CHARLOTTE, N.C., May 5, 2009 (GLOBE NEWSWIRE) -- HealthSport, Inc. (OTCBB:HSPO), announced results for the first quarter ended March 31, 2009.
Financial Results
During the three months ended March 31, 2009, the Company had total revenues of $1,626,908, an increase of 1,400% over the corresponding 2008 period's revenues of $116,191. In addition, the first quarter revenues exceeded the entire 2008 year revenues of $1,419,210.
General and Administrative expenses decreased to $439,821 in the three months ended March 31, 2009 from $815,843 in the 2008 period. The decrease of $376,022 (46.1%) in G&A is the result of decreases at all levels of the Company, including corporate overhead and the G&A costs at the manufacturing operation.
The Company has re-directed its marketing efforts toward private label distribution agreements rather than direct sales to consumers through retail stores in 2008. As a result, Total Costs and Expenses were $2,318,141 in the three months ended March 31, 2009, as compared to $3,208,273 in the 2008 period, a decrease of $890,132 or 27% in the 2009 period as compared to the 2008 period. For the first quarter, the Company realized a net loss of $691,233 or ($.01) per share.
"We are very pleased with our fiscal results for the first quarter of 2009. Although budgetary constraints continued to impact our sales growth and manufacturing capabilities, the first quarter was the most dramatic quarter in our company's history with total revenues of $1,626,908. In addition, over $510,000 of recorded expenses, which directly affected our bottom line, were non-cash items which had to be amortized but did not affect the Company's cash flow," stated Hank Durschlag, CEO.
"Our second quarter revenue will be impacted by changes to a majority of the product lines which will require stability testing to be completed before the products can be manufactured for resale; however, if market acceptance of the product broadens, sales growth in the last half of the second quarter should continue to increase," continued Mr. Durschlag.
About HealthSport, Inc.
HealthSport, Inc. (http://healthsportinc.com) is a fully integrated developer, manufacturer and marketer of unique and proprietary branded and private label edible film strip nutritional supplements and over-the-counter drugs. HealthSport's wholly-owned subsidiary, InnoZen, Inc. (http://www.innozen.com), is the preeminent formulator, developer and manufacturer of edible film strips that deliver drug actives through buccal (between the cheek and gum) absorption. InnoZen's proprietary edible film strip delivery technology is superior to any other competitive edible film strips currently available on the market. InnoZen has five patents pending and has developed numerous trade secrets which it incorporates in the development and manufacturing process of edible film strips.
Forward-Looking Statements in this news release are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks, and uncertainties and actual results could differ from those discussed. This material is information only, and is not an offer or solicitation to buy or sell the securities.