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Leatt Corporation: Leatt Corporation Announces Financial Results for Quarter Ending June 30, 2009

^{Published on 2009-08-17 09:19:37, Last Modified on 2009-08-17 09:19:46 - Market Wire}
 

VALENCIA, CA--(Marketwire - August 17, 2009) - Leatt Corporation, a Nevada corporation (PINKSHEETS: [ LEAT ]) (Company) announced its unaudited financial results for the quarter ending June 30, 2009 (Q2-09). Gross revenues for Q2-09 were $3,106,200, compared to $5,243,113 for fiscal quarter ending June 30, 2008 (Q2-08); Cost of Revenues was $1,322,810, compared to $1,677,796 for Q2-08; and Net Loss was ($390,138), compared to Net Income of $775,017 for Q2-08. The Company has intensified its marketing and sales efforts in response to reduced sales and has a new product line introduction scheduled for 2010.

"We have become more aggressive in marketing and sales in response to the slow down in sales and our new product line will hopefully increase sales in 2010 which will optimistically be complemented by a more robust worldwide economy," said Dr Christopher Leatt, the Company's Chief Executive Officer.

The complete financial report for Q2-09 is posted on the Company's Website at [ http://www.leatt-corp.com ].

About Leatt: The Leatt Corporation is the exclusive global distributor of the Leatt-Brace® Prophylactic Neck Brace designed to prevent potentially devastating motor sport injuries to the cervical spine (neck). The inventor of the brace, Dr. Chris Leatt, is the Chief Executive Officer and Founder of the Leatt Corporation and is responsible for executing the company's global strategy. Dr. Leatt is a qualified medical doctor with experience in trauma and neurosurgery. For more information on the Company and its products, please visit the company website at [ www.leatt-brace.com ]. The contents of any referenced Web Site or links therein are expressly not incorporated into this press release.

The Consolidated Statements of Operations (unaudited) for the period ending June 30, 2009 are:

 LEATT CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended Six Months Ended June 30 June 30 2009 2008 2009 2008 Unaudited Unaudited Unaudited Unaudited Revenues $3,106,200 $5,243,113 $7,451,523 $11,239,152 Cost of Revenues 1,322,810 1,677,796 2,699,568 3,596,529 ---------- ---------- ---------- ----------- Gross Profit 1,783,390 3,565,317 4,751,955 7,642,623 ---------- ---------- ---------- ----------- Operating Expenses Salaries and wages 830,903 603,019 1,733,241 1,193,642 Commissions and consulting expenses 103,892 164,665 218,473 366,107 Professional fees 215,314 390,629 621,642 868,936 Advertising and marketing 454,711 692,224 739,196 1,108,145 Office rent and expenses 57,817 43,139 112,609 86,097 Research and development costs 23,515 33,569 41,838 49,106 General and administrative expenses 387,184 332,468 670,739 767,001 Depreciation 112,318 103,680 224,910 196,984 ---------- ---------- ---------- ----------- Total operating expenses 2,185,654 2,363,393 4,362,648 4,636,018 ---------- ---------- ---------- ----------- Income/(Loss) from Operations (402,264) 1,201,924 389,307 3,006,605 ---------- ---------- ---------- ----------- Other Income (Expense) Fair value adjustment relating to obligation to issue preferred and common shares - (132,370) - (264,739) Interest and other income, net 12,126 5,963 27,920 51,038 ---------- ---------- ---------- ----------- Total other income (expense) 12,126 (126,407) 27,920 (213,701) ---------- ---------- ---------- ----------- Income/(Loss) Before Income Taxes (390,138) 1,075,517 417,227 2,792,904 Income Taxes - 300,500 308,504 709,500 ---------- ---------- ---------- ----------- Net Income/(Loss) Available to Common Shareholders $ (390,138) $ 775,017 $ 108,723 $ 2,083,404 ========== ========== ========== =========== 

Notice: Statements in this press release that relate to future results and events (including statements about our future financial and operating performance) are forward-looking statements based on our current expectations. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including: weakening global economic conditions and instability in financial markets; our ability to establish an advantage over competitors; our ability to generate substantial U.S. and non-U.S. net revenue; our ability to accurately predict product, customer and geographic sales mix and seasonal sales trends; production delays or failures; our ability to effectively manage periodic product transitions; disruptions in component availability; our reliance dealers and contract manufacturers; our ability to access the capital markets; risks relating to our internal controls; unfavorable results of legal proceedings; our ability to properly manage the distribution of our products; the success of any cost-cutting measures; our ability to attract, retain and motivate key personnel; and the effect of armed hostilities, terrorism, natural disasters and public health issues. For a discussion of those and other factors affecting our business and prospects, see our website at [ http://www.leatt-corp.com ]. We assume no obligation to update forward-looking statements.