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Interleukin Genetics Reports Third Quarter 2012 Financial Results
WALTHAM, Mass. --(Business Wire)--
Interleukin
Genetics, Inc. (OTCQB: ILIU) today announced financial and
operational results for the third quarter ended September 30, 2012.
Total revenue for the three months ended September 30, 2012 was
$420,000, compared to $765,000 for the same period in the prior year.
The decrease was primarily attributable to a decrease in genetic tests
returned and processed and lower sales of our Inherent Health® brand
of genetic tests through our Merchant Network and Channel Partner (News - Alert)
Agreement with Amway Global. Cash received from genetic test sales is
reflected as deferred revenue until the test report is issued. Deferred
revenue increased $146,000 to $971,000 at September 30, 2012 as compared
to December 31, 2011.
Research and development expenses were $246,000 for the three months
ended September 30, 2012, compared to $325,000 for the same period in
the prior year. The decrease was primarily attributable to lower
consulting costs partially offset by increased compensation costs.
Selling, general, and administrative expenses were $1.0 million for the
three months ended September 30, 2012, compared to $1.1 million for the
same period in the prior year. The decrease was primarily attributable
to lower patent related legal fees, insurance, consulting and sales
commissions paid to Amway partially offset by increased professional
fees and employee separation costs.
The Company reported a net loss of $1.3 million, or $(.03) per basic and
diluted common share, for the third quarter of 2012 compared to $1.1
million, or $(.03) per basic and diluted common share, for the same
period in 2011. On September 30, 2012, the Company had cash and cash
equivalents of $2.5 million.
The Company expects that its current and anticipated financial resources
are adequate to maintain current and planned operations at least through
November 30, 2012, the due date of its credit facility with Pyxis
Innovations, Inc., and through March 31, 2013 if the due date of the
credit facility is extended. Management is in discussions with Pyxis to
extend this due date. The Company's independent registered public
accounting firm has included an explanatory paragraph in their opinion
in connection with the 2011 audit, relating to the Company's ability to
continue as a going concern.
"We are encouraged by the positive top line results received from the
University of Michigan study that employed our PST® test. The
results of the study should provide the evidence to support broader use
of this test to both improve preventive dental care and favorably
influence healthcare costs. We are now focused on ramping up the broad
commercialization of our PST genetic test for improved management of
dental patients," said Kenneth S. Kornman, Chief Executive Officer of
Interleukin Genetics.
Conference Call and Webcast Information
Interleukin Genetics will host a live conference call and webcast
today at 4:30 p.m. EST to review the Company's new business developments
and third quarter financial results. To access the live call, dial
877-324-1976 (domestic) or 631-291-4550 (international). The live
webcast and replay access will be available on the Investors section of
the Company's Website at: www.ilgenetics.com.
About Interleukin Genetics, Inc.
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 available
through health care professionals, 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
Laboratory Improvement Amendments (CLIA). For more information please
visit www.ilgenetics.com.
Certain statements contained herein are "forward-looking" statements,
including statements relating to the sufficiency of the Company's
current and anticipated financial resources and the extension of the due
date of the Company's credit facility. 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, 2011 and
other filings with the Securities and Exchange Commission. The Company
disclaims any obligation or intention to update these forward-looking
statements.
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INTERLEUKIN GENETICS, INC.
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FINANCIAL HIGHLIGHTS
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Balance Sheet Data : (Unaudited)
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September 30,
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December 31,
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2012
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2011
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Cash and cash equivalents
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$
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2,489,156
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$
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1,728,222
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Other current assets
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$
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396,254
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$
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383,699
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Non-current assets
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$
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621,297
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$
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841,596
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Total assets
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$
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3,506,707
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$
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2,953,517
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Total current liabilities
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$
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15,962,141
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$
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14,376,748
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Total liabilities
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$
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15,962,141
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$
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14,376,748
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Total stockholders' deficit
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$
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(12,455,434
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)
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$
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(11,423,231
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)
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Total liabilities and stockholders' deficit
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$
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3,506,707
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$
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2,953,517
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Statement of Operations Data (Unaudited):
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2012
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2011
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2012
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2011
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Revenue:
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Genetic testing service revenue
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$
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383,064
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$
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731,194
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$
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1,837,781
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$
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2,229,757
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Other
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36,947
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34,222
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59,550
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52,008
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Total revenue
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420,011
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765,416
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1,897,331
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2,281,765
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Cost of revenue
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271,430
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370,740
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1,040,764
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1,166,793
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Gross profit
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148,581
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394,676
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856,567
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1,114,972
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Operating expenses:
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Research and development
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245,736
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324,669
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1,009,449
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989,287
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Selling, general and administrative
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1,044,567
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1,086,606
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3,357,327
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3,542,203
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Amortization of intangibles
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28,863
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28,863
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86,590
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86,590
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Total operating expenses
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1,319,166
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1,440,138
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4,453,366
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4,618,080
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Loss from operations
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(1,170,585
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)
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(1,045,462
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)
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(3,596,799
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(3,503,108
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Total other expense, net
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(115,639
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)
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(89,080
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(333,966
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)
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(257,778
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Loss before income taxes
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(1,286,224
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(1,134,542
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(3,930,765
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(3,760,886
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Benefit for income taxes
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-
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-
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-
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-
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Loss from continuing operations
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(1,286,224
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)
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(1,134,542
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(3,930,765
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)
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(3,760,886
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Income from discontinued operations, net of income taxes
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-
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-
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-
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158,366
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Net loss
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$
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(1,286,224
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$
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(1,134,542
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$
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(3,930,765
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$
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(3,602,520
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)
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Basic and diluted net loss per common share from:
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Continuing operations
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$
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(0.03
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)
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$
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(0.03
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$
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(0.11
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)
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$
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(0.10
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Discontinued operations
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-
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-
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-
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0.00
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Net loss
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$
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(0.03
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$
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(0.03
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$
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(0.11
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$
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(0.10
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Weighted average common shares outstanding, basic and diluted
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36,756,864
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36,674,829
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36,753,942
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36,647,874
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