NEWARK, N.J., Nov. 17, 2014 /PRNewswire/ -- Inergetics,
Inc. (OTCBB: NRTI), a world-class developer of nutritional
supplements, filed its 10Q for the third quarter ending
September 30, 2014.
For the nine-month period ending September 30, 2014, the company continued to
expand market and sales penetration, yielding a 518% increase in
sales revenue over the same period last year and achieving gross
margins of 28% compared to a negative gross margin for the nine
months ending September 30, 2013.
Specific results figures for the quarter ended September 30, 2014 include:
- Total revenues generated from the sales of
Surgex®, Bikini
Ready®, SlimTrim and Martha Stewart™
Essentials for the quarter ended September
30, 2014 totaled $430,242, an
increase of 112% from the quarter ended September 30, 2013.
- Gross profit for the quarter amounted to $70,075 for a 16% gross margin. Gross profit
increased $94,844 for the quarter
ended September 30, 2014 compared to
a negative gross margin of $24,769
for the quarter ended September 30,
2013. The increase in gross profit is a result of higher
sales in the quarter ended September 30,
2014.
- After research and development cost and selling, general and
administrative expenses of $1,304,661, an operating loss of $1,234,586 was realized for the quarter.
Operating losses decreased $1,005,567
or 45% compared to the third quarter of 2013 operating loss of
$2,240,153. The majority of the
decrease in operating loss was due to the decrease in promotional
costs in support of the launch of the Martha Stewart line from the
prior year in the approximate amount of $843,000.
- Non-operating expense totaled $3,182,257 for the quarter ended September 30, 2014, an increase of $2,740,239 as compared to an expense of
$442,018 for the quarter ended
September 30, 2013. The increase in
non-operating expense of $2,740,239
was due to the decrease in accretion of debt discount in the amount
of $113,944 and an increase in loss
associated with the fair value of the derivative instruments issued
with the convertible debt in the amount of $1,196,000. There was a loss of $2,043,000 from equity instruments issued with
debt greater than debt carrying amount. There was a decrease in
interest expense of $384,817 due to
an over accrual.
- The net result for the quarter ended September 30, 2014 was a loss of $4,877,623 or $0.05
per share, which included a preferred dividend on the Series G
stock in the amount of $459,280,
compared to a loss of $3,058,571 or
$0.05 per share for the third quarter
of 2013. The net loss for the third quarter of 2014 increased by
$1,819,052 or 59% as compared to the
third quarter of 2013, primarily due to an increase in selling,
general and administrative expenses and gain on fair valuation of
derivatives.
"Inergetics continues to execute against our business plan and
position the company for future growth through increased
distribution of our growing product lines," said Mike James, CEO. "One of the key pillars of our
strategy is to develop unique product lines within the Inergetics
portfolio – with each targeting a different demographic group and
its unique health needs. This market segmentation has diversified
the outlets that carry our products, highlighted by our recent
entrance into prominent health food chains. At the same time, we
continue to mark progress toward the 2015 launch of the first in
our line of CBD-based nutritional supplements."
Key developments in the quarter
- Expanded Distribution at Major Food and
Retail Outlets: Inergetics announced the Surgex Warrior™ Sports
Nutrition Products are now available at Winn-Dixie, in addition to
the Martha Stewart Essentials line of products and Bikini Ready
line already on the shelves of the chain's more than 700 stores.
Also announced this quarter was the availability of Bikini Ready
Lifestyle products at ShopRite. Since the conclusion of the third
quarter, the company announced that H-E-B stores will carry its
Bikini Ready Lifestyle brand ahead of the upcoming peak diet
season.
- First Product Availability at Leading
Health Food Chains: The company announced the availability of
its OmEssentials® Line at a leading
health food chain, AKiN'S Natural Foods Stores. Since the end of
the third quarter, Inergetics announced its OmEssentials line of
supplements also will be available at Whole Foods.
- Continued Progress Toward Development
of Natural CBD-Based Line of Nutritional
Supplements: Inergetics is entering the final phase of the
development process ahead of the 2015 launch of its "first to
market" line of CBD-based supplements.
- Significant Marketing Support: In
support of the Bikini Ready Lifestyle line of products, Inergetics
sponsored the 2014 BB&T Atlanta Open as well as the 2014 Belmar
ASP Pro Surfing Competition featuring brand spokeswoman,
Christa Alves. Also this quarter,
Inergetics announced a partnership with Influenster and Bulu Box™
in which Influenster members received Bikini Ready Energy Gummies
and shared their product opinions and experiences via Twitter,
Facebook, Instagram, YouTube, Amazon and blogs.
Revenue recognition
Revenue is recognized upon shipment to various retail outlet
customers when all performance obligations are met and
collectability is reasonably assured. Upon shipment to
specific retail customers with the right of return, Inergetics
defers revenues as returns are not reasonably estimable. As
of September 30, 2014 and
December 31, 2013, deferred revenue
totaled $756,992 and $1,269,470, respectively.
Mr. James added, "Significantly expanding distribution in the
third quarter further demonstrates the increasingly positive
response our brands are receiving from retailers across health,
specialty, food and online outlets. As we continue to improve
our existing brands and develop new ones, we remain confident that
our products will generate increasingly positive feedback from
retailers."
Inergetics Media Contact
KARV Communications
Jonathan Leibowitz
(212) 333-0273
Inergetics@KARVCommunications.com
About Inergetics, Inc.
Inergetics' portfolio of brands includes: Martha Stewart™
Essentials, a complete line of whole-food-based supplements created
specifically for women; Surgex® Sports Nutrition, the
preferred nutritional supplement of Army Sports; Bikini
Ready®, a leader in weight loss lifestyle solutions;
SlimTrim, the affordable, premium value diet brand; and
OmEssentials®, a line of scientifically advanced
nutritional supplements designed to further the health and wellness
of yoga practitioners and active individuals.
To learn more about Inergetics, visit www.inergetics.com,
and the Inergetics brands' websites
at: www.marthastewartessentials.com, www.surgexsports.com,
www.surgexsportsblitz.com, www.slimtrim1.com, www.slimtrim.net,
www.bikinireadylifestyle.com, www.kahunasands.com,
www.omessentials.com.
Safe Harbor Statement
This press
release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than
statements of historical fact, including, without limitation, those
with respect to the objectives, plans and strategies of Inergetics
set forth herein and those preceded by or that include the words
"believes," "expects," "given," "targets," "intends,"
"anticipates," "plans," "projects," "forecasts," or similar
expressions, are "forward-looking statements." Although Inergetics'
management believes that such forward-looking statements are
reasonable, it cannot guarantee that such expectations are, or will
be, correct. These forward-looking statements involve a number of
risks and uncertainties, which could cause Inergetics' future
results to differ materially from those anticipated. Inergetics
assumes no obligation to update any of the information contained or
referenced in this press release.
SOURCE Inergetics, Inc.