DAVIDSON, N.C. — UpSNAP reported a loss of $1.78 million for its fiscal year that ended on Sept. 30, the company said Wednesday.

UpSNAP (OTCBB: UPSN), a provider of content and search services for mobile users, reported income of $742,851. The loss amounted to 10 cents per share.

The company lost $158,586 in fiscal 2005. It reported no revenue that year.

UpSNAP reported 2.33 million registered users.

“Fiscal 2006 showed good early adoption and customer acquisition,” said Tony Philipp, chief executive officer of UpSNAP. “Our gross margin at over 45% is one of the highest in the wireless content industry. In fiscal year 2007, we will move forward to actively market and promote our search, entertainment and sports products and to lay the foundation for building substantial shareholder value.”

UpSNAP: www.upsnap.com