3SOF

iVoice Reports Total Cash Reserves of $11 Million
Monday July 18, 6:15 am ET


MATAWAN, N.J.--(BUSINESS WIRE)--July 18, 2005--iVoice, Inc. (OTC Bulletin Board: IVOC - News), a leader in speech-recognition technology, announced today that it had recently completed an additional round of funding under its equity line of credit. Since the beginning of 2005, iVoice has raised an additional $4.4 million dollars, bringing its total cash reserves to approximately $11 million. Jerome Mahoney, President and Chief Executive Officer of iVoice stated: "The Company's cash position has never been stronger. Clearly, we have the financial resources to fund the Company's cash needs for the foreseeable future. We anticipate these funds will be used for general working capital needs, financing future growth, strategic acquisitions and/or a cash dividend to shareholders."
Mr. Mahoney continued: "We continue to work to find and complete acquisitions that offer excellent growth potential, that are in viable and stable market segments and that have management teams committed to success. With over $11 million in cash on our balance sheet, we believe we have the financial resources to move forward on this front."



With the stock at this price, way undrvalued.  Stock also sitting between 50/200MA.  With large buying volume could easily bust thru the 200MA.

I'll keep an eye on it, looks interesting.

I bought in this morning at .0005.  Already made about 20%, if I were to sell.  I think I'll wait until it doubles (.001).

I'm in as well, both at .0005 and .0006.

Jeez that was really hard to get filled finally got in at .0007 probably would've gotten in earlier if it wasn't for E*Crap

Ah well there it goes.

I don't think it's over yet.....just normal profit taking after 100% gain.  I haven't sold and won't, until I hit my target.

I'd like to see $.0009 today

Very interesting...
It took me 1/2 hour to buy @ $0.0007...

It's a risky play, but it sure has a LOT of potential.... I'll have to dig a bit more on this one, but meanwhile, I'm on the boat

best regards,

I sold out at .0007.  I might re-buy tomorrow, depending on how it starts.  This afternoon's dead volume scared me away from it.   I'll take my 40% gain and run, however. 

Yuck

Revenues are derived primarily from the sale of voice and computerized telephone systems for small-to-medium sized businesses and corporate departments. Total revenues for the three months ended March 31, 2005 were $66,067, as compared to $98,868 for the three months ended March 31, 2004, a decrease of $32,801 or 33.2%. The decrease in sales for the period reflects continued sluggish demand for the Company's speech recognition telecommunication products as well as reduced resources devoted to sales and marketing efforts.

Unless special arrangements are made, the Company receives 50% of the contract as a down payment on any product purchased with the balance due upon shipment or installation, if included in the contract. The Company recognizes its revenue using the percentage of completion method for turnkey systems that require custom configuration by the customer. The Company determines the expected costs on a particular configuration by estimating the hardware costs and anticipated labor hours to configure and install a system. Revenues are then recognized in proportion to the amount of costs incurred as of the reporting date over the total estimated costs anticipated.

Gross margin for the three months ended March 31, 2005 was $57,334 or 86.8%, as compared to $59,410 or 60.1% for the three months ended March 31, 2004. The gross margin is dependent, in part, on product mix, which fluctuates from time to time; complexity of a communication system installation which determines necessary hardware requirements and may not have a proportionate relationship with the system selling price; and the ability of Company technical personnel to efficiently configure and install the Company's communications products. The decrease in gross margin of $2,076 or 3.5% reflects the reduced volume offset by a greater mix of software sales when compared to the prior year which provides a greater gross margin %.

Total operating expenses decreased $55,558 or 12.2% from $455,401 for the three months ended March 31, 2004 to $399,843 for the three months ended March 31, 2005. The decrease in operating expenses for the

current quarter was principally a result of a decrease in professional fees of $143,787, selling expenses of $24,577, research and development expenses of $32,223 and amortization expense of $24,947 offset by a increases in salaries, payroll and office costs of $169,976 as the company realigns its resources to effectuate the spin-off of the three subsidiaries.

As of March 31, 2005, the Company had 6 full-time employees, 1 part-time consultants and 1 part-time employee for a total of 8 individuals.

The loss from continuing operations for the three months ended March 31, 2005 was $342,509 compared to $395,991 for the three months ended March 31, 2004, a decrease in the loss of $53,482 or 13.5%

Other income totaling $51,191 for the three months ended March 31, 2005 was comprised entirely of interest income on cash reserves. Other income for the three months ended March 31, 2004, reflects interest income on cash reserves of $16,689 and $12,602 in income pursuant to the administrative service agreement with Trey Resources, Inc.

Other expenses for the three months ended March 31, 2005 reflect the write-off of financing costs of $44,000 comprised of fees, market discounts on stock issued and drawdown fees charged pursuant to the financing agreement with Cornell Capital Partners, LP. This represents a decrease of $1,133,500 over the three-month period ending March 31, 2004, which amounted to $1,177,500.

Interest expense of $31,234 was incurred for the three-month period ending March 31, 2005 versus $8,339 in the three months ending March 31, 2004, an increase of $22,895 due to higher outstanding loan and debenture balances in the current period.

The Company incurred costs of $2,131 in three-month period ending March 31, 2004, related to the spin-off of its wholly owned subsidiary, Trey Resources, Inc. These costs consist primarily of legal, accounting, printing and reproduction as well as securities filing fees.

The loss of $24,613 from discontinued operations reflects the operating results of Trey Resources, Inc., a wholly owned subsidiary that the Company has distributed to its shareholders in the form of a dividend on February 11, 2004.

Net loss for the three-month period ending March 31, 2005 was $366,552 as compared to $1,579,283 for the first three months of 2004. The decrease in net loss of $1,185,987 was a result of the factors discussed above.

LIQUIDITY AND CAPITAL RESOURCES

We are currently seeking additional operating income opportunities through potential acquisitions or investments. Such acquisitions or investments may consume cash reserves or require additional cash or equity. Our working capital and additional funding requirements will depend upon numerous factors, including: (i) strategic acquisitions or investments; (ii) an increase to current company personnel; (iii) the level of resources that we devote to sales and marketing capabilities; (iv) technological advances; and (v) the activities of competitors.

During the three-month period ending March 31, 2005 and the year ended December 31, 2004, the Company

generated sales of $66,067 and $358,375, incurred net losses of $366,552 and $2,959,888 and had cash flow deficiencies from operating activities of $269,712 and $1,213,318 respectively. These matters raise substantial doubt about iVoice's ability to generate cash flows through its current operating activities sufficient enough that its existence can be sustained without the need for external financing. iVoice's primary need for cash is to fund its ongoing operations until such time that the sale of products generates enough revenue to fund operations. There can be no assurance as to the receipt or timing of revenues from operations.

The primary source of financing for iVoice has been through the issuance of common stock and debt that is convertible into common stock of the Company. On March 31, 2005, iVoice had total liabilities of $4,243,846, consisting of accounts payable and accrued expenses of $572,991, notes payable of $3,056,500, deferred revenue of $25,749, and amounts due to related parties of $588,606. It is anticipated that the remaining balance due on our outstanding notes payable which represents advances on the equity line of credit and promissory notes with Cornell Capital Partners, will be satisfied by the issuance of shares of Class A common stock. At March 31, 2005, the Company had cash balances on hand of $8,150,491. While we have raised sufficient working capital to fund our operations for at least the next 24 months, we will need to raise additional capital to fund our future operations.

On December 31, 2003, we entered into an Equity Line of Credit agreement with Cornell Capital Partners, L.P. pursuant to which, we have the right, upon effectiveness of the registration statement, to receive advances of up to an aggregate amount of $20.0 million from Cornell Capital Partners under an equity line of credit (the "Equity Line of Credit"), and to simultaneously issue shares of our Class A common stock in lieu of repayment of such advances. The number of shares to be issued to Cornell Capital Partners in connection with each advance will be determined by dividing the amount of each advance by the lowest closing bid price of the Class A Common stock over the five trading days after we provide Cornell Capital Partners notice requesting such advance. A minimum of seven trading days must pass between each advance notice. In addition, we have agreed to pay to Cornell Capital Partners a cash fee equal to 5.5% of the amount of each advance under the Equity Line of Credit, and issued to Cornell Capital Partners 300,000,000 shares of our Class A common stock as a one-time commitment fee. The Equity Line of Credit agreement required us to register for resale with the Securities and Exchange Commission a number of Class A common stock for which we registered 3,993,939,394 shares on January 2, 2004 on Form SB-2 and later amended on February 5, 2004.

During the three months ended March 31, 2005, iVoice had a net increase in cash of $164,748. iVoice's principal sources and uses of funds were as follows:

CASH USED BY OPERATING ACTIVITIES. iVoice used $269,712 in cash for operating activities in the three months ended March 31, 2005 an increase of $132,305 compared to $402,017 in cash used for operating activities in the three months ended March 31, 2004.

CASH USED BY INVESTING ACTIVITIES. iVoice used $5,540 in cash for investing activities in the three months ended March 31, 2005 a decrease of $8,777 compared to $14,317 in cash used for investing activities in the three months ended March 31, 2004.

CASH PROVIDED BY FINANCING ACTIVITIES. Financing activities in the three months ended March 31, 2005 provided a total of $440,000 in cash. This total consisted in debenture proceeds representing advances under the financing with Cornell Capital Partners. Financing activities in the three months ended March 31, 2004

provided a total of $2,967,000 in cash. This total consisted primarily of $3,000,000 in note payable proceeds representing advances under the equity line of credit with Cornell Capital Partners. A total of $300,000 of this advance was repaid through the issuance of common stock. The equity line advance was also offset by the repayment of related party obligations of $33,000.

seems interesting

I like this micro penny stock too, I've traded it about 2 or 3 years ago ... at this time what I like, besides the news, is the fact that it is making a second rally just some days after another one ... this is potentially a G-Pattern, no doubt about that.

Bought some millions yesterday (lol, just pocket money anyway), good luck for us !

We're at .0008 

Are people still holding this?  not that good of a day today.