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Burst.com, Inc. To Receive $858,000 in
Refunds
Company
Will Restate 2005 Year-End Financials
Santa Rosa, CA:
Burst.com, Inc. (OTC: BRST)
Chairman & CEO Richard Lang today announced that the company has filed
amended tax returns and expects to receive combined Federal and State tax
refunds of approximately $858,000. On March 15, 2006, Burst paid estimated
tax payments to both the IRS and the California Franchise Tax Board. At
that time, the estimated tax payments were based upon an "Alternative
Minimum Tax" (AMT) calculation. In the process of preparing the actual
returns, it was discovered that Burst qualifies for an exclusion from AMT
in 2005. Accordingly, Burst expects to receive a refund of the entire
amount of the Federal estimated tax payment they made on March 15, 2006 in
the amount of $770,000. Further, the actual amount of calculated tax due
to the Franchise Tax Board was $88,290 less than the estimated amount paid
in on March 15, 2006. Thus, the combined federal and state refund to
Burst is expected to be $858,290. Burst will no longer qualify for the AMT
exemption for subsequent years.
The Company plans to
restate its previously published 2005 year-end audited financials, upon
receipt of the expected refunds, to reflect the influx of the additional
capital. Lang said that the additional funds will be used for company
operations and anticipates this will enable the Company to sustain its
current operations, even with modest cost increases, into late 2010,
without the benefit of revenues or additional fund-raising.
The Company is
currently in litigation with Apple Computer. After licensing negotiations
in 2005 failed, Apple sued Burst in January of this year, in an effort to
have several of Burst’s U.S. patents declared invalid and Apple not
infringing those patents. Subsequently, Burst filed a counterclaim
alleging infringement of those and additional Burst patents. Details of
the litigation can be found on Burst’s website:
www.burst.com
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This Press Release contains forward-looking
statements similar to those covered by the safe harbor provisions under
the Private Securities Litigation Reform Act of 1995. We believe that the
expectations expressed herein, regarding the receipt and proposed
utilization of the expected federal and state tax refunds are based on
reasonable assumptions. However, these forward-looking statements are
subject to numerous uncertainties and risks and actual results and
developments could differ materially from these expectations. Factors
which could affect our operations and prospects include the costs and
uncertainties of pursuing complicated litigation and our ability pursue
new or additional operating strategies. We are not responsible for
updating any such forward-looking statements.
About Burst.com:
Burst.com,
headquartered in Santa Rosa, California, is the developer of
Faster-Than-Real-Time™ and Burst-Enabled™ video and audio
delivery technology. The company, established in 1990, has built an
international patent portfolio covering bursting, video delivery
scheduling and Rapid-casting. Burstware®,
Faster-Than-Real-Time™ and Burst-Enabled™ are
trademarks of Burst.com. More information about Burst.com is available at www.burst.com
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