LAS VEGAS, June 21, 2010 (GLOBE NEWSWIRE) -- Ideal Financial Solutions (Pink Sheets:IFSL) has announced the submission of a new Form 10, General Form for Registration of Securities, with the Securities and Exchange Commission (SEC). The filing can be found on the SEC's Electronic Data Gathering Analysis & Retrieval (EDGAR) website.
"As promised, we have promptly resubmitted our Form 10 with our continued intention to expeditiously achieve listing on the Over the Counter Bulletin Board (OTCBB)," stated Ben Larsen, Chief Financial Officer of Ideal Financial. "Our goals of complete transparency and listing on the OTCBB exchange are now closer than ever."
"There are additional important factors for our shareholders to note," Larsen added. "As many investors are aware, revenue recognition issues including deferrals and restatements are fairly commonplace with almost all reporting companies both large and small. The question of how and when revenue should be recognized can be very complex and is subject to scrutiny during an audit based on specific GAAP rules and guidelines. As a result, the need to refine the way we recognize our revenue was the main cause of our delay in the timely filing of our Form 10. However, it was necessary for us to address this now prior to the uplisting to the OTCBB."
First Quarter Results:
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Gross revenues increased from $1,617,247 in Q1 2009 to $2,650,761, an increase of over 63%. This represents our highest sales in a single quarter ever and is a sign of our sustained growth since 2007.
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Marketing and advertising expenses increased 167% to over $2.1 million. While this detracted from the bottom line in the first quarter it is an investment in the company's future and essential to penetration of Ideal's target marketing space.
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Total operating expenses were $3,097,741 in Q1 2010, an increase of 168% from the same period in 2009. This was due to our large investment in marketing and the expensive process of filing with the SEC including an audit of three years and attorney fees related to our registration document. We believe these to all be important expenditures to the continued success of Ideal.
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With the large increase in revenue, marketing and overall expenses, the company also had increases in merchant reserves, accounts payable and deferred revenue and ultimately reported a net loss for the quarter of ($466,640), which is a large decrease in profitability compared to the same quarter in 2009. We expect our results to improve as the year progresses.
- A restatement of revenue was necessary after reviewing our revenue recognition policy and calculations after improved data became available to us. As a result this affected each period previously reported.
"It is important to note that Q1 2010 is the largest gross revenue quarter the company has ever posted," said Larsen. "We are happy with our marketing efforts and gross sales, but realize profits are more important. We are confident that we can improve processes, tighten up our expenses and be profitable. The second quarter of 2010 already is already showing signs of a better bottom line."
About Ideal Financial Solutions
Based in Las Vegas, Nevada, Ideal Financial Solutions (www.globenewswire.com/newsroom/ctr%3Fd=177362%26amp;l=3%26amp;a=www.idealfsi.com%26amp;u=http%253A%252F%252Fwww.idealfsi.com" target="_top" rel="nofollow">www.idealfsi.com) provides the education, support and automated tools to create additional cash resources, rapidly eliminate all non-asset-building debt and build financial independence. As a leader in personal cash flow management systems, Ideal uses its automated CashFlow Management(C) tools (www.globenewswire.com/newsroom/ctr%3Fd=177362%26amp;l=3%26amp;a=www.myifs.com%26amp;u=http%253A%252F%252Fwww.myifs.com" target="_top" rel="nofollow">www.myifs.com) and its Credit to Wealth Systems to assist individuals, families and small businesses in building financial independence. To view a short video demo of our services go to www.globenewswire.com/newsroom/ctr%3Fd=177362%26amp;l=3%26amp;a=www.ibuildwealthclub.net%26amp;u=http%253A%252F%252Fwww.ibuildwealthclub.net" target="_top" rel="nofollow">www.ibuildwealthclub.net. Please become a fan of Ideal Goodness on Facebook.com by going to www.facebook.com/idealgoodness and help us spread the word.
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Forward Looking Statements. This release may contain forward-looking statements as well as historical information. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks include, without limitation, the risk that the company's efforts to become a reporting company and ascend to the OTC Bulletin Board will be delayed or prohibited as a result of a failure of the company to meet governing requirements, regulatory reviews or other issues. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein.