OLAB Oralabs

third graph of release should read: A more detailed explanation of these results can be found in the June 30, 2005, Form 10-QSB, Part II, Results of Operations (sted A more detailed explanation of these results can be found in the March 31, 2005, Form 10-QSB, Part II, Results of Operations.). The corrected release reads: ORALABS ANNOUNCES SECOND QUARTER RESULTS OraLabs Holding Corp. (NASDAQ: OLAB) today announced that second quarter revenues were $2,543,188 with a net loss of less than $.01 per share, or $2,926. The same period in 2004 reported revenues of $3,010,480 with net loss of $.04 per share, or $200,565. The Company's increased gross profit from more concentrated sales to higher margin customers helped the Company to improve to a minor loss of $2,926 despite a decrease in revenue of $467,292. The second half of the year should yield higher revenues if sales show the anticipated growth expected by the Company. Given increased sales orders with gross margin in line with the first six months and the improved operations capabilities, the Company is hopeful to have profitable third and fourth quarters and turn a profit for fiscal year 2005. A more detailed explanation of these results can be found in the June 30, 2005, Form 10-QSB, Part II, Results of Operations. The Form 10-QSB filed today with the United States Securities and Exchange Commission ("SEC") includes as exhibits the Consolidated Financial Statements as of December 31, 2004, of NVC Lighting Investment Holdings Limited ("NVC"), including the report of its Independent Registered Public Accounting Firm, and NVC's Consolidated Financial Statements as of March 31, 2005, and NVC's Consolidated Financial Statements as of June 30, 2005. The Company and NVC are parties to a Stock Exchange Agreement dated February 23, 2005, a copy of which was filed with the SEC on February 24, 2005, as an exhibit to a Form 8-K filed by the Company. In furtherance of the Stock Exchange Agreement, the Company filed a Preliminary Proxy Statement on August 12, 2005, that provides details about the proposed transactions contemplated by the Stock Exchange Agreement. The Preliminary Proxy Statement may be revised in material respects prior to the preparation by the Company of a Definitive Proxy Statement. There is no assurance that closing under the Stock Exchange Agreement will occur, or if it occurs, whether it will close under the terms described in the Preliminary Proxy Statement or in the Stock Exchange Agreement. OraLabs, Inc. manufactures Ice Drops(R) and Sour Zone(TM) brands oral care products; and Lip Rageous(R), Lip Naturals(R), Chap Ice(R), Extra Lip Moisturizer, Leashables(R), Chapgrip(R), Soothe & Shine(R) brands of lip balm. The product line includes breath drops and sprays, sour drops and sprays, lip balms and a variety of private label products. The Company distributes 5HTP, as its only dietary supplement; additionally the Company distributes Sanell (TM) hand sanitizer and Eyelieve (TM) sterile eye products. The Company's products are currently sold in the USA nationally as well as numerous foreign countries. The products are sold through wholesale distributors as well as by direct sale to mass retailers, grocery stores, convenience stores and drug stores. Forward-Looking and Cautionary Statements Except for historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Reference is made in particular to statements regarding anticipated sales growth, expectations regarding financial results for the quarter and future periods, and statements relating to the possible closing under the Stock Exchange Agreement and to the final terms of the Stock Exchange Agreement. These statements are based on the company's current beliefs and expectations as to such future outcomes. These statements involve a number of risks, uncertainties, and other factors that could cause results to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission. -0- *T ORALABS HOLDING CORP AND SUBSIDIARIES Consolidated Balance Sheets June 30, 2005 December 31, Unaudited 2004 ---------- ------- Assets Current Assets Cash and cash equivalents $1,071,137 $ 866,432 Accounts receivable, net of allowance for doubtful accounts of $204,799 (2005) and $345,177 (2004) 814,346 1,275,820 Inventories 3,187,344 2,878,755 Deferred tax asset - current 285,117 285,117 Income taxes receivable 194,081 329,648 Prepaid expenses 164,944 264,451 Deposits and other assets 70,931 158,720 ---------- ---------- Total current assets 5,787,900 6,058,943 Non-current assets Deferred tax asset, long-term 54,084 45,336 Property and equipment, net 1,812,183 1,668,675 ---------- ---------- Total non-current assets 1,866,267 1,714,011 ---------- ---------- Total Assets $7,654,167 $7,772,954 ========== ========== Liabilities and Stockholders' Equity Current liabilities Accounts payable - trade $ 817,049 $ 850,157 Accrued liabilities 133,664 131,812 Reserve for returns 251,895 362,342 Income tax payable 0 0 Current portion of long-term debt 8,437 12,581 ---------- ---------- Total current liabilities 1,211,045 1,356,892 ---------- ---------- Non-current Liabilities Long-term debt, less current portion 8,925 12,075 ---------- ---------- Total non-current liabilities 8,925 12,075 ---------- ---------- Commitments and contingencies Stockholders' equity Preferred stock, $.001 par value, 1,000,000 shares authorized; none issued and outstanding 0 0 Common stock, $.001 par value; 25,000,000 shares authorized, 4,693,015 issued (2005 and 2004), 4,693,015 (2005) and 4,580,615 (2004) outstanding. 4,693 4,669 Additional paid -in capital 1,511,820 1,463,044 Retained earnings 4,917,684 4,936,274 ---------- ---------- Total stockholders' equity 6,434,197 6,403,987 ---------- ---------- Total liabilities and stockholders' equity $7,654,167 $7,772,954 ========== ========== *T -0- *T ORALABS HOLDING CORP AND SUBSIDIARIES Consolidated Statements of Operations Three Months and Six Months ended June 30, 2005 and June 30, 2004 Unaudited Three Months Ended Six Months Ended 06/30/05 06/30/04 06/30/05 06/30/04 -------- -------- -------- -------- Revenues: Product sales $2,543,188 $3,010,480 $6,124,024 $6,790,656 ---------- ---------- ---------- ---------- Total Revenues 2,543,188 3,010,480 6,124,024 6,790,656 ---------- ---------- ---------- ---------- Cost of Sales 1,597,957 2,180,662 3,978,471 4,794,109 ---------- ---------- ---------- ---------- Gross profit 945,231 829,818 2,145,553 1,996,547 ---------- ---------- ---------- ---------- Operating Expenses: Engineering 34,838 81,495 127,709 182,976 Selling and marketing costs 244,949 297,801 656,411 700,935 General and administrative 693,107 762,265 1,403,122 1,477,018 Other 5,554 10,446 25,907 27,937 ---------- ---------- ---------- ---------- Total operating expenses 978,448 1,152,007 2,213,149 2,388,866 ---------- ---------- ---------- ---------- Net operating (loss) income (33,217) (322,189) (67,596) (392,319) Other income (expense) Interest and other income 28,908 2,586 40,258 5,028 ---------- ---------- ---------- ---------- Total other income (expense) 28,908 2,586 40,258 5,028 ---------- ---------- ---------- ---------- Net (loss) income before provision for income taxes (4,309) (319,603) (27,338) (387,291) Income tax benefit (expense) 1,383 119,038 8,748 144,179 ---------- ---------- ---------- ---------- Net (loss) income $(2,926) $(200,565) $(18,590) $(243,112) ========== ========== ========== ========== Basic and diluted (loss) income per common share $ (.00) $ (.04) $ (.00) $ (.05) ========== ========== ========== ========== Weighted average shares outstanding 4,669,688 4,580,615 4,669,154 4,580,615 ========== ========== ========== ========== *T