into
common stock. At December 31, 2006 unaudited pro-forma giving
effect to $3 million warrant conversion from Vision in February
2007, FreeHand had total assets of $5.5 million, a working capital
deficiency of $1.8 million, and a shareholders’ deficiency
of $.6 million; a clear improvement from March 2006. FreeHand
expects to need to continue to raise additional capital in order
to achieve its business plans. Such additional capital may result
in additional dilution to shareholders and the dilution could
be substantial.
In reference
to current company activities Lorz also added, “FreeHand has
been able to acquire rights to digital sheet music content at attractive
prices, has developed the only portable high performance digital
sheet music tablet and is positioned to benefit from the transition
of sheet music into digital formats and display. Further, during
fiscal 2007 the Company has increased its distribution capability,
added to its catalog of sheet music and strengthened its sales and
finance teams. We look for fiscal 2008 (April 1, 2007 to March 31,
2008) to be the year we begin seeing the fruits of our efforts in
increased product sales and increased digital sheet music downloads.”
FreeHand
Systems, Inc. (www.freehandsystems.com) a subsidiary of FreeHand
Systems International, Inc. (OTCO_FSYI) is the global leader
in digital sheet music publishing. As the manufacturer of the
first digital music performance and education tablet, the MusicPad
Pro® Plus, FreeHand provides the most innovative technology
available to the music industry for displaying and publishing
digitally delivered sheet music. Additionally, the company’s
accompanying digital sheet music website, www.freehandmusic.com,
offers over 90,000 titles for digital download to print or transfer
to the MusicPad Pro.
FreeHand’s
stock trades on the pink sheets and there is a limited market
for their shares and substantial risks. This press release contains
forward-looking information within the meaning of Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), including statements regarding potential sales, the
success of the company's business, as well as statements that
include the word "believe" or similar expressions.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of FreeHand Systems International,
Inc. to differ materially from those implied or expressed by
such forward-looking statements.. This press release speaks as
of the date first set forth above and FreeHand Systems International,
Inc. assumes no responsibility to update the information included
herein for events occurring after the date hereof. Actual results
could differ materially from those anticipated due to factors
such as the lack of capital, timely development of products,
inability to deliver products when ordered, inability of potential
customers to pay for ordered products, and political and economic
risks inherent in international trade.
Nothing herein
shall constitute an offer to sell or the solicitation of any
offers to purchase any of the Company’s securities. Any
such sale must be made pursuant to an effective registration
statement or an exemption from registration under the Securities
Act of 1933, as amended. |
