Exhibit 99.1
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FOR IMMEDIATE RELEASE
February 12, 2007 | | NEWS
OTCBB: LFVN |
LIFEVANTAGE CORPORATION ANNOUNCES
2Q FY2007 FINANCIAL AND OPERATING RESULTS
GREENWOOD VILLAGE, Colorado — 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, |
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| | • | | The growth in the number of collaborative scientific studies has been impressive, |
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| | • | | 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 |
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| | • | | 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 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.
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CONTACTS:
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| LifeVantage Corporation | | |
| James J. Krejci, CEO | | Telephone: 720-488-1711 |
| Gerald J. Houston, CFO | | Fax: 303-565-8700 |
LIFEVANTAGE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, 2006 and June 30, 2006
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| | | (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 | |
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| Total current assets | | | 3,170,258 | | | | 4,414,215 | |
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| Property and equipment, net | | | 141,368 | | | | 245,000 | |
| Intangible assets, net | | | 2,255,780 | | | | 2,162,042 | |
| Deposits | | | 325,440 | | | | 316,621 | |
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| TOTAL ASSETS | | $ | 5,892,846 | | | $ | 7,137,878 | |
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
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| 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 | |
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| Total current liabilities | | | 2,422,392 | | | | 2,160,073 | |
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| Long-term liabilities | | | | | | | | |
| Capital lease obligations, net of current portion | | | 2,039 | | | | 3,146 | |
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| Total liabilities | | | 2,424,431 | | | | 2,163,219 | |
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| 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 | ) |
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| Total stockholders’ equity | | | 3,468,415 | | | | 4,974,659 | |
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| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 5,892,846 | | | $ | 7,137,878 | |
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LIFEVANTAGE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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| | | For the three months ended | | For the six months ended |
| | | December 31, | | December 31, |
| | | 2006 | | 2005 | | 2006 | | 2005 |
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| 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 | |
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| Gross profit | | | 887,599 | | | | 1,348,711 | | | | 2,587,529 | | | | 3,716,742 | |
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| 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 | |
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| Total operating expenses | | | 2,563,740 | | | | 1,954,537 | | | | 5,099,296 | | | | 4,250,792 | |
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| Operating (loss) | | | (1,676,141 | ) | | | (605,826 | ) | | | (2,511,767 | ) | | | (534,050 | ) |
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| 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 | ) |
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| Net other income (expense) | | | (88,865 | ) | | | 34,782 | | | | (73,448 | ) | | | 43,320 | |
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| Net income (loss) | | $ | (1,765,006 | ) | | $ | (571,044 | ) | | $ | (2,585,215 | ) | | $ | (490,730 | ) |
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| Net income (loss) per share, basic and diluted | | | ($0.08 | ) | | | ($0.03 | ) | | | ($0.12 | ) | | | ($0.02 | ) |
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| Weighted average shares outstanding, basic and fully diluted | | | 22,118,034 | | | | 22,117,992 | | | | 22,118,034 | | | | 22,117,992 | |
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