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.
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.
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 |
For the nine months ended | |||||||||||||||
| 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