Debt Resolve Announces Third Quarter '07 Results



    Directors advance $1 million from June to November;

    Restructuring at First Performance Completed

    WHITE PLAINS, N.Y., November 20 /CNW/ - Debt Resolve, Inc. (AMEX:   DRV),
the only company to offer a patented Internet solution for the collection and
settlement of consumer accounts receivable, today announced its financial
results for the third quarter of 2007, and that its Co-Chairmen, James D.
Burchetta and Charles Brofman, and Board Member William Mooney have advanced
$1 million to the Company from June to November 16.

    Debt Resolve also announced that its subsidiary, First Performance
Corporation, has integrated Debt Resolve's online collection system throughout
its portfolio of collection accounts to improve liquidation rates and lower
the cost of collection, and has added a new client, a top-ten debt-buyer, who
has placed in excess of $70 million of placements. First Performance continues
to strive towards becoming cash flow positive in the first quarter of 2008.

    Debt Resolve's products continue to gain acceptance as revolutionary
tools to improve collections. For example, a top-ten commercial bank that
reported positive results utilizing Debt Resolve's online collection products
has increased the volume of accounts and has moved into other charged-off
products. The Company expects further penetration into the top credit issuers
and credit card companies along with other vertical markets including cable,
telecom, utilities, student loans, auto finance, prime and sub-prime
mortgages. This anticipated growth is fueled by the increase in default rates
and consumer household debt, which, according to the May 2007 Nilson Report,
has increased by 147% over the past ten years. The consolidated Company
continues to strive towards becoming cash flow positive by the end of 2008.

    During the three months ended September 30, 2007, the Company:

    --  Added another top-10 U.S. bank as a client;

    --  Increased customer registrations by 27% over the previous quarter;

    --  Increased account settlements by 20% over the previous quarter;

    --  Favorably settled a patent infringement lawsuit with a competitor to
ensure that there is no infringement upon the Company's four patents and
intellectual property;

    --  Reached a milestone of approximately 900,000 accounts in its system,
with a face value of over $1.3 billion in placements;

    --  Signed a major financial institution in the UK;

    --  Launched a sales effort in the Benelux region (Belgium, The
Netherlands, and Luxembourg) and in France;

    --  Received a 2007 'Top 100 Technology Products' Award from Collection
Advisor magazine;

    --  Translated the system into additional languages and currencies.

    James D. Burchetta, Co-Chairman and CEO of Debt Resolve stated, "There
has been a significant change in the banking and collection industry as a
result of increasing default rates, rising collection costs and difficulty in
engaging the debtor in meaningful settlement negotiations. This industry now
recognizes and understands that the internet will revolutionize and change
collections by providing the lowest cost channel to collect debt preferred by
many debtors as the channel of choice. Debt Resolve is perfectly poised to
capture a significant share of this global market."

    Revenue for the third quarter of 2007 was $526,818, compared to $30,617
in the third quarter of 2006. Net loss for the third quarter of 2007 was
$3,331,486 compared to a loss of $6,502,879 in the third quarter of 2006. The
net loss for the three months ended September 30, 2007 includes $354,821 in
non-cash stock-based compensation expense and $27,255 in a non-cash goodwill
and intangibles impairment charge. On a per share basis, the net loss of
($0.41) was less than the net loss of ($1.57) in the third quarter of 2006,
primarily due to lower non-cash expenses and an increased number of shares
outstanding. The Company's financial statements for the years ended December
31, 2006 and 2005, and the three months ended September 30, 2007 and 2006 were
prepared on a going concern basis, which contemplates the continuation of the
Company as a going concern and the realization of assets and the satisfaction
of liabilities in the normal course of business. Since the Company may not
have sufficient cash to fund its operations for the next twelve months, there
exists substantial doubt about its ability to continue as a going concern. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.

    
                     DEBT RESOLVE, INC. AND SUBSIDIARIES
               Condensed Consolidated Statements of Operations
                                 (Unaudited)


                        Three Months Ended          Nine Months Ended
                           September 30,              September 30,
                     ------------------------- ---------------------------
                         2007         2006         2007          2006
                     ------------ ------------ ------------- -------------
    Revenues         $   526,818  $    30,617  $  2,539,884  $     84,908
                     ------------ ------------ ------------- -------------

    Costs and
     expenses:
      Payroll and
       related
       expenses (1)    1,490,069    1,921,778     6,230,667     3,123,518
      General and
       administrative
       expenses (2)    1,333,850    1,644,887     4,699,193     2,762,100
        Impairment of
         goodwill and
         intangibles
    Terminated
     acquisition          27,255           --     1,206,335            --
     costs               959,811           --       959,811            --
      Depreciation
       and
       amortization
       expense            56,707       12,020       176,704        39,487
                     ------------ ------------ ------------- -------------

    Total expenses     3,867,692    3,578,685    13,272,710     5,925,105
                     ------------ ------------ ------------- -------------

    Loss from
     operations       (3,340,874)  (3,548,068)  (10,732,826)   (5,840,197)
                     ------------ ------------ ------------- -------------

    Other (expense)
     income:
        Net interest
         expense         (29,513)    (443,269)      (25,960)     (662,332)
        Amortization
         of deferred
         debt
         discount             --   (2,119,810)           --    (3,017,944)
        Amortization
         of deferred
         financing
         costs                --     (393,232)           --      (532,603)
        Other income      38,901        1,500         9,428         4,500
                     ------------ ------------ ------------- -------------
    Total other
     (expense) income      9,388   (2,954,811)      (16,532)   (4,208,379)
                     ------------ ------------ ------------- -------------
    Net loss         $(3,331,486) $(6,502,879) $(10,749,358) $(10,048,576)
                     ------------ ------------ ------------- -------------

    Per share data:
    Basic and diluted
     net loss per
     common share (3)$     (0.41) $     (1.57) $      (1.38) $      (2.95)
                     ------------ ------------ ------------- -------------

    Basic and diluted
     weighted average
     number of common
     shares
     outstanding (3)   8,054,031    4,130,978     7,812,125     3,403,906
                     ------------ ------------ ------------- -------------

    (1) Includes stock based compensation to employees of $337,721 and
     $2,084,375 for the three and nine months ended September 30, 2007,
     respectively, and $1,334,366 for the three and nine months ended
     September 30, 2006, respectively.
    (2) Includes stock based compensation to non-employees of $17,100 and
     $238,694 for the three and nine months ended September 30, 2007,
     respectively, and $1,267,768 and $1,380,580 for the three and nine
     months ended September 30, 2006, respectively.
    (3) The per share data gives effect to the issuance of 232,106
     warrants exercisable at $0.01 per share, in accordance with Statement
     of Financial Accounting Standards No. 128.
    

    
                     DEBT RESOLVE, INC. AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheet
                              September 30, 2007
                                 (Unaudited)

                                    ASSETS

    Current assets:
      Cash                                                   $      1,258
           Restricted cash                                        108,373
      Accounts receivable                                         149,221
           Prepaid debt collection payments                       106,346
      Prepaid expenses and other current assets                   210,058
                                                             -------------
        Total current assets                                      575,256
                                                             -------------

    Fixed assets, net                                             317,299
                                                             -------------

    Other assets:
           Deposits and other assets                              112,005
      Purchased accounts receivable                               108,868
           Intangible assets, net                                 225,000
                                                             -------------
        Total other assets                                        763,172
                                                             -------------
    Total assets                                             $  1,338,428
                                                             -------------

                   LIABILITIES AND STOCKHOLDERS' DEFICIENCY
    Current liabilities:
      Accounts payable                                       $  1,814,878
      Collections payable                                         108,373
           Accrued payroll                                         74,839
       Accrued expenses                                            18,956
       Portfolio loans payable                                     54,678
       Lines of credit - related party                            575,000
                                                             -------------
                     Total current liabilities                  2,646,724
                                                             -------------


    Stockholders' deficiency:
       Preferred stock, 10,000,000 shares authorized, $0.001
        par value, none issued and outstanding                        ---
       Common stock, 100,000,000 shares authorized, $0.001
        par value, 8,457,697 shares issued and outstanding          8,458
      Additional paid-in capital                               42,112,618
      Accumulated deficit                                     (43,429,372)
                                                             -------------
        Total stockholders' deficiency                         (1,308,296)
                                                             -------------
      Total liabilities and stockholders' deficiency         $  1,338,428
                                                             -------------
    

    About Debt Resolve, Inc.

    Debt Resolve provides lenders, collection agencies, debt buyers and
utilities with a patent-based online bidding system for the resolution and
settlement of consumer debt and a collections and skip tracing solution that
is effective at every stage of collection and recovery. Through its
subsidiary, First Performance Corporation, the Company is actively engaged in
operating a collection agency for the benefit of its clients, which include
banks, finance companies and purchasers of distressed accounts receivable. The
stock of Debt Resolve is traded on the American Stock Exchange. Debt Resolve
is headquartered in White Plains, New York. For more information, please visit
our website at www.debtresolve.com.

    Forward-Looking Statements and Disclaimer

    Certain statements in this press release and elsewhere by management of
the Company that are neither reported financial results nor other historical
information are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such information includes, without
limitation, the business outlook, assessment of market conditions, anticipated
financial and operating results, strategies, future plans, contingencies and
contemplated transactions of the Company. Such forward-looking statements are
not guarantees of future performance and are subject to known and unknown
risks, uncertainties and other factors which may cause or contribute to actual
results of the Company's operations, or the performance or achievements of the
Company, or industry results, to differ materially from those expressed or
implied by the forward-looking statements. In addition to any such risks,
uncertainties and other factors discussed elsewhere in this press release,
risks, uncertainties and other factors that could cause or contribute to
actual results differing materially from those expressed or implied by the
forward-looking statements include, but are not limited to, events or
circumstances which affect the ability of Debt Resolve to realize improvements
in operating earnings expected from the acquisition of First Performance;
competitive pricing for the Company's products and services; fluctuations in
demand for the Company's products or services; changes to economic growth in
the United States and international economies; government policies and
regulations, including, but not limited to those affecting the collection of
consumer debt; adverse results in current or future litigation; currency
movements; and other risk factors discussed in the Company's Annual Report on
Form 10-KSB for the year ended December 31, 2006, and in other filings made
from time to time with the SEC. Debt Resolve undertakes no obligation to
publicly update any forward-looking statement, whether as a result of new
information, future events or otherwise. Investors are advised, however, to
consult any further disclosures made on related subjects in the Company's
reports filed with the SEC.




For further information:

For further information: Press: Debt Resolve, Inc. Ehmonie Hainey,
914-949-5500 x228 ehainey@debtresolve.com or Investors: BPC Financial
Marketing John Baldissera, 800-368-1217

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DEBT RESOLVE, INC.

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