bCompany Also Reports Further Restructuring of Balance Sheet and
http://www.debtresolve.com () —
Debt Resolve, Inc. (OTCBB: DRSV) (the "Company"), a leading provider of the proprietary DebtResolve@ software to major banks and other businesses with large consumer debt portfolios, announced the acquisition of a major new client, the continuing restructuring of its balance sheet and the completion of further financing.
Client and Product Development
In December 2009, the Company implemented its system with a top five global bank in Asia. The bank operates in over 25 countries in Asia, Africa and the Middle East, and the system was implemented in one Asian country with plans to roll the system out to all countries where the bank operates. In March 2010, the bank agreed to move forward with the implementation in a second country.
In January 2010, Company representatives met with a current client, one of the largest regional banks in the United States. Based on their positive results using the system to date, the client has doubled the number of accounts in the first quarter of 2010 from the number loaded in the fourth quarter of 2009. Our revenue from this client has increased proportionately with the number of new accounts it loads onto the system.
In March 2010, the Company went live with a new collection law firm client.
Restructuring of balance sheet
On September 29, 2009, the Company previously announced an initial successful restructuring of $3,092,689 of the cash liabilities on its balance sheet as of June 30, 2009, the benchmark date for the restructuring process. The Company has continued its restructuring of these liabilities and is pleased to announce that an additional $3,013,596 of liabilities has been restructured. The total amount removed from the balance sheet is now $6,106,285 of liabilities, leaving a balance of $4,400,703 from the original balance of $10,506,988 as of June 30, 2009.
Of the remaining $4,400,703 in liabilities, $1,286,269 is non-cash derivative liability, leaving $3,114,434 in cash liabilities from the Company's balance sheet on June 30, 2009. The items removed from the balance sheet include all of the liabilities of the Company's former subsidiary, First Performance, which was closed on June 30, 2008 and was dissolved by the Board of First Performance on March 3, 2010, the conversion of two older notes to stock and various accounts payable settled at a substantial discount to face value. The Company is continuing to restructure the remaining legacy liabilities and expects to reduce those liabilities to approximately $2 million initially and then discharge the $2 million balance over the next two years through payment arrangements.
Commenting on the announcement, David Rainey, President and Interim CEO of Debt Resolve, stated, "Starting in 2009, an important Company goal was to significantly restructure our balance sheet. We made substantial progress last year and have continued to work to reposition the Company for success. With this additional reduction to our balance sheet liabilities, we are getting closer to completing our objective of reducing legacy liabilities to $2 million or less. These legacy liabilities were incurred prior to mid-2009, our measurement date for the restructuring."
James Burchetta, Debt Resolve's Chairman, stated, "Debt Resolve is determined to restructure the Company into a strong, profitable enterprise. This continued restructuring will assist the Company in this endeavor. The Board has already converted their debt to stock as a strong show of faith in the Company. We are committed to increasing shareholder value."
Completion of additional funding
The Company also announced that it has completed $1,284,959 of interim funding from June 2009 to the present. On October 20, 2009, the Company previously announced the completion of an interim round of funding of $984,959. Subsequent to that date to the present, the Company has closed on additional interim funding of another $300,000. The interim funding consists of 14% convertible debentures with warrant coverage. A portion of this debt was used to retire the debt discussed above. The Company continues to seek permanent funding for its ongoing operations.
About Debt Resolve, Inc.
Debt Resolve provides lenders, collection agencies, debt buyers and hospitals with a patent-based online bidding system for the resolution and settlement of consumer debt and a collections and skip tracing solution that is effective at every stage of collection and recovery. The company is publicly held and trades on the OTC Bulletin Board under the symbol DRSV. Amended Quarterly Reports on Form 10-Q for the periods ended June 30, 2008 and September 30, 2008 will be filed to correct an erroneous accounting of common stock issuances, as further discussed in the Form 8-K dated August 14, 2009. Debt Resolve is headquartered in Tarrytown, New York. For more information, visit http://www.b2i.us/irpass.asp?BzID1976&toea&s0 (http://www.b2i.us/irpass.asp?BzID1976&toea&s0) .
Certain statements in this press release and elsewhere by management of the Company that are neither reported financial results nor other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of the Company's operations. Debt Resolve undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised to consult any further disclosures made on related subjects in the Company's reports filed with the SEC. For more information, visit http://www.b2i.us/irpass.asp?BzID1976&toea&s0 (http://www.b2i.us/irpass.asp?BzID1976&toea&s0) .