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Affinity Technology Group, Inc. (OTCBB:AFFI - News) - Affinity Announces Second Quarter Results

Affinity Technology Group, Inc. (OTCBB:AFFI - News) - Affinity Announces Second Quarter Results


Affinity Technology Group, Inc. (OTCBB:AFFI - News) announced financial results for the second quarter and six months ended June 30, 2006.


Revenues for the quarter were $8 thousand, with a net loss of $220 thousand, or $0.00 per share. Second quarter 2005 revenues were $4 thousand and the Company reported a net loss of $165 thousand or $0.00 per share. The weighted average number of shares outstanding during the three months ended June 30, 2006 was 44.2 million, compared to 42.2 million for the same period in 2005.

For the first six months of 2006, revenues were $17 thousand, with a net loss of $310 thousand, or $0.01 per share. Revenues for the comparable period in 2005 were $9 thousand, with a net loss of $295 thousand, or $0.01 per share. The weighted average number of shares outstanding during the six months ended June 30, 2006, was 43.2 million, compared to 42.2 million for the same period in 2005.

Joe Boyle, Chairman, President and Chief Executive Officer of Affinity, stated, "We believe that we have made significant progress during the first six months of 2006. The highlight was the successful conclusion in March of the reexamination of our financial and credit account patent (U.S. Patent No. 6,105,007). That event has created forward momentum for the Company, and since that time we have secured the services of Morgan Keegan to assist us in raising capital, restructured our legal services agreement to include the McBride Law firm and engaged Parsons Behle & Latimer and Dr. Mark Glick as part of our legal team.

"Additionally, the stays on the lawsuits with Ameritrade, Federated Department Stores and Household have been lifted and the lawsuits are proceeding. As announced last week, we have also extended the maturity of our convertible notes, which resolves their default status. In the near future our objective is to continue to explore capital raising options with Morgan Keegan and to attract new capital to further strengthen the financial base of the Company."

About Affinity Technology Group, Inc.

Through its subsidiary, decisioning.com, Inc., Affinity Technology Group, Inc. owns a portfolio of patents that covers the automated processing and establishment of loans, financial accounts and credit accounts through an applicant-directed remote interface, such as a personal computer or terminal touch screen. Affinity's patent portfolio includes U.S. Patent No. 5,870,721C1, No. 5,940,811C1, and No. 6,105,007C1.

Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We cannot offer any assurances that Affinity will prevail on its claims of patent infringement against third parties or that such claims will result in monetary damages to Affinity. Investors are cautioned that our business is subject to several substantial risks and uncertainties, including the Company's very limited capital resources and the possibility that we may be unable to raise additional capital in amounts sufficient to permit us to continue operations; the risk that we may lose all or part of the claims covered by our patents as a result of challenges to our patents; the risk that our patents may be subject to additional reexamination by the U.S. Patent and Trademark Office or challenge by third parties; the result of ongoing litigation, including patent litigation; and unanticipated costs and expenses affecting the Company's cash position. If the Company is not able to raise additional capital immediately, it may be forced to consider alternatives for winding down its business, which may include offering its patents for sale or filing for bankruptcy protection. These and other factors may cause actual results to differ materially from those anticipated.

Affinity Technology Group, Inc.

Statements of Operations

Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenues:
Patent license
revenue $ 8,334 $ 4,412 $ 16,667 $ 8,824
Costs and expenses:
Cost of revenues 834 441 1,667 882
General and
administrative
expenses 206,458 145,259 278,177 255,506
----------- ----------- ----------- -----------
Total costs
and
expenses 207,292 145,700 279,844 256,388
----------- ----------- ----------- -----------
Operating loss (198,958) (141,288) (263,177) (247,564)
Other income (expense):
Interest income 478 - 722 61
Interest
expense (21,485) (24,042) (47,456) (47,452)
----------- ----------- ----------- -----------
Net loss $ (219,965) $ (165,330) $ (309,911) $ (294,955)
=========== =========== =========== ===========

Net loss per share -
basic and diluted: $ (0.00) $ (0.00) $ (0.01) $ (0.01)
=========== =========== =========== ===========
Shares used in
computing net loss
per share 44,217,651 42,215,096 43,235,883 42,187,348
=========== =========== =========== ===========


Balance Sheets June 30,
2006 2005
----------- -----------

Cash and Short
Term Investments $ 72,101 $ 26,429

Total Current
Assets 103,689 54,225

Total Assets 106,708 61,474

Total Liabilities 1,925,853 1,839,513

Stockholders'
Deficiency (1,819,145) (1,778,039)



Contact:
Affinity Technology Group, Inc.
Joe Boyle, 803-758-2511

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Source: Affinity Technology Group, Inc.

posted by Famous Quotations @ 12:22 PM