Interleukin Genetics Reports First Quarter 2013 Financial Results
Interleukin Genetics Reports First Quarter 2013 Financial Results
WALTHAM, Mass.--(BUSINESS WIRE)-- Interleukin Genetics, Inc. (OTCQB: ILIU) today issued financial and operational results for the first quarter ended March 31, 2013.
Revenue for the quarter ended March 31, 2013 was $487,000, compared to $678,000 for the same period in 2012. The decrease is primarily attributable to decreased genetic testing revenue recognized from genetic tests processed as a result of sales through the Amway Global sales channel.
Research and development expenses were $160,000 for the three months ended March 31, 2013, compared to $446,000 for the same period in 2012. The decrease is primarily attributable to lower compensation, consulting and clinical trial costs. In the first quarter of 2013 our Chief Scientific Officer had fully transitioned to his role as Chief Executive Officer and, accordingly, related compensation costs were classified as part of selling, general and administrative expenses in the 2013 period whereas such costs had previously been classified as research and development expenses.
Selling, general and administrative expenses were $1.0 million for the three months ended March 31, 2013, compared to $1.1 million for the same period in 2012. The decrease is primarily attributable to decreased patent related legal fees and corporate legal and accounting fees as well as lower sales commissions paid to Amway Global as part of our Merchant Channel and Partner Store Agreement partially offset by higher compensation and consulting expenses.
The Company reported a net loss of $1.2 million, or $(0.03) per basic and diluted common share, for the first quarter of 2013, compared to $1.4 million or $(0.04) per basic and diluted common share for the same period in 2012.
As of March 31, 2013, the Company had cash and cash equivalents of $1.1 million. As of March 31, 2013, 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 resources are adequate to maintain current and planned operations only through May 31, 2013. 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. The Company has retained a financial advisor and is actively seeking additional funding. If the Company cannot obtain additional funding on acceptable terms, it may be required to discontinue operations and seek protection under U.S. bankruptcy laws.
The Company will not host a conference call/webcast today, but may determine to host a call and webcast later this month depending on the outcome of its fundraising efforts.
About Interleukin Genetics
Interleukin Genetics, Inc. (OTCQB: ILIU) develops and markets a line of genetic tests under the Inherent Health® brand. 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, MA 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 the sufficiency of the Company's current cash resources and the potential for a conference call/webcast later this month. 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 May 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 | ||||||||||||
(UNAUDITED) | ||||||||||||
Balance Sheet Data | March 31, | December 31, | ||||||||||
2013 | 2012 | |||||||||||
Cash and cash equivalents | $ | 1,081,369 | $ | 1,225,426 | ||||||||
Total current assets | $ | 1,698,983 | $ | 2,401,568 | ||||||||
Total assets | $ | 2,170,455 | $ | 2,965,646 | ||||||||
Total current liabilities | $ | 16,959,857 | $ | 2,273,191 | ||||||||
Total liabilities | $ | 16,959,857 | $ | 16,589,446 | ||||||||
Total shareholders' deficit | $ | (14,789,402 | ) | $ | (13,623,800 | ) | ||||||
Total liabilities and shareholders' deficit | $ | 2,170,455 | $ | 2,965,646 | ||||||||
Statement of Operations Data | Three Months Ended March 31, | |||||||||||
2013 | 2012 | |||||||||||
Revenue: | ||||||||||||
Genetic testing service revenue | $ | 483,363 | $ | 677,168 | ||||||||
Other | 4,030 | 716 | ||||||||||
Total revenue | 487,393 | 677,884 | ||||||||||
Cost of revenue | 383,571 | 376,211 | ||||||||||
Gross profit | 103,822 | 301,673 | ||||||||||
Operating costs and expenses: | ||||||||||||
Research and development | 160,380 | 446,274 | ||||||||||
Selling, general and administrative | 1,002,172 | 1,136,649 | ||||||||||
Amortization of intangibles | 28,863 | 28,863 | ||||||||||
Total operating expenses | 1,191,415 | 1,611,786 | ||||||||||
Loss from operations | (1,087,593 | ) | (1,310,113 | ) | ||||||||
Other income and (expense), net | (113,987 | ) | (104,593 | ) | ||||||||
Loss before income taxes | (1,201,580 | ) | (1,414,706 | ) | ||||||||
Benefit for income taxes | - | - | ||||||||||
Net loss | $ | (1,201,580 | ) | $ | (1,414,706 | ) | ||||||
Basic and diluted net loss per common share | $ | (0.03 | ) | $ | (0.04 | ) | ||||||
Weighted average common shares outstanding, basic and diluted | 36,775,504 | 36,748,063 | ||||||||||
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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