WOODLAND HILLS, Calif., Nov. 19, 2008 (GLOBE NEWSWIRE) -- HealthSport, Inc. (OTCBB:HSPO) announced results for the third quarter ended September 30, 2008.
During the three months ended September 30, 2008, the Company had total revenues of $598,974, an increase of 384% over the corresponding 2007 period's revenues of $155,607. During the nine months ended September 30, 2008, the Company had total revenues of $868,567 as compared to $244,214, an increase of 355%.
Our General and Administrative expenses decreased to $940,299 in the third quarter, from $1,373,357 in the 2007 period. The decrease of $433,058 (31.5%) in G&A is the result of a focused effort on reducing corporate expenses at all levels of the Company, including corporate overhead and the G&A costs at the manufacturing operation.
In the nine months ended September 30, 2008 General and Administrative expenses increased to $3,235,131 from $2,472,484 in the 2007 period. The increase of $762,647 is the result of the acquisition of InnoZen, Inc. in 2007.
The Company re-directed its marketing efforts towards distribution agreements rather than direct sales to consumers in early 2008. As a result, selling and marketing costs were $358,530 in the third quarter as compared to $670,264 in the 2007 period, a decrease of $311,734 or 43%.
For the nine months, sales and marketing costs were $1,056,087, as compared to $1,652,489 in the 2007 period, a decrease of 36%. The decrease of $596,402 in the 2008 period as compared to the 2007 period was primarily due to the elimination of endorsements and sponsorship fees as a result of re-directing marketing efforts toward distributors rather than direct sales to customers.
CEO, Hank Durschlag, stated, "This has been one of the most positive and dramatic quarters in our Company's history. By redirecting our marketing efforts and reducing overhead, much of which will not be realized until the fourth quarter, the Company has positioned itself to reach profitability in the near future. Based upon our current customers forecast for the 2009 fiscal year, we could attain profitability by March 2009."
About HealthSport, Inc.
HealthSport (http://www.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. InnoZen, Inc. (http://www.innozen.com), a wholly-owned subsidiary of HealthSport, Inc., is the preeminent formulator, developer and manufacturer of edible film strips that deliver drug actives through buccal (between 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.