EX-99.1 2 femone_8k-ex9901.htm PRESS RELEASE Press Release
EXHIBIT 99.1
PRESS RELEASE

For Immediate Release
 

FemOne announces First Quarter 2006 Earnings Results:
Increased Gross Profits by 62%; Increased Sales by 54%

Carlsbad, CA, May 22, 2006 - FemOne, Inc. (OTCBB: FEMO), a publicly held Nevada corporation (the “Company”), reported consolidated net sales for the quarter ended March 31, 2006 of $2,695,730 an increase of 54% from the prior year. Sales from the Company’s BIOPRO Technology division represented 86% of consolidated revenues for 2006.

The gross profits in 2006 increased to $2,111,390, an increase of 62% over gross profits of $1,306,320 in 2005.

Consolidated net loss from operations for the three months ended March 31, 2006 increased to $539,811, less than 1% over $537,571 in 2005.

Consolidated net loss attributable to common stockholders for the three months ended March 31, 2006 was $1,930,251 or $0.02 per share, compared to net loss of $1,288,246 or $0.04 per share a year ago. Included in the consolidated net loss attributable to common stockholders for the three months ended March 31, 2006 are net non-cash expenses of approximately $1.4 Million from the increase in the valuation of derivative liabilities at March 31, 2006, partially offset by gains recorded in the quarter.

Operating expenses for the three months ended March 31, 2006 were $2,651,201 compared to $1,843,890 for the three months ended March 31, 2005. The increase in operating expenses is due to increased sales commission expense on increased sales, as well as increased sales and marketing expenses due to efforts to promote BIOPRO Technology and expand international operations.

Included in the Company’s consolidated results for 2006 are revenues and expenses from its three controlled subsidiaries, BIOPRO Australasia Pty., Ltd, operating the Company’s Direct Sales division in Australia and New Zealand, BIOPRO Asia, Inc., operating the Company’s Direct Sales division in the Philippines, and SRA Marketing, Inc., its subsidiary for the Direct Response Shopping Network. During the three months ended March 31, 2006, 9% of total revenues came from BIOPRO Australia, 1% from BIOPRO Asia and 9% from SRA Marketing.

Commenting on the Q1 2006 results, Ray W. Grimm, FemOne’s chief executive officer states: “We are very pleased with having increased our revenues in the first quarter of 2006 by 54% over the first quarter in 2005. We are also showing our continued momentum to grow revenues quarterly by increasing our revenues by over 20% from the fourth quarter of 2005.” “Our consolidated net loss, before the non-cash effects of the accounting treatment of our convertible financings, is continuing to decrease and is approximately 20% less than our net loss from operations for the fourth quarter of 2005, proving our ability to not only grow our sales, but reaching our goal of profitability in the near future.”

 
 

 
The information contained in this press release should be read in connection with the Company’s Quarterly Report on Form 10-QSB for the period ended March 31, 2006 and its Annual Report on Form 10-KSB for the year ended December 31, 2005. The Report from the Company’s Independent Registered Public Accounting Firm contained in the Company’s Annual Report on Form 10-KSB includes an explanatory paragraph as to the Company’s ability to continue as a going concern and other information necessary for an understanding of the Company.

About FemOne, Inc.
FemOne, Inc. (OTCBB: FEMO), based in Carlsbad, California is a sales and marketing company with distribution in the United States, Canada, Australia, New Zealand, the Philippines and South Africa. More information about FemOne and its products can be found on the company's web sites at www.femone.com or www.bioprotechnology.com, by e-mail at FEMOIR@femone.com or by calling FemOne Inc. at (760) 448-2498.

Any statements made in this press release which are not historical facts contain certain forward-looking statements, as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company’s operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company’s dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement.

These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievement expressed or implied by such forward looking statements. In some cases, you can identify forward looking statements by terminology such as "may," "will," "should," "could," "intend," "expects," "plan," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of such terms or other comparable terminology. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements

- Tables Follow -
 
 
 

 
FemOne, Inc.
Consolidated Statements of Operations
For the Three Months ended March 31, 2006 and 2005
(Unaudited)

 
   
Three Months Ended
March 31,
 
   
2006
 
2005
 
REVENUES
             
Product sales
 
$
2,695,730
 
$
1,752,627
 
Cost of sales
   
584,340
   
446,308
 
GROSS PROFIT
   
2,111,390
   
1,306,319
 
               
EXPENSES
             
Sales commissions
   
1,061,636
   
744,285
 
Order fulfillment costs
   
255,615
   
137,757
 
Sales and marketing
   
725,226
   
531,033
 
General and administrative
   
608,724
   
430,815
 
Total operating expenses
   
2,651,201
   
1,843,890
 
NET LOSS FROM OPERATIONS
   
(539,811
)
 
(537,571
)
               
OTHER INCOME (EXPENSE)
             
Amortization of debt discount
   
(479,303
)
 
(564,374
)
Loss on warrant derivative liability
   
(1,859,201
)
 
--
 
Gain on extinguishment of debt
   
1,101,070
   
--
 
Interest and finance charges
   
(145,433
)
 
(148,877
)
Other income (expense)
   
1,645
   
871
 
Total other income (expense)
   
(1,381,222
)
 
(712,380
)
               
LOSS BEFORE MINORITY INTEREST AND
INCOME TAX EXPENSE
   
(1,921,033
)
 
(1,249,951
)
               
MINORITY INTEREST IN SUBSIDIARIES
   
(3,218
)
 
(38,294
)
INCOME TAX EXPENSE
   
(6,000
)
 
--
 
               
NET LOSS
 
$
(1,930,251
)
$
(1,288,245
)
               
NET LOSS PER COMMON SHARE - Basic and Diluted
 
$
(0.02
)
$
(0.04
)
               
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING- Basic and Diluted
   
118,796,973
   
36,501,733
 

 
 

 
FemOne, Inc.
Consolidated Balance Sheets
(Unaudited)

 
   
March 31,
2006
 
December 31,
2005
 
ASSETS
             
Current assets
             
Cash
 
$
334,659
 
$
314,656
 
Accounts receivable
   
89,839
   
137,372
 
Accounts receivable, related party
   
24,663
   
29,195
 
Inventory
   
603,733
   
729,629
 
Inventory deposits
   
41,946
   
118,361
 
Prepaid and other current assets
   
178,193
   
126,857
 
Prepaid management fee- related party
   
3,500
   
--
 
Total current assets
   
1,276,533
   
1,456,070
 
               
Property and equipment, net
   
187,440
   
192,960
 
               
Other assets
             
Intangible assets, net
   
207,064
   
212,149
 
Deferred debt issue costs
   
186,630
   
237,172
 
Deposits
   
176,324
   
177,661
 
Total other assets
   
570,018
   
626,982
 
Total assets
 
$
2,033,991
 
$
2,276,012
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
             
Current liabilities
             
Accounts payable
 
$
1,034,789
 
$
769,184
 
Accrued interest, related party
   
--
   
114,792
 
Accrued interest, convertible notes
   
319,889
   
225,368
 
Accrued commissions
   
347,562
   
269,453
 
Accrued payroll and payroll tax
   
189,221
   
147,418
 
Accrued bonus
   
118,631
   
122,089
 
Deferred compensation
   
45,769
   
95,944
 
Deferred rent
   
52,844
   
51,435
 
Notes payable - related parties
   
--
   
339,159
 
Warrant derivative liability
   
2,078,690
   
219,489
 
Convertible notes payable, net
   
116,098
   
1,677,505
 
Total current liabilities
   
4,303,493
   
4,031,836
 
Long-term liabilities
             
Minority interest in subsidiaries
   
55,497
   
52,279
 
Total liabilities
   
4,358,990
   
4,084,115
 
               
STOCKHOLDERS’ EQUITY (DEFICIT)
             
Common Stock, 500,000,000 common shares, $0.001 par value, authorized,
157,285,122 and 111,707,051 shares issued and outstanding at
March 31, 2006 and December 31, 2005, respectively
   
157,286
   
111,708
 
Additional paid in capital
   
7,893,181
   
6,529,428
 
Accumulated deficit
   
(10,392,211
)
 
(8,461,960
)
Accumulated other comprehensive income
   
16,745
   
12,721
 
Total stockholders’ equity (deficit)
   
(2,324,999
)
 
(1,808,103
)
               
Total liabilities and stockholders’ equity (deficit)
 
$
2,033,991
 
$
2,276,012