LifeVantage
Corporation (OTCBB:LFVN), a science-based, natural products company
dedicated to helping people reach their health and wellness goals
through science-based solutions to oxidative stress and a maker of
Protandim®, announced today that it has implemented cost
reduction initiatives designed to reduce operating costs while
increasing efficiency and productivity throughout the Company.
In February of this year, LifeVantage announced that an experienced 52
person network marketing team was joining its existing nine person
corporate team. Following the merger of these two teams, the Company
instituted a comprehensive review to evaluate, merge and streamline job
functions and responsibilities to recognize the traditional benefits of
eliminating redundant functions. As a result, the Company has already
phased-out or plans to phase out a total of 18 positions by the end of
this quarter. Of these, four employees have been offered alternative
positions which better fit the individual employees' skill sets and the
Company's growth needs. With these changes as well as some independent
departures, the Company will have 44 employees. These initiatives are
expected to allow LifeVantage to retain the most qualified and essential
personnel required for continued operations and growth of its network
marketing distribution model.
Earlier this year, LifeVantage launched into the network marketing sales
channel and the Company looks forward to recognizing the benefits of its
new team and revenue model. Expenses related to the addition of the new
team, legal and marketing expenses necessary to re-launch the Company
and TrueScience™, the Company's new skin cream product, have now been
recognized. In addition, LifeVantage has also implemented reductions in
overhead and operating expenses and moving forward the Company is poised
to execute its growth plans with a more efficient corporate and
operational structure.
"It is never easy to integrate and transition a new team, and while
these decisions were difficult, they are essential in attaining
profitability while maintaining competitiveness and financial
flexibility moving forward," stated David W. Brown, LifeVantage
President & CEO. "During these high-growth times, our priorities are
investing in the right areas of our business, leveraging cash and
continuing to effectively make use of our existing team in order to
become profitable for the long term benefit of our stockholders,
employees, distributors and customers," added Mr. Brown. "We saw an
expected substantial increase in net revenue of 150% in the fourth
quarter which demonstrates the early results of our expansion into the
network marketing sales channel. We believe the team we now have in
place will continue to significantly impact our continued growth and
expansion."
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.
About Protandim®
Protandim® is a clinically proven supplement that provides
substantial benefits to help with the challenges 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. Protandim® works by
increasing the body's natural antioxidant protection at the cellular
level, triggering (inducing) cells to produce naturally occurring
protective antioxidant enzymes such as superoxide dismutase (SOD),
catalase, and glutathione synthase.
A peer-reviewed human clinical 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 approximately 20 scientific studies at leading
universities and research facilities. The nature and stages of the
studies vary, as some of the testing is at the preliminary stage, while
other studies using Protandim® are currently
in progress. For more information about Protandim®,
visit www.LifeVantage.com.
About LifeVantage TrueScience™ Anti-Aging Cream LifeVantage TrueScience™ is
scientifically-based and contains cutting-edge ingredients, including
those found in Protandim®. LifeVantage TrueScience™Anti-Aging Cream gives skin a beautiful, even and smooth tone,
diminishes fine lines and wrinkles, and provides a vibrant and glowing
appearance. LifeVantage TrueScience™ also
improves skin smoothness and pigmentation, while increasing skin
moisture. For more information about LifeVantage TrueScience™,
visit www.LifeVantage.com.
Forward Looking Statements
This document contains forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Words and expressions reflecting optimism, satisfaction or
disappointment with current prospects, as well as words such as
"believe," "hopes," "intends," "estimates," "expects," "projects,"
"plans," "anticipates" and variations thereof, identify forward-looking
statements, but their absence does not mean that a statement is not
forward-looking. Such forward-looking statements are not guarantees of
performance and the Company's actual results could differ materially
from those contained in such statements. 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 that may cause the Company's actual
results or outcomes to be materially different from those anticipated
and discussed herein. These risks and uncertainties include, among
others, the potential failure or unintended negative consequences of the
implementation of our network marketing sales channel; our ability to
retain independent distributors or to attract new independent
distributors on an ongoing basis; the potential for third party and
governmental actions involving our network marketing sales channel; the
potential for product liability claims against the Company; the risk
that government regulators and regulations could adversely affect our
business; future laws or regulations may hinder or prohibit the
production or sale of our existing product and any future products;
unfavorable publicity could materially hurt our business; and the
Company's ability to protect our intellectual property rights and the
value of our product. These and other risk factors are discussed in
greater detail in the Company's Annual Report on Form 10-KSB and
Quarterly Report on Form 10-Q under the caption "Risk Factors", 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 document. All forward-looking statements are based on information
currently available to the Company on the date hereof, and the Company
undertakes no obligation to revise or update these forward-looking
statements to reflect events or circumstances after the date of this
document, except as required by law.
*These statements have not been evaluated by the Food and Drug
Administration. This product is not intended to diagnose, treat, cure or
prevent any disease.
LifeVantage Corporation Investors: Ioana C. Hone, 858-312-8000
ext. 4 or For LifeVantage Corporation Media: Jan
Strode, 619-890-4040 Jean Golden, 612-385-2324
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