COMSovereign Holding (COMS) 8-K MacroSolve Announces 111% Increase in 2Q13 Operating Income

MacroSolve Announces 111% Increase in 2Q13 Operating Income

Third Consecutive Quarter of Net Income Driven by Mobile App Technologies & Licensing

TULSA, OK—August 26, 2013 - MacroSolve, Inc. (OTCQB: MCVE) ("MacroSolve" or the "Company"),a leading provider of mobile technology intellectual property and app venture mentorship,  today announced financial results for its second quarter ended June 30, 2013.

Highlights for the second quarter of 2013 include:

● Net revenues were $302,000 for the second quarter of 2013, a 47% increase over the same period in 2012;

● Net income from continuing operations in the second quarter of 2013 increased $224,000, or 111%, over the same period in 2012; and

● Operating expenses in the second quarter of 2013 decreased by $183,000, a 55% decrease over the same period in 2012.

Net revenues for the second quarter of 2013 increased $96,000 or 47%, to $302,000 as compared to $206,000 in the same period in 2012, as adjusted for the discontinuance of the Illume Mobile operations which was sold to DecisionPoint Systems, Inc. in July 2012.  Similarly, for the six month period ended June 30, 2013, revenues increased $63,000 to $968,000 from $905,000 for the same period in 2012. Substantially all revenue comes from the Company’s enforcement of its ‘816’ patent.

Net income for 2Q13 was $12,000 or $0.00 per share, as compared to the 2Q12 net loss of $(234,000), or $(0.00) per share, an increase in net income of $246,000.  The increase was primarily due to the sale of Illume Mobile and the elimination of its operating losses as well as corporate restructuring following the sale. The Company improved its use of cash in operations, with $156,000 cash provided by operating activities in the second quarter of 2013 as compared to $(608,000) cash used in operating activities over the same period in 2012. Cash on hand at June 30, 2013 was $821,000, an increase of $118,000 as compared to $703,000 on March 31, 2013 and an increase of $722,000 as compared to $99,000 on June 30, 2012.

Operating expenses decreased 55% in the second quarter of 2013 to $152,000 from $335,000 in the same period of 2012, as adjusted for the Illume Mobile divestiture. After the sale, the Company restructured its management and strategically reduced its operating overhead, resulting in $22,000 net income from continuing operations in the second quarter of 2013, a $202,000 increase, or 112%, from $(180,000) loss from continuing operations  in the same period of 2012.

“The year-to-date financial results are positive in all respects.” stated Kendall Carpenter, CFO. “We are running a lean operation, growing cash, reducing debt and increasing equity investments in our mobile app venture customers, a successful execution of our 2013 business strategy.”

For further information please see MacroSolve's full 2Q13 10Q 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 and patent services and IP strength from a source of experience. For more information, visit www.macrosolve.com.

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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

MACROSOLVE, INC.
BALANCE SHEETS (UNAUDITED)
For the Periods Ended:	6/30/2013			12/31/2012
ASSETS
CURRENT ASSETS:
Cash	$	821,240		$	659,204
Accounts receivable - trade		128,606			74,056
Prepaid expenses and other		46,319			519,330
Total current assets		996,165			1,252,590
PROPERTY AND EQUIPMENT, at cost:		4,237			21,651
Less - accumulated depreciation and amortization		(1,298	)		(19,462	)
Net property and equipment		2,939			2,189
OTHER ASSETS:
Investment in DecisionPoint Systems, Inc.		650,557			579,875
Investment in MEDL Mobile Holdings, Inc.		53,939			-
Investment in Endexx Corporation		13,982			-
Other assets		68,955			64,227
Total other assets		787,433			644,102
TOTAL ASSETS	$	1,786,537		$	1,898,881
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt	$	90,000		$	90,000
Accounts payable - trade and accrued liabilities		125,487			84,062
Unearned income		10,000			500,000
Total current liabilities		225,487			674,062
LONG-TERM DEBT, less current maturities
Note Payable - Shareholders		557,631			541,752
Oklahoma Technology Commercialization Center		80,000			125,000
Convertible debentures		150,000			150,000
Total long-term debt, less current maturities		787,631			816,752
COMMITMENTS AND CONTINGENCIES		-			-
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; authorized 500,000,000 shares;
issued and outstanding 185,683,100 and179,831,987 shares, at
June 30, 2013 and December 31, 2012, respectively		1,856,831			1,798,320
Additional paid-in capital		13,232,497			13,230,111
Accumulated other comprehensive income		(96,521	)		(170,125	)
Accumulated deficit		(14,219,388	)		(14,450,239	)
Total stockholders' equity		773,419			408,067
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,786,537		$	1,898,881

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MACROSOLVE, INC.
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)
	For the Quarters Ended						For the Year to Date
For the Periods Ended June 30,		6/30/2013		6/30/2012			6/30/2013		6/30/2012
Net revenues		$	302,253	$	206,275		$	968,351	$	905,507
Cost of revenues			129,069		73,761			408,116		357,027
Gross profit			173,184		132,514			560,235		548,480
Selling, general and administrative expense			151,766		334,781			307,893		672,074
Income from operations			21,418		(202,267	)		252,342		(123,594	)
OTHER INCOME (EXPENSE):
Interest income			4,008		20			4,220		28
Interest expense			12,755		32,012			25,306		116,156
Loss on sale of asset			-		-			436		761
Total other expense			8,747		31,992			21,522		116,889
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			12,671		(234,259	)		230,820		(240,483	)
INCOME TAXES			-		-			-		-
NET INCOME (LOSS) FROM CONTINUING OPERATIONS			12,671		(234,259	)		230,820		(240,483	)
DISCONTINUED OPERATIONS
Loss from operations of discontinued Illume Mobile operations			-		(545,175	)		-		(1,243,981	)
NET INCOME (LOSS)			12,671		(779,434	)		230,820		(1,484,464	)
OTHER COMPREHENSIVE INCOME, net of tax
Unrealized holding gain arising during the period			73,603		-			73,603		-
COMPREHENSIVE INCOME (LOSS)		$	86,274	$	(779,434	)	$	304,423		(1,484,464	)
INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS:
Net income (loss)		$	12,671	$	(779,434	)	$	230,820		(1,484,464	)
Income (loss) allocable to common stockholders		$	12,671	$	(779,434	)	$	230,820		(1,484,464	)
Basic and diluted net income (loss) from continuing operations per share		$	0.00	$	(0.00	)	$	0.00		(0.00	)
Basic and diluted net loss from discontinued operations per share		$	0.00	$	(0.00	)	$	0.00	$	(0.01	)
Basic and diluted net income (loss) per share		$	0.00	$	(0.00	)	$	0.00	$	(0.01	)

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