FORT LAUDERDALE, Fla., Dec. 5, 2007 (PRIME NEWSWIRE) -- GlobeTel Communications Corp. (Pink Sheets:GTEM) today announced that it has filed with the Securities and Exchange Commission its amended Annual Report on Form 10-K for the year ended December 31, 2005.
This filing contains financial statements that were restated as a result of the determination that, in certain cases, the Company misinterpreted or misapplied GAAP in its 2005 consolidated financial statements in connection with revenue recognition issues related to reporting gross revenue versus net. This filing also contains financial statements that were restated as a result of a determination by the Company's management that certain records and reports produced by the management of its Centerline subsidiary during this fiscal period could not be relied upon. Additionally, the Company adjusted its balance sheet, removing certain intangible assets associated with the acquisition of assets related to the Company's purchases of the HotZone technology.
For the year ended December 31, 2005, the Company reported a net loss (restated) of $39,082,945, or $(0.52) per share, on revenues (restated) of $10,144,780, compared to a net loss (restated) of $15,944,869, or $(0.02) per share, on revenues (restated) of $11,309,376 for the year ended December 31, 2004.
For the year ended December 31, 2005, the Company's balance sheet reflected total assets (restated) valued at $10,411,522 and total liabilities (restated) valued at $9,906,933. Restated values reflect the decision to charge previously included intangible assets as a $7,129,550 research and development expense in 2005.
Jonathan D. Leinwand, Chief Executive Officer, stated, "Having restated fiscal years 2004 and 2005, we look forward to providing fiscal year 2006 results, and all periodic results through the present quarter to bring us up-to-date."
GlobeTel Communications has made its Annual Report on Form 10-K available via its Web site, www.globetel.net.
About GlobeTel Communications Corp. and Sanswire Networks
GlobeTel Communications Corp. develops and provides an integrated suite of terrestrial and aerospace telecommunications products and services, leveraging its advances in VoIP and Wireless Access technologies. Sanswire Networks is focused on the construction of airship platforms capable of carrying payloads that transmit various types of wireless communications and security solutions.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect", "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including an ongoing formal investigation by the U.S. Securities & Exchange Commission and delayed filings of quarterly results, any of which could cause the Company's previously reported actual results or performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.