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Healthy Fast Food Announces FY09 Financial and Operational Results

Reports $1.34 Million in Total Revenues and $301,000 in Operating Profit from U-SWIRL Frozen Yogurt(R) Cafe Operations

Healthy Fast Food, Inc. (OTC Bulletin Board: HFFI), parent to U-SWIRL International, Inc., the owner and franchisor of U-SWIRL Frozen Yogurt® cafes, today announced its financial and operational results for the fiscal year ended December 31, 2009.    
Financial Highlights for Fiscal Year 2009 Compared to Fiscal Year 2008:

As of December 31, 2009, Healthy Fast Food had cash and cash equivalents of $517,000, working capital of $378,000 and total stockholders’ equity of $2.12 million.  For more detailed information on the financial results, please refer to the financial charts reflected below and the Form 10K filed with the U.S. Securities & Exchange Commission on Wednesday, March 31, 2010.
Operational Highlights for Fiscal Year 2009:

“We’ve got a big winner in U-SWIRL,” stated Hank Cartwright, Chairman and CEO of Healthy Fast Food.  “Our results confirm that we are achieving success in establishing the U-SWIRL brand as a popular, in-demand frozen yogurt choice by local consumers, and we are demonstrating that our cafe business model and franchise opportunity are both smart and highly lucrative.  The name of the game, from this point forward, centers on achieving rapid national cafe expansion and broad market recognition as the consumer-preferred destination for self-serve frozen treats.  We are very pleased with the early positive traction that U-SWIRL is enjoying, and have every reason to believe that our continued efforts will help to perpetuate and accentuate U-SWIRL‘s success in 2010 and well beyond.”

    
    
                          HEALTHY FAST FOOD, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEET
                                 (Audited)
    
                                                December           December
                                                31, 2009           31, 2008
                                                --------           --------
                   ASSETS
                                                                 (RESTATED)
    Current assets
      Cash and cash equivalents                 $516,925         $3,335,740
      Accounts receivable                          5,597                  -
      Accounts receivable from U-Create            1,481                  -
      Inventory                                   61,658             15,100
      Prepaid expenses                           147,814             23,495
      Current assets from
       discontinued operations                     8,426            100,113
                                                   -----            -------
        Total current assets                     741,901          3,474,448
    
    Leasehold improvements,
     property and equipment, net               2,056,346             64,586
    Leasehold improvements,
     property and equipment from
      discontinued operations, net                     -            814,849
    
    Other assets
      Deposits                                    56,762              5,400
      Other assets                                58,475
      Other assets from discontinued operations   85,351            159,839
                                                  ------            -------
        Total other assets                       200,588            165,239
                                                 -------            -------
    
    
    Total assets                              $2,998,835         $4,519,122
                                              ==========         ==========
    
    
       LIABILITIES AND STOCKHOLDERS' EQUITY
    
    Current liabilities 
     Accounts payable and accrued liabilities   $203,665            $62,781
    
     Accounts payable and accrued liabilities
      from discontinued operations               154,953            110,202
     Current portion of long-term debt             4,808              4,203
                                                   -----              -----
        Total current liabilities                363,426            177,186
    
    Deferred rent                                355,756             20,059
    Deferred revenue                             100,000                  -
    Long-term capital lease                       10,142             14,951
    Long-term liabilities from discontinued
     operations                                   53,253            187,423
                                                  ------            -------
    
    Total liabilities                            882,577            399,619
    
    Commitments and contingencies
    
    Stockholders' equity
      Preferred stock; $0.001 par value; 
       25,000,000 shares authorized, no shares
       issued and outstanding                          -                  -
      Common stock; $0.001 par value;
       100,000,000 shares authorized,
       2,761,336 and 2,518,350 shares issued
       and outstanding at December 31, 2009
       and 2008, respectively                      2,761              2,518
      Additional paid-in capital               7,154,117          6,794,179
      Stock subscriptions receivable                   -               (150)
      Compensation payable in stock                   19                  -
      Deficit                                 (5,040,639)        (2,677,044)
                                              ----------         ----------
        Total stockholders' equity             2,116,258          4,119,503
                                               ---------          ---------
    
    Total liabilities and
     stockholders' equity                     $2,998,835         $4,519,122
                                              ==========         ==========
    
    
    
                              HEALTHY FAST FOOD, INC. 
                   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
                                     (Audited)
    
                                                For the year ended
                                                ------------------
                                        December 31,             December 31,
                                           2009                     2008
                                        ------------             ------------
                                                                  (RESTATED)
    Revenues
      Cafe sales, net
       of discounts                      $1,322,663                        $-
      Franchise
       royalties and
       fees                                  18,731                         -
                                             ------                       ---
    Total revenues                        1,341,394                         -
                                          =========                       ===
    
    Cafe operating costs
      Food, beverage and packaging
       costs                                398,699                         -
      Labor and related expenses            361,448                         -
      Occupancy and related expenses        261,298                    20,059
    Marketing and advertising               129,302                    41,127
    General and administrative              591,293                   530,908
    Officer compensation                    594,038                   318,805
    Investor relations fees                       -                   184,740
    Intellectual property
     acquired from related parties                -                   180,000
    Pre-opening costs                        17,025                         -
    Depreciation and amortization           133,558                     2,864
    Total costs and expenses              2,486,661                 1,278,503
                                          ---------                 ---------
    Loss from operations                 (1,145,267)               (1,278,503)
    
    Interest expense                         (2,347)                     (220)
    Interest income                           7,691                    53,987
                                              -----                    ------
    
    Loss from continuing
     operations before income taxes      (1,139,923)               (1,224,736)
    Provision for income taxes                    -                         -
                                                ---                       ---
    Income from continuing
     operations                          (1,139,923)               (1,224,736)
    Discontinued operations:
      Loss from operations of
       discontinued Fresh and Fast
       restaurant component (including
       loss on disposal
       of $1,119,451)                     1,223,672                   378,430
      Income tax benefit                          -                         -
                                                ---                       ---
      Loss on discontinued
       operations                        (1,223,672)                 (378,430)
                                         ----------                  --------
    Net loss                            $(2,363,595)              $(1,603,166)
                                        ===========               ===========
    
    Earnings per share -basic
      Loss from continuing
       operations                            $(0.45)                   $(0.56)
      Loss from discontinued
       operations                             (0.48)                    (0.17)
                                              -----                     -----
    Net loss per common share -
     basic and fully diluted                 $(0.93)                   $(0.73)
                                             ======                    ======
    
    Weighted average common shares
     outstanding - basic and diluted      2,536,995                 2,186,110
                                          =========                 =========
    

ABOUT U-SWIRL INTERNATIONAL, INC.
U-SWIRL International is a wholly owned subsidiary of Healthy Fast Food, Inc., and is launching a national chain of self-serve frozen yogurt cafes called U-SWIRL Frozen Yogurt®.  U-SWIRL allows guests the ultimate choice in frozen yogurt by providing up to 20 non-fat flavors, including tart, traditional, no sugar-added options, and up to 70 toppings, including seasonal fresh fruit, sauces, candy and granola.  Guests serve themselves and pay by the ounce instead of by the cup size.  A healthier alternative to a coffee shop hang out, locations are furnished with couches and tables, and patio seating.   In addition to its development of Company–owned cafes, U-SWIRL International has also launched its franchise program to roll out the concept nationwide in those states in which the Company is qualified to offer franchises.
ABOUT HEALTHY FAST FOOD, INC.
Headquartered in Henderson, Nevada, Healthy Fast Food, Inc. is on a mission to deliver consumers a smarter alternative to America’s favorite meals and snacks.  In September 2008, the Company and its wholly-owned subsidiary, U-SWIRL International, Inc., acquired the worldwide rights to the U-SWIRL Frozen Yogurt system.  Sole ownership of the system was transferred to U-SWIRL International, Inc., and it has been executing an aggressive strategy to build the brand into a globally recognized chain of highly experiential frozen yogurt cafes.

Posted by on April 5, 2010.

Categories: Financial

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