Environmental Solutions Worldwide, Inc. Reports December 2001 Financial Result
TELFORD, Pa.--April 11, 2002--Environmental Solutions Worldwide, Inc. (ESW) (OTCBB: ESWW), a company that develops, manufactures and markets environmental technologies, today announced that it has filed its financial results with the Securities and Exchange Commission in a Form 10-KSB for the fiscal year ended December 31, 2001.ESW reported revenues for the twelve months ended December 31, 2001 of $ 716,180 The cost of revenue was $ 368,099 As ESW was a development stage company prior to 2001 there were no prior revenues. ESW also reported that it's operating expenditures for 2001 were $ 3,037,769 As compared to in fiscal 2000 $ 3,795,444 A decrease of operating expenditures of $ 757,675 Net loss for fiscal 2001 was reported as $ 2,689,715 As compared to for fiscal year 2000 $ 3,795,444 A decrease in net loss of in fiscal year 2001 $ 1,105,729 Up to April 1st 2002, ESW has received written orders of approximately $ 2,673,000
Bengt Odner, ESW's Chairman, commented, "It has been an eventful year for the company moving from a development stage into manufacturing and sales. Our cost cutting program has been very successful and the relocation of the head office and operations to Telford has saved considerable costs. Our recent EPA certification on behalf of one of our customers is very exciting and I am very pleased with the increased order bookings and potential outlook for future sales. We are testing our unique catalyst products with several customers and look forward to acquiring further certifications, which we anticipate will continue the order inflow during 2002. With our increased production capacity, to date deliveries of our products have been on schedule and to our customer's satisfaction."
As part of the cost cutting program in the fourth quarter, ESW relocated and consolidated its headquarters and operations to Telford Pennsylvania. This move alone has saved the company approximately $300,000 per year.
ESW also reported in its recent filing with the SEC that Mr. Ken Nichols resigned as CEO and Director of the Company in March 2002 without any disagreements with the company or its management. Mr. Bengt Odner has temporarily assumed Mr. Nichols' duties as CEO until the company finds a suitable replacement.
ESW has also filed a Form 10-QSB/A with the SEC on the 10th of April, which amends its prior unaudited quarterly report for the fiscal quarter ended September 30, 2001. While the year end figures reported in the recently filed 10-KSB correctly state net loss for ESW, the prior 10-QSB did not include certain consulting fees paid by the company which resulted in an increase in the net loss.
As stated, the year-end numbers correctly state ESW's net loss for fiscal 2001, the amended 10-QSB is being filed to allow for accurate comparison of future quarterly results.
Some other notable events were:
The ESW has received its first EPA certification for its Clean Cat(R) diesel product and orders have already been place on behalf of one of its clients.
The company raised $1,567,000 from accredited investors during the year 2001. The funds were for general working capital and implementation of the Company's operating and marketing plans.
In addition, the company also noted that during 2001 there have been two filings with the SEC of Form 13D, where two separate groups have informed the company their beneficial ownership were in excess of 5% each.
Pinnacle Services Group, Inc 5.08%
Leon. D. Black Group 7.54%
About Environmental Solutions Worldwide, Inc.
Headquartered in Telford, Pennsylvania. Environmental Solutions Worldwide, Inc. is a publicly traded company engaged through its wholly owned subsidiaries in the design, development, manufacture and sales of environmental technologies currently focused on the international automotive and transportation industries.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The "Act"). In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "expect," or "intend to," and similar conditional expressions are intended to identify forward looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the Company's products and technologies, competitive factors, the ability to successfully complete additional financings and other risks described in the Company's SEC reports and filings.