Compliance Systems Corp. (COPI.OB)

Company Website
http://www.callcompliance.com/

Summary
Compliance Systems Corporation, through its subsidiaries, provides compliance technologies, methodologies, and services to the teleservices industry. It primarily offers a compliance technology called the TeleBlock Call Blocking System, a patented process that automatically screens and blocks outbound calls against federal, state, and in-house do-not-call lists. The company also offers Regulatory Guide, an online and up-to-date compilation of state and federal telemarketing laws, as well as ongoing compliance auditing services. It is also developing Registration Guide, an online system designed to assist telemarketers to fill out state commercial registration forms. In addition, the company provides voice-over Internet protocol services. The company was incorporated in 2002 and is headquartered in Glen Cove, New York.

Recent Activity
Call Compliance Inc., a wholly owned subsidiary of Compliance Systems Corporation (OTCBB: COPI - News), a telecom service company focused on providing compliance technologies and methodologies to the teleservices industry, announced its fiscal first quarter 2008 financial results.

Total revenues for the three months ended March 31, 2008 increased by approximately 29% or $104,600 over the same period last year, to $467,008 from $362,408. The increase, which was largely attributed the Company’s principal product, TeleBlock^®, continues double digit percentage increases in the Company’s quarter over quarter revenues that began during the first quarter of 2007.

The Company’s gross margin as a percentage of sales increased slightly to 49.5% during the first quarter 2008 from 48.9% for the same period last year. This trend of increasing gross margins is expected to continue as sales increase and fixed costs become a smaller component of total cost of revenues.

The Company’s net loss decreased by $993 to $387,325 in the 2008 quarter from $388,318 in the 2007 quarter. This occurred despite the fact that the Company incurred approximately $221,000 of non-recurring selling, general and administrative expense during the 2008 quarter.

On May 6, 2008 the Company sold and issued a $300,000 secured convertible debenture, at a fixed conversion price of $0.05 per share, for the expansion of its marketing efforts and, as required, in connection with the possible acquisition of complementary companies that could diversify and broaden the Company’s service offering and product base. As part of the financing, management pledged all of their preferred stock, 2,774,343 shares, as collateral for the new financing. All the terms of the financing are detailed in the Company’s Form 8-K filed on May 12, 2008.