COPsync, Inc. (OTCBB: COYN): Releases Q2 Results and Highlights Settlement

COPSyncps and sells a proprietary line of technologyservices that allows for police departments and officers around the country tocommunicate, collect, and analyze data with other enforcement agencies to savetime, money, and ultimately, lives. The sharing software, called COPsync, givespatrol officers real-time data access to critical information and streamlinesthe productivity of officers by reducing the activity and offense paperworkload required during investigations and subsequent arrests.

The company announces some major milestones for the secondquarter and the first six month period of 2010. There are 126 current lawenforcement agency accounts that are subscribed to the data service, and licensingfee revenues grew from $19k to $74k in the second quarter and in aggregate from$23k to $123k in the first six months of 2010.

The growth in licensing fee revenues represents a tremendousimprovement in gross margin from (256%) for the second quarter 2009 to 58% forthe second quarter 2010. Gross profit improved from a loss of ($32k) in thesecond quarter 2009 to $263k in the second quarter 2010.

The net loss for the six months ended June 30th, 2010 improvedfrom a loss of ($838k) during the first six months of 2009 to a loss of ($586k)during the first six months of 2010. The net loss per common basic and dilutedshare remained unchanged at ($.01) for the first six months and last threemonths ending June 30^th, 2010 from the year ago period.

Interestingly,COPsync, Inc. was able to squeeze out a bottom-line net income of about $5kapplicable to common shareholders. The reason being is the company booked asettlement gain of $333k tied to a litigation suit in which damages were soughtagainst Testre LP for federal securities law violations and fraud. While afinal settlement agreement had been reached, it had not yet been finalized. The$333k settlement amount is the difference between a recorded settlement accrualcosts and the discharge of a convertible note that was payable to the defendant.

You can read theentire litigations overview from the Commitments and Contingencies (Note 9)section from the second quarter 10K found here on the SEC website.

Keep an eye outhere for an interview with Russell Chaney, the chief executive officer of COPsync coming soon.