HONG KONG, May 15, 2006 (PRIMEZONE) -- Hong Kong based Artificial Life, Inc. (OTCBB:ALIF), a leading provider of award winning mobile technology and applications, today announced its first quarter 2006 results.
Revenues for the quarter ended March 31, 2006 were $185,223 as compared to $127,015 for the quarter ended March 31, 2005. The increase of revenues of 46% was mainly due to product license fees recognized for newly signed contracts with publishers and operators.
Loss from operations for the quarter ended March 31, 2006 was $269,964 as compared to loss from operations of $303,220 for the quarter ended March 31, 2005. The decrease in loss from operations resulted from increased revenues of $58,208 offset by increased expenses of $24,952.
"We have successfully continued our global roll out and expansion in the first quarter. The cooperation with Starwave Mobile, a division of the Walt Disney Company, as our publisher and the launches of our products with B-Mobile in Brunei and Taiwan Mobile in Taiwan, as well as our first pre-installment contract with BPI will substantially extend our client basis going forward. We are now scheduled to launch our products in the USA in early 2007 and in several European countries still in Q3 and Q4 of 2006 concurrently with the launch of new products and new improved versions of our existing products," said Eberhard Schoeneburg, CEO of Artificial Life, Inc.
During the three months ended March 31, 2006, options and warrants to non-employees with a fair value of $1,493,000 were reclassified. At March 31, 2006, the fair value of all reclassified options and warrants was $4,867,000 resulting in a loss of $2,612,000 during the three months ended March 31, 2006. The reclassified options and warrants have strike prices ranging from $0.30 to $1.50, were granted on various dates between April 2001 and February 2006, and are exercisable on various dates between May 2006 and April 2011.
Net loss for the quarter ended March 31, 2006 was $2,891,518 as compared to a loss of $309,541 for the quarter ended March 31, 2005. The increase in the net loss is mainly due to losses of $2,612,000 from derivative liabilities. The basic and diluted net loss per share for the first quarter of 2006 was $0.10 as compared to $0.01 for the quarter ended March 31, 2005.
About Artificial Life
Artificial Life, Inc. (OTCBB:ALIF) is a public U.S. corporation headquartered in Hong Kong and a leading global provider of award winning mobile technology, content, games and applications (www.artificial-life.com).
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Artificial Life, Inc.'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the "Risk Factors" described in the Company's Annual Report or Forms 10-K, 10-K(SB) or 10-Q(SB) for the recent fiscal years. All information set forth in this press release is as of May 15, 2006 and Artificial Life, Inc. undertakes no duty to update this information unless required by law.