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Interleukin Genetics Reports First Quarter 2012 Financial Results
WALTHAM, Mass. --(Business Wire)--
Interleukin
Genetics, Inc. (OTCQB: ILIU) today announced financial and
operational results for the first quarter ended March 31, 2012.
Total revenue for the three months ended March 31, 2012 was $678,000,
compared to $719,000 for the same period in the prior year. The decrease
was attributable to lower genetic test revenue.
Research and development expenses were $446,000 for the three months
ended March 31, 2012, compared to $305,000 for the same period in the
prior year. The Company continues its work in its weight management and
periodontal disease programs.
Selling, general, and administrative expenses were $1.1 million for the
three months ended March 31, 2012, compared to $1.2 million for the same
period in the prior year. The decrease was primarily attributable to
decreased corporate professional fees and patent-related legal fees
offset in part by increased compensation, consulting and sales
commissions paid to Amway.
The Company reported a net loss of $1.4 million, or $(0.04) per basic
and diluted common share, for the first quarter of 2012, compared to a
loss of $1.3 million, or $(0.03) per basic and diluted share, for the
same period in the prior year. On March 31, 2012, the Company had cash
and cash equivalents of $732,000 and had $1.3 million available under
its credit facility with Pyxis Innovations, Inc.
The Company expects that its current and anticipated financial
resources, including the $1.3 million available as of March 31, 2012
under the credit facility, which was borrowed on April 13, 2012, are
adequate to maintain current and planned operations at least through
June 30, 2012. 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.
"While recognized genetic test revenue this quarter was lower than last
year's for this corresponding quarter, our deferred revenue increased by
over 35% or more than $300,000 in this quarter indicating that unit test
sales are continuing to grow nicely," said Lewis H. Bender, Chief
Executive Officer of Interleukin Genetics. "In addition, enrollment in
our clinical study in collaboration with Renaissance Health and the
University of Michigan to demonstrate the utility of using our PST®
genetic test in the management of dental patients was completed and we
successfully delivered 5,186 genotypes to the University thereby
completing our portion of the program."
Conference Call and Webcast Information
Interleukin Genetics will host a live conference call and webcast
today at 4:30 p.m. EDT to review the Company's new business developments
and first 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 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 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. 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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March 31,
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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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732,390
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$
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1,728,222
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Total current assets
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$
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1,174,624
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$
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2,111,921
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Total assets
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$
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1,931,770
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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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14,726,694
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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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14,726,694
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$
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14,376,748
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Total shareholders' deficit
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$
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(12,794,924
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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 shareholders' deficit
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$
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1,931,770
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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 March 31,
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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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677,168
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$
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719,447
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Other
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716
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38
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Total revenue
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677,884
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719,485
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Cost of revenue
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376,211
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357,589
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Gross profit
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301,673
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361,896
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Operating expenses:
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Research and development
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446,274
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304,820
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Selling, general and administrative
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1,136,649
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1,202,454
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Amortization of intangibles
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28,863
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28,863
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Total operating expenses
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1,611,786
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1,536,137
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Loss from operations
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(1,310,113
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)
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(1,174,241
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)
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Total other expense, net
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(104,593
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)
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(81,470
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Loss before income taxes
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(1,414,706
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)
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(1,255,711
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)
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Benefit for income taxes
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-
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-
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Net loss
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$
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(1,414,706
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)
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$
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(1,255,711
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)
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Basic and diluted net loss per common share
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$
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(0.04
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)
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$
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(0.03
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)
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Weighted average common shares outstanding, basic and diluted
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36,748,063
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36,618,010
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