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Friday, May 15, 2009
LifeVantage Corporation Announces 3Q FY 2009 Financial and Operating Results
LifeVantage
Corporation (OTCBB: LFVN), maker of Protandim®, today announced
results for its third quarter ended March 31, 2009. For the three month
period ended March 31, 2009, the Company recorded net revenues of $0.7
million and a loss of $(3.1) million, or $(0.12) per share. For the
three month period ended March 31, 2008, the Company recorded net
revenues of $0.8 million and a loss of $(0.6) million, or $(0.03) per
share.
For the nine month period ended March 31, 2009, the Company recorded net
revenues of $2.5 million and a loss of $(3.8) million, or $(0.15) per
share, of which approximately $1.5 million, or $0.06 per share consisted
of non-cash expenses. Additionally, approximately $0.5 million, or $0.02
per share consisted of one-time expenses. This compares to net revenues
of $2.4 million and a loss of $(1.3) million, or $(0.06) per share for
the nine month period ended March 31, 2008.
LifeVantage President and CEO, David W. Brown, commented, "During the
third quarter the Company has been preparing for our entry into network
marketing. We successfully raised capital through a private offering in
order to meet the increased expenditures we knew would be necessary to
strengthen our infrastructure, increase inventories, develop new
marketing tools and to recruit new distributors. The third quarter
results reflect the costs of preparing the Company for significant
anticipated growth, and we believe that the greatly increased interest
in our Company reflects the fact that there is much excitement about the
steps we have taken and the progress we've made."
The Company also announced that on May 18, it will officially launch its
new distributor compensation plan, as well as its highly anticipated new
anti-aging skin cream, and will begin fulfilling the orders it has
received, but not shipped or booked during this pre-launch period. Brown
stated, "We have created impressive momentum. Approximately 2,000
distributors have already joined the Company, drawn by the science of
our flagship product, Protandim®, the attractiveness of the
business opportunity and the strength of our management team. We are
attracting both distributors who have been tremendously successful in
network marketing, as well as those who are entirely new to the industry
and who are excited about the opportunity."
Other significant developments in the past quarter include the retention
of a country manager for Mexico and the filing for product registration
in Mexico; the addition of internationally-known physicians, Dr. David
Perlmutter and Dr. Arnold Leonard, to the Company's Scientific Advisory
Board; Emmy award-winning talk show host Montel Williams joined
LifeVantage as an independent distributor; and a new peer reviewed study
on Protandim® was released by Louisiana State University.
Approximately 20 additional studies are being independently funded and
conducted at academic institutions and research facilities across the
nation.
A conference call will be held on Tuesday, May 19, 2009, at 2:00 p.m. MT
(4:00 p.m. ET) to discuss its third quarter fiscal year 2009 financial
and operating results and its launch into network marketing. Interested
parties may listen to the call by dialing 1-877-941-2928. A replay of
the call will be available by telephone until May 26, 2009, at
1-800-406-7325 passcode 4081184.
About
Protandim®
Protandim® is a groundbreaking, clinically proven supplement
that provides a substantial benefit to help with the challenge of
healthy aging. This patented antioxidant therapy works in a very
different way than conventional foods such as red wine, oranges,
blueberries or other popular antioxidant supplements; as a result,
according to Dr. Joe McCord, is much more effective than those products
or foods in reducing oxidative stress. Protandim® works by
increasing the body's natural antioxidant protection at the cellular
level, triggering cells to produce naturally occurring protective
antioxidant enzymes such as superoxide dismutase (SOD), catalase, and
glutathione synthase. Dr. McCord is a pioneer scientist in the field of
oxidative stress and is on the Company's Board of Directors.
A peer-reviewed human study showed that after Protandim® was
taken for 30 consecutive days, the accumulation of lipid peroxidation
products (a biochemical marker of aging) was decreased by an average of
40%, although that reduction may be not be typical for all those who
consume the product. The study also reported that this important marker
of aging was decreased after taking Protandim® to the level
of a typical 20 year old. Protandim® is currently the subject
of over 20 scientific studies at leading universities and research
facilities. For more information, please visit www.LifeVantage.com
or contact Jan Strode (619) 890-4040 or Jean Golden (612) 385-2324.
About
LifeVantage Corporation
LifeVantage Corporation is a publicly traded (OTCBB: LFVN),
science-based, natural products company, dedicated to helping people
reach their health and wellness goals through science-based solutions to
oxidative stress. Founded in 2003 and based in San Diego, CA,
LifeVantage develops nutraceutical products, including Protandim®,
that leverage the company's expertise and that are intended to deliver
significant health benefits to consumers. For more information, visit www.LifeVantage.com
or contact Jan Strode (619) 890-4040 or Jean Golden (612) 385-2324.
This press release contains forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on the
Company's current expectations and beliefs concerning future events
affecting the Company and involve known and unknown risks and
uncertainties including the risk that sales of our product may not
continue at the levels discussed in this press release. These risks and
uncertainties may cause the Company's actual results or outcomes to be
materially different from those anticipated and discussed herein. These
and other risk factors are discussed in greater detail in the Company's
Annual Report on Form 10-KSB for the year ended June 30, 2008, the
Company's Quarterly Report on Form 10-Q for the quarter ended March 31,
2009 and in other documents filed by the Company from time to time with
the Securities and Exchange Commission. The Company cautions investors
not to place undue reliance on the forward-looking statements contained
in this press release. All forward-looking statements are based on
information currently available to the Company, and the Company
undertakes no obligation to revise or update these forward-looking
statements. |
LIFEVANTAGE CORPORATION AND SUBSIDIARY
| |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| |
|
|
| |
| | | | | | | |
March 31, 2009
|
|
June 30, 2008
| ASSETS | | |
| | | |
Current assets
| | | | | | |
Cash and cash equivalents
| |
$
|
1,312,793
| | |
$
|
196,883
| | |
Restricted cash
| | |
770,000
| | |
-
| | |
Marketable Securities, available for sale
| | |
580,000
| | | |
1,100,000
| | |
Accounts receivable, net
| | |
90,432
| | | |
98,008
| | |
Inventory
| | |
457,083
| | | |
104,415
| | |
Deferred expenses
| | |
-
| | | |
72,049
| | |
Deposit with manufacturer
| | |
6,482
| | | |
277,979
| | |
Prepaid expenses
| |
|
38,612
|
|
|
|
124,049
|
| |
Total current assets
| | |
3,255,402
| | | |
1,973,383
| | | | | | | |
| |
Long-term assets
| | | | | | |
Marketable Securities, available for sale
| | |
145,000
| | | |
-
| | |
Property and equipment, net
| | |
171,929
| | | |
63,559
| | |
Intangible assets, net
| | |
2,194,478
| | | |
2,270,163
| | |
Deferred debt offering costs, net
| | |
129,342
| | | |
193,484
| | |
Deposits
| |
|
48,263
|
|
|
|
48,447
|
| |
TOTAL ASSETS
| |
$
|
5,944,414
|
|
|
$
|
4,549,036
|
| | | | | |
| LIABILITIES AND STOCKHOLDERS'
(DEFICIT) EQUITY | | | | | | | | | | |
| |
Current liabilities
| | | | | | |
Revolving line of credit and accrued interest
| |
$
|
325,146
| | |
$
|
166,620
| | |
Accounts payable
| | |
899,465
| | | |
139,803
| | |
Accrued expenses
| | |
779,428
| | | |
338,268
| | |
Deferred revenue
| | |
-
| | | |
510,765
| |
|
Capital lease obligations
| | |
-
| | | |
846
| | |
Equity escrow
| |
|
770,000
|
|
|
|
-
|
| |
Total current liabilities
| | |
2,774,039
| | | |
1,156,302
| | | | | | | |
| |
Long-term liabilities
| | | | | | |
Convertible debt, net of discount
| | |
348,175
| | | |
223,484
| | |
Derivative warrant liability
| |
|
7,247,885
|
|
|
|
-
|
| |
Total liabilities
| |
|
10,370,099
|
|
|
|
1,379,786
|
| | | | | | |
| |
Commitments and contingencies
| | | | | | | | | | | |
| |
Stockholders' (deficit) equity
| | | | | | |
Preferred stock - par value $.001, 50,000,000 shares authorized; no
shares issued or outstanding
| | |
-
| | | |
-
| | |
Common stock - par value $.001, 250,000,000 shares authorized;
38,250,402 and 24,766,117 issued and outstanding as of March 31,
2009 and June 30, 2008, respectively
| | |
38,250
| | | |
24,766
| | |
Additional paid-in capital
| | |
14,091,899
| | | |
17,902,840
| | |
Accumulated (deficit)
| |
|
(18,555,834
|
)
|
|
|
(14,758,356
|
)
| |
Total stockholders' (deficit) equity
| |
|
(4,425,685
|
)
|
|
|
3,169,250
|
| |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
| |
$
|
5,944,414
|
|
|
$
|
4,549,036
|
|
The notes accompanying Form 10-Q are an integral part of these condensed
consolidated statements.
|
LIFEVANTAGE CORPORATION
| |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| |
(Unaudited)
| |
| |
|
For the three months ended
March 31,
|
|
For the nine months ended
March 31,
| | |
2009
|
|
2008
|
|
2009
|
|
2008
| | | |
| |
| |
| | |
Sales, net
| |
$
|
655,122
| | |
$
|
783,946
| | |
$
|
2,507,083
| | |
$
|
2,387,677
| | |
Cost of sales
| |
|
125,198
|
|
|
|
174,890
|
|
|
|
488,283
|
|
|
|
538,212
|
| |
Gross profit
| | |
529,924
| | | |
609,056
| | | |
2,018,800
| | | |
1,849,465
| | | | | | | | | |
| |
Operating expenses:
| | | | | | | | | |
Marketing and customer service
| | |
1,019,739
| | | |
357,990
| | | |
1,826,608
| | | |
1,021,111
| | |
General and administrative
| | |
1,885,630
| | | |
702,404
| | | |
2,896,456
| | | |
1,606,926
| | |
Research and development
| | |
34,427
| | | |
25,045
| | | |
152,942
| | | |
243,934
| | |
Depreciation and amortization
| |
|
40,653
|
|
|
|
39,581
|
|
|
|
120,081
|
|
|
|
117,988
|
| |
Total operating expenses
| |
|
2,980,449
|
|
|
|
1,125,020
|
|
|
|
4,996,087
|
|
|
|
2,989,959
|
| |
Operating (loss)
| | |
(2,450,525
|
)
| | |
(515,964
|
)
| | |
(2,977,287
|
)
| | |
(1,140,494
|
)
| | | | | | | | |
| |
Other income and (expense):
| | | | | | | | | |
Interest (expense), net
| | |
(148,935
|
)
| | |
(88,692
|
)
| | |
(319,319
|
)
| | |
(164,647
|
)
| |
Change in fair value of derivative liability
| |
|
(500,862
|
)
|
|
|
-
|
|
|
|
(500,862
|
)
|
|
|
-
|
| |
Total other (expense)
| |
|
(649,797
|
)
|
|
|
(88,692
|
)
|
|
|
(820,181
|
)
|
|
|
(164,647
|
)
| |
Net (loss)
| |
$
|
(3,100,332
|
)
|
|
$
|
(604,656
|
)
|
|
$
|
(3,797,468
|
)
|
|
$
|
(1,305,141
|
)
| |
Net (loss) per share, basic and diluted
| |
|
($ 0.12
|
)
|
|
|
($ 0.03
|
)
|
|
|
($ 0.15
|
)
|
|
|
($ 0.06
|
)
| |
Weighted average shares outstanding, basic and fully diluted
| |
|
25,973,085
|
|
|
|
22,464,168
|
|
|
|
25,165,481
|
|
|
|
22,349,282
|
|
The notes accompanying Form 10-Q are an integral part of these condensed
consolidated statements.
LifeVantage Corporation
Jan Strode, Investor Relations,
619-890-4040
or
Jean Golden, Investor Relations,
612-385-2324
or
Bradford Amman, CFO, 303-797-9977 |
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