When considering these forward looking statements, you should keep in mind the cautionary statements in this press release and the documents incorporated by reference. New risks and uncertainties arise from time to time, and we cannot predict those events or how they may affect us. We assume no obligation to update any forward looking statements after the date of this press release as a result of new information, future events or developments, except as required by the federal securities laws.

 
CASTLE BRANDS INC. AND SUBSIDIARIES
Consolidated Statements of Operations
   
Three-months ended March 31, Twelve-months ended March 31,
2010   2009 2010   2009
Sales, net* $ 6,423,521 $ 5,870,836 $ 28,475,842 $ 26,105,516
Cost of sales* 3,987,695 4,157,947 18,797,602 18,203,361
Reversal of provision for obsolete inventory   (67,669 )   (107,892 )   (657,599 )   (360,133 )
Gross profit   2,503,495     1,820,781     10,335,839     8,262,288  
Selling expense 2,219,031 2,166,071 9,582,099 13,429,965
General and administrative expense 1,560,481 2,032,379 5,618,437 9,203,575
Depreciation and amortization 237,440 579,657 924,646 1,307,536
Goodwill and other intangible asset impairment       4,845,287         4,845,287  
Loss from operations   (1,513,457 )   (7,802,613 )   (5,789,643 )   (20,524,075 )
Other income 346 3,750 491 60,724
Other expense (1,936 ) (39,960 ) (49,993 ) (78,013 )
Foreign exchange (loss) gain (86,719 ) (1,255,595 ) 2,126,214 (4,117,564 )
Interest income (expense), net (6,118 ) (18,405 ) 22,147 (1,579,012 )
Gain on sale of intangible asset 405,900
Gain on exchange of notes payable 270,275 4,173,716
Income tax benefit 37,038 37,038 148,152 148,152
Net loss   (1,570,846 )   (9,014,115 )   (2,866,457 )   (21,916,072 )
Net (income) loss attributable to noncontrolling interests   (33,124 )   61,670     (5,197 )   227,773  
Net loss attributable to common shareholders $ (1,603,970 ) $ (9,075,785 ) $ (2,871,654 ) $ (21,688,299 )
Net loss per common share, basic and diluted $ (0.01 ) $ (0.11 ) $ (0.03 ) $ (0.68 )
Weighted average shares used in computation, basic and diluted   107,995,207     81,549,666     104,691,880     31,883,995  
   
*  

Sales, net and Cost of sales include excise taxes of $1,170,890 and $1,048,556 for the three-months ended March 31, 2010 and 2009, respectively, and $5,022,230 and $4,222,394 for the years ended March 31, 2010 and 2009, respectively.