SOURCE: Megola Inc.

Megola Inc.

December 15, 2009 11:04 ET

Megola Inc. Reports on Recent Filings

POINT EDWARD, ON--(Marketwire - December 15, 2009) - Megola Inc. (OTCBB: MGON) announces that the Company has timely filed its financial statements for the period ending October 31, 2009, the First Quarter of Fiscal Year 2010, and has provided comments from its Executive Management Team.

Executive Comments

"Our accumulated deficit now exceeds $6M, however, it should be clarified that over $4M of that deficit is attributed to shares issued for consulting services and debt over the past 6 years, of which over $2M is directly related to the cost of the reverse merger with Superior Clean back in 2003 when Megola originally went public. With a more thorough analysis of the financials it is revealed that less than a third of the accumulated deficit is directly attributed to operating losses," explains Craig Wagenschutz, CFO for Megola.

Over the past year, Megola has continued to dramatically increase its focus on commercializing the Hartindo line of Anti-Fire products with the goal of making them leading edge environmentally-friendly products in the realm of fire safety. Megola has delivered on numerous fronts over the past year and the transition period to a steady revenue stream from the Hartindo product line has taken shape as initially envisioned. However, due to economic times, market penetration has been slower than anticipated.

"Subsequent to our recent return to the OTCBB and after many months of working diligently with our auditors to catch up on our financial filings, we are now fully compliant in all SEC requirements and are wholly dedicated to remain so as we move forward with our business plans," comments Darryl Germain, COO for Megola.

In 2009, Megola entered into formal agreements with Vulcan Technologies LLC, Innovative Composites Inc., New Fire Solutions LLC and Ecoblu Products Inc. Megola has strengthened its Management Team and Advisory Board, while continuing to invest in product testing and certifications. Megola has restructured its balance sheet through the issuance of Preferred Series A and B Share Offerings in an effort to reward long term shareholders and creditors. Most recently, Megola orchestrated a 1:50 reverse split of the remaining common shares to decrease the liquidity in an effort to increase the common share price. Megola also finalized the preparation of all required financial filings and returned to the OTCBB in order to have better access to investment capital to fund future growth as the Company may require.

Joel Gardner, President & CEO of Megola, concludes, "Despite some setbacks associated with the recent difficult economic environment, we have stuck with our game plan throughout this past year. We are truly excited and optimistic about our prospects for 2010 and Megola is now firmly in position to build on the foundation we have created for getting the Hartindo products into the market place."

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Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities.

The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.

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