PRH Vitacube Systems Hld

Teleconference and Webcast Scheduled for this Afternoon DENVER, July 26 /PRNewswire-FirstCall/ -- VitaCube Systems Holdings, Inc., d/b/a/ XELR8 Holdings, Inc. (AMEX:PRH), a provider of functional foods, beverages and nutritional supplements, today reported financial results for the three and six months ended June 30, 2006. (Logo: http://www.newscom.com/cgi-bin/prnh/20050926/FLM015LOGO ) Financial and Operational Highlights for the Three-Month Period Ended June 30, 2006 Compared to Three-Month Period Ended June 30, 2005: * Revenues increased 159%, rising to $577,181 from $222,670. * Gross profit margin improved to 71.2% compared to 52.4%. * Net Loss declined 3.4% to $1,007,649, or $0.10 loss per basic and diluted share, from $1,043,488, or $0.11 loss per basic and diluted share. * The net number of direct selling professionals added to the Company's distributor network during the second quarter was 684, bringing the total number of network distributors to 2,722 as of June 30, 2006. Financial Highlights for the Six-Month Period Ended June 30, 2006 Compared to Six-Month Period Ended June 30, 2005: * Revenues were $1,116,141, up 143% over $459,726. * Gross profit margin rose to 63.1% from 58.6%. * Net loss increased 40.7% to $2,556,969, or $0.27 loss per basic and diluted share, from $1,816,680, or $0.23 loss per basic and diluted share. * As of June 30, 2006, XELR8 had cash and short term investments of $938,000; $1.25 million in total shareholders' equity; and $1.1 million in working capital. * For the first half of 2006, XELR8 has added a net total of 856 new distributors to its national direct selling network. "Although we continue to be pleased with the steady revenue increases we are achieving on a quarter-over-quarter basis, we still have a great deal of hard work ahead of us to accomplish our ultimate goal of achieving profitability. With a defined objective of 6,500 distributors essential to achieve breakeven cash flow, we continue to focus our attention and marketing dollars on expanding our national direct selling network through local, regional and national rallies and compelling incentive and awards programs. Moreover, we have begun to actively explore new product line expansion opportunities to promote even greater revenue growth in coming quarters. Collectively, we are indeed gaining some traction as reflected by the 46% net increase in the number of distributors that comprise our national direct selling team since the end of last year," stated Earnest Mathis, Chairman and Chief Executive Officer of XELR8 Holdings. "To ensure that XELR8 has the necessary tools and resources we will require to fully execute our business plan on a moving forward basis, we will need to secure additional financing," continued Mathis. "In this regard, we have initiated discussions with various funding sources, including individual investors, strategic equity partners and investment banking groups, to assess available financing options and to determine the best course of action to fund our Company's future growth." XELR8 will also host a teleconference the same afternoon beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-800-240-7305 or via the Internet at http://www.xelr8.com/. For those unable to participate at that time, a replay of the webcast will be available for 90 days on http://www.xelr8.com/. About XELR8 Holdings, Inc. VitaCube Systems Holdings, Inc., d/b/a/ XELR8 Holdings, Inc., is a provider of nutritional foods and beverages designed to help enhance physical health and overall performance. XELR8 has developed a comprehensive line of nutritional supplements and functional foods designed in systems that are easy to take, simple to understand, and conveniently fit within a lifestyle. XELR8's commitment to quality, science, and research has earned them a loyal following of over 350 world-class athletes and an elite list of endorsers, such as five-time Cy Young Award Winner Randy Johnson; Super Bowl Champions Mike Alstott, Lawyer Milloy and Head Coach Mike Shanahan; professional football superstar Cadillac Williams; Olympians Briana Scurry and Caroline Lalive; Stanley Cup Winner Blake Sloan; and PGA Tour Professional Tom Pernice, Jr. XELR8 products are only available through independent distributors located throughout the nation. For more information about XELR8, please visit http://www.xelr8.com/. VITACUBE SYSTEMS HOLDINGS, INC., d/b/a XELR8 HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2006 December 31, 2005 ASSETS Current assets: Cash $887,619 $2,805,021 Short term investments 50,000 110,000 Accounts receivable, net of allowance for doubtful accounts of $6,500 and $5,500, respectively 5,888 8,758 Inventory, net of allowance for obsolescence of $76,000 and $17,000, respectively 483,992 542,749 Prepaid expenses and other current assets 200,769 263,898 Total current assets 1,628,268 3,730,426 Intangible assets, net 11,763 36,219 Property and equipment, net 146,950 93,423 Total assets $1,786,981 $3,860,068 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $536,848 $440,392 Total Liabilities 536,848 440,392 Commitments and Contingency - - SHAREHOLDERS' EQUITY: Preferred stock, authorized 5,000,000 shares, $.001 par value, none issued or outstanding - - Common stock, authorized 50,000,000 shares, $.001 par value, 9,663,345 and 9,618,900 issued and outstanding respectively 9,663 9,619 Additional paid in capital 16,339,485 15,990,889 Accumulated (deficit) (15,099,015) (12,580,832) Total shareholders' equity 1,250,133 3,419,676 Total liabilities and shareholders' equity $1,786,981 $3,860,068 VITACUBE SYSTEMS HOLDINGS, INC. d/b/a XELR8 HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three and Six Months Ended March 31, 2006 and 2005 For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended June 30, 2006 June 30, 2005 June 30, 2006 June 30, 2005 Net sales $577,181 222,670 $1,116,141 $459,726 Cost of goods sold 165,949 105,893 411,328 190,454 Gross profit 411,232 116,777 704,813 269,272 Operating expenses: Selling and marketing expenses 618,544 477,920 1,643,682 904,767 General and administrative expenses 755,237 680,007 1,559,050 1,162,048 Research and development expenses 19,364 10,294 43,933 18,956 Depreciation and amortization 35,125 6,188 42,774 12,800 Total operating expenses 1,428,270 1,174,409 3,289,439 2,098,571 Net (loss) from operations (1,017,038) (1,057,632) (2,584,626) (1,829,299) Other income (expense) Interest income 9,389 15,344 27,657 15,460 Interest (expense) - (1,200) - (2,841) Total other income (expense) 9,389 14,144 27,657 12,619 Net (loss) $(1,007,649) $(1,043,488) $(2,556,969) $(1,816,680) Net (loss) per common share Basic and diluted net (loss) per share $(0.10) $(0.11) $(0.27) $(0.23) Weighted average common shares outstanding, basic and diluted 9,663,345 9,291,757 9,642,357 7,912,900 Company Contacts: VitaCube d/b/a XELR8 Holdings, Inc. Earnest Mathis, CEO (303) 316-8577, x228 Elite Financial Communications Group, LLC Dodi Handy, President and CEO 407-585-1080 Forward-looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including prospects for XELR8's distribution network. Actual results may differ from those discussed in such forward-looking statements. These forward looking statements include risks and uncertainties that include the Company's ability to attract and retain distributors; changes in demand for the Company's products; changes in the level of operating expenses; changes in general economic conditions that impact consumer behavior and spending; product supply; the availability, amount, and cost of capital for the Company; and the Company's use of such capital. More information about factors that potentially could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB for the year ended December 31, 2005 and all subsequent filings. Certain statements in this release regarding the Company's agreements are in accordance with the guidelines established by the Federal Trade Commission for endorsements in advertising. http://www.newscom.com/cgi-bin/prnh/20050926/FLM015LOGO DATASOURCE: XELR8 Holdings, Inc. CONTACT: Earnest Mathis, CEO, of VitaCube dba XELR8 Holdings, Inc., +1-303-316-8577, ext. 228, ; Dodi Handy, President and CEO, Elite Financial Communications Group, LLC for XELR8 Holdings, Inc., +1-407-585-1080, Web site: http://www.xelr8.com/

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