SOURCE: Who's Your Daddy, Inc.

December 19, 2007 08:30 ET

Who's Your Daddy Reports Third Quarter Results

Nine Month Revenues Up 37% Over Prior Year

SAN DIEGO, CA--(Marketwire - December 19, 2007) - Who's Your Daddy, Inc. (OTCBB: WYDI) today reported revenues for the nine months ended September 30, 2007 of $1,302,380, a 37% increase from revenues of $948,889 in the nine months ended September 30, 2006. Revenues for the three months ended September 30, 2007 were $539,095, an 18% decrease from revenues of $654,107 for the three months ended September 30, 2006.

Yesterday, the Company filed its Report on Form 10QSB for the three and nine months ended September 30, 2007 which should result in the removal of the "E" from the Company's stock ticker symbol today. The results for 2006 and the first half of 2007 have been restated to reflect changes in accounting for the convertible debt issued by the Company in April 2005 and fully repaid in May 2007, and for warrants and options issued in 2005 and 2006. The convertible debt was found to have two embedded derivative financial instruments that have been marked to market prices every quarter using the volatility of the Company's stock price in the Black Scholes pricing model.

The combined non-cash impact of these accounting changes is increased expense of $1.8 million and $3.8 million in the three and nine months ended September 30, 2006, respectively, and $0.3 million and $5.7 million in the three and nine months ended September 30, 2007, respectively. The total losses were $3.1 million and $6.9 million for the three and nine months ended September 30, 2006, respectively, and $1.6 million and $9.7 million in the three and nine months ended September 30, 2007, respectively.

Edon Moyal, CEO of Who's Your Daddy, stated, "With the resolution of accounting issues and the initial favorable responses for the $1.2 million bridge financing, we feel that we have weathered the recent financial storm and are getting back on track to resume growing the Company. Despite very limited cash to support the sales and marketing of our products in the third quarter, our revenues for the first nine months this year are well ahead of last year."

About Who's Your Daddy, Inc.

Who's Your Daddy, Inc. is a brand management company focused on the marketing, production and distribution of the "Who's Your Daddy®" "King of Energy™" line of beverages for the rapidly growing $4.9 billion U.S. energy drink market. Both our unique cranberry-pineapple and green tea flavors are available in regular and diet versions. We currently hold trademarks for a variety of products worldwide. Who's Your Daddy, Inc. stock is traded publicly under the "WYDY" ticker symbol. For more information, go to (www.whosyourdaddyinc.com; www.kingofenergy.com). The Company's blog site is at www.kingofbloggers.com

Condensed income statements (please refer to the related Report on Form 10Q for full statements and footnotes):

                Three Months Ended Sept. 30    Nine Months Ended Sept. 30
                ----------------------------  ----------------------------
                    2007           2006           2007           2006
                -------------  -------------  -------------  -------------
Revenues, Net
 of Promotional
 Costs          $     539,095  $     654,107  $   1,302,380  $     948,889
  Gross
   Margin - $         303,438        352,593        746,184        530,384
  Gross
   Margin - %            43.7%          46.1%          42.7%          44.1%

  Operating
   expenses         1,550,229      1,444,641      4,411,278      3,039,236
  Non-cash
   warrant
   expense            298,920        424,067      1,023,970      2,042,490
                -------------  -------------  -------------  -------------
    Total
     Operating
     Expenses       1,849,149      1,868,708      5,435,248      5,081,726

Other
 Income/(Expense)
  Non-cash
   loss on
   Warrants
   and Stock
   Used to
   repay debt               -              -     (1,618,371)             -
  Interest
   Expense &
   Other -
   Cash               (22,892)      (146,971)       (83,473)      (511,981)
  Interest
   Expense -
   Non-cash                 -     (1,389,189)    (3,074,695)    (1,726,077)
                -------------  -------------  -------------  -------------
    Net Loss    $  (1,636,384) $  (3,103,354) $  (9,655,591) $  (6,901,279)
                =============  =============  =============  =============

Net Loss per
 Share          $       (0.32) $       (1.05) $       (2.18) $       (2.68)
Weighted
 Average Shares     5,181,416      2,943,648      4,434,676      2,572,306

Non-cash
 expense from
 restatements   $     298,920  $   1,813,256  $   5,717,036  $   3,768,567

This document contains "forward-looking statements" related to future events. Forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are uncertain. Particular uncertainties which could adversely or positively affect our future results include: consumer tastes, availability of production, liquidity, general economic conditions, and the activities of competitors. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

Contact Information

  • Contact:
    Who's Your Daddy, Inc.
    Dan Fleyshman
    President
    760-538-5470
    Email Contact