SOURCE: Bark Group Inc.

Bark Group Inc.

November 23, 2010 09:00 ET

Bark Group Inc. Improves Balance Sheet by Approximately $9 Million in Debt Reduction and Reports a Profitable Third Quarter

NEW YORK, NY--(Marketwire - November 23, 2010) - Bark Group Inc. (OTCBB: BKPG), an innovative integrated U.S. advertising and performance-based marketing company with a multinational client base, announced yesterday its third quarter financial results showing a debt reduction of approximately $9 million, net income of $1,542,000 for the three months ended September 30, 2010, and a total equity of $1,839,000, as a result of the Company's recent closing and deconsolidation of non-profitable operations in Denmark.

CFO Ulrik Gerdes stated, "By streamlining our operations, we have reduced our running costs, bringing us closer to consolidated profitability. The Company has managed to reduce its working capital deficit from approximately $5 million to approximately $1 million through our third quarter. Based on our current revenue expectation the Company expects to operate solely through operational cash flows from current operations in Sweden, Norway and Spain."

CEO Niclas Fröberg declared, "Our improved balance sheet and reduced running costs create a financial platform from which our future growth will be less dependent on outside funding. In addition, our strategy going forward is to speed up the expansion of our network by acquiring an initial smaller ownership in more companies, predominately paid in shares."

CFO Ulrik Gerdes continued, "Over the next twelve months we do not estimate that cash flows attributable from current operations will be sufficient to cover the working capital deficit completely. We expect to cover our working capital deficit through a combination of organic growth, expansion of our network and an equity financing of our securities." 

Investors are referred to the Company's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010 filed with the Securities and Exchange Commission on November 22, 2010 for a complete discussion of the Company's operating results and financial condition for the three and nine months ended September 30, 2010.

About Bark Group Inc.

Bark Group Inc. is a pioneering U.S. communications company aiming to create a network of multiplatform media and advertising houses by acquiring profitable and innovative media and advertising companies in order to rapidly expand its presence in the U.S. and Europe. Through its growing network of companies, Bark is adding more competencies and media under one roof, expanding its customer and revenue base and ultimately winning significantly larger international clients.

Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbour 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 "may," "future," "plan" or "planned", "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements; projected events in this press release may not occur due to unforeseen circumstances, various factors, and other risks identified in a company's annual report on Form 10-K and other filings made by such company.

For more information about Bark Group Inc. visit www.barkgroup.com or contact Stanley Wunderlich at (800) 625-2236, extension 7770, or info@cfsg1.com.

Contact Information

  • CONTACT:
    Stanley Wunderlich
    Consulting For Strategic Growth 1, Ltd.
    880 Third Ave, 6th Floor
    New York NY 10022
    Telephone: (800) 625-2236 ext. 7770
    e-Fax: (646) 205-7771
    Email: Email Contact