OTC Bulletin Board S & P Company Insight for ETELOS, INC.
Profile
	Business Summary: Etelos, Inc. operates a Web application distribution platform that delivers Web applications for businesses. The company provides a software-as-a-service (SaaS) ecosystem for building, distributing, and using Web Applications, including a marketplace to deploy and support them.   Address   26828 Maple Valley Hwy Ste 297   Maple Valley , WA 98038-8309   Phone: 425-458-4510   Website: http://www.etelos.com Transfer Agent   BNY Mellon Shareowner Services Employees:  13 ShareHolders:  62 Founded:  1995 Domicile:  Delaware
Background
	Etelos, Inc. operates a Web application distribution platform that delivers Web applications for businesses. The company provides a software-as-a-service (SaaS) ecosystem for building, distributing, and using Web Applications, including a marketplace to deploy and support them. It enables software manufacturers to migrate existing applications or create new applications, as well as package, distribute, host, bill, market, and support the SaaS enabled applications through private label applications marketplaces. The company also develops products for Web applications, which include open standards-based tools, such as the Etelos Application Server and the Etelos Development Environment that support various common programming languages; the English Application Scripting Engine, an open standards-based scripting language for Web developers, businesses, and individual users; and Etelos App Sync, which integrates Web Applications built on its platform with other Web applications. In addition, the company offers Etelos Platform Suite, which allows third parties to use its software platforms and services to develop and operate a private label application and marketplace; and Etelos Web Application Hosting. Further, it provides professional services, including consulting and implementation services; and customer support and management. The company serves independent software vendors and marketplace partners, including non-technology businesses in North America, South America, Europe, and the Asia-Pacific region. Etelos, Inc. is headquartered in Maple Valley, Washington. History:  INCORPORATED in Delaware July 12, 2000, as Tripath Technology Inc.; and on July 21, 2000, merged a California corporation of the same name (incorporated July 18, 1995). Name changed to Etelos, Inc. Apr. 22, 2008. February 8, 2007, the company filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code with the United States Bankruptcy Court for the Northern District of California. April 22, 2008, Etelos, Incorporated, a Washington corporation (Etelos-Washington), merged into company. Prior to the merger, the company had been a debtor-in-possession in a Chapter 11 bankruptcy proceeding. In connection with the bankruptcy proceeding, all assets of the company were transferred to a trustee for liquidation and all liabilities of the company were discharged. Accordingly, at the time of the merger, the company had no assets or liabilities. In connection with the merger, the company issued 17,690,634 Common shares in the aggregate to the holders of Etelos-Washington's capital stock. In addition, pursuant to the order issued by the bankruptcy court in connection with the approval of the Plan of Reorganization, the company issued 5,000,000 shares in the aggregate of its Common stock to its secured creditors and 10,000 shares in the aggregate to its unsecured creditors. Etelos, Incorporated was incorporated in Washington May 6, 1999.     Capital Expenditures, thousand. US Dollars   Year   Amount   2009   0   2008   64   Research and Development Expenditures, thousand. US Dollars   Year   Amount   2009   1,315   2008   2,646
Management
	Management Officers Position  Daniel J. A. Kolke Chairman, Chief Financial Officer & Chief Executive Officer  Kennedy A. Brooks Chief Operating Officer & General Counsel Directors  Daniel J. A. Kolke  Andrew I. Liu  Kevin  Pritchard  Ronald A. Rudy  Robert L. Thordarson
Annual Report
	Annual Report   Income Statement   2009 2008 REVENUES Revenues 150 123 EXPENSES Cost of Revenues (268) (542) Sales and Marketing (826) (1,657) General and Administrative (3,062) (3,164) Research and Development (1,315) (2,640) Restructuring Costs (92) (632) Interest Expense, Net (561) (479) Beneficial Conversion of Interest Conversion - (991) Amortization of Notes Discount and Debt Issuance Costs and Accretion of Notes Premium, Net (386) (2,872) Change in Valuation of Liability Relating to Embedded Derivatives and Warrants (119) 6,965 Loss on Extinguishments of Debt (587) - Change in Valuation of Liability Related to Warrants from Settlement, Financing, and Consulting Services 299 - Other Income/expense 15 (14) Merger Costs - (13,444) Earnings before Taxes (6,752) (19,347) TAXES AND OTHER EXPENSES Net Income (Loss) (6,752) (19,347) CHARGES ON NET INCOME Preferred Stock Adjustments - (22) Net Income Available to Common Shareholders (6,752) (19,369) SUPPLEMENTARY INFO Gross Profit/loss (118.00) (419.00) Operating Income (Loss) (5,114.00) (8,512.00) Basic EPS - Continuing Operations (0.29) (1.07)   Balance Sheet   2009 2008 CURRENT ASSETS Cash and Cash Equivalents 445 7 Accounts Receivables 10 60 Accretion of Interest on Convertible Notes Payable 250 - Prepaid Expenses and Other Current Assets 16 46 Total Current Assets 721 113 NON CURRENT ASSETS Property and Equipment, net 46 82 Debt Issuance Costs 30 - Other Assets 2 10 Total Assets 799 205 CURRENT LIABILITIES Accounts Payable 1,120 983 Accounts Payable-related Parties 27 42 Other Accrued Expenses 1,229 1,381 Accrued Payroll and Related Expenses 1,029 399 Current Portion Notes Payable 110 89 Current Portion Notes Payable to Related Parties 108 132 Current Portion Convertible Notes Payable, Net of Discounts 1,764 7,264 Current Portion-capital Leases - 9 Deferred Revenue 8 64 Warrant Derivative Liability 315 108 Total Current Liabilities 5,710 10,471 NON CURRENT LIABILITIES Long-term Convertible Notes Payable, Net of Premiums and Discounts, Less Current Portion 7,214 - Long-term Notes Payable to Related Parties 286 552 Long-term Capital Leases - 24 Preferred Stock Convertible 7 8 SHAREHOLDERS' EQUITY Common Stock - Par Value 234 231 Additional Paid in Capital 23,903 18,722 Accumulated Deficit (36,555) (29,803) Total Shareholders Equity (12,411) (10,842) Total Liabilities & Shareholders Equity 799 205
Interim Report
	Interim Report      Data Not Available
Pro Forma Report
	Pro Forma Report      Data Not Available
Quarterly Report
	Quarterly Report Information      Quarterly Revenue, US$ Year Quarter Revenue   2010   1 Nil   2009   1 60,000   2009   2 70,000   2009   3 10,000   2009   4 20,000   2009   Full Year 150,000   2008   1 20,000   2008   2 20,000   2008   3 10,000   2008   4 70,000   2008   Full Year 120,000   2007   1 100,000   2007   2 110,000   2007   3 80,000   2007   4 10,000   2007   Full Year 300,000   2006   Full Year 320,000     Quarterly Net Income, US$ Year Quarter Revenue   2010   1 (1,220,000)   2009   1 (6,430,000)   2009   2 2,910,000   2009   3 (1,200,000)   2009   4 (2,030,000)   2009   Full Year (6,750,000)   2008   2 (21,570,000)   2008   3 1,650,000   2008   4 2,810,000   2008   Full Year (19,350,000)   2007   Full Year (3,960,000)   2006   Full Year (1,510,000)     Quarterly EPS, US$ Year Quarter Revenue   2010   1 (.05)   2009   1 (.27)   2009   2 .08   2009   3 (.05)   2009   4 (.10)   2009   Full Year (.29)   2008   1 (.30)   2008   2 (1.13)   2008   3 .04   2008   4 .06   2008   Full Year (.81)   2007   1 (.10)   2007   2 (.16)   2007   3 (.36)   2007   4 (.13)   2007   Full Year (.29)   2006   Full Year (.14)
Stock Data
	Capitalization as of 03/31/2010:     Authorized Shares Outstanding Shares Preferred $0.01 par 50,000,000 666,666so1 Common $0.01 par 250,000,000 24,116,477   LONG TERM DEBT: $7,769,000.   Common $0.01 par   Stockholders:  03/16/2010, 62. PRINCIPAL STOCKHOLDERS: March 16, 2010, Don Morissette owned or controlled 43.3% of the Common, Daniel J. A. Kolke 20.6%, Enable Capital Management LLC 15.5% and Salzwedel Financial Communications, Inc. 11.6%.   Transfer Agent:  BNY Mellon Shareowner Services   Pittsburgh , PA   OTC Bulletin Board( Primary): ETLO   Exchange Year High Low OTC Bulletin Board 2009 2.7500 0.1000 OTC Bulletin Board 2008 14.0000 0.1000   DIVIDENDS: Common $0.01 par: No cash.       so1Consists of Series A Preferred with a stated value of $0.75 per share. Holders are entitled to a liquidation preference of 120% of the stated value. Each Series A share is convertible, at the option of the holder, into the number of Common shares determined by dividing the stated value by the then applicable conversion price.