I like to post the report here as Proof LOL
RG Global Reports Increased Revenues for Second Quarter Fiscal 2008
Wednesday November 21, 7:00 am ET
RANCHO SANTA MARGARITA, Calif., Nov. 21 /PRNewswire-FirstCall/ -- RG Global (OTC Bulletin Board: RGBL - News) posted the second consecutive quarter of increased revenues after its major corporate strategy change effected in fiscal 2007. In the quarter ended September 30, 2007 (Q2 fiscal 2008), RG Global generated revenues of $537,600 compared to $0 (as restated) in the comparable quarter ended September 30, 2006.
SEPTEMBER 30, 2007 QUARTER HIGHLIGHTS:
-- Second consecutive quarter of revenue growth with new corporate
strategy/product lines
-- Physical construction commences for first coal bed methane (CBM) water
treatment plant in Wyoming.
-- Business partnership formed with Rimon Ltd. for turnkey manufacture of
components for water treatment plant.
-- Transferred 24% ownership of OC Energy Drinks subsidiary to three
individuals for transfer of OC Energy Drink-related assets, and
development and marketing services for OC Energy.
During the quarter ended September 30, 2007 (Q2 2008):
RG Global's primary source of revenues was sales of its CBM water treatment technology that accounted for $469,100. The remaining revenues were derived from sales of OC Energy(TM) brand beverages, as compared with no revenues for the same period in the previous year.
Gross profit was $46,100 compared to gross loss of ($58,600) in the same quarter of the previous year, an increase of $104,700. A significant portion of the cost of revenues was related to CBM water treatment plant being constructed for a customer in Wyoming.
Total operating expenses were $1,301,200 compared to $565,500 in the same quarter a year ago. RG's rents paid decreased by $51,900, and its legal and accounting fees increased to $270,000 versus $134,400 in the year ago quarter.
Other income was $2,956,500 compared to a loss of $(2,793,200) for the same period a year ago. The increase in other income during the quarter just completed was directly attributed to a change in the fair value of warrants issued in connection with convertible notes and the fair value of the beneficial conversion feature of the secured convertible notes. During the second quarters of fiscal 2008 and 2007, change in the fair value of derivative liabilities were $3,588,421 and ($1,968,960), respectively.
The net profit was $1,720,100 versus a net loss of ($3,417,300) for the same quarter of the previous year. Net profit was $.06 per share compared to a net loss of $(0.19) for the year ago quarter.
"RG Global is poised for rapid growth in the coming months as it begins to realize the benefits of its investments in its new corporate strategy and product lines," said Grant King, CEO of RG Global. "Our CTO Juzer Jangbarwala and his team are making great progress on our Catalyx coal bed methane water treatment business. Since establishing a business partnership with Rimon Ltd. during the second quarter, they have completed manufacturing of the components for our first Catalyx CBM water treatment plant and installation of the components is expected to begin shortly. We anticipate that our water treatment plant for Yates Petroleum will be operational in January 2008 as scheduled. When water treatment production commences, we expect revenue to increase dramatically and produce a consistent and ongoing revenue stream that will increase as the scaleable production in the plant increases to its full capacity and more plants are constructed and operational."
King noted, "In late October, Juzer conducted a workshop on CBM water treatment technologies that was very well received by the energy companies, environmental engineers and government representatives in attendance. Many expressed a keen interest in our Catalyx solution and are anxious to see the Wyoming plant in operation. Our Catalyx solution offers a very cost effective option to solve the water treatment issues that have stymied growth for all the coal bed methane production companies in the U.S. thus far. With the increased global attention being focused on unconventional fuels, particularly coal bed methane, we believe our Catalyx technology's potential is virtually unlimited."
"Additionally, our new partnership with Rimon offers some exciting possibilities for the future," King said. "Rimon and RG Global are exploring the possibility of using our Catalyx technology for other water treatment projects Rimon is involved in."
King added, "We're excited about the growing momentum of our OC Energy Drink subsidiary as well. During the quarter we transferred 24% ownership in OC Energy to three individuals for assets related to OC Energy Drink and for their services to development, operate and market OC Energy. The new season of Bravo TV's "Real Housewives of Orange County," which features three of our OC Angels spokespeople as regulars, aired the first new episodes in November and included extensive coverage of the OC Angels in their OC Energy promotional appearances. The exposure was invaluable and prompted dozens of calls from distributors interested in carrying our product. With Fusion, we are currently pursuing additional distribution contracts for OC Energy as well as coordinating numerous promotional campaigns to increase OC Energy's visibility. As our distribution expands to new markets, we anticipate a corresponding growth in product sales and revenue."
"We are dedicated to growing shareholder value and turning the corner to profitability within the next calendar year as we grow sales and revenues from both businesses," King concluded.
RG Global's 10-QSB financial results can be viewed in their entirety at www.sec.gov.
About RG Global Lifestyles, Inc.
RG Global Lifestyles, Inc. develops and markets innovative technologies for water purification and wastewater treatment. Major energy production companies have selected RG's proven Catalyx® technology to economically treat coal bed methane wastewater, making production of this plentiful, clean-burning gas more economically feasible and environmentally friendly. RG manufactures OC Energy(TM) brand energy drinks that boast a proprietary energy pack, natural vitamins and low sugar levels to intensify alertness without the typical crash. RG's Aquair(TM) atmospheric water generators produce purified water from air -- the ideal solution for military troops, disaster and drought-stricken areas and situations where drinkable water isn't easily accessible. For more information, visit rgglife.com.
Safe Harbor Statement
The statements contained herein that are not historical are forward- looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward- looking statements, including, but not limited to, risks associated water generation products, risks associated with dependence on third parties, and other risks identified from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission. All forward-looking statements attributable to the Company, or persons acting for the Company, are expressly qualified in their entirety by these cautionary statements.
Contact: Julie Shepherd, Accentuate PR, (815) 479 1833,
Julie@accentuatepr.com
Existing and potential shareholders who wish to receive email notification of RG Global's company news should send an email to Julie@accentuatepr.com with "RGBL Email Updates" in the subject line. |
