Interleukin Genetics Reports Fourth Quarter and Year End 2012 Financial Results
Interleukin Genetics Reports Fourth Quarter and Year End 2012 Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)-- Interleukin Genetics, Inc. (OTCQB: ILIU) today issued financial and operational results for its fiscal fourth quarter and full fiscal year ended December 31, 2012.
"In 2012, with the successful completion of the University of Michigan study showing the value of our periodontal disease test, PST®, in guiding preventive dental care, Interleukin Genetics achieved a key milestone on the path to what we believe will be growth in commercialization of our proprietary molecular diagnostic technology," reported Dr. Ken Kornman, Chief Executive Officer of Interleukin Genetics. "We are now focused on preparing to make PST widely available to guide more effective and efficient preventive care in dentistry. In addition, we continue to work with our weight management test partner, Amway, to integrate more directly with their new weight loss programs that launch in 2013. We are optimistic that our advances in 2012 will help to make Interleukin one of the leading commercial providers of molecular diagnostics as personalized healthcare becomes a reality."
2012 Financial Highlights
The Company reported revenues of $2.2 million and a loss from continuing operations of $5.1 million, or $(0.14) per basic and diluted common share, for the year ended December 31, 2012, compared to revenues in 2011 of $2.9 million and a loss from continuing operations of $5.2 million, or $(0.14) per basic and diluted common share. The revenue decrease is primarily attributable to decreased sales of the Company's Inherent Health® brand of genetic tests through the Amway Global sales channel.
Research and development expenses were $1.3 million for the year ended December 31, 2012, compared to $1.4 million for the year ended December 31, 2011. The decrease is primarily attributable to decreased consulting costs partially offset by increased compensation expenses as compared to the year ended December 31, 2011.
Selling, general and administrative expenses were $4.2 million for the year ended December 31, 2012, compared to $4.7 million for the year ended December 31, 2011. The decrease is primarily attributable to decreases in sales commissions paid to Amway Global as part of our Merchant Channel and Partner Store Agreement, compensation expenses and depreciation, partially offset by increased professional fees and employee separation costs attributable to the resignation of the Company's former Chief Executive Officer on August 23, 2012.
Fourth Quarter Results
Revenue for the quarter ended December 31, 2012 was $0.3 million, compared to $0.6 million for the same period in 2011. The decrease is primarily attributable to decreased genetic testing revenue as a result of sales through the Amway Global sales channel.
Research and development expenses were $0.3 million for the quarter ended December 31, 2012, compared to $0.4 million for the quarter ended December 31, 2011. The decrease is primarily attributable to decreased consulting costs partially offset by increased compensation expenses as compared to the year ended December 31, 2011.
Selling, general and administrative expenses were $0.8 million for the quarter ended December 31, 2012, compared to $1.1 million for the same period in 2011. The decrease is primarily attributable to decreases in sales commissions paid to Amway Global as part of our Merchant Channel and Partner Store Agreement, compensation expenses and depreciation.
The Company reported a loss from continuing operations of $1.2 million, or $(0.03) per basic and diluted common share, for the fourth quarter of 2012, compared to $1.4 million or $(0.04) per basic and diluted common share for the same period in 2011.
As of December 31, 2012, the Company had cash and cash equivalents of $1.2 million, compared to $1.7 million of cash and cash equivalents on December 31, 2011. As of December 31, 2012, the Company had drawn the full $14.3 million under credit facilities with Pyxis Innovations Inc., an affiliate of Alticor. This facility currently becomes due on March 31, 2014.
The Company expects that its current and anticipated financial resources, including the $1.3 million available as of December 31, 2011 under the credit facility with Pyxis, are adequate to maintain current and planned operations only through April 30, 2013 and continues to work on sources of funding. The Company's independent registered public accounting firm has included an explanatory paragraph in their opinion in connection with the 2012 audit, relating to the Company's ability to continue as a going concern.
Conference Call and Webcast Information
Interleukin Genetics, Inc. will host a live conference call and webcast today at 4:30 p.m. EDT. To access the live call, dial 877-324-1976 (domestic) or 631-291-4550 (international). The live webcast will be available at the Investors section of the Company's website, www.ilgenetics.com.
The webcast will be archived following the call at www.ilgenetics.com.
About Interleukin Genetics
Interleukin Genetics, Inc. (OTCQB: ILIU) develops and markets a line of genetic tests under the Inherent Health® and PST® brands. The products empower individuals to prevent certain chronic conditions and manage their existing health and wellness through genetic-based insights with actionable guidance. Interleukin Genetics leverages its research, intellectual property and genetic panel development expertise in metabolism and inflammation to facilitate the emerging personalized healthcare market. The Company markets its tests through partnerships with health and wellness companies, healthcare professionals and other distribution channels. Interleukin Genetics' flagship products include its proprietary PST® genetic risk panel for periodontal disease and tooth loss susceptibility sold through dentists, and the Inherent Health Weight Management Genetic Test that identifies the most effective diet and exercise program for an individual based on genetics. Interleukin Genetics is headquartered in Waltham, Mass. and operates an on-site, state-of-the-art DNA testing laboratory certified under the Clinical Laboratories Improvements Act (CLIA). For more information please visit www.ilgenetics.com.
Certain statements contained herein are "forward-looking" statements, including statements related to anticipated growth in commercialization of the Company's proprietary molecular diagnostic technology, that Company's advances in 2012 will help to make it one of the leading commercial providers of molecular diagnostics, and the sufficiency of the Company's current and anticipated cash resources. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those risks and uncertainties described in the Company's annual report on Form 10-K for the year ended December 31, 2012 and other filings with the Securities and Exchange Commission, including the risk that if the Company fails to obtain additional capital by the end of April 2013,then it may have to end its operations and seek protection under bankruptcy laws. The Company disclaims any obligation or intention to update these forward-looking statements.
INTERLEUKIN GENETICS, INC. | ||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||
Balance Sheet Data | December 31, | December 31, | ||||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,225,426 | $ | 1,728,222 | ||||||||||||||||||||
Total current assets | $ | 2,401,568 | $ | 2,111,921 | ||||||||||||||||||||
Total assets | $ | 2,965,646 | $ | 2,953,517 | ||||||||||||||||||||
Total current liabilities | $ | 2,273,191 | $ | 14,376,748 | ||||||||||||||||||||
Total liabilities | $ | 16,589,446 | $ | 14,376,748 | ||||||||||||||||||||
Total shareholders' deficit | $ | (13,623,800 | ) | $ | (11,423,231 | ) | ||||||||||||||||||
Total liabilities and shareholders' deficit | $ | 2,965,646 | $ | 2,953,517 | ||||||||||||||||||||
Statement of Operations Data | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Genetic testing service revenue | $ | 317,004 | $ | 527,598 | $ | 2,154,785 | $ | 2,757,355 | ||||||||||||||||
Other | 22,053 | 47,741 | 81,602 | 99,750 | ||||||||||||||||||||
Total revenue | 339,057 | 575,339 | 2,236,387 | 2,857,105 | ||||||||||||||||||||
Cost of revenue | 287,774 | 360,408 | 1,328,538 | 1,527,201 | ||||||||||||||||||||
Gross profit | 51,283 | 214,931 | 907,849 | 1,329,904 | ||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||
Research and development | 302,427 | 387,106 | 1,311,877 | 1,376,394 | ||||||||||||||||||||
Selling, general and administrative | 793,281 | 1,123,157 | 4,150,607 | 4,665,360 | ||||||||||||||||||||
Amortization of intangibles | 28,864 | 28,864 | 115,453 | 115,453 | ||||||||||||||||||||
Total operating expenses | 1,124,572 | 1,539,127 | 5,577,937 | 6,157,207 | ||||||||||||||||||||
Loss from operations | (1,073,289 | ) | (1,324,196 | ) | (4,670,088 | ) | (4,827,303 | ) | ||||||||||||||||
- | ||||||||||||||||||||||||
Total other income and (expense), net | (116,030 | ) | (98,466 | ) | (449,996 | ) | (356,245 | ) | ||||||||||||||||
Loss from continuing operations before income taxes | (1,189,319 | ) | (1,422,662 | ) | (5,120,084 | ) | (5,183,548 | ) | ||||||||||||||||
Income taxes | - | - | - | - | ||||||||||||||||||||
Loss from continuing operations | $ | (1,189,319 | ) | $ | (1,422,662 | ) | $ | (5,120,084 | ) | $ | (5,183,548 | ) | ||||||||||||
Income from discontinued operations, net of income taxes | - | - | - | 158,366 | ||||||||||||||||||||
Net loss | $ | (1,189,319 | ) | $ | (1,422,662 | ) | $ | (5,120,084 | ) | $ | (5,025,182 | ) | ||||||||||||
Basic and diluted net (loss) income per common share from: | ||||||||||||||||||||||||
Continuing operations | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.14 | ) | $ | (0.14 | ) | ||||||||||||
Discontinued operations | - | - | - | 0.00 | ||||||||||||||||||||
Net loss | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.14 | ) | $ | (0.14 | ) | ||||||||||||
Weighted average common shares outstanding, basic and diluted | 36,756,864 | 36,701,099 | 36,754,679 | 36,661,290 | ||||||||||||||||||||
Interleukin Investors:
Interleukin Genetics, Inc.
Eliot Lurier, CFO, 781-398-0700
elurier@ilgenetics.com
KEYWORDS: United States North America Massachusetts
INDUSTRY KEYWORDS:
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