Niusule Biotech Corp (the Company), a fast growing China-based bio-pharmaceutical company focusing on animal-health products and human nutraceutical supplements, has announced consolidated financial results for the first quarter ended March 31, 2010. The Company recently acquired 59% equity ownership of Tianjin Behigh Pharmaceutical Co. Ltd. ("Tianjin Behigh"), an animal health company recognized by the Chinese agricultural industry for its excellence in quality and technology. Due to the acquisition of Tianjin Behigh, there was a relatively significant increase in overall financial results for three months ended March 31, 2010 and March 31, 2009, respectively.
First Quarter 2010 Financial Highlights:
-- Revenues increased 4681% to $2.53 Million vs. First Quarter 2009
-- Gross profit increased 5226.01% to $1.47 Million
-- Net income increased 2340% to $0.59 Million
Revenue for the three months ended March 31, 2010 was $2,530,263, an increase of $2,477,345 from revenues during three months ended March 31, 2009, which was $52,918. The revenue increased primarily due to the Company's China-based manufacturing and distribution of veterinary medicines, feed additives, and pet foods combined with the sale of Niusule's human nutraceutical, Gummy Bear vitamin products. Sales included veterinary medicines totaling $1,387,020, feed additives totaling $924,680, pet foods totaling $169,863, and Gummy Bear products totaling $48,700.
The cost of goods sold increased to $1,465,699, for three months ended March 31, 2010, as compared to cost of goods sold of $27,522 for three months ended March 31, 2009.
Gross profit of $1,064,564 for three months ended March 31, 2010 increased $1,039,168, compared to gross profit of $25,396 for three months ended March 31, 2009.
Operating expenses increased to $241,586 for three months ended March 31, 2010, as compared to operating expenses of $52,601 for three months ended March 31, 2009. Operating expenses for three months ended March 31, 2010 included $27,417 in general and administrative costs, a $24,931 decrease over general and administrative expense of $52,348 for three months ended March 31, 2009. Depreciation and amortization expenses of $214,169 was reported, compared to depreciation and amortization expenses of $73 for three months ended March 31, 2009.
Other income and losses included a decrease in interest expense of $5,576, to $3,879 for three months ended March 31, 2010, as compared to interest expense of $9,455 for 2009; interest income of $0 for three months ended March 31, 2010, which was a decrease of $275 over interest income in three months ended March 31, 2009, which was $275.
Net income of $592,486 for three months ended March 31, 2010 represented an increase of $1,033,642 from net loss for three months ended March 31, 2009, which was $441,156.
As of March 31, 2010, the Company had approximately $1.77 million in cash, current assets of $6.62 million, and total liabilities of $6.67 million.
Ms. Amy Hu, President and CEO, said, "We are pleased to announce a very strong first quarter this year compared to the same period of last year. Especially taking into account that the industry typically experiences a slow first quarter, this year's quarter demonstrates that the Tianjin Behigh acquisition was a strong strategic move. The substantial improvement in both sales and operating results for the first quarter is an affirmation that Niusule Biotech should continue to benefit from the strong demand for animal health products in China. When financially viable, we intend to expand our state-of-the-art plant in Tianjin to fulfill the demand of our animal health products. In targeting additional regions for future growth, we are confident the animal-health sector will particularly benefit from the rapid urbanization and consumer demand for premium food products that China continues to experience."
About Niusule Biotech, Inc.
Niusule Biotech Corp is a bio-pharmaceutical company dedicated to offering high-quality pharmaceutical and nutritional supplement products to enhance both animal and human health. The Company has recently acquired a majority interest in Tianjin Behigh Pharmaceutical Co., Ltd, a veterinary drug and feed additives manufacturing company that produces injections, tablets, granules, oral solutions, powder and disinfectant for animal use. For the human product line, Niusule currently has a retail distribution network throughout China comprised of 124 outlets at high-end supermarkets and shopping malls in Zhejiang province, Shanghai and Beijing. For more information about Niusule Biotech Corp, please visit http://www.niusule.com/.
Forward Looking Statements
This news release contains certain "forward-looking statements." Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and many of which are beyond the Company's control. The forward-looking statements are also identified through the use of words "believe," enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict" "probable," "potential," "possible," "should," "continue,""project," "expect" and other words of similar meaning. Actual results could differ materially from these forward-looking statements as a result of a number of risk factors detailed in the Company's periodic reports filed with the SEC. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved. Niusule Biotech Corp. does not assume any duty to publicly update or revise the material contained herein.