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$AURI - From the 2nd Quarter results... Revenues
http://finance.yahoo.com/news/Auri-Announces-Second-Quarter-iw-2007714085.html?x=0

Revenues for the six months ended June 30, 2011

increased 31% to $473,824 from the year ago period.

Sales of women's footwear increased approximately 112% to $234,306 and benefited from the Company's launch of its women's line in February 2011 into 58 department stores and boutique doors.

Auri Announces Second Quarter 2011 Results

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Companies:AURI INC
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Press Release Source: Auri, Inc. On Wednesday August 17, 2011, 7:30 am EDT
LAGUNA BEACH, CA--(Marketwire -08/17/11)- Auri, Inc. (OTC.BB: AURI.OB - News) announced today financial results for the three and six months ended June 30, 2011.

Second Quarter 2011 Highlights:

Women's footwear generated $61,452 in sales in the second quarter with Men's footwear generating $108,335 in sales for the same period.
Added 29 new retail distribution points in the 2nd quarter; 148 total retail locations at June 30, 2011
Three Months Ended June 30, 2011

Auri designs and markets branded contemporary footwear for men and women in several unique styles. Auri's men's line consists of both causal/sport shoes and fashion/dress shoes and an array of sandals, while its new women's line, which debuted in February 2011, consists of an assortment of high-heel designs and flats. The Company's fall 2011 women's line will also include boots, wedges and platforms.

"With respect to both our men's and women's lines, our design platform fuses high fashion with proprietary technologies to create shoes that present true luxury with unparalleled performance and uncompromised style," stated Ori Rosenbaum, CEO and Chairman of Auri. "Our design team has created shoes with active suspension systems, which incorporate compression control and anti-fatigue features complemented by removable foot beds. By integrating Outlast® temperature regulating linings, Liquicell® ultra-thin interface technology, and encapsulated gel technologies, we are able to provide form and function unlike other brands. To this end, our innovative design philosophy and solid business fundamentals earned Auri the #8 spot on Forbes Magazine's 2009 'America's Most Promising Companies' list and we were the only footwear, fashion or apparel brand to make the list."

Revenues

Revenues for the three months ended June 30, 2011 were $169,787, 23% lower than the $221,380 for the three months ended June 30, 2010. The primary cause of the year-over-year decline, which occurred in both the women's and men's collections, was that the Company shipped the majority of its spring merchandise to retailers in the first quarter vs. the previous year spring sales coming in the second quarter.

Cost of Sales

Cost of sales for the three months ended June 30, 2011 increased to $169,975 from $154,180 a year ago. Gross margin decreased to 0% in the three months ended June 30, 2011 from 30% in the comparable period a year ago.

Operating Expenses

Selling, general and administrative expenses were $488,628 in the second quarter of 2011 compared to $194,108 in the same period a year ago. Auri incurred $201,273 of public company expenses, including $122,500 of non-cash stock-based compensation expense, which was not present in the year-ago period. Excluding these costs, adjusted operating expenses increased approximately 48% to $287,355.

Loss from operations was $483,816 in the second quarter of 2011 compared to $126,908 in the same period in 2010.

Net Income (Loss)

Net loss for the three months ended June 30, 2011 was $508,391 compared to a $130,536 loss for the three months ended June 30, 2010. The diluted loss per share was $0.01 based on 88.7 million weighted average shares outstanding in the second quarter of 2011 compared to $0.00 and 53.5 million shares in the same period a year ago, respectively.

The Company sold 1,190,000 units in a private placement during the six months ended June 30, 2011. Each unit consists of one share of common stock and one warrant to purchase one share of common stock at $1.00 per share. The warrants are exercisable for a period of two years.

Six months Ended June 30, 2011

Revenues

Revenues for the six months ended June 30, 2011 increased 31% to $473,824 from the year ago period. Sales of women's footwear increased approximately 112% to $234,306 and benefited from the Company's launch of its women's line in February 2011 into 58 department stores and boutique doors.

Cost of Sales

Cost of sales for the six months ended June 30, 2011 was $383,029 versus $251,750 last year. Gross profit was $90,795 in the first half of 2011 versus $108,949 in the first half of 2010, with associated gross margins of 19% and 30%, respectively.

Operating Expenses

Selling, general and administrative expenses increased from $442,792 to $881,273 due primarily to additional legal fees, addition of sales personnel and increased marketing/trade show attendance. In addition, the Company spent approximately $201,273 in public company expenses during the first six months of 2011, which were not present in the comparable period a year ago. Operating loss was $790,478 compared to $333,843 in the first half of 2010.

Net Income (Loss)

Net loss for first six months of 2011 was $837,723 as compared to a loss of $337,594 during the six months ended June 30, 2010. The diluted net loss per share was $0.01 based on 79.7 million weighted average shares outstanding.

Liquidity and Capital Resources

As of June 30, 2011, the Company had $233,060 of cash and cash equivalents and $133,333 of long term debt outstanding. Working capital was $537,946 at June 30, 2011 compared to $240,325 at December 31, 2010. The Company received $0.6 million in net proceeds from various private placements in the six months ended June 30, 2011. Based on current projected working capital needs for the next twelve months, the Company needs to raise additional capital to meet its operating goals.

Business Updates

On July 18th, 2011, Auri announced its entry into the Middle East with an initial shipment to Fifty One East ("51 East"), a luxury retailer located in Qatar. Auri's fall 2011 men's sport and fashion footwear will be sold through 51 East's retail locations. Auri currently has made its first shipment to 51 East with additional orders scheduled for September delivery.

During the first two quarters the brand has added 52 new doors of distribution with prominent department and premium boutique stores domestically and internationally. Additionally, many of these doors are expected to provide vertical growth and door count for the fall 2011 collection.

Spring business has generated successful growth and brand awareness with positive sell throughs in the women's collection generating reorder activity and increased interest for fall.

Fall 2011 launch -- Auri's men's and women's fall collections will be delivered on September 9th at approximately 150 retail locations including Fred Segal, Rubenstein Brothers, The Tannery, and Gary's Newport Beach and Del Mar.

Auri's women's fall collection incorporates 10 patterns in 32 SKU's. Retail prices range from $145-$295. The men's collection features a diverse lineup of casual, dress, and sportswear oriented footwear. The offering consists of 9 patterns in 24 SKU's. Retail prices for the men's line range from $150-$285.

We believe the combination of great styles and unmatched comfort will expand our sales and brand in this large and growing market. A new marketing campaign and appearances at 7 trade shows this fall are expected to produce additional positive momentum in the 4th quarter carrying over in to 2012.

About Auri, Inc.

Auri designs, crafts and markets fashion footwear for men and women, fusing performance engineering, innovative designs and advanced technical materials to provide a new level of luxury in fashion footwear. Crafted with Italian leathers and hand finished details, the products incorporate a seamless fusion of next level technologies with pure style delivering a unique experience of a no compromise style.

Advanced technologies include active suspension systems, compression control, Outlast® temperature regulating linings, Liquicell® ultra-thin liquid-filled interface technology, and encapsulated gel technologies. For more information, please visit www.aurifootwear.com.

Safe Harbor Statement

This press release contains certain statements that may include 'forward-looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believe, expect, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risks and other factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.




AURI, INC.
CONSOLIDATED BALANCE SHEETS

June 30, 2011 December 31, 2010
ASSETS (unaudited)

Cash and cash equivalents $ 233,060 $ 406,439
Accounts receivable - net 130,198 104,355
Due from factor 68,423 15,796
Inventory - net 325,534 226,773
Prepaid expenses and other assets 168,235 116,320
Deferred finance fee - net - 18,778

Total current assets 925,450 888,461

Property and equipment - net 57,896 85,035

TOTAL ASSETS $ 983,346 $ 973,496

LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)

Accounts payable $ 130,263 $ 85,337
Accrued liabilities 90,574 46,132
Short-term note payable 100,000 -
Short-term portion of long-term note
payable 50,000 12,500
Short-term portion of long-term related
party note payable 16,667 4,167
Short-term convertible note payable - 500,000

Total current liabilities 387,504 648,136

Long-term note payable - net of short
term portion 100,000 137,500
Long-term related party note payable -
net of short term portion 33,333 45,833

TOTAL LIABILITIES 520,837 831,469

STOCKHOLDERS' EQUITY (DEFICIT)

Preferred stock - $0.001 par value;
1,000,000 shares authorized, no shares
issued and outstanding - -

Common stock - $0.001 par value;
300,000,000 shares authorized,
59,735,360 shares issued and outstanding
at December 31, 2010 and 89,991,580
shares issued and outstanding at June
30, 2011 89,992 59,735

Additional paid in capital 5,579,544 4,451,596

Accumulated deficit (5,207,027) (4,369,304)

Total stockholders' equity (deficit) 462,509 142,027

TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 983,346 $ 973,496


AURI, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2011 2010 2011 2010


Sales - net $ 169,787 $ 221,380 $ 473,824 $ 360,699

Cost of goods sold 169,975 154,180 383,029 251,750

Gross profit (188) 67,200 90,795 108,949

Selling, general and
administrative
expenses 483,628 194,108 881,273 442,792

Loss from operations (483,816) (126,908) (790,478) (333,843)

Other income
(expenses) (24,575) (3,628) (47,245) (3,751)

NET LOSS $ (508,391) $ (130,536) $ (837,723) $ (337,594)

Net loss per share -
basic and diluted $ 0.01 $ - $ 0.01 $ 0.01
Weighted average
shares outstanding -
basic and diluted 88,711,360 53,476,364 79,685,104 52,678,418


AURI, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Six Months Six Months
Ended Ended
June 30, 2011 June 30, 2010
(Unaudited) (Unaudited)



CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (837,723) $ (337,594)
Adjustments to reconcile net loss to
cash used in operating activities
Depreciation, amortization and other 32,756 24,363
Stock based compensation 122,500 33,593
Recovery of inventory reserve 4,631 4,109
Allowance for bad debt 8,517 -
Changes in:
Accounts receivable (34,360) 39,905
Due from factor (52,627) (65,335)
Inventory (103,392) (30,799)
Prepaid expenses and other current
assets (51,915) 9,530
Deferred finance fee 18,778 -
Accounts payable 39,223 (20,086)
Accrued expenses 40,042 (4,593)
Net cash used in operating activities (813,570) (346,907)

CASH FLOWS FROM INVESTING ACTIVITIES:
Payments in connection with reverse
merger (49,192) -
Cash paid for purchase of property and
equipment (5,617) (11,201)
Net cash used in investing activities (54,809) (11,201)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of short-term
note payable 100,000 -
Proceeds from common stock sales 595,000 350,000
Net cash provided by financing
activities 695,000 350,000

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (173,379) (8,108)

CASH AND CASH EQUIVALENTS - BEGINNING 406,439 22,931
CASH AND CASH EQUIVALENTS - ENDING $ 233,060 $ 14,823

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid for income taxes $ - $ -
Cash paid for interest $ - $ -

NON-CASH INVESTING ACTIVITIES:
Assumption of liabilities acquired in
reverse merger $ 10,115 $ -
Conversion of convertible note into
common stock $ 500,000 $ -
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