OBN Holdings Files First Quarter 10-Q with Profitable Results

LAS VEGAS--(BUSINESS WIRE)--OBN Holdings, Inc. (Pink Sheets: OBNI) today announces the filing of its Q1, 2010 10-Q, and that the company posted a profit for the period. The statements reveal that the company posted net income of $178,000, or one cent ($0.01) per share, on sales that exceeded $ 2.7 million for the period. “We are very pleased with the results,” stated Roger Neal Smith, OBN Holdings President and CEO. “We expect OBN profits to continue increasing in future quarters as we continue developing our business model. A market maker is currently filing our 15c211 to get OBN Holdings back to the Over-The-Counter Bulletin Board (OTC: BB). We hope to once again begin trading on the Bulletin Board within the next few weeks.”

“We are very pleased with the results”

About OBN Holdings

OBN Holdings is engaged in acquiring and developing businesses worldwide. The company has interests in a diverse number of industries, including entertainment, manufacturing, technology and business services. OBN is internationally diversified with offices and subsidiaries in the United States, Hong Kong and Japan.

For latest SEC filings, go to the company’s web site at www.obnholdings.com and click on the “Investor Info” heading.

OBN Holdings, Inc.: 8275 South Eastern Avenue, Suite 200, Las Vegas, Nevada 89123. [phone]

This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of OBN Holdings, nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Forward looking statements: This press release and other statements by OBN Holdings may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as “believe”, “expect”, “estimate”, “potential”, or future/conditional verbs such as “will”, “should” and “could”.

OBN Holdings, Inc.
CONSOLIDATED BALANCE SHEETS
	September 30			June 30,
	2009			2009
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	555,247		$	616,581
Accounts receivables, net of $150,000 and $150,000 allowance for doubtful accounts, respectively		934,433			882,872
Security collateral receivable		30,000			--
Inventory		598,068			948,080
Total current assets		2,117,748			2,447,533
Fixed assets, net of accumulated depreciation of $60,892 and $60,892, respectively		-			-
Programming rights, net of accumulated amortization of $100,529 and $100,192, respectively		65,275			65,613
Film library, net of accumulated amortization of $413,497 and $390,373, respectively		164,003			187,127
Other intellectual properties, net of accumulated depreciation of $26,481 and $19,387, respectively		188,019			195,113
Other tangible assets		4,846,031			4,846,031
Total assets	$	7,381,076		$	7,741,417
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	409,643		$	472,344
Commissions payable		636,792			786,792
Accrued payroll and related		787,508			691,142
Deferred revenue		387,212			790,650
Capital lease obligations		49,396			49,396
Programming rights payable		80,030			80,030
Notes and accrued interest payable		309,067			277,709
Notes and accrued interest payable related parties		446,298			547,870
Total current liabilities		3,105,946			3,695,933
Stockholders' Equity:
Undesignated preferred stock, $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding		---			---
Common stock; $0.001 par value; 500,000,000 shares authorized; 20,430,903 and 19,930,930 shares issued and outstanding		20,431			19,931
Additional paid-in capital		16,393,649			16,330,449
Accumulated deficit		(12,138,868	)		(12,317,038	)
Common stock subscriptions receivable		(7,500	)		(7,500	)
Accumulated comprehensive income (loss), net		7,418			19,642
Total stockholders' equity		4,275,130			4,045,484
Total liabilities and stockholders' equity	$	7,381,076		$	7,741,417

OBN Holdings, Inc.
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
	FOR THE THREE MONTHS ENDED
	SEPTEMBER 30,
	2009			2008
	Unaudited			Unaudited
Revenue, net of affiliate costs	$	2,736,308		$	6,432,560
Cost of sales		2,195,755			4,703,400
Gross profit		540,553			1,729,160
Operating expenses:
General and administrative		492,794			1,130,493
Net income from operations		47,759			598,667
Other income (expense):
Other income		38,697			17,500
Gain on debt extinguishment		98,659			--
Interest expense		(6,945	)		(5,712	)
Total other income (expense), net		130,411			11,788
Net income before income taxes		178,170			610,455
Income taxes		-			-
Net income	$	178,170		$	610,455
Foreign currency transaction adjustment		7,418			51,844
Comprehensive income, net of 0 taxes	$	185,588		$	662,299
Net loss available to common stockholders per common share:
Basic and diluted net income (loss) per common share	$	0.01			($0.05	)
Basic and diluted weighted average shares outstanding		20,003,642			11,379,389