EX-99.1 2 a4855057ex991.txt STORAGE COMPUTER CORPORATION EXHIBIT 99.1 Exhibit 99.1 Storage Computer Postpones Reporting of Financial Results and Filing of Form 10K for the Quarte and Year Ended December 31, 2004 NASHUA, N.H.--(BUSINESS WIRE)--April 1, 2005--Storage Computer Corporation (OTC: SOSO), (www.storage.com), a provider of high-performance storage management software systems, today announced that it is postponing reporting its audited financial results and delayed the filing of its Form 10K for the quarter and year ended December 31, 2004. The delay arises from the company's inability to secure new financing and the resulting lack of financial resources to complete the 2004 audit. The Company has previously received a "going concern opinion" from its auditors due to recurring losses and negative cash flows from operations which raises substantial doubt about the Company's ability to continue as a going concern. The Company is currently pursuing an opportunity that would provide new financing. However, there can be no assurance that the Company will be able to obtain new financing and, if new financing is obtained it could result in significant dilution to existing shareholders. As previously reported, if we are not successful in obtaining new financing the ability of the Company to continue to operate as an independent company is in serious doubt. For the reasons described above, the Company is unable to determine at this time a date certain by which it expects to file its Form 10K and report audited financial results for the quarter and year ended December 31, 2004. The accompanying preliminary unaudited financial results for the quarter and year ended December 31, 2004 may be subject to potential significant changes due to the year end audit. Forward-Looking Statements. This press release contains forward-looking statements to future events or future financial performance that involves risks and uncertainties. The forward-looking statements in this press release address a variety of subjects, including without limitation, future business prospects. These statements are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. These statements are only predictions and actual results could differ materially from those anticipated in these statement based on a number of factors including those uncertainties and risk factors detailed from time to time in reports filed by Storage Computer Corporation with the Securities and Exchange Commission, including our most recent reports on Form 10K and 10Q. STORAGE COMPUTER CORPORATION PRELIMINARY AND UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS ---------------------------------------------------------------------- Three Month Ended Twelve Months Ended ------------------------ ------------------------- December December December December 2004 2003 2004 2003 ----------- ------------ ------------ ------------ Revenues: (UNAUDITED) (UNAUDITED) Products and services $112,464 $404,231 $411,939 $1,045,038 License fees -- -- -- -- ----------- ------------ ------------ ------------ Total revenues 112,464 404,231 411,939 1,045,038 ----------- ------------ ------------ ------------ Costs and expenses: Cost of products and services 154,672 750,335 706,913 1,447,449 Cost of license fees, primarily legal fees -- 73,925 -- 791,474 Research and development 197,908 104,605 868,136 970,589 Sales and marketing 147,519 90,724 590,277 530,289 General and administrative 126,437 286,043 855,935 1,445,445 Amortization of intangibles 144,000 144,000 576,000 576,000 ----------- ------------ ------------ ------------ Total costs and expenses 770,537 1,449,632 3,593,261 5,761,246 ----------- ------------ ------------ ------------ Operating loss (658,072) (1,045,401) (3,185,322) (4,716,208) ----------- ------------ ------------ ------------ Other income (expense), net: Interest expense, net (40,092) (30,108) (181,191) (46,685) Other income (expense) (42,923) (185,372) (149,951) 13,471 ----------- ------------ ------------ ------------ Total other income (expense), net (83,015) (215,480) (331,142) (33,214) ----------- ------------ ------------ ------------ Net loss $(741,087) $(1,260,881) $(3,516,464) $(4,749,422) Dividends on preferred stock including amortization of the beneficial conversion features -- -- -- (17,595) ----------- ------------ ------------ ------------ Net Loss applicable to common stockholders $(741,087) $(1,260,881) $(3,516,464) $(4,767,017) ----------- ------------ ------------ ------------ Loss applicable to common stockholders per basic and dilutive share $(0.02) $(0.03) $(0.09) $(0.13) Basic and dilutive shares outstanding 38,924,531 37,651,844 38,862,910 36,300,932 STORAGE COMPUTER CORPORATION PRELIMINARY AND UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS December December 31, 31, 2004 2003 ---------------------- (Unaudited) Cash and cash equivalents $17,146 $72,581 Accounts receivable, inventories and other current assets 1,157,748 1,713,268 ---------------------- Total current assets 1,174,894 1,785,849 Non-current assets, primarily goodwill, net 3,264,697 3,987,377 ---------------------- Total assets $4,439,591 $5,773,226 ====================== Current liabilities $5,129,209 3,352,948 Shareholders' equity (689.618) 2,420,278 ----------- Total liabilities and shareholders' equity $4,439,591 $5,773,226 ====================== CONTACT: Storage Computer Corporation Michael J. O'Donnell, 603-880-3005 CF0 ir@storage.com