DS Healthcare (DSKX) 8-K DS Healthcare Group Files Annual Report and Regains Compliance with Nasdaq Continued Listing Standards Following Notice from Nasdaq

EXHIBIT 99.1

DS Healthcare Group Files Annual Report and
Regains Compliance with Nasdaq Continued Listing Standards Following Notice from Nasdaq

POMPANO BEACH, FL – April 24, 2013 – DS Healthcare Group, Inc. (NASDAQ: DSKX), a leading developer of hair care, facial care and other personal care products, announced today that on April 18, 2013, it received a notice from NASDAQ indicating that the company was not in compliance with one of NASDAQ's continued listing standards due to the delinquent filing of its annual report on Form 10-K for the year ended December 31, 2012 as set forth in NASDAQ Listing Rule 5250(c)(i). Upon filing of its annual report on April 24, 2013, the company regained compliance with NASDAQ continued listing standards.

Total net revenues increased $1,551,562, or 16%, from $9,672,861 for the year ended December 31, 2011 to $11,224,424 for the year ended December 31, 2012. Such expansion also resulted in an increase in operating expenses. While the company’s net loss increased to a $3,623,110 net loss for the year ended December 31, 2012, the company anticipates recognizing revenues of approximately $2,000,000 of product orders during December 2012 that it was unable to fulfill prior to December 31, 2012. These product orders were subsequently shipped during the three months ended March 31, 2013.

The company’s chief executive officer, Daniel Khesin, stated, “2012 was a tremendous year for DS Healthcare. We launched new products, expanded into new markets, while increasing our presence in existing ones, commenced quotation on NASDAQ and completed our first acquisition. Our continued growth and expansion, while resulting in an increased net loss for the year, marked another record year of revenues. While our operational expenses increased, we believe such expenses have expedited our continued growth and expansion and we look forward to continued growth in 2013.”

DS Healthcare Group, Inc. (formerly Divine Skin, Inc.)(d/b/a DS Laboratories) and Subsidiaries

Consolidated Balance Sheets

	December 31,			December 31,
	2012			2011
ASSETS
Current Assets
Cash	$	412,488		$	1,284,343
Accounts receivable, net		2,125,641			1,888,453
Inventory		3,453,950			2,174,784
Prepaid expenses and other current assets		159,164			57,940
Total Current Assets		6,151,243			5,405,520
Furniture and Equipment, net		293,720			53,017
Advances to affiliates		17,973			—
Intangible assets, net		1,674,852			630,317
Other assets		86,888			15,138
TOTAL ASSETS	$	8,224,676		$	6,103,992
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	3,032,422		$	1,021,313
Credit facility		448,658			—
Other current liabilities		580,407			77,433
Total Current Liabilities		4,061,487			1,098,746
Long Term Debt		45,177			—
TOTAL LIABILITIES		4,106,664			1,098,746
COMMITMENTS AND CONTINGENCIES
Equity
Preferred stock, $0.001 par value, 30 million shares authorized: 5,500,000 and 10,000,000 shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively		5,500			10,000
Common stock, $0.001 par value, 300 million shares authorized: 12,119,705 and 10,502,961 shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively		12,120			10,503
Additional paid-in-capital		9,244,748			6,606,668
Stock subscription		(30,000	)		(100,000	)
Accumulated deficit		(5,097,990	)		(1,506,893	)
Total Shareholders' Equity		4,134,378			5,020,278
Non-Controlling Interest		(16,366	)		(15,032	)
Total Equity		4,118,012			5,005,246
TOTAL LIABILITIES AND EQUITY	$	8,224,676		$	6,103,992

DS Healthcare Group, Inc. (formerly Divine Skin, Inc.)(d/b/a DS Laboratories) and Subsidiaries

Consolidated Statements of Operations

	For the Years Ended
	December 31,
	2012			2011
Revenue:
Product sales	$	12,170,198		$	10,368,735
Less allowances		(945,774	)		(695,874	)
Net revenue		11,224,424			9,672,861
Cost of Goods Sold		6,749,657			4,751,961
Gross Profit		4,474,767			4,920,900
Operating Costs and Expenses:
Selling and marketing
Commissions and consulting		1,818,937			1,392,609
Other selling and marketing expenses		2,017,603			1,463,873
		3,836,540			2,856,482
General and administrative
Salary and personnel costs		1,662,481			1,203,950
Professional fees and consulting costs		1,385,348			1,070,739
Other general and administrative expenses		1,201,641			783,299
		4,249,470			3,057,988
Total operating costs and expenses		8,086,010			5,914,470
Operating Loss		(3,611,243	)		(993,570	)
Other Income (Expense)
Interest income		2,172			454
Interest expense		(50,305	)		—
Other		36,266			12,224
Total other income (expense)		(11,867	)		12,678
Loss Before Taxes		(3,623,110	)		(980,892	)
Income Tax		—			—
Net Loss		(3,623,110	)		(980,892	)
Net Loss Attributable to Non-Controlling Interest		16,366			2,292
Net Loss Attributable to Shareholders	$	(3,606,744	)	$	(978,600	)
Basic and Diluted Earnings per Share:
Weighted average shares		11,106,145			10,061,123
Loss per share	$	(0.33	)	$	(0.10	)

DS Healthcare Group, Inc. (formerly Divine Skin, Inc.)(d/b/a DS Laboratories) and Subsidiaries

Consolidated Statements of Cash Flows

	For the Years Ended
	December 31,
	2012			2011
Cash Flows from Operating Activities:
Net Loss	$	(3,623,110	)	$	(980,892	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		293,023			200,722
Bad debts		94,534			41,032
Inventory obsolescence		500,000			112,652
Stock issued for services		704,448			116,847
Warrants issued for financial services		4,070			134,244
Warrants vested for other services		128,000			192,000
Changes in operating assets and liabilities:
Accounts receivable		48,800			(1,304,182	)
Inventory		(1,619,788	)		(993,105	)
Prepaid expenses and other current assets		(130,961	)		(5,644	)
Accounts payable and accrued expenses		1,347,237			417,003
Other current liabilities		443,574			56,270
Net cash used in operating activities		(1,810,173	)		(2,013,053	)
Cash Flows from Investing Activities:
Purchase of furniture and equipment		(160,753	)		(50,945	)
Purchase of injection molds		(38,426	)		—
Disposal of Brazil Joint Venture		4,678			—
Purchase of brand rights		(143,847	)		—
Purchase of Mexican distributor		297,452			—
Security deposits		(36,144	)		2,305
Net cash used in investing activities		(77,040	)		(48,640	)
Cash Flows from Financing Activities:
Net proceeds of credit facility		448,658			—
Net proceeds of notes payable		53,900			—
Proceeds from sale of stock to others		—			2,069,500
Less Issuance costs		—			(459,769	)
Proceeds from sale of stock under securities purchase agreement		732,000			1,730,000
Less Issuance costs		(146,400	)		(140,100	)
Stock returned and cancelled		(72,800	)		—
Net cash provided by financing activities		1,015,358			3,199,631
(Decrease) Increase in cash		(871,855	)		1,137,938
Cash, Beginning of Period		1,284,343			146,405
Cash, End of Period	$	412,488		$	1,284,343
Supplemental Information:
Cash paid for interest	$	42,160		$	—
Cash paid for taxes	$	—		$	—
Non-Cash Items:
Acquisition of Mexican distributor	$	1,303,000		$	—

About DS Healthcare Group

DS Healthcare Group, Inc. is a leading developer of hair care, facial care and other personal care products. It markets through online and specialty retailers, distributors, cosmetics wholesalers and salons. Its brands include DS Laboratories (www.DSLaboratories.com), Sigma Skin (www.SigmaSkin.com), Polaris Research Laboratories (www.PolarisReserachLabs.com) and Pure Guild (www.ThePureGuild.com).

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this document and elsewhere by DS Healthcare Group are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the Company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. DS Healthcare Group undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in DS Healthcare Group's filings with the Securities and Exchange Commission.