FRANKLIN, KY, Oct 05, 2005 (MARKET WIRE via COMTEX) -- GameZnFlix, Inc. (GZFX), an online provider of DVD's and video games for rent, today announced its service will be available to Circuit City customers at http://www.circuitcity.com and in select Circuit City stores beginning November 1, 2005.

GameZnFlix's offers variety of monthly subscription plans, starting at $8.99, that allow members to rent DVDs and video games delivered directly to their mail boxes. Each rental includes a postage-paid return envelope. Members can enjoy their rental for as long as they wish, with no worry about late fees.

"We're excited to add GameZnFlix's unique DVD and video game rental program to our product selection," said Marc Sieger, senior vice president, general merchandise manger of services at Circuit City Stores, Inc. "As the Internet has grown, we've learned a lot about consumers and know they want value and convenience. I feel this new relationship offers our consumers both."

"This relationship is a win-win for both parties," said Donald "Chip" Gallent, president of GameZnFlix, Inc. "Circuit City is a top destination for movie-lovers and gamers alike and we believe we can fulfill both needs through our service."

hey guys what do yall think about this stock. it looks very promising. how do you think it will ue with its trial runs in circuit city. i know it just made its huge run and is dying back down now but if it is succesful we im sure it will go right back up. do yall think its a good time to buy at .008 or should be just hold out for a while and see how its going to do. didn't wall mart atempt something like this with the movie rental thing

That was a heckuva a spike it got when it traded nearly a billion shares.  I checked otcbb.com and they have authorized shares listed at 4 billion, versus about 755 million outstanding as of Mar 31/05.  I don't know what their financial condistion is like, if they're making or losing money...I assume (given the PPS) that they're losing money....can someone post their financial condition?  Popeye?

Here's the chart:

hi, i copied this off another board. i personally haven't had much time for research lately. i really don't know how accurate this is:


"I think its a horrible long (6-12 Month), but could see 2-4 cents in the time before. So Cover your gains, Im ALL out at .019+
Heres why:

1)Finacials are....well, better than most, but FAR from impressive.(might see some light with the CC arrangement)

2)CC contract is a trial, and only in 17 stores

3) The DAGGER in the back is the pimp job they did on their stock/shareholders. They just released/added nearly 2.6 BILLLION (for approx $16MM cash)to their shares Outstanding....wait till that hits the float.....TANK

4) Im going to be very nice and WAY over value this thing to give you an idea of share value (everything is rounded UP): The company is worth, at this point, 3-5x (absolute MAX)yearly net profit plus assets.....since three year average is loss, lets take their best quarter times 4 to give them a year ($130K)x 4quarters= $520K+65K cash(at time...it now should be $16MM) + 1.2MM Assets = 1.8MM

Hope your following ...now 5 times Profit ($2.6MM) plus assets = $3.9MM (ABSOLUTE MAX VALUE)
Say this contract adds 20 times Company value ($52MM plus assets $1.2MM including the $16MM they just got)= $69.2MM ...boy am I generous to value this thing SOOO high...lol.

Its hard to say the TOTAL shares outstanding, but its somewhere near 3.4Billion or 3,400MM divide by value $69.2MMM divided by 3400 = drum roll please....... $.0203
whew that was fun. My point is this thing is NOT worth over .02 cents, in fact I would value it closer to where it is now.....but its a penny, so I think it will run! Dont pay over .007 for it, dump half when you double up and let er ride for awhile, then get out before they dump on the float. JMO... Good Luck on this!
D

GAMEZNFLIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)





For the Three Months For the Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
Revenues $ 243,982 $ 27,269 $ 405,755 $ 57,703

Cost of revenues 141,283 44,341 279,543 48,825

Gross profit 102,699 (17,072) 126,212 8,878

Operating expenses
Advertising 136,868 1,571,560 166,913 1,674,701
Selling, general and administrative 310,888 214,906 561,248 487,764
Amortization and depreciation 209,611 17,686 430,954 19,934
Consulting fees 216,243 1,060,828 356,243 2,381,276
Professional fees 50,734 81,376 248,640 159,443
Total operating expenses 924,344 2,946,356 1,763,998 4,723,118

Loss from operations (821,645) (2,963,42 (1,637,786) (4,714,240)

Other income (expense)
Other income (expense) (18,719) -- (18,719) --
Interest expense (4,435) (4,703) (4,435) (8,084)
Interest income 110 368 241 730
(23,044) (4,335) (22,913) (7,354)

Loss before provision for income taxes (844,689) (2,967,763) (1,660,699) (4,721,594)

Provision for income taxes -- -- -- --

Net loss (844,689) (2,967,763) (1,660,699) (4,721,594)

Basic loss per common share (0.00) (0.01) (0.00) (0.01)
Diluted loss per common share (0.00) (0.01) (0.00) (0.01)

Basic weighted average common
shares outstanding 673,126,141 548,895,989 712,505,951 43,139,903




See Accompanying Notes to Consolidated Financial Statements




GAMEZNFLIX, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Six For the Six
Months Ended Months Ended
June 30, 2005 June 30, 2004

Cash flows from operating activities:
Net loss $ (1,660,699) $ (4,721,594)
Adjustments to reconcile
net loss to net cash used in operating
activities:
Stock-based compensation 323,183 2,607,000
Depreciation and amortization 221,343 19,934
Changes in operating assets
and liabilities:
Change in accounts receivable (54,137) 62,678
Change in accounts receivable -
employees -- 1,892
Change in stock subscription receivable (64,901) 20,000
Change in inventory (53,467) (215,014)
Change in prepaid expenses 196,540 (122,420)
Change in other assets (27,864) 8,019
Change in accounts payable (81,206) 373,195
Change in accrued expenses 88,321 187,759
Change in other liabilities -- --
Net cash used in operating activities (1,112,887) (1,778,551)

Cash flows from investing activities:
Purchase of DVD's & games library (23,754) --
Purchase of fixed assets (161,060) (514,791)
Net cash used in investing activities (184,814) (514,791)

Cash flows from financing activities:
Payments on notes payable -- (4,975)
Payments on related party notes payable (99,789) --
Proceeds on notes payable 27,225 --
Proceeds from related party notes payable -- 63,411
Proceeds from stock issuances 1,358,443 2,270,985

Net cash provided by financing activities 1,285,879 2,329,421

Net change in cash and cash equivalents (11,822) 36,079

Cash, beginning of period 63,295 43,778

Cash, end of period 51,473 79,857
"

Liquidity and Capital Resources.

"As of June 30, 2005, the Company had total current assets of $491,285 and total current liabilities of $1,040,942, resulting in a working capital deficit of $549,657; as of that date, the Company had cash of $51,473. During the six months ended June 30, 2005 and 2004, the Company incurred losses of $1,660,699 and $4,721,594, respectively, and the Company has an accumulated deficit of $20,163,833 as of June 30, 2005. These factors raise substantial doubt as to the Company's ability to continue as a going concern".

The above is a cut and paste from the 10Q. The company owes as much as the company is worth.  In the 10Q management states that they must raise $5,000,000
this year to meet obligations.  

This company has a history of name changes and reverse splits and now has an accumulated deficit of over $20,000,000.  That is how much the company has taken from unsuspecting investors  and it must continue for them to survive.  Last year they were only able to raise $1,358,000 by selling stock so the $5,000,000 amount is not reachable in my opinion.  Investors and stockholders in this company need to wise up.  If no one purchased this stock the company would be out of business in a couple of months.  GZFX feeds off the gullibility of its investors.

Popeye,

What do you think are the chances are that this stock will get bought by someone?

That is always a possibility.  It looks like the company is actually going to try to get into the black but it will be at the investors expense.  The company has gone into a pillot program that will include 17 stores and if that is successful will move on from there.  The company is currently adding 2,500,000,000 at .01 shares to the outstanding by offering them to the public.  

The management at the same time is taking care of themselves and will get their share of the proceeds.  The CEO has just been given a $200,000 per year salary with a 15% increase each year.  The President has been given a $150,000 salary with the same increases.  As soon as they filed for a 2,500,000,000 they obviously decided to get their share of the pie.  This will be a terrible dilution to the companies stock.  I can just about guarantee you that if any company takes over GZFX there will be a massive reverse split at the same time.

Looks like a bit of boom bust echo with GZFX, boomed up over 1 cent on the circuitcity news, busted down around .006 then gapped to .0094 (or so) yesterday on the echo and heading back down now.  I don't see the ad on circuitcity's website doing much to help GZFX's bottom line.

This is going to be "big".  

RECENT NEWS, PICS, and WEBCAST HIGHLIGHTS...

Pics of the GZFX kiosk in Circuit City…
http://photobucket.com/albums/c173/dfwyatt

Special Situation Report…
http://wallst.net/superstock/GZFX/gzfx.html

Current Gameznflix Awareness
http://xrl.us/ifro

Webcast(removed forward looking disclaimer) http://xrl.us/h7xb
Comments on share data http://xrl.us/h7xd
Comments on reverse split http://xrl.us/h7xe

GZFX WEBCAST HIGHLIGHTS...

17% of members request movies only.
66% requests both games and movies.
23% are pure gamers.

Ad Campaign:

Opt Email
Pop up ads
Sponsorship and Endorsement program.
Considering at Florida, Texas, Northwest, Midwest, and Hawaii.
CSTV agreement targeting college students going to campus in 20 major universities (Nov 1st).
Online advertising 10 - 20 million impression in the 4th quarter.
Male oriented websites: IGN, Hollywood, Mensfitness, Road & Track.
Advertising will not get ahead of inventory and growth!!
Redirecting to online marketing. No plans to move into TV yet. GOOD!

Market Research and development:

Direct download pay per view basis.
Revenue sharing to maintain all copyright in relation to inventory.
UK expansion moved to late 2006 to focus the circuit City opportunity.
17% of members request 100% movies on the gameside. 66% requests games and movies.
16.5 million of funding
75% will go to inventory
25% advertising
Reviewed by auditor

Operational Capacity:

New mailer performed better than expected.
Ship thousand of titles only 3 - 5 have been broken.
Delivery time now averaging 48 hours and 24 in the proximity of distribution.
Along with Ingram entertainment: Signed 2 new distributors: baker & taylor, VPD.
Inventory leveling like Netflix to pull out of stock inventory from the next closest distribution center
Prebooking titles (new releases) at minimum of 6 weeks stock.

Circuit City Relationship:

Store managers have been trained.
Significant store promotion
Products will be in store Nov 1st.
Gameznflix will also be online on CC website.
Gameznflix will be on the CC circular to 50-100 mil households
across the country (profit / membership projected to jump).
No Plans to going to Canada as of now.

Website makeover:

Updating website in the next few weeks.
Separate section for each platform.
Improving search feature with more options.
Cross-promotion in website.
Web infrastructure is in place ready for the spike.

Acquisition outlook:

Looking at all acquisition, other direct download companies, movie companies, game companies.
(Just as I said, Bestbuy (netflix) and Walmart (blockbuster) is out of the question.)

GZFX UPDATE

UPDATED NEWS/PICS/WEBCAST HIGHLIGHTS...

12/06: CEO email to a member of Ihub…

"GNF is right up there with the direct download world. We have developed our systems, boxes and the security to be a player. We have had this done for almost 6 months, however, we must obtain the legal rights from the studios to use the titles. Our attorneys and consultants are working to resolve the many issues and once that is done we are off to the races."
"Hope this answer your question and I would not be concerned about our little company. We are debt free, inventory heavy and growing.."

John J. Fleming

Pics of the GZFX kiosk in Circuit City?
http://photobucket.com/albums/c173/dfwyatt

Special Situation Report?
http://wallst.net/superstock/GZFX/gzfx.html

Current Gameznflix Awareness
http://xrl.us/ifro

http://www.screendigest.com/reports/digi_dist_games/press_releases_19_09_2005/view.html

http://www.screendigest.com/reports/05onlinedvdrental/press_releases_15_11_2005/view.html

http://www.netimperative.com/2005/11/16/DVD_rental_market

http://news.yahoo.com/s/nm/20051115/wr_nm/media_dvdonline_dc_2

Webcast(removed forward looking disclaimer) http://xrl.us/h7xb
Comments on share data http://xrl.us/h7xd
Comments on reverse split http://xrl.us/h7xe