NEWARK, N.J., Aug. 14, 2014 /PRNewswire/ -- Inergetics,
Inc. (OTCBB: NRTI), a leading developer of a diverse range of
best-in-class nutraceuticals, today filed its 10Q for the second
quarter ending June 30, 2014.
- Total revenues generated from the sales of Martha Stewart™
Essentials, Surgex® Sports Nutrition, Bikini Ready®, SlimTrim™, and
Private Label product lines for the quarter ended June 30, 2014 totaled $523,615, an increase of 685% from the quarter
ended June 30, 2013 which totaled
$66,667.
- Gross profit for the quarter amounted to $213,178 for a 41% gross margin. Gross profit
increased $196,986 or 1,217% for the
quarter ended June 30, 2014 compared
to $16,192 for the quarter ended
June 30, 2013.
- After research and development cost and selling, general and
administrative expenses of $1,564,032, an operating loss of $1,350,854 was realized for the quarter.
Operating losses increased $500,259
compared to the first quarter of 2013. The majority of the increase
was due to the increase in royalty payments and promotion and
marketing costs to support the retail launch of certain
products.
- The net result for the quarter was a loss of $1,564,212 or $0.02
per share, including a preferred dividend on the Series G stock in
the amount of $321,525, compared to a
loss of $1,234,697 or $0.02 per share for the second quarter of 2013.
The net loss increased by $329,515
compared to the second quarter of 2013, primarily due to an
increase in selling, general and administrative expenses associated
with the expansion of the company's product lines as well as
increased interest expense associated with additional debt
outstanding.
"Inergetics continues to mark significant progress in building a
world-class nutraceuticals company whose innovative products
address a range of consumer needs," said Mike James, CEO. "Our focus on increasing
the U.S. and international wholesale and retail distribution as
well as the overall sales ramp for our growing portfolio of
vitamins, supplements and consumer products is gaining stronger
momentum across the business. At the same time, we continue to
invest in future growth through improved supply chain
infrastructure, brand development and new products, including the
development of a line of next generation natural cannabidiol-based
(CBD) supplements that we expect to bring to market in 2015."
Key developments in the quarter
- Multiple Product Launches: Launched
new products into distribution including: Martha Stewart Essentials
Vegetarian Multivitamin Gummies; Bikini Ready Energy Gummies; new
and improved SlimTrim formulation, private label Muscle Maker Grill
shake flavors and acquired the assets of OmEssentials®, a
scientifically advanced line of supplements that increase overall
mind and body wellness.
- Expanded Distribution: Announced that
Walgreens and other national food, drug, specialty and online
retailers added Martha Stewart Vegetarian Multivitamin Gummies to
their stores, increasing product line distribution to a total of
more than 17,000 retail stores. Since the end of the second
quarter, Inergetics announced that Winn-Dixie will carry the Martha
Stewart Essentials line of products beginning this month,
complementing the Bikini Ready line already on the shelves of the
chain's more than 700 stores.
- Significant Marketing Support:
Continued Martha Stewart Essentials integrated marketing effort
including aggressive FSIs drops and national print advertising.
Launched Bikini Ready "Back2Body™" national advertising campaign
featuring professional surfer, Christa
Alves, which included a new Bikini Ready Lifestyle website
of photos, videos and social media initiatives from Christa Alves and professional surfer
spokeswoman, Anastasia Ashley.
- Continued Progress Toward Development
of Natural CBD-Based Line of Nutritional
Supplements: Inergetics continues to progress in research and
development with its strategic partner, Terra Tech, towards the
launch of their proprietary line of (CBD)-based supplements, which
is expected in 2015.
- Convened Productive Initial Meeting of
Scientific and Medical Advisory Board: The company completed
the formation of this board, which continues to work closely with
Inergetics' Chief Science Officer, Carl
Germano, RD, CNS, CDN, to ensure that the new CBD-based
supplements are the most medically effective, safest, and highest
quality available to consumers.
- Expanded Senior Leadership Team: Named
Chief Marketing Officer Jim Kras to
the additional role of President, expanding his responsibilities to
include the oversight of sales, distribution and other company
initiatives to drive substantial value for shareholders.
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 June 30, 2014 and December 31, 2013, deferred revenue totaled
$1,075,182 and $1,269,470, respectively.
"The positive response we are receiving from Food, Drug, Mass,
Health & Specialty retail outlets is a direct result of the
superior product offerings we are bringing to market and the
consumer demand they are generating," added Mr. James. "We
are continuing to gain further traction for these best-in-class
brands as we have already expanded distribution by nearly 2,000
doors in the first half of the third quarter alone. As market
penetration grows deeper and broader across our established and new
brands, my confidence in the management team's ability to sustain
this trajectory remains steadfast."
Inergetics Media Contact
RLM Finsbury
(646) 805-2025
Inergetics@rlmfinsbury.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.