SOURCE: InfoSearch Media

 

CULVER CITY, CA--(Marketwire - August 20, 2008) - InfoSearch Media, Inc. (OTCBB: ISHM), a comprehensive search marketing firm delivering Web traffic to world-class ecommerce and publishing clients via search-optimized text and video content, search engine optimization and pay-per-click services, today announces financial results for its second quarter ended June 30, 2008.

InfoSearch Media reported revenues of $1.6 million for the six months ended June 30, 2008, compared to $2.5 million for the six months ended June 30, 2007. Although the Gross Profit Margin decreased slightly to 61.1% from 62.2% for the first fiscal half of 2008 and 2007, respectively, Operating Expenses were more than halved for the same six month periods to $1.6 million from $3.3 million as the Company implemented a number of cost reduction measures during 2008 which resulted in a lower Loss from Operations. Additionally a change in the fair value of warrants previously issued by InfoSearch resulted in a non-cash gain of $0.8 million for the six months ended June 30, 2008.

The Company reported GAAP Net Income of $0.2 million, or $0.00 for per share the first half of fiscal 2008, compared to a GAAP Net Loss of ($1.5 million), or ($0.03) per share, for the first half of 2007.

"The product diversification and customer segmentation initiatives commenced in Q1 are now gaining traction," says Chief Executive Officer George Lichter. "An impressive and growing list of new first tier clients coupled with a healthier revenue mix, positions the Company well as we enter our strongest two quarters of the year."

"The Company has continued to bring expense levels in line with revenues," said Chief Financial Officer Scott Brogi. "The changes move us very close to our goal of achieving sustained cash-flow profitability."

Recent Company Highlights:

--  Award-Winning Products & Services -- InfoSearch Media ranked in top 20
    of Website Magazine's Top 50 SEO Firms and Resources of 2008, as it
    expanded outside of its core of text-based content to add streaming video,
    link-building and search engine optimization services to its product suite.
    
--  New Clients -- The Company recently signed significant new clients
    among industry leaders in the online education, automotive, health, travel
    and consumer goods verticals.
    
--  New Financing -- The Company completed an equity financing round
    during the quarter with existing investors to provide additional working
    capital to support new business initiatives.
    
--  New Location -- The Company relocated to more modern offices centrally
    located in the Culver City area of Los Angeles, and in doing so reduced
    overhead and improved functionality.
    

About InfoSearch Media

InfoSearch Media (http://www.InfoSearchMedia.com) is a leading, comprehensive Internet search marketing Company and the largest dedicated provider of cost-effective Web traffic via search-optimized text and video content, pay-per-click and SEO services. InfoSearch Media's network of professional writers, editors, technical specialists and video producers helps businesses succeed on the Web by implementing cost-effective Internet marketing solutions designed to deliver more web traffic for customers of every size. Whether a business needs more local traffic in 100 cities or is a content publisher with an ongoing need for fresh, targeted Web content, InfoSearch Media offers the outsourced solutions, capacity and reputation to help clients secure Internet traffic. Incorporated in 2000, the publicly traded Company is headquartered in Culver City, Calif.

Safe Harbor Statement

This release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Management assumes no obligation to comment on or provide an update to its stock purchases or sales in the future except as specifically required by law and by the Securities and Exchange Commission. Factors that might cause such differences include, but are not limited to the challenges of attracting new customers and maintaining existing customers and developing, deploying and delivering InfoSearch services; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers and other risks described from time to time in InfoSearch's filings with the Securities and Exchange Commission. In particular, see InfoSearch's Annual Report on Form 10-K/A for the year ended Dec. 31, 2007, filed with the Securities and Exchange Commission, copies of which are available upon request from InfoSearch. InfoSearch does not assume any obligation to update the forward-looking information contained in this press release.

                          INFOSEARCH MEDIA, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS


                          For the Three Months    For the Six Months Ended
                           Ended June 30, 2008          June 30, 2008
                        ------------------------  ------------------------
                            2008         2007         2008         2007
                        -----------  -----------  -----------  -----------
CONTENTLOGIC SALES      $   572,594  $ 1,120,194  $ 1,605,023  $ 2,396,109
WEB PROPERTIES SALES          9,116       39,799       25,973       70,749
                        -----------  -----------  -----------  -----------
NET SALES                   581,710    1,159,993    1,630,996    2,466,858

CONTENTLOGIC COST OF
 SALES                      234,806      438,752      588,401      899,927
WEB PROPERTIES COST OF
 SALES                       26,493       16,900       46,452       32,221
                        -----------  -----------  -----------  -----------
COST OF SALES               261,299      455,652      634,853      932,148

                        -----------  -----------  -----------  -----------
GROSS PROFIT/MARGINS        320,411      704,341      996,143    1,534,710
                        -----------  -----------  -----------  -----------

OPERATING EXPENSES
   General &
    administrative          467,230    1,349,193    1,126,520    2,371,469
   Sales & marketing        208,052      427,384      448,137      961,511
                        -----------  -----------  -----------  -----------
      TOTAL OPERATING
       COSTS                675,282    1,776,577    1,574,657    3,332,980

                        -----------  -----------  -----------  -----------
LOSS FROM OPERATIONS       (354,871)  (1,072,236)    (578,514)  (1,798,269)
                        -----------  -----------  -----------  -----------

CHANGE IN FAIR VALUE OF
 WARRANTS                   326,551      (61,745)     816,613      234,458


INTEREST INCOME (NET)           655       18,186        5,228       34,966
                        -----------  -----------  -----------  -----------

EARNINGS (LOSS) FROM
 CONTINUING OPERATIONS
 BEFORE TAX                 (27,665)  (1,115,795)     243,327   (1,528,846)

TAXES FROM CONTINUING
 OPERATIONS                     800          825          262        2,875
                        -----------  -----------  -----------  -----------

                        -----------  -----------  -----------  -----------
NET EARNINGS (LOSS)
 FROM CONTINUING
 OPERATIONS                 (28,465)  (1,116,621)     243,065   (1,531,721)
                        -----------  -----------  -----------  -----------


NET EARNINGS (LOSS)         (28,465)  (1,116,621)     243,065   (1,531,721)
                        ===========  ===========  ===========  ===========

EARNINGS (LOSS) PER
 SHARE FROM CONTINUING
 OPERATIONS -
   BASIC                      (0.00)       (0.02)        0.00        (0.03)
                        ===========  ===========  ===========  ===========
   DILUTED                    (0.00)       (0.02)        0.00        (0.03)
                        ===========  ===========  ===========  ===========

WEIGHTED AVERAGE SHARES
 OUTSTANDING - BASIC     52,493,592   52,547,662   52,493,592   52,132,276

WEIGHTED AVERAGE SHARES
 OUTSTANDING - DILUTED   52,493,592   52,547,662   52,493,592   52,132,276




                          INFOSEARCH MEDIA, INC.
                        CONSOLIDATED BALANCE SHEETS


                                                    June 30,   December 31,
                                                      2008        2007
                                                  -----------  -----------
ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                       $   130,585  $   787,239
  Restricted cash                                           -       20,000
  Accounts receivable                                 333,248      215,518
  Prepaid and other current assets                    102,228      141,745

                                                  -----------  -----------
    TOTAL CURRENT ASSETS                              566,061    1,164,202
                                                  -----------  -----------

EMPLOYEE ADVANCE                                        2,300        1,800

PROPERTY AND EQUIPMENT, NET                           110,708      130,650

EQUITY WARRANT ASSET                                  108,014      112,049

                                                  -----------  -----------
    TOTAL ASSETS                                      787,083    1,408,701
                                                  -----------  -----------

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES:
  Accounts payable                                $   135,198  $   228,308
  Accrued salaries and bonuses and expenses            44,314       12,553
  Accrued expenses                                     36,320      170,882
  Deferred revenue                                    359,375      526,868
  Provision for refunds payable/chargebacks            15,842       15,842
  Current tax liability                                 1,250        1,250
                                                  -----------  -----------
    TOTAL CURRENT LIABILITIES                         592,299      955,703

CAPITAL LEASES, NET OF CURRENT PORTION                      -

INCOME TAX PAYABLE                                                       -

FAIR VALUE OF WARRANT LIABILITY                       147,003      967,651
                                                  -----------  -----------

DEPOSIT ON SUBSCRIPTION                               230,000            -
                                                  -----------  -----------

    TOTAL LIABILITIES                             $   969,302  $ 1,923,354

COMMITMENTS AND CONTINGENCIES (Note 13)

STOCKHOLDERS' EQUITY (DEFICIT):
  Common stock, $.001 par value, authorized
   200,000,000 shares; issued and outstanding
   52,336,909 and 5, respectively                      52,494       52,494
  Additional paid in capital                       11,426,111   11,336,742
  Accumulated deficit                             (11,660,824) (11,903,889)
                                                  -----------  -----------
    TOTAL STOCKHOLDERS' EQUITY (DEFICIT)             (182,219)    (514,653)
                                                  -----------  -----------

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $   787,083  $ 1,408,701
                                                  ===========  ===========




                          InfoSearch Media, Inc.
                         Statements of Cash Flows
                     For the six months ended June 30,


                                                     2008         2007
                                                  -----------  -----------

Cash flows from operating activities:
  Net Gain (Loss)                                 $   243,065  $(1,531,721)
  Adjustments to reconcile net (loss) to net cash
   provided by (used in) operating activities:
    Depreciation and amortization                      23,832       60,038
    Equity Based Compensation                          89,369      169,718
    Change in fair value of equity warrant
     liability                                       (820,648)    (232,949)
    Changes in fair value of warrant asset              4,035            -
      Accounts receivable                            (118,030)      19,183
      Due from Related Parties                           (500)      34,423
      Prepaid Expenses and Other Current Assets         2,017       49,852
      Due from employee advances                            -       (3,700)
      Security Deposit                                 37,500            -
      Accounts Payable, Accrued Expenses, and
       Other Liabilities                             (195,911)    (352,964)
      Income Tax Payable                                    -        1,250
      Provision for refund                                  -      (16,482)
      Deferred Revenue                               (167,493)     (37,325)
                                                  -----------  -----------

        Net cash provided by (used in) operating
         activities                                  (902,764)  (1,840,677)
                                                  -----------  -----------

Cash flows from investing activities:
  Restricted cash                                      20,000          288
  Capital expenditures - fixed assets                  (3,890)     (68,250)

                                                  -----------  -----------
        Net cash used in investing activities          16,110      (67,962)
                                                  -----------  -----------

Cash flows from financing activities:
  Principal payments of capital lease obligations           -      (17,162)
  Warrants exercised                                        -        3,600
  Deposit on Subscription                             230,000            -

        Net cash from financing activities            230,000      (13,562)
                                                  -----------  -----------

        Net increase (decrease) in cash and cash
         equivalents                                 (656,654)  (1,922,201)
Cash and cash equivalents at beginning of period      787,239    2,495,654

Cash and cash equivalents at end of period        $   130,585  $   573,453
                                                  -----------  -----------