CoroWare Reports Strong Second Quarter 2016 Financial Results

45% Increase in Gross Revenues Year-Over-Year

BELLEVUE, WA--(Marketwired - Aug 16, 2016) - CoroWare, Inc. (OTC PINK: COWI) today announced its financial results for the second quarter ended June 30, 2016.

"Revenues for the quarter ended June 30, 2016 were 45.5% higher compared to the same period a year ago as the Company continued to focus on selling R&D support, operations support, and marketing support services. Even though we are pleased with what we have accomplished to date this year, we know we have our work cut out for us. Our management team remains focused on three key facets that drive our business: providing our customers with end-to-end solutions to enhance the value of their business, building OEM and marketing partner relationships, and growing profitability," commented Lloyd Spencer, president and CEO of CoroWare, Inc.

"Companies are increasingly looking for ways to exploit intelligent technologies to fuel innovation. We are taking a long-term approach to staying ahead of the curve in the dynamic technology sectors that we are focused on. To this end, we are accelerating our sales efforts, acting on opportunities where we can grow in both new and existing markets, and acquiring talent to complement our current competencies," Spencer concluded.

Financial Results

  • CoroWare posted revenues of $1,971,901 for the three month period ended June 30, 2016 compared to $1,355,239 for the same period a year ago, an increase of 45.5%. 

    During the six months ended June 30, 2016, revenues were $3,618,088 compared to revenues of $2,153,780 for the same period a year ago, an increase of 68.0%.
     
  • Gross Profit for the three month period ended June 30, 2016 increased 35.6% to $386,868 for the quarter compared to $285,232 for the same period a year ago. The gross profit percentage for this three month period was 19.6% compared to 21.0% for the same period a year ago.

    During the six months ended June 30, 2016, Gross Profit increased 68.3% to $861,452, compared to $511,711 for the same period a year ago. The gross profit percentage was 23.8% for the six month period ended June 30, 2016 as well as for the same period a year ago.
     
  • Operating Expenses were $450,871 for the three month period ending June 30, 2016 as compared to $515,006 for the same period a year ago, a decrease of 12.5%. General and administrative (G&A) expenses decreased to $415,261 compared to $453,037 for the same period last year. Sales and marketing expenses decreased to $21,133 as compared to $39,221 for the same period in the prior year. Research and development (R&D) costs totaled $11,494 for the current quarter as compared to $19,548 for the same period last year. 

    For the six month period ending June 30, 2016, Operating Expenses increased 30.8% to $1,217,049 as compared to $930,177 for the same period last year. G&A Expenses amounted to $1,129,801 compared to $824,842 for the same six month period last year. Sales and marketing expenses were $48,649 as compared to $59,239 for the six months ended June 30, 2015. R&D costs totaled $32,872 compared to $39,876 for the same period a year ago. The overall increase in operating expenses was due to the Company increasing its travel expenses in support of its marketing specialist services and an increase investor relations expenses.
     
  • Loss from Operations decreased 72.1% to $64,003 for the three month period ending June 30, 2016, compared to $229,774 for the same period last year. This decrease is attributed to an increase in gross profits and a decrease in G&A expenses.

    Loss from operations decreased 15% to $355,597 for the six month period ended June 30, 2016, from the $418,466 reported for the same period a year ago.
     
  • Net income for the three month period ending June 30, 2016, was $5,760,752 compared to a net loss of $(457,461) for the same period a year ago, an increase of 1,359.3%. The increase in net income is primarily a result of an increase in gain on the change in derivative liabilities and an increase in loss on extinguishment of debt.
     

Business Highlights

  • Realized Gross Revenues that exceeded management expectations as the company increased the sale and delivery of agile IT support services, marketing specialist services, hardware design and technical support services.
     
  • Initiated the development of a Mixed Reality QuickStart Program that can help customers implement compelling augmented and virtual reality solutions for education, training, and marketing.
     
  • Launched an Industrial Internet of Things (IIoT) initiative in response to "smart building" customer inquiries.
     

The full 10-Q report may be accessed by going to http://www.otcmarkets.com/stock/COWI/filings.

About CoroWare, Inc.

CoroWare, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services, business process workflow, software architecture, design and development, content management, console, PC and online game production, marketing coordination and management.
     
  • Technology Incubation: Consulting services and custom solutions such as Industrial Internet of Things (IIoT); Mixed Reality for visualization and simulation; and mobile robot platforms for university, government and enterprise customers.
     

For more information, please visit www.coroware.com.

Forward-Looking Statement

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The ability of the Company to complete and file its Fiscal Year 2016 annual report on Form 10K relies on third parties to complete their activities. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

 

CONTACT INFORMATION

  •  

    CONTACT INFORMATION

    Pamela R. Lagano
    CoroWare Investor Relations
    (800) 641-2676, option 3
    investor@coroware.com

CoroWare Introduces Mixed Reality QuickStart Program

Helps Customers Implement Compelling Augmented or Virtual Reality Experiences

 

BELLEVUE, WA--(Marketwired - Jul 28, 2016) - CoroWare, Inc. (OTC PINK: COWI) today announced the introduction of its Mixed Reality QuickStart Program, merging real and virtual worlds to produce new environments where physical and digital objects co-exist and interact in real time.

Many customers are excited about the possibility of combining augmented reality and virtual reality. Maximizing the potential of augmented reality and virtual reality requires a unique combination of unconventional thinking and pragmatic engineering.

A recent report from investment bank Goldman Sachs predicted that virtual reality and augmented reality have the potential to spawn a multi-billion dollar industry, and possibly be as game changing as the advent of the PC. While the conversation around augmented and virtual reality technologies often focuses on gaming and video entertainment, the Goldman Sachs report theorizes that these use cases will account for less than half of the software market.

"Five or 10 years ago, we used text to communicate. Today, we communicate and share with photos and videos. Tomorrow, we will be able to communicate with experience with augmented and virtual reality," said Lloyd Spencer, president and CEO of CoroWare, Inc. "Augmented and virtual reality will change the face of communication, and we are excited to be one of the industry players who can help customers incorporate these solutions into their businesses."

CoroWare's team of technical professionals can help customers implement compelling augmented and virtual reality solutions by incorporating their expertise in many different disciplines, including:

  • Developing a business case for implementing augmented or virtual reality
  • Brainstorming possible applications and strategies
  • Selecting the best technology for the solution
  • Thinking creatively to create unique augmented reality experiences
  • Develop a prototype augmented or virtual reality application -- affordably and efficiently

"CoroWare's QuickStart Programs are an essential aspect of selling advanced technologies such as augmented and virtual reality," said Susan Eustis, President of WinterGreen Research. "CoroWare can help clients take full advantage of available augmented and virtual reality technologies, and generate new user experiences for education, training, and marketing."

CoroWare's Mixed Reality QuickStart Program is available today as a service engagement with flexible pricing based on the customer's needs, starting at $4,999 USD.

For more information, please contact CoroWare Sales by email, sales@coroware.com; or by phone, (800) 641-2676, option 1. For additional details, please visit http://www.coroware.com/mixed-reality-quickstart/.

About CoroWare, Inc.

CoroWare, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services, business process workflow, software architecture, design and development, content management, console, PC and online game production, marketing coordination and management.
  • Technology Incubation: Consulting services and custom solutions such as Industrial Internet of Things (IIoT); Mixed Reality for visualization and simulation; and mobile robot platforms for university, government and corporate researchers.

CoroWare' s customers are located in North America, Europe, Asia and the Middle East, spanning multiple industry sectors. CoroWare partners with universities, software and hardware product development companies and non-profit organizations. For more information, please visitwww.coroware.com.

Forward-Looking Statement

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The ability of the Company to complete and file its Fiscal Year 2016 annual report on Form 10K relies on third parties to complete their activities. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

CoroWare Provides Further Clarification on Increased Authorization and Issuance of Shares

Company Reaffirms No Plans for Reverse Stock Split

 

BELLEVUE, WA--(Marketwired - Jul 18, 2016) - CoroWare, Inc. (OTC PINK: COWI) announced today that the Board of Directors reviewed and approved a revised plan to issue up to 10,000,000,000 common shares beginning in August 2016.

Up to 5,000,000,000 shares will be used for investment into CoroWare, Inc. using either a Series E Preferred Offering, or subject to the terms of a 506 Private Placement Memorandum. Common stock issued for these purposes will be subject to the terms of SEC Rule 144.

Up to 5,000,000,000 may, at management's discretion, be issued to assist in the conversion of various debt instruments into common stock.

CoroWare's Board of Directors does not expect that more than 2,000,000,000 shares will be immediately issued, nor does it expect that more than an additional 2,500,000,000 shares will be issued by the end of this fiscal year.

"We believe that medium-term plan will help extinguish and reduce the Company's legacy debt and attract new long-term investment on more conventional terms," said Lloyd Spencer, president and CEO of CoroWare. "CoroWare's Board of Directors and management team believe that this plan will benefit the interests of current shareholders."

As stated previously, CoroWare's Board of Directors reaffirmed that the Company has no plans for, and is not contemplating, a reverse stock split.

About Coroware, Inc.

Coroware, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services, business process workflow, software architecture, design and development, content management, console, PC and online game production, marketing coordination and management.
     
  • Technology Incubation: Custom engineering such as Industrial Internet of Things; Augmented Reality visualization and simulation; and mobile robotic platforms for university, government and corporate researchers.
     

CoroWare's customers are located in North America, Europe, Asia and the Middle East, spanning multiple industry sectors. CoroWare partners with universities, software and hardware product development companies and non-profit organizations. For more information, please visitwww.coroware.com.

Forward-Looking Statement

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

CoroWare Provides Update on Plan to Increase Authorized Shares

Company Reaffirms No Plans for Reverse Stock Split

 

BELLEVUE, WA--(Marketwired - Jul 6, 2016) - CoroWare, Inc. (OTC PINK: COWI) today provided an update on its plan to increase the Company's authorized common shares.

On July 5, 2016, the Company filed a Form DEF-14C with the Securities and Exchange Commission in order to increase the Company's authorized common shares from 13,000,000,000 common shares to 35,000,000,000 common shares.

CoroWare's Board of Directors and management team believe that this plan will protect the interests of current shareholders, help extinguish legacy convertible debt, and provide the Company with the means of attracting new long term investment.

In addition, CoroWare's Board of Directors reaffirmed that the Company has no plans for, and is not contemplating, a reverse stock split.

The Company expects to extinguish existing convertible notes using a combination of debt-to-equity conversions, and equity line of credit (ELOC) facilities with more favorable debt-to-equity conversion terms.

Lloyd Spencer, president and CEO of CoroWare, recently gave an interview to Uptick Newswire to address questions from shareholders.

We invite you to listen to the Uptick Newswire podcast by visiting the following web link:https://upticknewswire.com/lloyd-spencer-president-ceo-with-coroware-inc-talk-about-increase-in-authorizing-common-shares/

About Coroware, Inc.
Coroware, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services, business process workflow, software architecture, design and development, content management, console, PC and online game production, marketing coordination and management.
  • Technology Incubation: Custom engineering such as Industrial Internet of Things; Augmented Reality visualization and simulation; and mobile robotic platforms for university, government and corporate researchers.

CoroWare's customers are located in North America, Europe, Asia and the Middle East, spanning multiple industry sectors. CoroWare partners with universities, software and hardware product development companies and non-profit organizations. For more information, please visit www.coroware.com.

Forward-Looking Statement
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

CoroWare Announces Plan to Increase Authorized Shares

First Step Toward Extinguishing Legacy Convertible Debt and Attracting New Investment

 

BELLEVUE, WA--(Marketwired - Jun 16, 2016) - CoroWare, Inc. (OTC PINK: COWI) today announced that it has filed a PRE-14C with the Securities and Exchange Commission in order to increase the Company's authorized common shares.

CoroWare's Board of Directors voted unanimously to increase the Company's authorized common shares from 13,000,000,000 common shares to 35,000,000,000 common shares.

In accordance with CoroWare's goal of increasing profitability, extinguishing legacy convertible debt, and increasing shareholder value, CoroWare's Board of Directors and management team believe that this plan will protect the interests of current shareholders as best possible as the Company considers the use of:

  • debt-to-equity conversions for existing convertible notes
     
  • equity line of credit (ELOC) facilities with more favorable equity conversion terms

As well, CoroWare's Board of Directors reaffirmed that the Company has no plans for, and shall not contemplate, a reverse stock split until 90% of the Company's legacy convertible debt has been extinguished, or refinanced in a manner that benefits the Company and its shareholders.

"We believe that this plan will both protect the interests of current shareholders and provide the Company with the means attracting new investment," said Lloyd Spencer, president and CEO of CoroWare. "While we cannot make any guarantees that these steps will be successful, we believe that they are necessary for attracting new investment, achieving sustainable profitability, and continued growth in fiscal years 2016 and 2017."

About CoroWare, Inc.

CoroWare, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services, business process workflow, software architecture, design and development, content management, console, PC and online game production, marketing coordination and management. 
     
  • Robotics and Automation: Custom engineering such as visualization, simulation and software development, mobile robot platforms for university, government and corporate researchers.

CoroWare's customers are located in North America, Europe, Asia and the Middle East, spanning multiple industry sectors. CoroWare partners with universities, software and hardware product development companies and non-profit organizations. For more information, please visit www.coroware.com.

Forward-Looking Statement

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

CoroWare Provides Second Quarter 2016 Revenue Guidance

Continued Revenue Growth With Focus on Operational Profitability

 

BELLEVUE, WA--(Marketwired - Jun 15, 2016) - CoroWare, Inc. (OTC PINK: COWI) today provided guidance for the three months that will end on June 30, 2016 (the "second quarter 2016").

The Company expects to report second quarter 2016 gross revenues of over $1.7M, and year-over-year growth of over 25% compared with gross revenues reported in the second quarter of 2015. This revenue guidance is based on the Company's un-audited second quarter 2016 financial statements.

The company plans to file its second quarter financial results with the Securities and Exchange Commission on or before August 15, 2016, and will provide complete details on its second quarter performance at that time.

About CoroWare, Inc.

CoroWare, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services, business process workflow, software architecture, design and development, content management, console, PC and online game production, marketing coordination and management.
  • Robotics and Automation: Custom engineering such as visualization, simulation and software development, mobile robot platforms for university, government and corporate researchers.
     

CoroWare's customers are located in North America, Europe, Asia and the Middle East, spanning multiple industry sectors. CoroWare partners with universities, software and hardware product development companies and non-profit organizations. For more information, please visitwww.coroware.com.

Forward-Looking Statement

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

CoroWare Issues Shareholder Update

Achieving Operational Profitability and Attracting Long Term Investment

 

BELLEVUE, WA--(Marketwired - Jun 13, 2016) - CoroWare, Inc. (OTC PINK: COWI) today issued the following shareholder update letter from Lloyd Spencer, CEO and Chairman.

To our valued shareholders:

As President and CEO of CoroWare, I want to thank you for your continued patience and support. This shareholder update will address questions about our plans for 2016 and 2017 to achieve operational profitability, steadily extinguish convertible debt, and further grow our business in the coming 18 months.

The Net Effect of Non-Cash Derivative Liabilities

We recently received a number of questions about CoroWare's Net Loss as opposed to its Loss from Operations during the three months ended March 31, 2016 ("Q1-2016").

CoroWare's Q1-2016 Net Loss was overwhelmingly due to a change in non-cash derivative liabilities -- ($3,113,117) -- and the extinguishment of convertible debt -- ($3,689,590) -- that resulted from consolidating all of the outstanding principal and interest due to YA Global -- $2,829,690 -- from various notes that were outstanding from early 2006 through January 7, 2016.

These non-cash derivative liabilities are not relevant to the company's operational income, expenses and profitability, and therefore distort the company's operating performance and its efforts to improve operational profitability.

Improving Operational Profitability

Achieving operational profitability has been the focus of CoroWare's management team. Although the Loss from Operations during the 2016 Period ($301,721) was significant, this operational loss included non-recurring accounting, legal, research and development, and marketing expenses.

More specifically, CoroWare has reorganized its robotics & automation team in order to improve operational profitability. In addition, CoroWare's management team focused its attention on delivering its consulting services more cost effectively.

As a result, we anticipate that these changes will help improve CoroWare's gross margins and operational profitability.

Attracting Long Term Investment

During Q1-2016, CoroWare entered into discussions with individual investors and institutional investors who expressed an interest in making longer-term investments that could help CoroWare:

  • reduce financing costs and improve profitability
  • fund R&D initiatives in mobile robotics, Internet of Things, and augmented reality that can accelerate new revenues
  • finance strategic joint venture and acquisition opportunities

At the conclusion of our discussions with potential investors, experienced investment advisors and I concluded that CoroWare must first extinguish its legacy convertible debt by:

  • employing forbearance agreements in combination with affordable cash payment plans
  • replacing legacy convertible debt with convertible debt or preferred equity whose terms benefit the Company and its shareholders
  • employing debt-to-equity conversions in a manner that protects the interests of current shareholders as best possible

While CoroWare's Board of Directors cannot make any guarantees -- nor say with any certainty -- that these steps will be successful, we believe that they are necessary for achieving sustainable profitability and steady revenue growth in fiscal years 2016 and 2017.

In Closing

Speaking on behalf of CoroWare's employees and management team, we believe that we have the talent, expertise and approach necessary to grow our business successfully. In that vein, we would like to thank our Shareholders again for their continued support, and we look forward to reporting our progress to our Shareholders as we continue to execute on our plans.

Lloyd Spencer
President and CEO

About CoroWare, Inc.

CoroWare, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services; business process workflow; software architecture, design and development; content management; console, PC and online game production; marketing coordination and management.
  • Robotics and Automation: Custom engineering such as visualization, simulation and software development; and mobile robot platforms for university, government and corporate researchers

CoroWare's customers are located in North America, Europe, Asia and the Middle East, and span multiple industry sectors -- including universities, software and hardware product development companies, and non-profit organizations. For more information, please visitwww.coroware.com.

Forward-Looking Statement

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The ability of the Company to complete and file its Fiscal Year 2015 annual report on Form 10K relies on third parties to complete their activities. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

June 10, 2016 09:39 ET

CoroWare Reports First Quarter 2016 Earnings

Consulting Service Revenues Increase Over 100 Percent Year-Over-Year

BELLEVUE, WA--(Marketwired - Jun 10, 2016) - CoroWare, Inc. (OTC PINK: COWI) today announced its financial results for the first quarter ended March 31, 2016.

During the three months ended March 31, 2016 (the "2016 Period"), revenues were $1,646,187 compared to revenues of $798,541 during the three months ended March 31, 2015 (the "2015 Period"), an increase of $847,646 or 106.1%. Gross revenues in the 2016 Period were higher compared to the 2015 Period as the Company intensified its focus on selling R&D support, operations support, and marketing support services in the 2016 Period.

"CoroWare's consulting services revenue rapid growth has been the result of repeat customer engagements, including the delivery of R&D support services, marketing specialist services, and business operations support services," said Lloyd Spencer, president and CEO of CoroWare, Inc.

Gross profits increased to $474,584 during the 2016 Period compared to $226,479 during the 2015 Period, an increase of $248,105 or 109.5%. Gross profits increased during the 2016 Period as a result of the Company reorganizing its Robotics & Automation team in order to improve profitability. The gross profit percentage in the 2016 Period was 28.8% compared to 28.4% in the 2015 Period.

Operating expenses were $776,305 for the 2016 Period compared to $415,171 for the 2015 Period, an increase of $361,134 or 87.0%. General and administrative expenses amounted to $724,667 during the 2016 Period compared to $371,805 for the 2015 period, and represented mostly labor and related compensation costs, legal and professional fees, outside services, travel expenses, rental expense and related office expenses.

Loss from operations was $301,721 for the 2016 Period compared to $188,692 for the 2015 period, an increase of $113,029 or 59.9%. The overall increase in operating expenses was due to the Company increasing its travel expenses in support of its marketing specialist services, and increasing investor relations expenses.

Other expenses was $7,020,186 during the 2016 Period compared to other expense of $1,125,999 in the 2015 Period, an increase of $5,894,187 or 523.5%. Other expenses is comprised primarily of gain/loss on derivative, amortization of debt discount, deferred finance costs, accrued interest on notes payable, and loss on extinguishment of debt. The change in derivative liabilities for the 2016 Period was $3,513,117 compared to $762,039 for the 2015 Period, an increase of $2,751,078 or 361.0%.

Interest expense, net for the 2016 Period was $217,479 compared to $147,354 for the 2015 Period, an increase of $70,125 or 47.6%. The increase in interest expense is principally a result of an increase in accrued interest on debt. The Company also recognized a $3,289,590 loss on extinguishment of debt during the 2016 Period compared to $216,606 in the 2015 Period, an increase of $3,072,984. The increase in loss on extinguishment of debt is primarily a result of the consolidation of debt with YA Global on February 5, 2016.

Net loss for the 2016 Period was $7,321,907 compared to net loss of $1,314,691 for the 2015 Period, an increase of $6,007,216. The increase in net loss is primarily a result of an increase in loss on the change in derivative liabilities and an increase in loss on extinguishment of debt.

"In order to continue growing our business, we are focused on expanding our customer base; improving our gross margins; cutting general and administrative expenses; and refinancing or extinguishing CoroWare's most critical debt obligations," added Mr. Spencer.

The full 10-Q report can be accessed by going to the following link: http://www.otcmarkets.com/stock/COWI/profile

About CoroWare, Inc.

CoroWare, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services; business process workflow; software architecture, design and development; content management; console, PC and online game production; marketing coordination and management.
  • Robotics and Automation: Custom engineering such as visualization, simulation and software development; and mobile robot platforms for university, government and corporate researchers.

CoroWare's customers are located in North America, Europe, Asia and the Middle East, and span multiple industry sectors -- including universities, software and hardware product development companies, and non-profit organizations. For more information, please visitwww.coroware.com.

Forward-Looking Statement

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The ability of the Company to complete and file its Fiscal Year 2016 annual report on Form 10K relies on third parties to complete their activities. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

May 24, 2016 08:30 ET

COROWARE, INC. REPORTS 2015 ANNUAL EARNINGS

Consulting Service Revenues Increase 181 Percent Year-Over-Year

BELLEVUE, WA--(Marketwired - May 24, 2016) - CoroWare, Inc. (OTC PINK: COWI) today announced its financial results for the year ended on Dec. 31, 2015 ("the 2015 Period").

For the 2015 Period, CoroWare reported revenues of $5,461,238, compared to revenues of $1,943,729 during the year ended December 31, 2014 (the "2014 Period"), an increase of $3,517,509 or 181.0%.

Revenues in the 2015 Period were higher compared to the 2014 Period as the Company intensified its focus on selling R&D support, operations support, and marketing support services in the 2015 Period.

"CoroWare experienced significant growth as the Company intensified its focus on selling R&D support, operations support, and marketing support services," said Lloyd Spencer, CEO of CoroWare, Inc. "In the coming year, CoroWare shall continue to focus on these initiatives, and expanding its technology incubation efforts in the areas of Internet of Things (IoT) and augmented reality."

Gross profits increased to $1,091,848 during the 2015 Period compared to $463,501 during the 2014 Period, an increase of $628,347 or 135.6%

The gross profit percentage in the 2015 Period was 20.0% compared to 23.8% in the 2014 Period. The decrease in gross profit percentage relates to higher cost of delivering these services due to increased labor expenses, and weaker sales of its Robotics & Automation products, solutions and services.

Total Operating Expenses were $1,086,438 for the 2015 Period compared to $2,585,036 for the 2014 Period, a decrease of $1,498,598 or 57.9%. General and administrative expenses were $850,285 during the 2015 Period, compared with $2,379,736 for the 2014 period, and represented labor and related compensation costs, legal and professional fees, outside services, travel expenses, rental expense and related office expenses.

Sales and marketing expenses were $81,463 for the 2015 Period compared to $86,380 for the 2014 Period. Research and developments costs totaled $146,284 for the 2015 Period compared to $106,842 during the 2014 Period. Depreciation and amortization costs were $8,406 for the 2015 period compared to $12,078 for the 2014 Period.

Income (loss) from operations was $5,410 for the 2015 Period compared to $(2,121,535) for the 2014 period. The increase in income from operations in the 2015 Period was due primarily to a significant decrease in general and administrative expenses.

Net loss for the 2015 Period was $2,307,396 compared to net loss of $7,939,101 for the 2014 Period, a decrease of $5,631,705 or 70.9%. The decreased loss during the 2015 Period was principally due to a reduced change in derivative liabilities. The change in derivative liabilities is associated with CoroWare's convertible debentures; as the derivative liability increases, the derivative expense increases.

The full Form10-K report and all previous reports can be accessed by going to http://www.otcmarkets.com/stock/COWI/filings

Delayed Filing of Quarterly Report Form 10Q

The company also announced today that it will delay filing its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2015.

Based upon current estimates from and assuming no change in the current status of our efforts, we anticipate that the Company will file its Form 10-Q for the fiscal quarter ended March 31, 2015 within the next two weeks.

The company has notified OTC Markets that it will further delay filing its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2015, at which time the company will regain compliance with OTC Market's requirements.

The delayed filing has no impact on CoroWare's business operations.

About Coroware, Inc.

Coroware, Inc., headquartered in Bellevue, Washington, is a diversified technology and solutions company with expertise in:

  • Business Consulting Services: R&D engineering services; business process workflow; software architecture, design and development; content management; console, PC and online game production; marketing coordination and management.
  • Robotics and Automation: Custom engineering such as visualization, simulation and software development; and mobile robot platforms for university, government and corporate researchers

CoroWare's customers are located in North America, Europe, Asia and the Middle East, and span multiple industry sectors - including universities, software and hardware product development companies, and non-profit organizations. For more information, please visitwww.coroware.com.

Forward-Looking Statement
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The ability of the Company to complete and file its Fiscal Year 2015 annual report on Form 10K relies on third parties to complete their activities. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which include among others, the inherent uncertainties associated with smaller reporting companies, including without limitation, other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.