WALTHAM, Mass.--(BUSINESS WIRE)--Interleukin Genetics, Inc. (OTCQB: ILIU) today issued financial and operational results for the third quarter ended September 30, 2013.
“During the first nine months of 2013, we made significant progress toward commercialization of our PST® test, a transformative genetic test that predicts a patient’s risk for periodontal disease progression and therefore their need for different levels of preventive care,” said Dr. Kenneth Kornman, Chief Executive Officer of Interleukin Genetics. “Reimbursement is now established and our commercialization partner, Renaissance Health Services Corporation, is incorporating PST® coverage into dental insurance policies which will become effective in a phased approach to smaller employer groups in January 2014 and will be offered to a broader range of employer groups in the latter half of 2014 and into 2015. Our CLIA-certified lab, which was recently upgraded to speed throughput and improve profit margins, now has high-volume capacity and stands ready to receive patient samples for testing.”
Dr. Kornman added: “Also in support of the PST® launch, we continue to focus on our market education efforts including targeted outreach to dental office personnel, since they are on the front lines recommending and providing optimal preventive care to dental patients, and presenting compelling PST® data to dental professional groups at key upcoming scientific meetings.”
Revenue for the quarter ended September 30, 2013 was $419,000, compared to $420,000 for the same period in 2012. The slight decrease is primarily attributable to decreased genetic testing revenue recognized from genetic tests processed.
Research and development expenses were $161,000 for the three months ended September 30, 2013, compared to $246,000 for the same period in 2012. The decrease is primarily attributable to lower compensation and consulting costs partially offset by increased 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 $2.0 million for the three months ended September 30, 2013, compared to $1.0 million for the same period in 2012. The increase is primarily attributable to increased consulting and compensation expenses related to marketing activities for our PST® periodontal test, partially offset by lower corporate legal fees as well as lower sales commissions paid to Amway Global as part of our Merchant Channel and Partner Store Agreement.
The Company reported a net loss of $2.2 million, or $(0.02) per basic and diluted common share, for the third quarter of 2013, compared to $1.3 million or $(0.03) per basic and diluted common share for the same period in 2012. As of September 30, 2013, the Company had cash and cash equivalents of $8.7 million.
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
Interleukin Genetics, Inc. (OTCQB: ILIU) develops and markets proprietary genetic tests for chronic diseases and health related conditions. 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 timing of the rollout of new employer dental insurance policies incorporating PST® coverage and improved profit margins. 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. The Company disclaims any obligation or intention to update these forward-looking statements.
| INTERLEUKIN GENETICS, INC. | ||||||||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||
| Balance Sheet Data | September 30, | December 31, | ||||||||||||||||
|
2013 |
2012 |
|||||||||||||||||
| Cash and cash equivalents | $ | 8,743,509 | $ | 1,225,426 | ||||||||||||||
| Total current assets | $ | 9,489,203 | $ | 2,401,568 | ||||||||||||||
| Total assets | $ | 10,127,630 | $ | 2,965,646 | ||||||||||||||
| Total current liabilities | $ | 3,091,843 | $ | 2,273,191 | ||||||||||||||
| Total liabilities | $ | 3,091,843 | $ | 16,589,446 | ||||||||||||||
| Total shareholders' equity (deficit) | $ | 7,035,787 | $ | (13,623,800 | ) | |||||||||||||
| Total liabilities and shareholders' equity (deficit) | $ | 10,127,630 | $ | 2,965,646 | ||||||||||||||
| Statement of Operations Data | Three Months Ended Sept 30, | Nine Months Ended Sept 30, | ||||||||||||||||
|
2013 |
2012 |
2013 |
2012 |
|||||||||||||||
| Revenue: | ||||||||||||||||||
| Genetic testing service revenue | $ | 411,557 | $ | 383,064 | $ | 1,744,342 | $ | 1,837,781 | ||||||||||
| Other | 7,484 | 36,947 | 14,220 | 59,550 | ||||||||||||||
| Total revenue | 419,041 | 420,011 | 1,758,562 | 1,897,331 | ||||||||||||||
| Cost of Revenue | 362,769 | 271,430 | 1,242,757 | 1,040,764 | ||||||||||||||
| Gross profit (loss) | 56,272 | 148,581 | 515,805 | 856,567 | ||||||||||||||
| Operating costs and expenses: | ||||||||||||||||||
| Research and development | 161,353 | 245,736 | 509,509 | 1,009,449 | ||||||||||||||
| Selling, general and administrative | 2,035,179 | 1,044,567 | 4,610,737 | 3,357,327 | ||||||||||||||
| Amortization of intangibles | 27,317 | 28,863 | 81,950 | 86,590 | ||||||||||||||
| Total operating expenses | 2,223,849 | 1,319,166 | 5,202,196 | 4,453,366 | ||||||||||||||
| Loss from operations | (2,167,577 | ) | (1,170,585 | ) | (4,686,391 | ) | (3,596,799 | ) | ||||||||||
| Other income and (expense), net | (8,480 | ) | (115,639 | ) | (467,557 | ) | (333,966 | ) | ||||||||||
| Loss before income taxes | (2,176,057 | ) | (1,286,224 | ) | (5,153,948 | ) | (3,930,765 | ) | ||||||||||
| Benefit for Income taxes | - | - | - | - | ||||||||||||||
| Net loss | $ | (2,176,057 | ) | $ | (1,286,224 | ) | $ | (5,153,948 | ) | $ | (3,930,765 | ) | ||||||
| Basic and diluted net loss per common share | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | (0.11 | ) | ||||||
| Weighted average common shares outstanding, | ||||||||||||||||||
| basic and diluted | 122,277,324 | 36,756,864 | 79,666,229 | 36,753,942 | ||||||||||||||