LifeVantage Corporation Announces 2Q FY 2008 Financial and Operating Results
LifeVantage Corporation (OTCBB: LFVN), http://www.lifevantage.com, maker of Protandim®, today announced results for its second quarter ended December 31, 2007. For the three month period ended December 31, 2007, the Company recorded net revenues of $0.8 million and a loss of $(0.4) million, or $(0.02) per share. For the three month period ended December 31, 2006, the Company recorded net revenues of $1.1 million and a loss of $(1.8) million, or $(0.08) per share.
For the six month period ended December 31, 2007, the Company recorded net revenues of $1.6 million and a loss of $(0.7) million, or $(0.03) per share comparing to net revenues of $3.2 million and a loss of $(2.6) million, or $(0.12) per share for the six month period ended December 31, 2006.
LifeVantage President and CEO, David W. Brown, commented, "The cost containment programs implemented during the prior fiscal year have significantly improved the Company's bottom line. The Company experienced positive cash flow from operations during both the three and six month periods ended December 31, 2007. This is the first time the Company had positive cash flow from operations in two years, since the Company's second quarter ended December 31, 2005." Mr. Brown added, "Our effort can now be directed to growing sales, enhancing distribution channels, and developing investor relations to enhance shareholder value."
The Company's Treasurer, Bradford Amman, continued, "In addition to the increase in cash flow from operations as a result of dramatic cost savings, the proceeds received from the issuance of convertible debentures in September and October 2007 provide LifeVantage with working capital to build sales and position the Company to achieve its goals."
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, slowing the progressive aging factors to the level of a 20 year old. 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 document contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.The Company uses the words "anticipate,""believe,""could,""should,""estimate,""expect,""intend,""may,""predict,""project,""plan,""target" and similar terms and phrases, including references to assumptions, to identify forward-looking 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 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 under the caption "Risk Factors", and in other documents filed 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.
| LIFEVANTAGE CORPORATION | |||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
|
(Unaudited) December 31, 2007 |
(Audited)
June 30, 2007 | ||||||||||
ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 142,036 | $ | 160,760 | |||||||
| Marketable securities, available for sale | 1,475,000 | - | |||||||||
| Accounts receivable, net | 151,567 | 398,463 | |||||||||
| Inventory | 34,943 | 27,834 | |||||||||
| Deferred expenses | 71,025 | 117,807 | |||||||||
| Deposit with manufacturer | 329,236 | 388,791 | |||||||||
| Prepaid expenses | 95,019 | 60,175 | |||||||||
| Total current assets | 2,298,826 | 1,153,830 | |||||||||
| Property and equipment, net | 80,036 | 108,915 | |||||||||
| Intangible assets, net | 2,295,109 | 2,311,110 | |||||||||
| Deferred offering costs, net | 236,089 | - | |||||||||
| Deposits | 93,588 | 340,440 | |||||||||
| TOTAL ASSETS | $ | 5,003,648 | $ | 3,914,295 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 187,778 | $ | 148,699 | |||||||
| Accrued expenses | 488,887 | 230,811 | |||||||||
| Deferred revenue | 507,450 | 818,250 | |||||||||
| Capital lease obligations, current portion | 2,037 | 2,301 | |||||||||
| Total current liabilities | 1,186,152 | 1,200,061 | |||||||||
| Long-term liabilities | |||||||||||
| Capital lease obligations, net of current portion | - | 846 | |||||||||
| Convertible debt | 221,193 | - | |||||||||
| Total liabilities | 1,407,345 | 1,200,907 | |||||||||
| Commitments and Contingencies | - | - | |||||||||
| Stockholders' 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; 22,378,034 and 22,268,034 issued and outstanding as of December 31, 2007 and June 30, 2007, respectively | |||||||||||
| 22,378 | 22,268 | ||||||||||
| Additional paid-in capital | 16,978,325 | 15,395,037 | |||||||||
| Accumulated (deficit) | (13,404,400 | ) | (12,703,917 | ) | |||||||
| Total stockholders' equity | 3,596,303 | 2,713,388 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 5,003,648 | $ | 3,914,295 | |||||||
| LIFEVANTAGE CORPORATION | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (Unaudited) | |||||||||||||
For the three months ended |
For the six months ended | ||||||||||||
| 2007 | 2006 | 2007 | 2006 | ||||||||||
| Sales, net | $ | 796,409 | $ | 1,136,763 | $ | 1,603,733 | $ | 3,212,244 | |||||
| Cost of sales | 186,019 | 249,164 | 363,322 | 624,715 | |||||||||
| Gross profit | 610,390 | 887,599 | 1,240,411 | 2,587,529 | |||||||||
| Operating expenses: | |||||||||||||
| Marketing and customer service | 388,673 | 1,068,185 | 663,121 | 2,101,000 | |||||||||
| General and administrative | 478,982 | 1,392,320 | 904,522 | 2,799,946 | |||||||||
| Research and development | 28,259 | 72,653 | 218,889 | 138,336 | |||||||||
| Depreciation and amortization | 59,394 | 30,582 | 98,885 | 60,014 | |||||||||
| Loss on disposal of assets | - | 93,854 | - | 93,854 | |||||||||
| Total operating expenses | 955,308 | 2,657,594 | 1,885,417 | 5,193,150 | |||||||||
| Operating loss | (344,918 | ) | (1,769,995 | ) | (645,006 | ) | (2,605,621 | ) | |||||
| Other income and (expense): | |||||||||||||
| Interest income (expense), net | (56,861 | ) | 5,155 | (55,477 | ) | 30,707 | |||||||
| Other | - | (166 | ) | - | (10,301 | ) | |||||||
| Net other income (expense) | (56,861 | ) | 4,989 | (55,477 | ) | 20,406 | |||||||
| Net loss | $ | (401,779 | ) | $ | (1,765,006 | ) | $ | (700,483 | ) | $ | (2,585,215 | ) | |
| Net loss per share, basic and diluted | ($ 0.02 | ) | ($ 0.08 | ) | ($ 0.03 | ) | ($ 0.12 | ) | |||||
| Weighted average shares outstanding, basic and fully diluted | 22,316,893 | 22,118,034 | 22,292,463 | 22,118,034 | |||||||||