[LBWR]: Third False and Misleading Press issued by Labwire, Inc.
.
It just doesn't stop.
Previously we had pointed out two false and misleading press releases issued by Labwire, Inc. (LBWR) and now it turns out that there is a third false and misleading press release.
Here is the first LBWR false and misleading press release pointed out in this blog:
http://snipurl.com/289c2
and here is the second LBWR false and misleading press release:
http://snipurl.com/289c7
Please review the December 21, 2005 LBWR press release below titled: "Labwire Reports Strong Revenue Growth in Third Quarter 2005".
In this press release Labwire, Inc stated:
"Labwire attributes the significant increase in year-to-date revenue to its ability to extend and fulfill existing contracts with large Fortune 500 corporations as well as an expansion of services into the canine surveillance and security field."
and
"“Management is very pleased with the Company’s third quarter financial results. The increase in revenue is due to the expansion of our canine surveillance services in the petrochemical industry and renewed contracts by some of our large clients."
The phrases above stated specifically that one of the reasons for the increased revenue in the Thrid Quarter of 2005 is due to the expansion of the canine surveillance servives and security field.
There is only one problem.
In a March 20, 2007 press release regarding results for 2006 and 2005, Labwire, Inc. specifically stated that the canine security and surveillance business segment of the company had generated ZERO REVENUE in 2005. The same was stated for "Management Services" - ZERO REVENUE in 2005. Here is the press release:
http://snipurl.com/march20_2007
It really is hard to understand why Labwire, Inc. continued to issue false and misleading press releases discussing revenues in 2005 that never existed or were never reported.
How can there not be revenues in 2005 for this business segment? - The December 21, 2005 press release and comments by LBWR's CEO seemed so sincere and real. What can possibly have happened?
The Third False and Misleading Labwire, Inc. Press Release:
December 21, 2005 - Labwire Reports Strong Revenue Growth in Third Quarter 2005
HOUSTON, TX – December 21, 2005 – Labwire Inc. (OTC: LBWR), today announced its financial results for the quarter ended September 30, 2005, reporting revenue of $695,137 which represents a 19.5% increase over the previous quarter ended June 30, 2005. Labwire was profitable for the third quarter, recording net income of $35,872, or 5% of total revenue for the quarter.
For the first nine months of 2005, the Company posted record revenues of $1,729,261. Labwire became a publicly traded company in October 2004. This year marks the first full year of reported financial statements for the Company. Labwire attributes the significant increase in year-to-date revenue to its ability to extend and fulfill existing contracts with large Fortune 500 corporations as well as an expansion of services into the canine surveillance and security field.
Dexter Morris, President of Labwire, commented, “Management is very pleased with the Company’s third quarter financial results. The increase in revenue is due to the expansion of our canine surveillance services in the petrochemical industry and renewed contracts by some of our large clients. Additionally, in the third quarter, we signed our first client in commercial trucking which is an industry that represents a potentially large market for our employee screening services. Labwire expects to sustain steady revenue growth going forward by developing and implementing sound business strategies with the assistance of our newly formed advisory board.”
Labwire’s complete financial results for the third quarter are available at www.pinksheets.com.
About Labwire
Labwire Inc., Headquartered in Houston, TX, provides secure and compliant employee drug screening and background checking services to Fortune 500 corporations. The Company offers a comprehensive set of solutions to manage all aspects of employee screening services including drug testing program development and policy analysis, medical review services, supervisor training and secure real-time online data management via the Labwire™ Platform.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Contact:
Investors & Public Relations
Marlin R. Williford Jr.
email: mwilliford@capnetrisk.com
phone: (832) 487-7803
______________________________________________
It just doesn't stop.
Previously we had pointed out two false and misleading press releases issued by Labwire, Inc. (LBWR) and now it turns out that there is a third false and misleading press release.
Here is the first LBWR false and misleading press release pointed out in this blog:
http://snipurl.com/289c2
and here is the second LBWR false and misleading press release:
http://snipurl.com/289c7
Please review the December 21, 2005 LBWR press release below titled: "Labwire Reports Strong Revenue Growth in Third Quarter 2005".
In this press release Labwire, Inc stated:
"Labwire attributes the significant increase in year-to-date revenue to its ability to extend and fulfill existing contracts with large Fortune 500 corporations as well as an expansion of services into the canine surveillance and security field."
and
"“Management is very pleased with the Company’s third quarter financial results. The increase in revenue is due to the expansion of our canine surveillance services in the petrochemical industry and renewed contracts by some of our large clients."
The phrases above stated specifically that one of the reasons for the increased revenue in the Thrid Quarter of 2005 is due to the expansion of the canine surveillance servives and security field.
There is only one problem.
In a March 20, 2007 press release regarding results for 2006 and 2005, Labwire, Inc. specifically stated that the canine security and surveillance business segment of the company had generated ZERO REVENUE in 2005. The same was stated for "Management Services" - ZERO REVENUE in 2005. Here is the press release:
http://snipurl.com/march20_2007
It really is hard to understand why Labwire, Inc. continued to issue false and misleading press releases discussing revenues in 2005 that never existed or were never reported.
How can there not be revenues in 2005 for this business segment? - The December 21, 2005 press release and comments by LBWR's CEO seemed so sincere and real. What can possibly have happened?
The Third False and Misleading Labwire, Inc. Press Release:
December 21, 2005 - Labwire Reports Strong Revenue Growth in Third Quarter 2005
HOUSTON, TX – December 21, 2005 – Labwire Inc. (OTC: LBWR), today announced its financial results for the quarter ended September 30, 2005, reporting revenue of $695,137 which represents a 19.5% increase over the previous quarter ended June 30, 2005. Labwire was profitable for the third quarter, recording net income of $35,872, or 5% of total revenue for the quarter.
For the first nine months of 2005, the Company posted record revenues of $1,729,261. Labwire became a publicly traded company in October 2004. This year marks the first full year of reported financial statements for the Company. Labwire attributes the significant increase in year-to-date revenue to its ability to extend and fulfill existing contracts with large Fortune 500 corporations as well as an expansion of services into the canine surveillance and security field.
Dexter Morris, President of Labwire, commented, “Management is very pleased with the Company’s third quarter financial results. The increase in revenue is due to the expansion of our canine surveillance services in the petrochemical industry and renewed contracts by some of our large clients. Additionally, in the third quarter, we signed our first client in commercial trucking which is an industry that represents a potentially large market for our employee screening services. Labwire expects to sustain steady revenue growth going forward by developing and implementing sound business strategies with the assistance of our newly formed advisory board.”
Labwire’s complete financial results for the third quarter are available at www.pinksheets.com.
About Labwire
Labwire Inc., Headquartered in Houston, TX, provides secure and compliant employee drug screening and background checking services to Fortune 500 corporations. The Company offers a comprehensive set of solutions to manage all aspects of employee screening services including drug testing program development and policy analysis, medical review services, supervisor training and secure real-time online data management via the Labwire™ Platform.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic and business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Contact:
Investors & Public Relations
Marlin R. Williford Jr.
email: mwilliford@capnetrisk.com
phone: (832) 487-7803
______________________________________________
posted by the_worm06 | 5/13/2008 01:44:00 AM
3 Comments:
192
+10
Roberto, you are moving in reverse. Who cares about news from 2005 when we have a 23 page Form 10 that is still pristine?
Also, you asked me to call Dexter, so I did. Here's the bullet points.
re David Stocker - When I questioned Dexter about David Stocker, and the allegations against him, Dexter's reply was as follows: "David did a great job for us, and I have nothing negative to say about him.". He then went on to say that actually David has not filed anything for Labwire or Dexter in about 3 years. I then asked him when he was released as Labwire's attorney, and he said that actually David called one day in the middle of last year and simply resigned. David cited health reasons for his retirement.
re Form 10 - I then asked if there had been any comments from the SEC before or after the Form 10 was submitted to EDGAR. I told him this was in relations to Stocker, and I just wanted to know if there was any kind of questions or investigation in regards to him. He said there were none - before or after. He said that Labwire has never had a single question from the SEC regarding Stocker, or the Form 10 either. At this point he made it clear that the entire notion that Labwire or Dexter has anything to hide is cast out by their own actions to put themselves "in the mouth of the SEC."
re $250k advanced to the K9's - he said this was just as the name suggested - an advance. He said it was not a loan. He said that it was just money used to pay salaries and expenses in a temporary manner till the money came in from the client. He went on to say that it each advance was only a few weeks at a time, and that the money was paid in full each time Labwire got the check from the client. This advance is no different than when an employee gets advanced money before payday.
GB-ND
c. Bighorns
Creede,
Well, there you go, you finally did some good in reviewing these questions with LBWR CEO Dexter Morris.
regarding your comment on who cares about news from 2005 - Are you telling me that you don't care that the company has issued a number of false and misleading press releases, particularly on such an important topic as the revenues of the company?
wow!
regarding David Stocker, who was the Securities Counsel for LBWR in the May 27, 2005 15c2-11 and in their Reg. D Rule 504 offering at that time - and who was charged twice for securities fraud by the SEC (June 14, 2007 and Sept. 27, 2007) - it is obvious why he quit as Securities Counsel for LBWR in the middle of last year - that is when he was charged for fraud by the SEC. So, according to what you are saying that CEO Dexter Morris told you, it appears that Stocker was the Securities Counsel for LBWR all the way through the middle of last year, including the end of 2005, all of 2006 and the first half of 2007. Do you realize how many private placements LBWR did during this period?
Regarding Form 10 - CEO Dexter Morris tells you that the SEC has not made any commnets on the form 10 filed with the SEC by LBWR. He also says that he has not been contacted by the Enforcement Division of the SEC regarding Stocker and his group of people. Let's just see when or if the SEC Enforcement Division begins to inquire about the false and misleading press releases and about the false and misleading statements in the SEC filings.
Regarding the $250,000 adanced to the private K-9 company that is 50% owned by CEO Dexter Morris, please take a look at the financial statements filed with pinksheets and the SEC. The story is different than what you are being told by Morris. According to these financials, there were amounts advanced to the private company by LBWR each quarter of of 2006 and into the first quarter of 2007, without any repayments, since the outstanding balances up to the $250,000 kept on increasing at the end of each quarter. Then the line item and the balance owed disappeared from the balance sheet for the end of 2006. There is no explanation for this other than the amount was forgiven and written off.
good luck to you
and look for my next exciting blog entry on LBWR.
regards,
the_worm06
yawn
198
+10
GB-ND
c. Bighorns
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