TORONTO, ONTARIO--(Marketwire - Nov. 15, 2012) - VoodooVox Inc. ("VoodooVox" or the "Company") (TSX:VVX), a leading provider of mobile advertising solutions, today announced its financial results for the three and nine months ended September 30, 2012.

THIRD QUARTER RESULTS

• Revenues recognized of $0.9 million compares to $2.0 million for the third quarter of 2011. Revenue from mobile advertising was $0.6 million in Q3 2012 compared to $0.4 million in Q3 2011.
• Operating loss of $1.8 million compares to an operating profit of $0.1 million for the third quarter of 2011. Q3 2012 expenses included additional staff costs associated with recent acquisitions undertaken by the Company.
• Net loss for the quarter ended September 30, 2012 was $2.2 million ($0.01 per share) compared to $0.6 million for the same period in 2011 ($0.01 per share). Q3 2012 interest expense on debentures was $0.5 million compared to $0.8 million for the same period in 2011. The decrease in interest paid on outstanding debentures was principally attributable to the debenture conversion program implemented by the Company in December of 2011.

YEAR TO DATE RESULTS

• Revenues recognized of $3.2 million compares to $5.2 million for the first nine months of 2011. Revenue from mobile advertising was $2.2 million for the nine-month period ended September 30, 2012 compared to $0.7 million for the corresponding period in 2011.
• Operating loss of $5.2 million compares to $0.6 million for the first nine months of 2011. YTD 2012 expenses included additional staff costs associated with recent acquisitions undertaken by the Company.
• Net loss for the nine months ended September 30, 2012 was $6.4 million ($0.03 per share) compared to $2.6 million net loss for the same period in 2012 ($0.03 per share). YTD 2012 interest expense on debentures was $1.5 million compared to $2.3 million for the same period in 2011. The decrease in interest paid on outstanding debentures for the period was principally attributable to the debenture conversion program implemented by the Company in December of 2011.
• In the third quarter of 2012, the Company deferred approximately $5 million of debt that was scheduled to mature in 2012 and 2013. At September 30, 2012, the Company had a working capital deficit of $1.2 million compared to a working capital deficit of $7.4 at June 30, 2012.
• At September 30, 2012, the Company had a cash balance of $0.4 million compared to $0.4 million at December 31, 2011.

FINANCING ACTIVITIES

• On August 13, 2012, the Company completed a brokered private placement for $1.8 million. The Company distributed 1,837 debentures each with a denomination of $1,000. The debentures bear interest at a rate of 12% and are scheduled to mature on August 13, 2015. With each $1,000 principal amount of debentures, the Company also distributed 3,000 common share warrants, each of which entitles the holder to acquire one common share in the capital of the Company at an exercise price of $0.02 per share. The warrants are scheduled to expire on August 13, 2015.
• On September 19, 2012, the Company completed a brokered private placement for $1.0 million. The Company distributed 1,000 debentures each with a denomination of $1,000. The debentures bear interest at a rate of 12% and are scheduled to mature on September 19, 2015. With each $1,000 principal amount of debentures, the Company also distributed 3,000 common share warrants, each of which entitles the holder to acquire one common share in the capital of the Company at an exercise price of $0.02 per share. The warrants are scheduled to expire on September 19, 2015.
• During the third quarter, the Company reached agreements with holders of its debentures to defer principal and interest repayments on approximately $5 million aggregate principal amount of debentures.

OUTLOOK

The Company's future operations remain dependent upon its ability to: 1) raise additional funds; 2) realize transaction revenues from existing customer relationships; and 3) secure new customer relationships that provide the Company with adequate funds to cover expenditures projected for the balance of 2012 and 2013 (or a combination of the foregoing). In recent years, the Corporation has relied upon external debt financing to provide it with the working capital required to support ongoing operations.

Michael Durance, CEO of the Company, remarked, "The deferral of approximately $5 million of debt which was scheduled to mature in 2012 and 2013 has significantly improved our working capital position. This improvement, coupled with new operating savings through the consolidation of our acquisitions, have positioned the Company for much more efficient deployment of capital in a very robust and fast growing market place."

This news release should be read in conjunction with VoodooVox's interim consolidated financial statements and the accompanying notes as at and for the three months and nine months ended September 30, 2012 and the related Management Discussion and Analysis. These have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the VoodooVox website at www.voodoovox.com.

About VoodooVox Inc.

VoodooVox uses consumer analytics to provide smarter mobile advertising services via the cloud to publishers, advertisers and operators. VoodooVox, which represents the combined assets and knowledge base of three companies, namely Call Genie Inc., UpSnap Services, LLC and VoodooVox, now processes billions of advertising transactions for a marquee list of global clients and partners. Currently, VoodooVox solutions are deployed in 11 countries around the world. www.voodoovox.com.