Interleukin Genetics, Inc. today announced financial and operational results for the second quarter ended June 30, 2012.
Total revenue for the three months ended June 30, 2012 was $799,000, compared to $797,000 for the same period in the prior year. Revenue in both periods is primarily attributable to sales of our Inherent Health® brand of genetic tests sold through our Merchant Network and Channel Partner Agreement with Amway Global.
Research and development expenses were $317,000 for the three months ended June 30, 2012, compared to $360,000 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 $1.2 million for the three months ended June 30, 2012, compared to $1.3 million for the same period in the prior year. The decrease was primarily attributable to lower compensation and sales commissions paid to Amway offset by increased patent related legal fees, consulting and professional fees.
The Company reported a net loss of $1.2 million, or $(0.03) per basic and diluted common share, for the second quarter of 2012 and 2011. On June 30, 2012, the Company had cash and cash equivalents of $3.8 million. On April 13, 2012, the Company drew down the remaining $1.3 million available on its credit facility with Pyxis Innovations, Inc. which becomes due on November 30, 2012. On June 29, 2012, the Company completed an equity transaction with Delta Dental of Michigan, Inc. pursuant to which Delta Dental purchased 500,000 shares of Series B Convertible Preferred Stock for gross proceeds of $3.0 million. Net proceeds to the Company after fees and expenses were $2.75 million.
The Company expects that its current and anticipated financial resources, including the $1.3 million borrowed on April 13, 2012, and the net proceeds from the Preferred Stock sale are adequate to maintain current and planned operations at least through November 30, 2012 and through January 31, 2013 if the debt is extended further than its current November 30, 2012 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.
“Our genetic testing business remains consistent,” said Lewis H. Bender, Chief Executive Officer of Interleukin Genetics. “We continue to advance our PST clinical utility program with Renaissance Health Service Corporation and the University of Michigan. We are excited by the first set of results received from the University of Michigan announced earlier this month. We shall work to submit a manuscript for peer-review publication and to continue to ramp up the commercialization of our PST® genetic test for improved management of dental patients.”
Conference Call and Webcast Information
InterleukinGenetics will host a live conference call and webcast today at 4:30 p.m. EDT to review the Company’s new business developments and second 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. 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, quarterly report on Form 10-Q for the quarters ended March 31 and June 30, 2012 and other filings with the Securities and Exchange Commission. The Company disclaims any obligation or intention to update these forward-looking statements.