Acies Announces
Financial Results
NEW YORK, New York, November 12, 2004 – Acies, Inc., a
wholly owned subsidiary of Atlantic Synergy, Inc., pending name
change to Acies Corporation (OTCBB: ASGY) (“Company”) announced
today financial results for quarter ended September 30, 2004,
which contain financial statements that reflect Company’s new
focus and acquisition of Acies, Inc.
Quarter ending September 30, 2004 Highlights:
-
Revenues of $870,745 for the quarter
ending September 30, 2004; 252.13% year-over-year growth; 22.95%
growth from the Second Quarter of 2004
-
Revenues of $1.58 Million for the Six
Months Ended September 30, 2004; 311.42% increase over last year
RESULTS OF OPERATIONS FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 2004 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2003
Net revenues increased $623,466 (or 252.13%) to $870,745 for the
three months ended September 30, 2004, as compared to net
revenues of $247,279 for the three months ended September 30,
2003. The increase in net revenues was due to an increase in
product revenue, service revenue from existing customers and
Acies' accelerating acquisition of new merchant accounts.
Cost of revenues increased $520,134 (or 269.51%) to $713,123 for
the three months ended September 30, 2004, as compared to cost
of revenues of $192,989 for the three months ended September 30,
2003. The increase in cost of revenues was attributed to an
increase in product costs that resulted from an increase in
product sales, and an increase in merchant processing costs that
resulted from an increase in existing and new merchant
processing revenue.
Gross margin increased $103,332 (or 190.33%) to $157,622 for the
three months ended September 30, 2004, as compared to gross
margin of $54,290 for the three months ended September 30, 2003.
The increase in gross margin is directly attributable to the
increase in net revenues that was offset by the increase in
costs of revenue.
General, administrative and selling ("G&A") expense increased
$2,180,693 (or 4,663%) to $2,227,459 for the three months ended
September 30, 2004, as compared to G&A expense of $46,766 for
the three months ended September 30, 2003. The increase in G&A
expense was primarily attributable to issuance of common stock
valued at $1,610,437 for services in connection with the
Exchange, an increase in office lease expense from $9,000 for
the quarter ended September 30, 2003 to $36,042 for quarter
ended September 30, 2004, an increase in full-time employees and
payroll expense from $0 for the quarter ended September 30, 2003
to $137,225 for the quarter ended September 30, 2004, $182,111
of financial advisory services and $18,615 of legal fees
incurred in connection with the Exchange, and $55,759 for
renovation and equipment for the New York office.
We had interest expense of $3,000 and interest income of $30 for
the three months ended September 30, 2004, as compared to none
for the three months ended September 30, 2003.
We had a net loss of $2,072,807 for the three months ended
September 30, 2004, as compared to net income of $7,524 for the
three months ended September 30, 2003. The increase in net loss
is directly attributable to G&A expense.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30,
2004 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2004
Net revenues increased $162,518 (or 22.95%) to $870,745 for the
three months ended September 30, 2004, as compared to net
revenues of $708,227 for the three months ended June 30, 2004.
The increase in net revenues was due to an increase in product
revenue, service revenue from existing customers and Acies'
accelerating acquisition of new merchant accounts.
Cost of revenues increased $112,739 (or 18.78%) to $713,123 for
the three months ended September 30, 2004, as compared to cost
of revenues of $600,384 for the three months ended June 30,
2004. The increase in cost of revenues was attributed to an
increase in product costs that resulted from an increase in
product sales, and an increase in merchant processing costs that
resulted from an increase in existing and new merchant
processing revenue.
Gross margin increased $49,779 (or 46.16%) to $157,622 for the
three months ended September 30, 2004, as compared to gross
margin of $107,843 for the three months ended June 30, 2004. The
increase in gross margin is directly attributable to the
increase in net revenues that was offset by the increase in
costs of revenue.
General, administrative and selling ("G&A") expense increased
$1,925,570 (or 637,84%) to $2,227,459 for the three months ended
September 30, 2004, as compared to G&A expense of $301,889 for
the three months ended June 30, 2004. The increase in G&A
expense was primarily attributable to issuance of common stock
valued at $1,610,437 for services in connection with the
Exchange, $182,111 of financial advisory services and $18,615 of
legal fees incurred in connection with the Exchange, and $55,759
for renovation and equipment for the New York office.
We had interest expense of $3,000 and interest income of $30 for
the three months ended September 30, 2004, as compared to $0.00
interest expense and $22 of interest income for the three months
ended June 30, 2004.
We had a net loss of $2,072,807 for the three months ended
September 30, 2004, as compared to net loss of $217,024 for the
three months ended June 30, 2004. The increase in net loss is
directly attributable to G&A expense.
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30,
2004 COMPARED TO THE SIX MONTHS ENDED SEPTEMBER 30, 2003
Net revenues increased $1,195,189 (or 311.42%) to $1,578,972 for
the six months ended September 30, 2004, as compared to net
revenues of $383,783 for the six months ended September 30,
2003. The increase in net revenues was due to an increase in
product revenue, service revenue from existing customers and
Acies' accelerating acquisition of new merchant accounts.
Cost of revenues increased $1,030,165 (or 363.58%) to $1,313,507
for the six months ended September 30, 2004, as compared to cost
of revenues of $283,342 for the six months ended September 30,
2003. The increase in cost of revenues was attributed to an
increase in product costs that resulted from an increase in
product sales, and an increase in merchant processing costs that
resulted from an increase in existing and new merchant
processing revenue.
Gross margin increased $165,024 (or 164.30%) to $265,465 for the
six months ended September 30, 2004, as compared to gross margin
of $100,441 for the six months ended September 30, 2003. The
increase in gross margin is directly attributable to the
increase in net revenues that was offset by the increase in
costs of revenue.
General, administrative and selling ("G&A") expense increased
$2,466,876 (or 2,886.21%) to $2,552,347 for the six months ended
September 30, 2004, as compared to G&A expense of $85,471 for
the six months ended September 30, 2003. The increase in G&A
expense was primarily attributable to issuance of common stock
valued at $1,610,437 for services in connection with the
Exchange, an increase in office lease expense from $18,000 for
the six months ended September 30, 2003 to $72,084 for the six
months ended September 30, 2004, an increase in full-time
employees and payroll expense from $0 for the six months ended
September 30, 2003 to $274,450 for the six months ended
September 30, 2004, $382,111 of financial advisory services and
$26,115 of legal fees incurred in the connection with the
Exchange, and $55,759 for renovation and equipment for the New
York office.
We incurred a cost of $23,000 to settle a lawsuit for the six
months ended September 30, 2004. We did not incur such an
expense during the six months ended September 30, 2003.
We had interest expense of $3,000 and interest income of $51 for
the six months ended September 30, 2004, as compared to none for
the six months ended September 30, 2003.
We had a net loss of $2,289,831 for the six months ended
September 30, 2004, as compared to net income of $14,970 for the
six months ended September 30, 2003. The increase in net loss is
directly attributable to G&A expense.
Commenting on the results, Oleg Firer, President and Chief
Executive Officer of Acies, said, “The third quarter was of
great importance to Acies as we successfully validated our
growth strategy that we can continue to grow gross revenues for
the company quarter over quarter.”
The Company’s Form 10-QSB can be viewed at
http://www.sec.gov/edgar.shtml
About the Company
Acies, Inc. (“Acies”) is a financial services company that
specializes in payment processing services and banking services
to small, medium and large size merchants across the United
States. Acies’ payment processing services enable merchants to
process Credit, Debit, Electronic Benefit Transfer (EBT), Check
Conversion and Gift & Loyalty transactions. In addition to
payment processing services, Acies’ offers a full-suite of
point-of-sale terminals that enable merchants to utilize Acies’
payment processing services. Acies' banking services are
available through http://www.aciesbank.com. Acies Bank offers
customers traditional banking services, and an ability to apply
for an on-line bank account and pay bills electronically.
For more information visit http://www.aciesinc.com/.
Forward-looking Statements
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains or may contain
forward-looking statements such as statements regarding the
Company's growth and profitability, growth strategy, liquidity
and access to public markets, operating expense reduction, and
trends in the industry in which the Company operates. The
forward-looking statements contained in this press release are
also subject to other risks and uncertainties, including those
more fully described in the Company's filings with the
Securities and Exchange Commission. The Company assumes no
obligation to update these forward-looking statements to reflect
actual results, changes in risks, uncertainties or assumptions
underlying or affecting such statements, or for prospective
events that may have a retroactive effect.
CONTACT:
Oleg Firer; President and Chief Executive Officer
Tel: 800-361-5540 ext 100
Fax: 212-504-0866
oleg@aciesinc.com
