Horiyoshi Worldwide Reports Record 2010 Results
LOS ANGELES, April 12 /PRNewswire-FirstCall/ - Horiyoshi Worldwide, Inc. (OTCBB: HHWW - News) announces its financial results for the year ended December 31, 2010. 2010 was a record year in revenue for HHWW driven by the international roll out of the company's luxury clothing line. The company focused its efforts in 2010 on the introduction of the Horiyoshi brand to the international design and retail communities. HHWW also improved its internal infrastructure to support future growth.
Full-Year 2010 Results
For the full year 2010, revenue increased 16 times to $496,083 from $30,633 in 2009. This significant increase in revenues was driven by an increase in the number of retail relationships the company has established and a greater sell through of product at those stores over the course of the year. During 2010 the company also increased its focus on and participation in a number of well-known industry retail shows that increased the awareness and visibility of the company. HHWW ended 2010 with an excess of $ 4 million in working capital.
Annual Highlights
- The Company achieved significant year over year growth in revenue
- Achieved public company status in November 2010
- Raised $5.0 million in equity capital in December 2010
- Significantly increased the number of retail distribution partners
- Ending balance sheet cash increased to $5.6 Million
Mitsuo Kojima, CEO of Horiyoshi Worldwide, Inc. had this to say about the year "We have all worked hard to position the company for future growth. Our development of the luxury line was a deliberate move to establish the Horiyoshi brand at a higher level in people's minds. We understood that this was a slower path to growth but believe it will allow us to realize the full potential of the Horiyoshi brand in the future. Our recent capital raise will enable us to undertake a number of well thought out initiatives to broaden our marketing and distribution capabilities with the focus on much larger markets".
Subsequent to the end of the year in December, HHWW closed the sale of 3,513,532 shares of common stock to an institutional investor in a private placement to raise a total of $5 million. The Company will use the net proceeds to fund its strategic initiatives and for general corporate purposes.
Strategic Initiatives
- Complimentary Line Extension catered towards the mass market
- On Line Store to focus on the existing interest related to Horiyoshi the Third
- Licensing agreements and partnerships
- Expansion of the marketing and service infrastructure of the firm
Raymond Catroppa, CFO of Horiyoshi Worldwide, Inc. added this "The company has experienced a significant number of important events in a relatively short period of time".
- HHWW begins trading as a public company, November 2010
- Raises $ 5 million equity capital, December 2010
- Concludes year end 2010 audit as a public company in the first Quarter of 2011
"These events took up a significant amount of management's attention but the company is now positioned to focus on the implementation of its strategic initiatives to broaden its product offering, distribution network and customer base".
Forward-Looking Statements
This press release includes forward-looking statements concerning sales and operating earnings. These forward-looking statements are based upon management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company and which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to: the effect of regional and global economic and industrial market conditions including our expectations concerning their impact on the markets we serve; the effect of conditions in the financial and credit markets and their impact on the Company and our customers and suppliers; the impact of the Company's cost reduction initiatives; the Company's ability to execute its business plan to meet its sales, operating income, cash flow and capital expenditure guidance; the impact on the Company's gross profit margins as a result of changes in product mix; the Company's vulnerability to industry conditions and competition; the effect of any interruption in the Company's supply of raw materials or a substantial increase in the price of raw materials; ongoing capital expenditures and investment in research and development; compliance with any changes in government regulations and environmental and health and safety laws; the effect on the Company's international operations of unexpected changes in legal and regulatory requirements, export restrictions, currency controls, tariffs and other trade barriers, difficulties in staffing and managing foreign operations, political and economic instability, difficulty in accounts receivable collection and potentially adverse tax consequences; the effect of foreign currency exchange rates as the Company's non-U.S. sales continue to increase; reliance for a significant portion of the Company's total revenues on a limited number of large organizations and the continuity of business relationships with major customers; the loss of key personnel; the nature and extent of military operations being conducted by customers.
Actual results and events may differ significantly from those projected in the forward-looking statements. Reference is made to Cyalume's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2009, its quarterly reports on Form 10-Q, and other periodic filings, for a description of the foregoing and other factors that could cause actual results to differ materially from those in the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
| HORIYOSHI WORLDWIDE, INC. | |||||||||||||||
| CONSOLIDATED BALANCE SHEET | |||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2010 | 2009 | ||||||||||||||
| ASSETS | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 5,576,131 | $ 17,721 | ||||||||||||
| Accounts receivable (net) of allowance for doubtful account of $1,696 for year ended December 31, 2010 | 70,442 | - | |||||||||||||
| Prepaid expenses and other assets | 1,037,251 | 18,868 | |||||||||||||
| Total current assets | 6,683,824 | 36,589 | |||||||||||||
| Property and equipment, net | 19,724 | - | |||||||||||||
| Total assets | $ | 6,703,548 | $ 36,589 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable | $ | 40,991 | $ - | ||||||||||||
| Deferred Revenue | 18,062 | 7,546 | |||||||||||||
| Accrued expenses | 45,377 | 96,727 | |||||||||||||
| Other payables | 48,100 | 21,678 | |||||||||||||
| Due to shareholders | 2,368,409 | 132,448 | |||||||||||||
| Due to a director | 18,480 | 18,480 | |||||||||||||
| Total current liabilities | 2,539,419 | 276,879 | |||||||||||||
| Total liabilities | $ | 2,539,419 | $ 276,879 | ||||||||||||
| Preferred stock, $0.001 par value per share, 100,000,000 shares authorized, 0 shares issued and outstanding | - | - | |||||||||||||
| Common stock, $0.001 par value per share, 1,081,100,000 shares authorized, 63,514,058 and 30,000,000 shares issued and outstanding as of December 31, 2010 and December 31, 2009, respectively | 63,514 | 30,000 | |||||||||||||
| Additional Paid-in Capital | 4,937,776 | (28,710) | |||||||||||||
| Stock subscription receivable | (516) | (516) | |||||||||||||
| Accumulated deficit | (836,645) | (241,064) | |||||||||||||
| Total stockholders' deficit | 4,164,129 | (240,290) | |||||||||||||
| Total liabilities and stockholders' deficit | $ | 6,703,548 | 36,589 | ||||||||||||
| HORIYOSHI WORLDWIDE, INC. | |||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||||||||
| Year Ended December 2010 |
Year Ended December 2009 |
||||||||||||||
| Revenue, net | $ | 496,083 | 30,633 | ||||||||||||
| Cost of sales | 215,106 | 14,593 | |||||||||||||
| Gross profit | 280,977 | 16,040 | |||||||||||||
| Operating Expenses | |||||||||||||||
| Selling expenses | 95,867 | 65,291 | |||||||||||||
| General and administrative expenses | 780,694 | 190,507 | |||||||||||||
| Total operating expenses | 876,561 | 255,798 | |||||||||||||
| Income (loss) from operations | (595,584) | (239,758) | |||||||||||||
| Non-operating income (expenses) | |||||||||||||||
| Other income | 3 | 24 | |||||||||||||
| Net (loss) before income taxes | (595,581) | (239,734) | |||||||||||||
| Income taxes | - | - | |||||||||||||
| Net (loss) | $ | (595,581) | (239,734) | ||||||||||||
| Earnings (loss) per share of common stock | $ | (0.02) | (0.01) | ||||||||||||
| Weighted average shares of common stock outstanding | 34,863,746 | 30,000,000 | |||||||||||||
| HORIYOSHI WORLDWIDE, INC. | ||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
| Year ended | Year ended | |||
| December | December | |||
| 2010 | 2009 | |||
| Cash flows from operating activities | ||||
| Net (loss) | $ | (595,581) | $ | (239,734) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||
| Depreciation | 1,279 | - | ||
| Allowance for doubtful accounts | 1,696 | - | ||
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | (72,138) | - | ||
| Prepaid expenses and other assets | (1,018,383) | (18,868) | ||
| Accounts payable | 40,991 | - | ||
| Deferred revenue | 10,515 | 7,546 | ||
| Accrued expenses | (51,349) | 96,727 | ||
| Other payables | 26,422 | 21,678 | ||
| Net cash used in operating activities | (1,656,548) | (132,651) | ||
| Cash flows from investing activities | ||||
| Purchase of equipment | (21,003) | - | ||
| Net cash used in investing activities | (21,003) | - | ||
| Cash flows from financing activities | ||||
| Proceeds of loan from shareholders | 2,235,961 | 171,384 | ||
| Repayment of loan from shareholder | - | (21,012) | ||
| Issuance of Common stock for cash | 5,000,000 | - | ||
| Net cash flows provided by financing activities: | 7,235,961 | 150,372 | ||
| Net increase in cash | 5,558,410 | 17,721 | ||
| Cash - beginning of period | 17,721 | - | ||
| Cash - end of period | $ | 5,576,131 | $ | 17,721 |
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
| Common | Stock | Additional | ||||||||||
| Shares | Common | Subscription | Paid-in | Retained | ||||||||
| Outstanding | Stock | Receivable | Capital | Loss | Total | |||||||
| Balance, January 1, 2009(1) | $ | 30,000,000(1) | $ | 30,000 | $ | (1,050) | $ | (28,710) | $ | (1,330) | $ | (1,090) |
| Stock Subscription Received | $ | 534 | $ | 534 | ||||||||
| Net loss | $ | (239,734) | $ | (239,734) | ||||||||
| Balance, December 31, 2009 | $ | 30,000,000 | $ | 30,000 | $ | (516) | $ | (28,710) | $ | (241,064) | $ | (240,290) |
| Shares issued to existing shell shareholders in reorganization | 30,000,526 | 30,000 | (30,000) | - | ||||||||
| Net loss | $ | (595,581) | $ | (595,581) | ||||||||
| Issue Common Stock - December 2010 | $ | 3,513,532 | $ | 3,514 | $ | 4,996,486 | $ | 5,000,000 | ||||
| Balance, December 31, 2010 | $ | 63,514,058 | $ | 63,514 | $ | (516) | $ | 4,937,776 | $ | (836,645) | $ | 4,164,129 |
| (1) Recapitalization of members' equity into 60,000,526 shares of common stock of Horiyoshi Worldwide, Inc. per share exchange agreement | ||||||||||||
SOURCE Horiyoshi Worldwide Inc.
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