Empowered Products, Inc. (EMPO)

[10 bagger]

August 21, 2012... EMPO Progress Reports

Standard & Poor’s provides update on Empowered Products’ U.S. Market Expansion..

Standard & Poor’s offers the investment community ongoing coverage of Empowered Products’ corporate milestones and financial information, and you can view the recently updated S&P Factual Stock Report on EMPO by clicking here. Empowered Products is proud to offer our current and future EMPO shareholders with this highly reputable investor resource for up-to-date information on our company.

Our president and CEO, Scott Fraser, added, “I view our continued expansion of both shelf-space and sales of our PINK® and GunOil® brands into national chains and direct to our end consumers as the primary catalysts for our company’s long term growth. When we began selling our sexual wellness lubricants over 10 years ago, they were only available in adult product venues. Today, our products are steadily gaining market share through mainstream retail outlets nationwide such as Walgreens and CVS. I invite my fellow EMPO shareholders to closely follow our progress at the report link provided below.”

The updated S&P Report on EMPO is located at:
http://www.empoweredproducts.com/investorsresearch.php

Highlights of the S&P Factual Stock Report include the following:

Income Statement Analysis & Financial Review

Revenues for the six months ended June 30, 2012 were $1.5 million vs. $1.41 million in the prior year, growing 6% year over year. Gross margin widened 32%, on higher revenues. Selling, general & administrative expenses rose 32%, and operating loss was $0.24 million vs. a loss of $0.22 million for last year. For the first two quarters of the fiscal year, net loss was $0.25 million (nil per share) vs. a loss of $0.23 million (nil per share) in 2011.

In the second quarter, revenues were $0.69 million vs. $0.66 million in the prior year, gaining 4% year to year. Gross margin narrowed 21%, despite higher revenues. Selling, general & administrative expenses grew 19%, and operating loss for the quarter was $0.26 million vs. a loss of $0.11 million in the prior-year period. Net loss was $0.26 million (nil per share) vs. a loss of $0.12 million (nil per share) in the second quarter of 2011.

Key Operating Information

The 6.3% increase in revenue, for the six month period, was primarily caused by the implementation of price increases on January 1, 2012. The increase in revenue for the three months was primarily due to price increases implemented on January 1, 2012. Herbal supplement sales for the period ended June 30, 2012 were approximately $14,000 compared to nil for the period ended June 30, 2011. This increase in the gross profit margin, for the six month period, was mainly due to improved purchasing and procurement practices, as well as price increases on the finished products that were implemented on January 1, 2012.

For the six months ended June 30, 2012, net cash used in operating activities was approximately $0.6 million, as compared to net cash used in operating activities of approximately $0.12 million for the comparable period in 2011. The increase in net cash used in operating activities is primarily attributable to an increase in the raw materials inventory in anticipation of sales to large drug store chains and paydowns of the accounts payable and accrued expense balances.

Recent Developments

Empowered Products launched a sample-request program to its branding site, www.PinkForUs.com, on April 19, 2012. The objective of this program is to connect directly with female consumers to inform and provide samples within the company's full range of women's personal and interactive lubricants. To date, the PINK branding site has received 113,120 consumer sign-ups to request samples.

On 14 August 2012, we filed our 10-Q report for the second quarter ended 30 June 2012, which can be viewed in its entirety by clicking here. The report includes the following statement regarding Empowered Products’ market expansion into mainstream retail outlets within the United States:

On February 1, 2012, we commenced product shipments to select Walgreens retail stores through an initial order placed by its national purchasing office in Deerfield, Illinois. We are currently expanding our pursuit of a national and regional drugstore chain presence.

A key corporate objective for our company going forward is the rapid expansion of our PINK® and GunOil® lines of sexual wellness products into the major U.S. retail drugstore chains. Starting with CVS and Walgreens, we are excited about our early successes with these top-tier NYSE-listed retailers.

We look forward to keeping our present and future EMPO shareholders abreast of current company developments via our press releases and SEC filings – which are available to the investment community at major financial websites such as Yahoo!Finance and GoogleFinance and also at our company website.