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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
RYU to Restate Prior Financial Statements

LAS VEGAS, NV -- (Marketwire) -- 11/16/12 -- Respect Your Universe, Inc. (RYU) (TSX VENTURE: RYU) (OTCQB: RYUN),, today announced that, based on the recommendation of the audit committee in consultation with the management of the Company and the Company's independent registered public accounting firm, the board of directors of Respect Your Universe, Inc. (the "Company") has concluded that the Company will restate its previously issued audited financial statements for the fiscal year ended December 31, 2011 and the unaudited financial statements for quarterly periods ended March 31, 2012 and June 30, 2012, as well as its selected financial data for the relevant periods. Accordingly, investors should no longer rely upon the Company's previously released financial statements for these periods and other financial data relating to these periods.

The restatement consists of certain non-cash adjustments related to share based compensation, primarily the accounting for stock issued to third parties for future services which was subject to forfeiture by the recipient. None of the adjustments will impact reported cash balances and the restatement will reduce the accumulated deficit previously reported. Until the restatement process is complete, additional information may become available which could cause the Company's current estimates to change. The effects of the restatement on certain reported periods are material and the impact of the adjustments will be disclosed in more detail in the Company's restated financial statements.

While the Company has not finalized the consideration of the impact of these adjustments on its assessment of internal controls over financial reporting, the Company has concluded that these adjustments were the result of one or more material weaknesses in internal controls over financial reporting.

The anticipated impacts of the restatements are as follows:

Year ended December 31, 2011

Total assets will decrease approximately $1,624,000 with a corresponding decrease to total liabilities and shareholder's equity. Net loss will decrease approximately $174,000 with no change to net loss per common share.

Quarter ended March 31, 2012

Total assets will decrease approximately $1,236,000 with a corresponding decrease to total liabilities and shareholder's equity. Net loss will increase approximately $13,000 with no change to net loss per common share.

Quarter ended June 30, 2012

Total assets will decrease approximately $857,000 with a corresponding decrease to total liabilities shareholder's equity. Net loss will decrease approximately $162,000 with no change to net loss per common share.

The above estimates are based on currently available and evaluated information and are preliminary and subject to change during the course of the Company's restatement process.

"There is no impact to our cash balances as a result of these adjustments, and they will primarily result in a decrease in our total assets, liability and shareholder's equity balance sheet amounts. The adjustments will reduce our previously reported accumulated deficit as we more accurately reflect the value of these stock for services transactions," said Steven H. Eklund, the Company's Chief Financial Officer.

For more information on RYU visit or call +1-888-455-6183 ext. 101.

About Respect Your Universe

Respect Your Universe, Inc. (TSX VENTURE: RYU) (OTCQB: RYUN) is a premium performance, training and lifestyle brand rooted in and inspired by Mixed Martial Arts. The RYU brand is based on respect, honor, strength and sustainability.

Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable securities laws. Forward-looking statements include statements regarding the Company's intent to restate its prior financial statements, the estimated adjustments of the restated financials, and the expected timing of filing the restated financial statements. There can be no assurance that the Company's management, audit committee or independent registered public accounting firm will not reach conclusions regarding the impact of the restatement that are different from management's preliminary estimates or identify additional issues or other considerations in connection with the restatement and the audit and review process or that these issues will not require additional adjustments to the Company's prior financial results. All of these statements are subject to risks and uncertainties which may cause actual results to differ materially from those stated here. These risks and uncertainties include, but are not limited to, the risk that additional information may arise from the oversight of the audit committee, the risk that the process of preparing and auditing the financial statements or other subsequent events would require the Company to make additional adjustments, the time and effort required to complete the restatement of the financial reports, the ramifications of the Company's potential inability to timely file required reports and the risk of litigation or governmental investigations or proceedings relating to such matters. Other risks are described more fully in the Company's filing with the Securities and Exchange Commission. Except as required by law, the Company undertakes no responsibility to update any of the statements contained in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information
Corporate Information:
Respect Your Universe, Inc.

Public Relations:
Respect your Universe, Inc.

Investor Relations:
+1-888-455-6183 ext. 102

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