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Interleukin Genetics Reports First Quarter 2012 Financial Results
[May 10, 2012]

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.



 
INTERLEUKIN GENETICS, INC.
FINANCIAL HIGHLIGHTS
   
Balance Sheet Data (Unaudited) March 31, December 31,

2012

2011

Cash and cash equivalents $ 732,390 $ 1,728,222
Total current assets $ 1,174,624   $ 2,111,921  
Total assets $ 1,931,770   $ 2,953,517  
 
Total current liabilities $ 14,726,694 $ 14,376,748
Total liabilities $ 14,726,694 $ 14,376,748
 
Total shareholders' deficit $ (12,794,924 ) $ (11,423,231 )
   
Total liabilities and shareholders' deficit $ 1,931,770   $ 2,953,517  
 
 
Statement of Operations Data (Unaudited) Three Months Ended March 31,

2012

2011

Revenue:
Genetic testing service revenue $ 677,168 $ 719,447
Other   716     38  
Total revenue 677,884 719,485
Cost of revenue   376,211     357,589  
Gross profit 301,673 361,896
Operating expenses:
Research and development 446,274 304,820
Selling, general and administrative 1,136,649 1,202,454
Amortization of intangibles   28,863     28,863  
Total operating expenses   1,611,786     1,536,137  
Loss from operations (1,310,113 ) (1,174,241 )
Total other expense, net   (104,593 )   (81,470 )
Loss before income taxes (1,414,706 ) (1,255,711 )
Benefit for income taxes   -     -  
Net loss $ (1,414,706 ) $ (1,255,711 )
Basic and diluted net loss per common share $ (0.04 ) $ (0.03 )

Weighted average common shares outstanding, basic and diluted

  36,748,063     36,618,010  


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