SOURCE: CHDT Corp.

May 14, 2008 14:39 ET

CHDT Q1 2008 Gross Revenues up 172% Over Q1 2007

Book Lights and STP® Tools Sales Drive Revenue Growth

DEERFIELD BEACH, FL--(Marketwire - May 14, 2008) - CHDT Corp. (OTCBB: CHDO), a Florida-based management company operating subsidiaries focused on designing and manufacturing consumer products for the North American retail market, announced today it will report in its upcoming 10-Q for Q1 2008 that the Company had gross revenues of approximately $574,180, an increase of 172% versus $211,042 in revenue for the corresponding Q1 of 2007. The increase in revenues is partly due to the company shipping its initial STP® orders to two retail chains, CSK and Meijer, along with shipments of its new Simply Comfort™ line. Capstone's lighting division sales also posted significant gains in Q1.

Gross profit for the three months ended March 31, 2008, was approximately $254,000, increased by approximately $181,000 or 248% over $73,000 in 2007. Gross profit as a percentage of sales was 44.3% for the first quarter of 2008 as compared to 34.6% for the first quarter of 2007. This Gross Profit increase is attributed directly to the increase in product sales volume combined with the improved mix of products offering higher margins than in the same period 2007.

Cost of sales for the three months ended March 31, 2008 and 2007 were approximately $320,000 and $138,000, respectively. This cost represents 55.8% and 65.4% respectively of total Revenue. As a percentage of Total Revenue costs have reduced from the same period last year by 9.6%. This is a direct result of the improved mix of products now being sold.

For the three months ended March 31, 2008, the Company had a net loss from continuing operations of approximately $587,988. For the three months ended March 31, 2007 the Company had a net loss from operations of $252,568. That is a net loss increase of $335,420 over 2007 results. The major reason for this additional loss was the increase over 2007 in Compensation Expense of $375,591 and General Administrative Expense of $171,143. In the first quarter 2007 we did not have the full cost impact of the new management team.

First quarter sales are historically the slowest quarter of the year for Capstone as retailers recover from the Holiday season. The company expects sales to escalate further in the second and third quarters as it implements additional STP® programs into retailers, mail order catalogues, and online retailers along with line expansion with existing customers.

Howard Ullman, Chairman of CHDT Corp., said, "Not only am I pleased that we achieved substantial growth during the slowest quarter of the year, we also look forward to launching our newest product, the Personal Pocket Safe™, through our new division, Black Box Innovations, which expects to contribute further to our revenue growth in 2008. As these product lines mature we expect to see sales continue to escalate as we saw last year with our book and task lighting division which doubled revenues each quarter throughout 2006."

Item 1.  Financial Statements


                    CHDT CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS



                                                (Unaudited)
                                                  March 31,   December 31,
                                                    2008          2007
                                                ------------  ------------
Assets:

Current assets:

   Cash                                         $    115,352  $    257,802
   Accounts receivable - net                         480,226     1,351,648
   Inventory                                         322,275       333,184
   Prepaid expense                                    31,102        23,331
                                                ------------  ------------

     Total Current Assets                            948,955     1,965,965
                                                ------------  ------------

Fixed assets:
   Computer equipment & software                      45,685        45,685
   Machinery and equipment                           302,235       276,408
   Furniture and fixtures                              5,665         5,665
   Less: Accumulated Depreciation                   (141,645)     (119,154)
                                                ------------  ------------

     Total Fixed Assets                              211,940       208,604
                                                ------------  ------------

Other non-current assets:
   Product development costs                          80,407        73,012
   Goodwill                                        1,936,020     1,936,020
   Deposits                                           15,000        15,000
                                                ------------  ------------

      Total other non-current assets               2,031,427     2,024,032
                                                ------------  ------------

         Total assets                           $  3,192,322  $  4,198,601
                                                ============  ============

Liabilities and Stockholders' Deficit:
Current liabilities:
  Accounts payable and accrued expenses         $    243,663  $    601,946
  Notes and loans payable to related parties -
   current maturities                                364,493       688,305
                                                ------------  ------------

    Total current liabilities                        608,156     1,290,251
                                                ------------  ------------

Non-current liabilities
  Notes and loans payable to related parties         546,025       546,025
                                                ------------  ------------

    Total non-current liabilities                    546,025       546,025
                                                ------------  ------------

    Total Liabilities                              1,154,181     1,836,276
                                                ------------  ------------

Stockholders' Deficit:
  Preferred Stock, Series A, par value $.001 per
   share
     Authorized 100,000,000 shares,
      Issued 60 at March 31, 2008
      and 6,560 shares at December 31, 2007                1             7
  Preferred Stock, Series B, par value $.10 per
   share
     Authorized 100,000,000 shares,
      Issued 2,108,813 at March 31, 2008
      and 1,358,738 at December 31, 2007             210,882       135,874
  Common Stock, par value $.0001 per share
     Authorized 600,000,000 shares,
      Issued 557,941,646 shares at March 31,
      2008 and 599,745,646 shares at December
      31, 2007                                        55,794        59,975
  Additional paid-in capital                       5,227,510     5,034,527
  Accumulated deficit                             (3,456,046)   (2,868,058)
                                                ------------  ------------

    Total Stockholders' Deficit                    2,038,141     2,362,325
                                                ------------  ------------

    Total Liabilities and Stockholders' Deficit $  3,192,322  $  4,198,601
                                                ============  ============



The accompanying notes are an integral part of these financial statements.



                    CHDT CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS

                                                        (Unaudited)
                                                    For the Three Months
                                                            Ended
                                                          March 31,
                                                      2008         2007
                                                  -----------  -----------
Revenues                                          $   574,180  $   211,042
Cost of Sales                                        (320,436)    (138,015)
                                                  -----------  -----------
        Gross Profit                                  253,744       73,027
                                                  -----------  -----------

Operating Expenses:
  Sales and marketing                                  34,430       13,688
  Compensation                                        471,206       95,615
  Professional fees                                    34,334       47,207
  Consulting                                           28,130       66,875
  Other General and administrative                    249,866       78,723
                                                  -----------  -----------
       Total Operating Expenses                       817,966      302,108
                                                  -----------  -----------

Net Operating Income (Loss)                          (564,222)    (229,081)
                                                  -----------  -----------

Other Income (Expense):
  Miscellaneous income                                      -          750
  Interest expense                                    (24,375)     (27,504)
  Interest income                                         609        3,267
                                                  -----------  -----------
     Total Other Income (Expense)                     (23,766)     (23,487)
                                                  -----------  -----------

Net Income (Loss)                                 $  (587,988) $  (252,568)
                                                  ===========  ===========

Income (Loss) per Common Share                    $         -  $         -
                                                  ===========  ===========

Weighted average shares outstanding               565,574,034  543,997,861
                                                  ===========  ===========


The accompanying notes are an integral part of these financial statements.


About CHDT Corp.: CHDT Corp. (http://www.chdtcorp.com) is a public holding company that engages, through its wholly owned subsidiaries, in the development, manufacturing, logistics, and distribution of consumer products to retailers and wholesalers throughout North America. See http://www.chdtcorp.com for more information about the company and www.capstoneindustries.com and www.stptools.com for information on our current product offerings. Reference of URL's in this press release does not incorporate said URL's or any of their contents in this press release.

FORWARD-LOOKING STATEMENTS: This press release, including the financial information that follows, contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. These statements are based on the Company's and its subsidiaries' current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. CHDT undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release and risks associated with any investment in CHDT, which is a small business concern and a "penny stock company" and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the many uncertainties that affect CHDT's business, particularly those mentioned in the cautionary statements in current and future CHDT's SEC Filings.

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