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Tuesday, November 18, 2008
LifeVantage Corporation Announces 1Q FY 2009 Financial and Operating Results
LifeVantage
Corporation (OTCBB: LFVN), maker of Protandim®, today
announced results for its first quarter ended September 30, 2008. For
the three month period ended September 30, 2008, the Company recorded
net revenues of $1.3 million, which includes $0.5 million of previously
deferred revenue, and a loss of $(0.1) million, or $(0.01) per share.
For the three month period ended September 30, 2007, the Company
recorded net revenues of $0.8 million and a loss of $(0.3) million, or
$(0.01) per share.
The Company has obtained sufficient historical evidence to accurately
recognize deferred revenue of $0.5 million based upon rights of return
by certain retail distributors of Protandim® and recognized
all such previously deferred revenue during the quarter. Without the
recognition of previously deferred revenue, net revenues for the three
month period ended September 30, 2008 would have been $0.8 million and
the net loss would have been $(0.6) million, or $(0.02) per share.
LifeVantage President and CEO, David W. Brown, commented, "As we
recently announced, LifeVantage is redirecting its sales and marketing
focus to include the new distribution model of the network marketing and
individual distributor sales channel. Our net sales have been relatively
flat over the last four quarters, but with the introduction of the
network marketing sales channel that will allow individual distributors
to tell the Protandim® story, we anticipate sales growth over
the next several quarters. In addition, LifeVantage will be releasing a
new scientific study that shows Protandim® produces a 300
percent increase in glutathione, which is a key antioxidant and
anti-aging factor. The study results also confirm that Protandim's
synergistic formulation provides thousands of times more antioxidant
power than any food or conventional supplements."
The Company will hold a conference call on November 25, 2008 at 10:00
a.m. PT (1:00 p.m. ET) to discuss its first quarter financial and
operating results. Interested parties may listen to the call by dialing
800-218-8862. A replay of the call also will be available by telephone
until December 2, 2008 by calling 303-590-3000 or toll-free 800-405-2236
passcode 11122734#.
About Protandim®
Protandim® is a unique approach to fighting the effects of
cell-damaging free radical molecules which advance the aging process,
including many of the diseases of aging. The patented dietary supplement
increases the body's natural antioxidant protection by inducing the
cells of the body to produce naturally occurring protective antioxidant
enzymes, a process which is thousands of times more effective than
traditional vitamin-mineral supplements. Free radical damage occurs when
a person is subjected to environmental stresses and generally increases
with age. Data from a peer-reviewed scientific study in men and women,
sponsored by LifeVantage, show that after 30 days of taking Protandim®,
the level of circulating toxins produced by free radicals decreased an
average of 40 percent. With continued use, the decrease was maintained
at 120 days. For more information, please visit the Protandim® product
web site at www.protandim.com
or contact Jan Strode at (619) 890-4040.
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 Colorado, 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.protandim.com
or contact Jan Strode at (619) 890-4040.
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, 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)
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September 30, 2008
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June 30, 2008
| ASSETS | |
| | |
Current assets
| | | | |
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Cash and cash equivalents
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$ 155,493
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$ 196,883
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Marketable securities, available for sale
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1,050,000
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1,100,000
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Accounts receivable, net
|
84,390
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98,008
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Inventory
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121,142
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104,415
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Deferred expenses
|
-
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72,049
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Deposit with manufacturer
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257,649
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277,979
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Prepaid expenses
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12,543
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124,049
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Total current assets
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1,681,217
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1,973,383
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Long-term assets
| | | | |
Property and equipment, net
|
51,798
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63,559
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Intangible assets, net
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2,243,637
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2,270,163
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Deferred debt offering costs, net
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171,947
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193,484
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Deposits
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61,535
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48,447
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TOTAL ASSETS
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$ 4,210,134
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$ 4,549,036
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| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | |
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Current liabilities
| | | | |
Revolving line of credit and accrued interest
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$ 321,397
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$ 166,620
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Accounts payable
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138,925
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139,803
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Accrued expenses
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325,427
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338,268
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Deferred revenue
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-
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510,765
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Capital lease obligations, current portion
|
215
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846
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Total current liabilities
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785,964
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1,156,302
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Long-term liabilities
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Convertible debt, net of discount
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260,035
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223,484
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Total liabilities
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1,045,999
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1,379,786
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Commitments and Contingencies
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Stockholders' equity
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Common stock, par value $.001, 250,000,000 shares authorized;
24,766,117 issued and outstanding as of September 30, 2008 and June
30, 2008, respectively
| | | | |
24,766
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24,766
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Additional paid-in capital
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18,028,862
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17,902,840
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Accumulated (deficit)
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(14,889,493)
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(14,758,356)
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Total stockholders' equity
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3,164,135
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3,169,250
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ 4,210,134
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$ 4,549,036
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LIFEVANTAGE CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
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For the three months ended September 30,
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2008
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2007
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Sales, net
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$ 1,273,502
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$ 807,324
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Cost of sales
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235,539
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177,303
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Gross profit
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1,037,963
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630,021
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Operating expenses:
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Marketing and customer service
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484,804
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274,448
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General and administrative
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513,995
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425,540
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Research and development
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52,555
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190,630
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Depreciation and amortization
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40,182
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38,639
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Total operating expenses
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1,091,536
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929,257
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Operating loss
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(53,573)
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(299,236)
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Other income and (expense):
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Interest (expense)/income
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(77,562)
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532
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Net other (expense)/income
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(77,562)
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532
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Net loss
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$ (131,135)
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$ (298,704)
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Net loss per share, basic and diluted
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($ 0.01)
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($ 0.01)
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Weighted average shares outstanding, basic and fully diluted
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24,766,117
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24,303,034
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The notes included in Form 10-Q are an integral part of these
condensed consolidated statements.
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LifeVantage Corporation Jan Strode, 619-890-4040 Investor
Relations or Bradford Amman, 303-797-9977 CFO |
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