| FOR IMMEDIATE RELEASE | Contact Imagenetix Investor Relations (858)385-2797 | William P. Spencer Chief Executive Officer Imagenetix, Inc. (858) 674-8455 |
IMAGENETIX, INC. REPORTS YEAR END RESULTS
· Revenue Increases by 34% from Prior Year
· Revenue Increases to $7,461,000 from $5,570,000
· Earnings Per Share Equals $0.04 vs. $0.16 Loss for Prior Year
San Diego, CA***June 17, 2009***Imagenetix, Inc. (OTCBB:IAGX) announced today results for its fiscal year ended March 31, 2009. Net sales increased 34% for the year to $7,461,000 from the $5,570,000 reported for the same period last year.
Gross profit as a percentage of sales increased to 46% from 40% percent for the prior fiscal year. This increase was primarily due to sales mix, which included increased sales in the Company’s mass market segment under its branded product - Inflame Away Celadrin.
Net profit for the year was $464,270 or $.04 per share compared to ($1,776,642) or ($0.16) per share in the prior fiscal year.
Commenting on the results of the year, Mr. William Spencer, Imagenetix Chief Executive Officer said, “We are anticipating solid growth for fiscal 2010 which should generate significant profits for the Company. Sales and profit growth are expected to primarily stem from our mass market related sales.”
Imagenetix, based in San Diego, California, is an innovator of scientifically tested, natural-based, proprietary, bioceutical products developed to enhance human health on a global basis. Imagenetix develops and formulates propriety over-the-counter topical creams, skincare products and nutritional supplements to be marketed globally through multiple channels of distribution. In addition, the company develops patentable compounds for entering into licensing agreements with pharmaceutical partners. Imagenetix is the creator of Inflame Away®-Celadrin®. Please visit, www.celadrin.com or www.imagenetix.net.
Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to vary materially from those projected. Such risks and uncertainties include, but are not limited to, adverse fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the company's products and services. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in the company’s SEC filings, including its Form 10-K for the year ended March 31, 2009.
| Imagenetix, Inc. | |
| Condensed Consolidated Statements of Operations | |
| (In thousands, except per share data) | |
| | | | | | | |
| | | Year Ended | |
| | | March 31, | |
| | | 2009 | | | 2008 | |
| | | | | | | |
| Net sales | | $ | 7,461 | | | $ | 5,570 | |
| Cost of sales | | | 4,003 | | | | 3,344 | |
| Gross profit | | | 3,458 | | | | 2,226 | |
| Gross profit percent | | | 46.3 | % | | | 40.0 | % |
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| General and administrative | | | 2,241 | | | | 2,456 | |
| Payroll expense | | | 1,077 | | | | 1,038 | |
| Consulting expense | | | 1,059 | | | | 962 | |
| Operating expenses | | | 4,377 | | | | 4,456 | |
| | | | | | | | | |
| Operating income (loss) | | | (919 | ) | | | (2,230 | ) |
| Other income | | | 25 | | | | 32 | |
| Settlement income | | | 1,785 | | | | - | |
| Interest expense | | | (2 | ) | | | (4 | ) |
| Income (loss) before income taxes | | | 889 | | | | (2,202 | ) |
| Income tax expense (benefit) | | | 459 | | | | (425 | ) |
| | | | | | | | | |
| Net income (loss) | | $ | 430 | | | $ | (1,777 | ) |
| | | | | | | | | |
| Income (loss) per share: | | | | | | | | |
| Basic | | $ | 0.04 | | | $ | (0.16 | ) |
| Diluted | | $ | 0.04 | | | $ | (0.16 | ) |
| | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | |
| Basic | | | 10,991 | | | | 10,937 | |
| Diluted | | | 11,010 | | | | 10,937 | |
| | | | | | | | | |
| Imagenetix, Inc. | |
| Condensed Consolidated Balance Sheets | |
| (In thousands) | |
| | | | | | | |
| | | March 31, | | | March 31, | |
| | | 2009 | | | 2008 | |
| Assets: | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 1,226 | | | $ | 1,023 | |
| Accounts receivable, net | | | 1,096 | | | | 766 | |
| Inventories, net | | | 1,337 | | | | 1,110 | |
| Prepaid expenses and other current assets | | | 109 | | | | 252 | |
| Deferred tax asset | | | 535 | | | | 862 | |
| Total current assets | | | 4,303 | | | | 4,013 | |
| | | | | | | | | |
| Property and equipment, net | | | 116 | | | | 112 | |
| Long-term prepaid expenses | | | 30 | | | | 42 | |
| Other assets | | | 134 | | | | 218 | |
| | | | | | | | | |
| Total assets | | $ | 4,583 | | | $ | 4,385 | |
| | | | | | | | | |
| Liabilities and stockholders' equity: | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 274 | | | $ | 714 | |
| Accrued liabilities | | | 81 | | | | 72 | |
| Income tax payable | | | 70 | | | | - | |
| Customer deposits | | | 59 | | | | 63 | |
| Contract payable | | | 43 | | | | 46 | |
| Short term license payable | | | 3 | | | | 34 | |
| Total current liabilities | | | 530 | | | | 929 | |
| | | | | | | | | |
| Long term license payable | | | - | | | | 3 | |
| | | | | | | | | |
| Stockholders' equity | | | 4,053 | | | | 3,453 | |
| | | | | | | | | |
| Total liabilities and stockholders' equity | | $ | 4,583 | | | $ | 4,385 | |
