Online collections technology firm Debt Resolve yesterday reported a net loss of $12.6 million for 2007, compared with a $21.7 million loss for 2006. Revenues for 2007 were $2.8 million, compared with about $98,000 for 2006. One highlight of 2007 was receiving placements in client accounts of more than $4 billion in face value debt.

Debt Resolve sells its technology to collection agencies, debt buyers, credit card issuers and other creditors. It also operates the First Performance collection agency. Debt Resolve stock (AMEX: DRV) was unchanged in early trading today.

CEO Kent Montgomery said in a statement that the company has doubled its cash flow each month this year and increased its pipeline of prospective clients by 50 percent.

White Plains, N.Y.-based Debt Resolve also reported that Harmonie International LLC agreed on March 31 to pay it $7 million in cash to buy 2.9 million Debt Resolve shares at $2.36 per share, and for a 10-year warrant to purchase another 3.7 million shares at $2.36 per share. 

Detroit-based Harmonie is an investor that purchases and securitizes consumer and commercial debt, according to Debt Resolve. The deal was brokered by The Resolution Group which agreed last December to provide Debt Resolve with at least $4.5 million in funding. TRG is continuing to work with Debt Resolve in a joint venture targeting mortgage collections ("Debt Resolve Borrows to Create Subprime Mortgage Workout Product," December 19, 2007).