NEW YORK, May 17, 2010 (GLOBE NEWSWIRE) -- Zevotek, Inc., (OTCBB:ZVTK) (Frankfurt:T5V1) a worldwide direct marketer and distributor of innovative personal and home care items, today announced financial results for its fiscal third quarter ended March 31, 2010. In the quarter ended March 31, 2010, Zevotek continued test marketing their Ionic Bulb by airing new one and two-minute Ionic Bulb infomercials on U.S. TV channels to inform potential future retail customers about the Ionic Bulb's performance and money saving features and to find viewing audiences that buy Ionic Bulbs in response to the Company's infomercials. The Company had $33,581 in net sales for the quarter ended March 31, 2010 as compared to $0 in net sales for the quarter ended March 31, 2009. Zevotek's sales for the nine months ended March 31, 2010 were $38,658 as compared to $0 for the nine months ended March 31, 2009. For the three months ended March 31, 2010, Zevotek received and shipped 1,054 Ionic Bulb orders with an average sale of $32 per order.
The Company's March 31, 2010 balance sheet shows Zevotek reduced accounts payable and accrued liabilities by $849,405 or 58% from March 31, 2009. Zevotek increased its cash and Ionic Bulb inventory balances to $25,871 and $115,547, respectively, as of March 31, 2010 as compared to $0 and $0, respectively, as of March 31, 2009. In an especially challenging climate for raising capital over the past 12 months, Zevotek reduced liabilities by issuing shares of common stock and raised cash to manufacture Ionic Bulbs and fund the Ionic Bulb sales launch through a combination of short-term borrowing and issuing long-term debt.
Commenting on the announcement, Zevotek's CEO Rob Babkie, said, "The March 31, 2010 quarter is the quarter that I joined as Zevotek's CEO on February 25th and our Ionic Bulb marketing launch gained momentum. The board, our shareholders and I have a common vision based on selling Ionic Bulbs through major retailers, online merchants and into international markets. To achieve our vision, we hired a retail sales rep firm and a new ad agency, we modified our TV ads, we improved the Zevotek Ionic Bulb sales offer, and we ran ads so frequently that IMS named the Ionic Bulb ad as the 3rd most viewed household products infomercial for the week ended March 5, 2010. The Zevotek Ionic Bulb was recognized by major print and online publications and was the subject of many favorable comments. I look to build on the momentum by working with our sales rep firm and retailers to get Zevotek Ionic Bulbs on store shelves by September, which allows time to receive orders, produce in larger quantities and deliver the Ionic Bulbs to retailers."
Zevotek reported a net loss of $375,126 ($0.00 per share) for the three months ended March 31, 2010 as compared to a net loss of $467,506 ($0.01 per share) for the three months ended March 31, 2009. Zevotek reported a net loss of $995,023 ($0.00 per share) for the nine months ended March 31, 2010 as compared to a net loss of $896,839 ($0.04 per share) for the nine months ended March 31, 2009. The increased net loss resulted primarily from the planned Ionic Bulb sales and marketing campaign launch costs.
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ZEVOTEK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS |
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| March 31, 2010 |
June 30, 2009 |
|
| (unaudited) | ||
| ASSETS | ||
| Current assets: | ||
| Cash | $25,871 | $— |
| Accounts receivable | 5,481 | — |
| Inventory | 115,547 | — |
| Prepayments and other current assets | 23,931 | 17,000 |
| Total current assets | 170,830 | 17,000 |
| Other assets: | ||
| Security deposit | 5,000 | — |
| Licensing agreement | 40,000 | 40,000 |
| Total assets | $215,830 | $57,000 |
| LIABILITIES AND DEFICIENCY IN STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $615,318 | $1,232,271 |
| Advances payable | 597,289 | 44,000 |
|
Convertible notes payable and demand notes (net of debt discount of $101,490 and $166,595 as of March 31, 2010 and June 30, 2009, respectively) |
190,435 | 134,139 |
| Customer deposits | 24,351 | 24,351 |
| Total current liabilities | 1,427,393 | 1,434,761 |
|
Long term portion of convertible notes payable (net of debt discount of $28,222 and $167,232 as of March 31, 2010 and June 30, 2009, respectively) |
15,778 | 39,664 |
| Deficiency in stockholders' equity: | ||
| Series A Preferred stock, $0.00001 par value; 10,000,000 shares authorized; 50,000 shares issued and outstanding as of March 31, 2010 and June 30, 2009 | 1 | 1 |
| Series B Preferred stock, $0.00001 par value; 1,000,000 shares authorized; 1,000,000 shares issued and outstanding as of March 31, 2010 and June 30, 2009 | 10 | 10 |
| Common stock, $0.00001 par value, 5,000,000,000 shares authorized; 2,753,121,540 and 176,092,373 shares issued and outstanding as of March 31, 2010 and June 30, 2009, respectively | 27,531 | 1,761 |
| Common stock to be issued | 217 | 30 |
| Treasury stock, 40,000 shares as of March 31, 2010 and June 30, 2009 | — | — |
| Additional paid in capital | 3,885,946 | 2,726,796 |
| Accumulated deficit | (5,141,046) | (4,146,023) |
| Total deficiency in stockholders' equity | (1,227,341) | (1,417,425) |
| Total liabilities and deficiency in stockholders' equity | $215,830 | $57,000 |
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ZEVOTEK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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| (UNAUDITED) | ||||
| Three Months Ended March 31, | Nine Months Ended March 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| REVENUES: | ||||
| Sales | $33,581 | $— | $38,658 | $— |
| Cost of sales | 20,731 | — | 22,252 | — |
| Gross profit | 12,850 | — | 16,406 | — |
| OPERATING EXPENSES: | ||||
| Selling | 151,290 | — | 237,897 | 3,800 |
| General and administrative | 143,257 | 98,611 | 466,252 | 414,877 |
| Total operating expense | 294,547 | 98,611 | 704,149 | 418,677 |
| Loss from operations | (281,697) | (98,611) | (687,743) | (418,677) |
| OTHER (EXPENSE): | ||||
| Interest, net | (34,592) | (14,448) | (59,164) | (37,572) |
| Amortization | (58,837) | (354,447) | (248,116) | (440,590) |
| Total other expense | (93,429) | (368,895) | (307,280) | (478,162) |
| Net loss before provision for income taxes | (375,126) | (467,506) | (995,023) | (896,839) |
| Income taxes | — | — | — | — |
| NET LOSS | $(375,126) | $(467,506) | $(995,023) | $(896,839) |
| Net loss per common share, basic and fully diluted | $(0.00) | $(0.01) | $(0.00) | $(0.04) |
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Weighted average number of common shares outstanding, basic and fully diluted |
2,246,695,391 | 36,543,621 | 1,277,443,214 | 20,414,783 |
About the Company:
Zevotek, Inc. plans to market and sell a range of innovative personal and home care items. Zevotek has a license to sell an energy saving compact fluorescent light bulb (CFL) named the Ionic Bulb, a light bulb designed for consumer use by combining the performance features of ionic air cleaning technology with those of a 10,000 hour reduced energy use compact fluorescent light bulb (CFL).The Company sells the Ionic Bulb through TV infomercials and the Internet and plans to market Ionic Bulbs through catalogs, magazines and major U.S. retail and specialty stores. The Company's new 2 minute and 1 minute Ionic Bulb TV ads are designed to air on national cable channels, local broadcast channels and TV superstations. Zevotek's Ionic Bulb is also sold on the Company's www.newionicbulb.com website.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this release with respect to the Zevotek, Inc.'s business, financial condition and results of operations, as well as matters of timing and effectiveness of marketing the Ionic Bulb are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond Zevotek, Inc.'s control with respect to market acceptance of their products, whether financing will be available, the plans for Zevotek, Inc. to market and sell products as well as certain other risk factors which are and may be detailed from time to time in Zevotek, Inc.'s filings with the Securities and Exchange Commission.
This press release contains forward-looking statements. The words or phrases 'may,' 'intends,' 'expects,' 'estimate,' 'indicate,' 'plans,' 'anticipates,' 'could,' 'if,' 'will,' 'should' or similar expressions are intended to identify 'forward-looking statements.' Actual results could differ materially from those projected in forward-looking statements as a result of a number of risks and uncertainties. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. Zevotek, Inc. cautions readers not to place undue reliance on such statements. Unless otherwise required by applicable law, Zevotek, Inc. does not undertake, and Zevotek, Inc. specifically disclaims any obligation to update any forward- looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.