Exhibit 99.1
Contact: Roy Israel
(516) 829-4343
clickNsettle.com Reports First Quarter Results
GREAT NECK, N.Y., November 15, 2004/Business Wire/ -- clickNsettle.com, Inc.
(OTCBB: CLIK), a provider of dispute resolution solutions, today announced its
revenues and results for its first fiscal quarter ended September 30, 2004.
Revenues for the first quarter of fiscal 2005 decreased 22.0% to $770,394 from
$987,786 for the first quarter of fiscal 2004. Net loss was ($180,477) for the
first quarter of fiscal year 2005 or ($0.02) net loss per common share as
compared to ($110,768) for the prior year quarterly period or ($0.01) net loss
per common share. Loss from operations was ($229,626) for the quarter ended
September 30, 2004 as compared to ($180,542) for the prior year quarter ended
September 30, 2003. The loss from operations in the current quarter contained
$69,657 in reorganization costs relating to professional fees incurred in
connection with the sale of the Company's ADR business.
Roy Israel, President & CEO of clickNsettle.com stated, "As anticipated,
revenues declined due to a lower number of cases heard as a result of a slowdown
in the number of cases submitted to our forum. We believe our revenue continues
to be adversely affected by the consolidation and turmoil in the insurance
industry, which represents a major portion of our clientele. Additionally,
insurance companies in general and some, in particular, have changed their
claims-settling philosophies. Currently, we perceive that many of the larger
insurance companies are taking a harder line with the plaintiff bar. This
results in a slow down in the number of cases being submitted to ADR. In a
broader sense, we believe that lawsuits continue to be commenced and that our
services should prove vital to insurers in their ability to address a growing
caseload with reduced costs, but the timing of such may be delayed."
On October 18, 2004, the Company signed a definitive asset purchase agreement
with a company affiliated with its Chief Executive Officer, Roy Israel, pursuant
to which the buyer would acquire the assets and assume all the current and
future liabilities of the Company's ADR business. Currently, the Company is
actively searching for a new operating business to acquire. At this time, the
Company has not entered into any agreement for such acquisition and there can be
no assurance that it will find a suitable business.
The sale of the ADR business remains subject to stockholder approval. The
Company intends to solicit proxies and hold a meeting of its stockholders in
January 2005. Assuming the stockholders approve the transaction, the closing is
expected to occur soon thereafter.
About clickNsettle.com
Headquartered in Great Neck, New York, clickNsettle.com, Inc. provides
innovative and highly effective dispute resolution services and solutions to
entities that seek alternatives to the traditional and often time-consuming and
expensive legal process. clickNsettle.com, the parent company of National
Arbitration and Mediation (NAM), offers a comprehensive selection of some of the
finest lawyers globally, with more than 1,800 top-tier former judges and
attorneys worldwide. Additionally, the company has a number of inventions
designed to enhance transparency and ensure the integrity of ADR (alternative
dispute resolution) initiatives. Although the dispute resolution industry is
still relatively young, clickNsettle.com has been recognized nationally as a
leader in the field and the NAM brand name is well established within the legal
and business communities.
The statements contained in the release contain forward-looking statements
relating to such matters as anticipated financial performance, business
prospects, and similar matters. The Private Securities Litigation Reform Act of
1995 provides a safe harbor for forward-looking statements. In order to comply
with the terms of the safe harbor, the Company notes that a variety of factors
could cause the Company's actual results to differ materially from the
anticipated results or other expenditures expressed in the Company's
forward-looking statements. These factors include changes in the insurance and
legal industries; the Company's inability to retain current or new hearing
officers; changes in the public court system; and the degree and timing of the
market's acceptance of its arbitration and mediation programs and electronic
oversight applications.
Table to follow
clickNsettle.com, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended September 30,
2004 2003
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Net revenues $ 770,394 $ 987,786
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Operating costs and expenses
Cost of services 166,736 218,407
Sales and marketing expenses 253,597 323,502
General and administrative expenses 508,964 626,419
Loss on impairment of furniture and equipment 1,066
Reorganization costs 69,657
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1,000,020 1,168,328
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Loss from operations (229,626) (180,542)
Other income
Investment income 48,636 69,196
Other income 513 578
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49,149 69,774
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Loss before income taxes (180,477) (110,768)
Income taxes -- --
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NET LOSS $ (180,477) $ (110,768)
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Net loss per common share - basic and diluted $ (0.02) $ (0.01)
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Weighted-average shares outstanding - basic and diluted 8,449,056 8,449,056
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