62 ------------- ------------ Total assets $ 1,607 $ 3,490 ------------- ------------ ------------- ------------


LIABILITIES AND STOCKHOLDERS' DEFICIT


Current liabilities: Accounts payable and accrued liabilities $ 631 $ 1,774 Convertible note payable, net of unamortized discount 1,537 1,544 Subordinated notes payable to a related party, net of unamortized discount 79,302 72,022 Liabilities of discontinued operations - 4,512 ------------- ------------ Total current liabilities 81,470 79,852 Convertible note payable, less current portion and net of unamortized discount 147 1,299 Warrant to purchase common stock 203 281 ------------- ------------ Total liabilities 81,820 81,432 ------------- ------------ ------------- ------------


Stockholders' deficit: Preferred stock, $10.00 par value, authorized 10,000,000 shares; issued and outstanding 612, liquidation preference of $612 at September 30, 2006; issued and outstanding 618, liquidation preference of $618 at December 31, 2005 6 6 Common stock, $0.01 par value, authorized 300,000,000 shares, issued and outstanding 19,237,375 at September 30, 2006 and 19,237,135 at December 31, 2005 192 192 Additional paid-in capital 190,482 189,162 Accumulated deficit (270,893) (267,302) ------------- ------------ Total stockholders' deficit (80,213) (77,942) ------------- ------------ Total liabilities and stockholders' deficit $ 1,607 $ 3,490 ------------- ------------ ------------- ------------


The notes contained in our Quarterly Report on Form 10-Q are an integral part of these condensed consolidated financial statements.


C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS for the Three and Nine Months Ended September 30, 2006 and 2005 (Unaudited)


Three Months Ended Nine Months Ended September 30, September 30, (In thousands, ------------------- ------------------ except per share amounts) 2006 2005 2006 2005 -------------------------- --------- --------- -------- ---------


Revenue $ - $ - $ - $ -


Operating costs and expenses: Selling, general and administrative 306 481 1,047 2,468 Research and development - 88 - 389 Depreciation and amortization 5 9 15 27 --------- --------- -------- --------- Total operating costs and expenses 311 578 1,062 2,884 --------- --------- -------- --------- Operating loss (311) (578) (1,062) (2,884) --------- --------- -------- --------- Other income (expense): Interest expense (1,448) (2,055) (6,999) (8,195) Interest and other income 6 120 122 121 --------- --------- -------- --------- Total other expense (1,442) (1,935) (6,877) (8,074) --------- --------- -------- --------- Loss from continuing operations (1,753) (2,513) (7,939) (10,958)


Income(loss) from discontinued operations (net of $0 tax) (3) 4,283 4,348 (3,488) --------- --------- -------- --------- Net income(loss) $ (1,756) $ 1,770 $ (3,591)$(14,446) --------- --------- -------- --------- --------- --------- -------- ---------


Basic and diluted weighted average shares outstanding 19,237 19,237 19,237 19,237


Net earnings (loss) per common share - basic and diluted: Loss from continuing operations $ (0.09) $ (0.13) $ (0.42) $ (0.57) Earnings (loss) from discontinued operations 0.00 0.22 0.23 (0.18) --------- --------- -------- --------- Net earnings(loss) per common share $ (0.09) $ 0.09 $ (0.19) $ (0.75) --------- --------- -------- --------- --------- --------- -------- ---------


The notes contained in our Quarterly Report on Form 10-Q are an integral part of these condensed consolidated financial statements.


Contacts: C2 Global Technologies Inc. Stephen A. Weintraub Executive Vice President, Secretary & CFO (416) 866-3058 Email: sweintraub@c-2technologies.com Website: www.c-2technologies.com


SOURCE:  C2 Global Technologies Inc.