COMSovereign Holding (COMS) 8-K MacroSolve Announces 104% Increase in Gross Profit

Exhibit 99.01

MacroSolve Announces 104% Increase in Gross Profit

for Fiscal 2012

Eight Consecutive Quarters of Growth Driven by Mobile App Technologies & Licensing

TULSA, OK—March 05, 2013 - MacroSolve, Inc. (OTCPK: MCVE) (OTCQB: MCVE) ("MacroSolve" or the "Company"), a leading provider of mobile technologies intellectual property, today announced financial results for its fiscal year ended December 31, 2012.

Highlights for the 2012 fiscal year include:

·   Revenues increased 113% to $2,988,000 in FY 2012 from $1,404,000 in FY 2011;

·   Gross profit increased 104% to $1,683,000 in FY 2012 from $858,000 in FY 2011;

·   4th quarter revenues grew by 154% to $982,000 in Q4 of 2012 from $637,000 in Q4 of 2011

·   Gross profit in Q4 of 2012 was $561,000, a 148% increase over Q4 2011 gross profit of $379,000; and

·   Revenues grew by 76% on a quarter-over-quarter basis from $559,000 in Q3 of 2012 to $982,000 in Q4 of 2011.

Revenues for the twelve months ended December 31, 2012 were $2,988,000 as compared to $1,404,000 in the fiscal year ended December 31, 2011. This $1,584,000 or 113% rise is due to increases in IP licensing and services.

Gross profit for fiscal 2012 rose 104% to $1,683,000 from $825,000 in fiscal 2011 primarily due to the sale of Illume Mobile in July and the elimination of its lower margin professional services.

Operating expenses increased 41% in fiscal 2012 to $3,025,000 from $2,139,000 in 2011 primarily due to expansion of Illume Mobile’s sales and marketing in the first half of the year and one-time charges related to the divestiture of Illume Mobile. Loss from operations was $1,343,000, an increase of $30,000 or less than 1% over operating loss of $1,313,000 in fiscal 2011.

Net loss for fiscal 2012 was ($1,776,000) or $(0.01) per share, as compared to fiscal 2011 net loss of $(2,534,000), or $(0.02) per share, a decrease of ($758,000) or 30%. The decrease was primarily due to the sale of Illume Mobile and the elimination of its operating losses. The Company improved its use of cash in operations, with cash used in operating activities declining by $769,000 in fiscal 2012 as compared to fiscal 2011.

“During fiscal 2012, we made a strategic decision to sell the Illume Mobile business unit and implement a strategy towards debt elimination and profitability. As anticipated, we achieved positive cash flow and profitability in the fourth quarter. Our experienced management team is leveraging our unique position in the mobile app intellectual property space by providing advisory services to a portfolio of clients, including mobile app developers, fortified by intellectual property, which in combination can create substantial passive revenues and equity holdings for our shareholders." stated MacroSolve CEO and President, Jim McGill.

For further information please see MacroSolve's full 10K filing at www.sec.gov.

About MacroSolve

Founded in 1997, MacroSolve is heralded for its robust IP portfolio, while advancing throughout the mobile apps era by innovating key technologies that have laid the foundation for apps and next-gen developers. Today, MacroSolve is empowering a new era of mobile innovators seeking advisory services and IP strength from a source of experience. For more information, visit www.macrosolve.com.

Safe Harbor Statement

This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in our publicly filed reports. Factors that could cause these differences include, but are not limited to, the acceptance of our products, lack of revenue growth, failure to realize profitability, inability to raise capital and market conditions that negatively affect the market price of our common stock. The Company disclaims any responsibility to update any forward-looking statements.

Contact:

MacroSolve Contact

info@macrosolve.com

Financial Statements Follow

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MACROSOLVE, INC.
BALANCE SHEETS
	12/31/2012			12/31/2011
ASSETS
CURRENT ASSETS:
Cash	$	659,204		$	273,132
Accounts receivable - trade		74,056			288,201
Prepaid expenses and other		519,330			240,388
Total current assets		1,252,590			801,721
PROPERTY AND EQUIPMENT, at cost:		21,651			285,976
Less - accumulated depreciation and amortization		(19,462	)		(188,016	)
Net property and equipment		2,189			97,960
OTHER ASSETS:
Investment in DecisionPoint Systems, Inc.		579,875			-
Note receivable		-			135,577
Software development costs, net of accumulated amortization
of  $398,715 as of December 31, 2011		-			1,280,903
Other assets		64,227			83,329
Total other assets		644,102			1,499,809
TOTAL ASSETS	$	1,898,881		$	2,399,490
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	90,000		$	-
Revolving Line of Credit		-			100,000
Note Payable - Shareholders		-			169,306
Accounts payable - trade and accrued liabilities		84,062			631,419
Unearned income		500,000			31,400
Total current liabilities		674,062			932,125
LONG-TERM DEBT, less current maturities
Note Payable - Shareholders		541,752			-
Oklahoma Technology Commercialization Center		125,000			237,500
Convertible debentures		150,000			2,621,161
Total long-term debt, less current maturities		816,752			2,858,661
COMMITMENTS AND CONTINGENCIES		-			-
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; authorized 500,000,000 shares;
issued and outstanding 179,831,987 and122,386,894 shares, at
December 31, 2012 and 2011, respectively		1,798,320			1,223,869
Additional paid-in capital		13,230,111			10,059,029
Accumulated other comprehensive income		(170,125	)		-
Accumulated deficit		(14,450,239	)		(12,674,194	)
Total stockholders' equity (deficit)		408,067			(1,391,296	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,898,881		$	2,399,490
The accompanying notes are an integral part of these statements.

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MACROSOLVE, INC.
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
	For the Quarters Ended
For the Years Ended December 31,	12/31/2012			12/31/2011			2012			2011
REVENUES:
Software products and licensing	$	969,501		$	636,677		$	2,529,663		$	1,141,332
Solution services		12,875			-			458,730			262,871
Net revenues		982,376			636,677			2,988,393			1,404,203
COST OF REVENUES:
Software products and licensing		411,513			258,156			1,031,005			433,515
Solution services		9,624			-			274,848			145,413
Total cost of revenues		421,137			258,156			1,305,853			578,928
Gross profit		561,238			378,521			1,682,540			825,275
OPERATING EXPENSES:
Solution services		-			-			323,167			144,542
Depreciation and amortization		815			815			491,176			125,285
Marketing and sales		-			-			816,273			348,969
General and administrative		133,815			251,667			1,394,455			1,519,779
Total operating expenses		134,629			252,481			3,025,071			2,138,575
Income from operations		426,609			126,040			(1,342,531	)		(1,313,300	)
OTHER INCOME (EXPENSE):
Interest income		111			30			164			134
Interest expense		(12,846	)		(76,550	)		(150,951	)		(170,675	)
Loss on sale of asset		-			-			(4,247	)		(235	)
Stock based compensation		(9,909	)		(23,221	)		(83,872	)		(97,506	)
Total other expense		(22,644	)		(99,741	)		(238,906	)		(268,282	)
LOSS FROM CONTINUNIG OPERATIONS BEFORE INCOME TAXES		403,965			26,299			(1,581,437	)		(1,581,582	)
INCOME TAXES		-			-			-			-
NET LOSS FROM CONTINUING OPERATIONS	$	403,965		$	26,299		$	(1,581,437	)	$	(1,581,582	)
DISCONTINUED OPERATIONS (NOTE 16)
Loss from operations of discontinued Illume Mobile operations
(including loss on disposal of $54,538)		(14,670	)		(715,940	)		(194,608	)		(952,832	)
NET LOSS		389,295			(689,641	)		(1,776,045	)		(2,534,414	)
OTHER COMPREHENSIVE INCOME, net of tax
Unrealized holding loss arising during the period		(63,053	)		-			(170,125	)		-
COMPREHENSIVE INCOME		326,242			(689,641	)		(1,946,170	)		(2,534,414	)
LOSS ALLOCABLE TO COMMON STOCKHOLDERS:
Net Income (L.oss)	$	389,295		$	(689,641	)	$	(1,776,045	)	$	(2,534,414	)
Income (Loss) allocable to common stockholders	$	389,295		$	(689,641	)	$	(1,776,045	)	$	(2,534,414	)
Basic and diluted income (loss) per share	$	0.00		$	(0.01	)	$	(0.01	)	$	(0.02	)
The accompanying notes are an integral part of these statements.

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