As Seen On TV, Inc. Reports Record Third Quarter Revenues

As Seen On TV, Inc. Reports Record Third Quarter Revenues 
Fiscal 2012 Third Quarter Revenues Increase 124% to $5.8 Million With
Gross Margins of 52%; Current Assets Increase to $13.08 Million 
CLEARWATER, FL -- (Marketwire) -- 02/22/13 --  As Seen On TV, Inc.
(OTCQB: ASTV), the parent company of TV Goods, Inc., a direct
response marketing company, is pleased to report that it has filed
its 10-Q for its third quarter, ended December 31, 2012. The results
demonstrate the Company's commercialization ramp as the company
continues to execute on its growth strategy. The Company believes it
has successfully developed a platform and is monetizing unique
products through a variety of direct-to-consumer channels including
direct response television, television shopping networks, retail
outlets, and e-commerce marketplaces. 
For the third quarter of the fiscal year 2012, revenues reached a
record $5.8 million, a 124 percent increase from $2.6 million in the
third quarter of fiscal year 2011. Gross profit margin of 52 percent
was realized in the third quarter, up from 46 percent a year earlier.
The loss from operations for the third quarter decreased to $906,820
in the third quarter of fiscal year 2012 from $1.9 million in the
third quarter of fiscal year 2011. The decrease in loss from
operations was primarily due to the introduction and ramp up of media
spending on product lines. Due principally to the non-cash warrant
revaluation expense of $13.5 million, the Company's net income for
the third quarter decreased to a $15.1 million loss, from a gain of
$2.25 million in the third quarter of fiscal 2011. The resulting loss
per share was ($0.38), as compared to a $0.09 gain a year earlier.  
For the first nine months of fiscal year 2012 ended December 31,
2012, revenues were $6.9 million, a 105 percent increase from $3.4
million in the first nine months of fiscal year 2011. Gross profit
margin of 44 percent was realized in the first nine months ended
December 31, 2012, up from 43 percent a year earlier. The loss from
operations for the first nine months of $3.4 million was basically
the same as the loss for the first nine months of fiscal 2011. The
net loss for the first nine months increased to $13.7 million from a
loss of $10.2 million in the third quarte
r of fiscal 2011. The
increase in the net loss was principally attributed to a non-cash
warrant revaluation of $8.7 million. The loss per share was ($.39),
as compared to ($.62) a year earlier. 
The past few months have been very active for As Seen On TV, Inc. as
it has taken the necessary steps to attract significant capital and
implement its growth strategy. The Company believes all these steps
have positioned it to succeed over the upcoming years. The Company
has broadened its ability to identify, advise in development and
market consumer products. Pipelines for new products continue to
strengthen, as the Company is continually sought after for product
development and television marketing partnerships. 
As previously announced, on October 31, 2012, the Company entered
into an Agreement and Plan of Merger to acquire eDiets.com, Inc. in a
stock for stock transaction. The terms of the Agreement provide for
the issuance of 19,077,252 shares of As Seen On TV common stock in
exchange for 100% of the outstanding shares. The closing of the
transaction is subject to a number of conditions and continues to
progress accordingly. The eDiets shareholder meeting called to
approve the merger is scheduled for February 27, 2013. 
Statement of Operations: 


 
                                                                            
                    AS SEEN ON TV, INC. AND SUBSIDIARIES                    
               CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS               
                                (UNAUDITED)                                 
                                                                            
                         Three Months Ended          Nine Months Ended      
                             December 31,               December 31,        
                      -------------------------  -------------------------- 
                          2012          2011         2012          2011     
                      ------------  -----------  ------------  ------------ 
                                                                            
  Revenues            $  5,834,246  $ 2,606,034  $  6,872,201  $  3,350,417 
  Cost of revenues       2,787,711    1,409,310     3,821,018     1,917,947 
                      ------------  -----------  ------------  ------------ 
                         3,046,535                                          
Gross profit             8,621,957    1,196,724     3,051,183     1,432,470 
                                                                            
Operating expenses:                                                         
  Selling and                                                               
   marketing expenses    2,334,379    1,762,583     2,534,239     1,941,886 
  General and                                                               
   administrative                                                           
   expenses              1,618,976    1,367,264     3,884,910     3,167,795 
                      ------------  -----------  ------------  ------------ 
Loss from operations      (906,820)  (1,933,123)   (3,367,966)   (3,677,211)
                      ------------  -----------  ------------  ------------ 
                                                                            
Other (income)                                                              
 expense:                                                                   
  Warrant revaluation   13,473,948   (5,977,192)    8,790,512      (411,421)
  Loss of                                                                   
   extinguishment of                                                        
   debt                         --           --            --     2,950,513 
  Revaluation of                                                            
   derivative                                                               
   liability                    --           --            --      (209,351)
  Other (income)                                                            
   expense                 (36,450)      (8,039)      (40,084)       (9,465)
  Interest expense         799,272    1,806,014     1,586,499     4,180,688 
  Interest expense -                                                        
   related party                --        1,070            --        23,271 
                      ------------  -----------  ------------  ------------ 
                        14,236,770   (4,178,147)   10,336,927     6,524,235 
                      ------------  -----------  ------------  ------------ 
                                                                            
Income (loss) before                                                        
 income taxes          (15,143,590)   2,245,024   (13,704,893)  (10,201,446)
                                                                            
Provision for income                                                        
 taxes                          --           --            --            -- 
                      ------------  -----------  ------------  ------------ 
                                                                            
Net income (loss)  
   $(15,143,590) $ 2,245,024  $(13,704,893) $(10,201,446)
                      ============  ===========  ============  ============ 
                                                                            
Income /(loss) per                                                          
 common share                                                               
  Basic               $      (0.38) $      0.09  $      (0.39) $      (0.62)
                      ============  ===========  ============  ============ 
  Diluted             $      (0.38) $      0.08  $      (0.39) $      (0.62)
                      ============  ===========  ============  ============ 
                                                                            
Weighted-average                                                            
 number of                                                                  
 commonshares                                                               
 outstanding:                                                               
  Basic                 39,806,991   26,179,515    34,739,260    16,358,756 
                      ============  ===========  ============  ============ 
  Diluted               39,806,991   28,707,965    34,739,260    16,358,756 
                      ============  ===========  ============  ============ 

 
Balance Sheet: 


 
                    AS SEEN ON TV, INC. AND SUBSIDIARIES                    
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                                                            
                                                 December 31,    March 31,  
                                                     2012          2012     
                                                 ------------  ------------ 
                                                  (Unaudited)               
                     ASSETS                                                 
Current Assets:                                                             
  Cash and cash equivalents                      $  4,162,068  $  4,683,186 
  Accounts receivable, net                          3,434,267     2,055,162 
  Interest Receivable                                  35,500            -- 
  Advances on inventory purchases                     336,322       304,702 
  Inventories                                       2,444,449     1,561,314 
  Note receivable                                   2,000,000            -- 
  Prepaid expenses and other current assets           669,898       262,163 
                                                 ------------  ------------ 
Total current assets                               13,082,504     8,866,527 
                                                                            
  Certificate of deposit -- non current                50,382        50,000 
  Property, plant and equipment, net                  105,437       140,000 
  Intangible assets                                 2,839,216            -- 
  Deposit on asset acquisition                             --       729,450 
  Other non-current assets                              2,185            -- 
                                                 ------------  ------------ 
Total Assets                                     $ 16,079,724  $  9,785,977 
                                                 ============  ============ 
                                                                            
      LIABILITIES AND STOCKHOLDERS' EQUITY                                  
                   (DEFICIENCY)                                             
Current Liabilities:                                                        
  Accounts payable                               $  1,072,345  $    433,591 
  Deferred revenue                                      6,000        33,750 
  Accrued registration rights penalty                 156,000       156,000 
  Accrued expenses and other current liabilities      787,334       601,695 
  Notes payable -- current portion                     66,436        28,737 
  Warrant liability                                34,232,702    25,797,615 
                                                 ------------  ------------ 
Total current liabilities                          36,320,817    27,051,388 
                                                                            
Other liabilities -- non current                       40,000            -- 
                                                 ------------  ------------ 
                                                                            
Total liabilities                                  36,360,817    27,051,388 
                                                 ------------  ------------ 
                                                                            
Commitments and contingencies                                               
                                                                            
Stockholders' equity (deficiency):                                          
  Preferred stock, $.0001 par value; 10,000,000                             
   sharesauthorized; no shares issued and                                   
   outstanding at December 31, 2012 and March                               
   31, 2012, respectively.                                 --            -- 
  Common stock, $.0001 par value; 750,000,000                               
   shares authorizedand 50,806,385 and                                      
   31,970,784 issued and outstanding at December                            
   31, 2012 and March 31, 2012, respectively.           5,081         3,197 
  Additional paid-in capital                       10,687,327            -- 
  Accumulated deficit                             (30,973,501)  (17,268,608)
                                                 ------------  ------------ 
Total stockholders' equity (deficiency)           (20,281,093)  (17,265,411)
                                                 ------------  ------------ 
                                                                            
Total liabilities and stockholders' equity                                  
 (deficiency)                                    $ 16,079,724  $  9,785,977 
                                                 ============  ============ 

 
About As Seen On TV, Inc.
 As Seen On TV, Inc. is the parent company
of TVGoods, Inc., a direct response marketing company. We identify,
develop and market consumer products for global distribution via TV,
Internet and retail channels. TVGoods was established by Kevin
Harrington, a pioneer of direct response television. For more
information go to www.TVGoodsInc.com and www.AsSeenOnTV.com. 
Forward-Looking Statements:
 Except for statements of historical
fact, the matters discussed in this press release are forward-looking
and made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 
1995. "Forward-looking
statements" describe future expectations, plans, results, or
strategies and are generally preceded by words such as "future,"
"plan" or "planned," "expects," or "projected." These forward-looking
statements reflect numerous assumptions and involve a variety of
risks and uncertainties, many of which are beyond the company's
control that may cause actual results to differ materially from
stated expectations. These risk factors include, among others,
limited operating history, difficulty in identifying and marketing
products, intense competition and additional risks factors as
discussed in reports filed by the company with the Securities and
Exchange Commission, which are available at http://www.sec.gov  
Contact Information: 
Jeff Ramson
ProActive Capital Group
641 Lexington Avenue, 6th Floor
New York, NY 10022
646-863-6341 
www.proactivecapitalgroup.com 
 
 
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