MIAMI LAKES, FL--(Marketwired - January 22, 2014) - Fuse Science, Inc. (OTCQB: DROP) (www.fusescience.com, the "Company"), a consumer products and delivery technology company that is developing new, patent-pending technologies working to redefine how consumers receive energy, medicines, vitamins and minerals announced today announced its financial results for its fiscal year 2013 ending September 30, 2013.
"2013 proved to be a challenging cleanup year as the Company strived for the required capital to execute against its business plan and to continue its growth," stated Brian Tuffin, CEO of Fuse Science. "Unforeseen delays in the commercial efforts by leading retailers shifted revenue growth from the calendar fourth quarter 2013 to the calendar first quarter 2014, while at the same time creating significant strain on cash flow making it difficult for the Company to execute its business plan, including our marketing and advertising initiatives."
"Dramatic cost reductions and essential financing efforts were deployed to ensure the solvency and continued functionality of the business. The Company has been in a constant battle for working capital and we survived a very demanding year in 2013. However, in spite of these resource constraints, we did successfully establish critical points of national distribution and strategic partnerships that have created what we believe to be a solid foundation for growth in 2014 and beyond," added Tuffin.
"As we look ahead, additional working capital is essential to our forward strategy and we will require an increased share authorization by shareholders as well as a reverse split authorization to fully execute. These decisions are supported with confidence by the Company in facilitating the continued growth of the business, which is evidenced by the previously announced revenue results for our 2014 first quarter, ending December 31, 2013, in which we exceeded the net sales of fiscal year 2013. We remain confident in our strategy and the path forward with the anticipation of strategic announcements in the near future," concluded, Tuffin.
Key Financial Results Fiscal 2013 Ending September 30, 2013:
- Net sales of $486,763 for the year-end September 30, 2013 were up 362% as compared to net sales of $105,413 for the prior-year period end September 30, 2012.
- Gross margin of $310,777 for the year end September 30, 2013 up 319% as compared to gross margin of $74,179 for the prior-year period end September 30, 2012. For fiscal year 2013 the Company was able to maintain a gross margin percent of 63.8%.
- Year-ending September 30, 2013 recorded loss from operations of ($8,850,135) and additional other expenses and non-cash charges of $12,323,325.
- Cash and cash equivalents declined to $29,430 for the period ended September 30, 2013 as compared to $62,050 for the period ending September 30, 2012.
- The Company, in discussion with its new auditors, determined that warrants exchanged in 2013, which were originally accounted for as a fair value exchange with no P&L impact, was better defined as a derivative liability. As such, the Company has taken a non-cash charge of $9.5 million, as part of its 2013 cleanup exercise.
A full analysis of results for the period ended September 30, 2013 is available in the Company's Form 10-K, which is available on the Company's website at www.fusescience.com or within the Filings section of the Securities and Exchange Commission's web site located at www.sec.gov.
About Fuse Science, Inc.
Fuse Science, Inc. (OTCQB: DROP), is an innovative consumer products and delivery technology company based in Miami Lakes, Florida. Fuse Science holds the rights to new, patent-pending technologies poised to redefine how consumers receive energy, medicines, vitamins and minerals. The Company maintains the rights to sublingual and transdermal delivery systems for bioactive agents that can now, for the first time, effectively encapsulate and charge many varying molecules in order to produce complete product formulations which can bypass the gastrointestinal tract and enter the blood stream directly -- all in a concentrated "DROP" form that is simply applied under the tongue. The Fuse Science technology is designed to accelerate conveyance of medicines or nutrients relative to traditional pills and liquids and can enhance how consumers receive these products. Information about Fuse Science is available online at www.fusescience.com and www.poweredbyfuse.com or by calling 305-503-FUSE (3873).
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