CAPE TOWN, SOUTH AFRICA – March 31, 2011 – (Motor Sports Newswire) – Leatt Corporation, a Nevada corporation (PINKSHEETS: LEAT) (Company), and the developer and distributor of the Leatt-Brace®, a Neck Brace System designed to help prevent potentially devastating motor sport injuries to the neck, today announced audited financial results for its fiscal year ended December 31, 2010. The Company posted revenue of $ 14,330,072 and a net annual loss of $ 208,562. These results compare to revenue of $ 13,743,107 and net annual loss of $ 129,569 in fiscal year 2009 ended December 31, 2009. A summary of financial results is set forth below.
“We are encouraged to see that despite making an annual loss, quarter three and quarter four of 2010 showed a net profit. We believe that this indicates that our ongoing efforts to increase revenues are starting to show results and that we are hopefully moving in the right direction,” said Chief Executive Officer Sean Macdonald.
Leatt Corporation: Since 2006, we have produced and sold a line of Neck Brace Systems for adults and children that are designed to help prevent potentially devastating motor sport injuries to the neck among motorcycle, ATV and other motor vehicles worldwide. Our product line is set forth at our sales/product URL: http://www.leatt.com.
A financial summary of the FY2010 results appears below, which summary is qualified in its entirety by reference to the FY2010 financial statements and footnotes thereto posted on http://www.leatt-corp.com. This press release and the summary below are qualified in their entirety by reference to our posted financial statements and footnotes thereto at the aforesaid URL. One should not rely on the following summary as a complete presentation of financial results and condition.
The Summarized Consolidated Statements of Operations for the years ended December 31, 2010 and 2009:
|Revenues||$ 14,330,072||$ 13,743,107|
|Cost of Revenues||5,606,502||4,622,532|
|Loss from Operations||(178,121)||(104,647)|
|Other Income (Expense)||25,674||47,074|
|Loss Before Income Taxes||(152,447)||(57,573)|
|Net Loss Available to Common Shareholders||$ (208,562)||$ (129,569)|
NOTICE: This press release may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995, as amended. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include, without limitation, the effect of competitive and economic factors, and the Company’s reaction to those factors; on consumer and business buying decisions with respect to the Company’s products; the ability of the Company to deliver to the marketplace and stimulate customer demand for products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need from time to time to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; product quality control issues; the absence of a strong e-commerce website for products; the continued service and availability of key executives and employees; unfavorable results of legal proceedings, especially personal injury or product liability lawsuits or intellectual property rights lawsuits; and the Company’s dependency on the sales performance of distributors and other resellers of the Company’s products. Increased financial performance in one or more quarters is not necessarily indicative of future financial performance. More information on potential factors that could affect the Company’s financial results is included from time to time in the Company’s public disclosures at http:www.leatt-corp.com. The Company’s common stock quotes on The OTC Markets Group, Inc. and said stock is a “penny stock” under SEC rules. The Company is not an SEC reporting company and its common stock is not extensively or actively traded. As such, any investment in the common stock is highly risky and has limited liquidity. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates, unless applicable laws require otherwise. Neither any URLs referenced herein nor their contents are incorporated herein or made a part of this press release.
SOURCE: Leatt Corporation