LIFEVANTAGE CORPORATION ANNOUNCES 2Q FY2007 FINANCIAL AND OPERATING RESULTS
GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--LifeVantage Corporation (OTCBB: LFVN), formerly Lifeline Therapeutics, Inc., maker of Protandim®, today announced results for its second quarter 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. In the first quarter ended September 30, 2006, the Company recorded net revenues of $2.1 million and a loss of $(820,208) or $(0.04) per share. Adjustment to revenue recognition accounting for distributor sales in the September quarter caused a one-time increase of approximately $748,000 to revenue not reflected in the current quarter. For the December quarter in fiscal 2006, the Company recorded net revenues of $1.7 million and a loss of $(571,044), or $(0.03) per share.
James J. Krejci, CEO, commented, "Though disappointing in its financial results, the quarter was an eventful one for LifeVantage.
- We signed several new natural products retailers, increasing the availability of Protandim® to a key market segment,
- The growth in the number of collaborative scientific studies has been impressive,
- We finalized all outstanding issues with the SEC regarding both deferred distributor revenue recognition and the finalization of the effectiveness of our SB-2 registration filing, and
- The Company's strategies have been reevaluated, resulting in more targeted efforts and expense reductions to conserve resources.
All these actions and more have allowed us to build a more responsive organization and enables the management team to focus our efforts on building sales, distribution, and science resulting in enhanced shareholder value."
The Company will hold a conference call to discuss the quarter on Tuesday, February 13, 2007 at 8:00 a.m. MST (10:00 a.m. EST). Interested parties may participate in the call by dialing 800-257-3401. A replay of the call will be available by telephone until February 20, 2007 at 800-405-2236 passcode 11083773#.
About Protandim®
Protandim® is a patent-pending dietary supplement that increases the body's natural antioxidant protection by inducing two protective enzymes, superoxide dismutase (SOD) and catalase (CAT). These naturally occurring enzymes become overwhelmed by free radicals as we get older. Oxidative stress (cell damage caused by free radicals) occurs as a person ages, when subjected to environmental stresses or as an associated factor in certain illnesses. TBARS are laboratory markers for oxidative stress in the body. Data from a peer-reviewed, published scientific study in men and women, sponsored by LifeVantage, show that after 30 days of taking Protandim®, the level of circulating TBARS decreased an average of 40 percent, with this decrease shown to be maintained at 120 days. Protandim® strengthens a person's defenses against oxidative stress by increasing the body's natural antioxidant enzymes. For more information, please visit the Protandim® product web site at www.protandim.com.
About LifeVantage Corporation
LifeVantage Corporation markets Protandim®. LifeVantage is committed to helping people achieve health and wellness for life. For more information, please visit the Company's web site at www.LifeVantage.com.
Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, applicable common law and Securities and Exchange Commission rules. 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 are difficult to predict accurately and may be beyond the control of the Company. The following factors are among those that may cause actual results to differ materially from our forward-looking statements: 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 value of your investment; the Company's ability to protect our intellectual property rights and the value of our product; and the illiquidity of our common stock. These and other additional risk factors and uncertainties 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 by the Company from time to time with the Securities and Exchange Commission. Forward-looking statements made by the Company in this news release or elsewhere speak only as of the date made. New uncertainties and risks come up from time to time, and it is impossible for the Company to predict these events or how they may affect the Company. The Company has no duty to, and does not intend to, update or revise the forward-looking statements in this news release after the date it is issued. In light of these risks and uncertainties, investors should keep in mind that the results, events or developments disclosed in any forward-looking statement made in this news release may not occur.
LIFEVANTAGE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2006 and June 30, 2006
(Unaudited) (Audited)
December 31, June 30, 2006
2006 (Restated)
------------- -------------
ASSETS
-------------------------------------
Current assets
Cash and cash equivalents $126,035 $228,112
Marketable securities, available
for sale 1,805,930 3,008,573
Accounts receivable, net 386,753 107,892
Inventory 54,600 45,001
Deferred expenses 111,770 152,677
Deposit with manufacturer 449,436 555,301
Prepaid expenses 235,734 316,659
------------- -------------
Total current assets 3,170,258 4,414,215
Property and equipment, net 141,368 245,000
Intangible assets, net 2,255,780 2,162,042
Deposits 325,440 316,621
------------- -------------
TOTAL ASSETS $5,892,846 $7,137,878
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
Current liabilities
Accounts payable $447,788 $613,833
Accrued expenses 407,482 399,305
Margin debt payable 783,582 --
Deferred revenue 781,403 1,144,950
Capital lease obligations, current
portion 2,137 1,985
------------- -------------
Total current liabilities 2,422,392 2,160,073
Long-term liabilities
Capital lease obligations, net of
current portion 2,039 3,146
------------- -------------
Total liabilities 2,424,431 2,163,219
------------- -------------
Stockholders' equity
Common stock, par value $.001,
250,000,000 shares authorized;
22,118,034 issued and outstanding 22,118 22,118
Preferred stock, par value $.001,
50,000,000 shares authorized; no
shares issued or outstanding -- --
Additional paid-in capital 15,051,489 14,018,487
Accumulated (deficit) (11,595,554) (9,010,339)
Unrealized (loss) on securities
available for sale (9,638) (55,607)
------------- -------------
Total stockholders' equity 3,468,415 4,974,659
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $5,892,846 $7,137,878
============= =============
LIFEVANTAGE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months For the six months
ended December 31, ended December 31,
------------------------- -------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Sales, net $1,136,763 $1,711,752 $3,212,244 $4,676,344
Cost of sales 249,164 363,041 624,715 959,602
------------ ------------ ------------ ------------
Gross profit 887,599 1,348,711 2,587,529 3,716,742
Operating
expenses:
Marketing and
customer
service 1,068,185 829,917 2,101,000 1,974,387
General and
administrative 1,392,320 1,041,232 2,799,946 2,106,642
Research and
development 72,653 -- 138,336 --
Depreciation and
amortization 30,582 83,388 60,014 169,763
------------ ------------ ------------ ------------
Total
operating
expenses 2,563,740 1,954,537 5,099,296 4,250,792
------------ ------------ ------------ ------------
Operating (loss) (1,676,141) (605,826) (2,511,767) (534,050)
Other income and
(expense):
Interest income
(expense) 5,155 34,704 30,707 55,170
Loss on disposal
of assets (93,854) -- (93,854) --
Other (166) 78 (10,301) (11,850)
------------ ------------ ------------ ------------
Net other
income
(expense) (88,865) 34,782 (73,448) 43,320
------------ ------------ ------------ ------------
Net income (loss) $(1,765,006) $(571,044) $(2,585,215) $(490,730)
============ ============ ============ ============
Net income (loss)
per share, basic
and diluted ($ 0.08) ($ 0.03) ($ 0.12) ($ 0.02)
============ ============ ============ ============
Weighted average
shares
outstanding,
basic and fully
diluted 22,118,034 22,117,992 22,118,034 22,117,992
============ ============ ============ ============
Contact:
LifeVantage Corporation
James J. Krejci, CEO, 720-488-1711
Gerald J. Houston, CFO, 720-488-1711
Fax: 303-565-8700