SOURCE: Auri, Inc.

May 16, 2011 08:30 ET

Auri, Inc. Reports 2011 First Quarter Results

LAGUNA BEACH, CA--(Marketwire - May 16, 2011) - Auri, Inc., (OTCBB: AURI), announced today its financial and operational results for the three months ended March 31, 2011.

Quarterly Highlights:

--  On February 24, 2011 Auri Design Group, LLC succeeded in going public
    through a reverse merger with Wellstone Filter Sciences, Inc.

--  On April 14, 2011 the Company changed its name to Auri, Inc. and ticker
    symbol to AURI.OB.

--  Company hired M2SF  to update and refine the entire
    Auri brand platform.

--  Auri was selected by Doneger Group / Directives West to showcase their
    new fashion footwear products to industry leaders from the fashion
    retail sector and media nationwide.

In the first quarter ending March 31, 2011, revenue increased to $304,037 from $139,320 over Q1 2010, representing a 118% increase. The increase in revenue was largely due to the increase in Women's footwear sales of 629%. Women's footwear sales increased to $172,852 from $23,685 for the same period in 2010. Gross profit increased 118% to $90,983 from $41,750 in the same period 2010. The increase in gross profit is primarily due to increased sales.

Cost of goods sold for the first quarter 2011 was $213,054 compared to $97,570 for the same period 2010. The increase in gross profit is primarily due to an increase in sales.

Operating expenses consist of sales, marketing and general and administrative expenses. Operating expenses increased by $148,960, or 60%, from $248,685 for 2010 to $397,645 for 2011. A large portion of this increase, $54,175 or 47% was a result of accounting and legal fees associated with the Company's public accounting audit necessitated by the reverse merger into a public company.

Loss from operations was $(306,662) for 2011, compared to a loss from operations of $(206,935) for the same period 2010, an increase of $(99,727) or 48%.

For the three months ended March 31, 2011, net loss was $(329,332), compared to a net loss of $(207,058) for the three months ended March 31, 2010.

"Our team is very pleased with our first quarter results," stated Ori Rosenbaum, CEO of Auri, Inc. "Having just taken the company public in February, the numbers are already showing an exciting trajectory of growth. As we continue to forge new alliances with both retail and strategic partners, we will increase the brands visibility and distribution with an eye on making Auri into a globally recognized brand and one that owns a unique and distinctly own able place in the consumer mindset."

- Financial Charts to Follow -

                        CONSOLIDATED BALANCE SHEETS

                                                  March 31,   December 31,
                                                    2011          2010


Cash and cash equivalents                       $    210,232  $    406,439
Accounts receivable - net                            220,194       104,355
Due from factor                                       36,421        15,796
Inventory - net                                      444,094       226,773
Prepaid expenses and other assets                      1,185       116,320
Deferred finance fee - net                             8,779        18,778
                                                ------------  ------------

  Total Current Assets                               920,905       888,461

Property and equipment - net                          69,133        85,035

                                                ------------  ------------
  Total Assets                                  $    990,038  $    973,496
                                                ============  ============


Accounts payable                                $    244,838  $     85,337
Accrued liabilities                                   71,800        46,132
Short-term portion of long-term note payable          31,250        12,500
Short-term portion of long-term related party
 note payable                                         35,417         4,167
Short-term convertible note payable                  500,000       500,000
                                                ------------  ------------

  Total Current Liabilities                          883,305       648,136

Long-term note payable - net of short term
 portion                                             118,750       137,500
Long-term related party note payable - net of
 short term portion                                   39,583        45,833
                                                ------------  ------------

   Total Liabilities                               1,041,638       831,469
                                                ------------  ------------

Preferred stock - $0.001 par value; 1,000,000
 shares authorized,
No shares issued and outstanding
Common stock - $0.001; 300,000,000 shares
 authorized, and 59,735,360 shares issued and
 outstanding at December 31, 2010 and 87,941,580
 shares issued and outstanding at March 31, 2011      87,942        59,735
Additional paid in capital                         4,559,094     4,451,596

Accumulated deficit                               (4,698,636)   (4,369,304)

                                                ------------  ------------

Total stockholders' equity (deficit)                 (51,600)      142,027
                                                ------------  ------------

Total liabilities and stockholders' equity
 (deficit)                                      $    990,038  $    973,496
                                                ============  ============


                                                Three Months  Three Months
                                                    Ended         Ended
                                                  March 31,     March 31,
                                                    2011          2010

Sales - net                                     $    304,037  $    139,320

Cost of goods sold                                   213,054        97,570
                                                ------------  ------------

Gross profit                                          90,983        41,750

Selling, general and administrative expenses         397,645       248,685
                                                ------------  ------------

Loss from operations                                (306,662)     (206,935)

Other income (expenses)                              (22,670)         (123)
                                                ------------  ------------

Net loss                                        $   (329,332) $   (207,058)
                                                ============  ============

 Net loss per share - Basic and diluted         $       0.00  $       0.00
 Weighted average shares outstanding - Basic
  and diluted                                     70,558,549    51,884,093

About Auri

Auri designs and markets fashion footwear for men and women, fusing performance engineering, innovative designs and advanced technical materials. Crafted with Italian leathers and hand-burnished finishes, the products incorporate a seamless fusion of next level technologies including active suspension systems, compression control and anti-fatigue, removable foot beds, Outlast® temperature regulating linings, Liquicell® ultra-thin liquid-filled interface technology, and encapsulated gel technologies. Auri trades on the Over-The-Counter Bulletin Board under the symbol AURI. For more information, please visit

Statements in this press release which are not purely historical, including statements regarding Auri, Inc., intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties including, but not limited to, the risks and uncertainties associated with the adoption and retail acceptance of the Auri brand, ability to open additional doors, the company's ability to raise future capital for growth, ability to expand into other product offering and, ability to consummate a strategic partnering arrangement or license deal. It is important to note that the company's actual results could differ materially from those in any such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow, market acceptance risks and seasonality. Our business could be affected by a number of other factors, including the risk factors listed from time to time in the company's SEC reports including, but not limited to, the annual report on Form 10-K for the year ended December 31, 2010. The company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. Auri disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.

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