EXHIBIT 99.1
[LIFEPOINT LOGO]
FOR IMMEDIATE RELEASE
LIFEPOINT, INC. RELEASES FINANCIAL RESULTS FOR THE SECOND
QUARTER ENDED SEPTEMBER 30, 2004
ONTARIO, CALIFORNIA - November 15, 2004- LifePoint, Inc. (AMEX: LFP), a provider
of non-invasive drug diagnostic technologies and solutions, announced financial
results for the second quarter ended September 30, 2004. Net loss applicable to
common shareholders for the second quarter ended September 30, 2004 was
$2,032,902 million, or $0.02 per share, compared to a net loss of $7,266,137, or
$0.19 per share, for the second quarter ended September 30, 2003.
The Company recognized $76,068 in revenues during the second quarter ended
September 30, 2004 that reflected payments made on previous shipments of the
Company's products. The net loss for the second quarter ended September 30, 2004
was $1,897,943, or $0.02 per share, compared to a net loss of $381,637, or $0.01
per share, for the second quarter ended September 30, 2003. During the second
quarter ended September 30, 2003, the Company was in the middle of an employee
furlough related to the loss of its critical funding, which was the main factor
for the lower operating expenses incurred during such quarter. Also, included in
the second quarter 2003 net loss applicable to common stockholders was a
non-recurring charge of $6,501,649, which represented a beneficial conversion
feature value in excess of the calculated value of the preferred stock due to
the increase of the Common Stock price between the first and second close of the
Company's Series D Convertible Preferred financing.
"We are pleased to report continued progress on both our sales initiatives and
our manufacturing capabilities," stated Linda H. Masterson, President and CEO of
LifePoint. "The international law enforcement market remains a primary focus for
LifePoint, and we are now participating in eight major studies worldwide. The
preliminary data from these studies continues to be favorable, and each study
represents a substantial business opportunity for LifePoint. We have continued
to expand our overseas distribution, adding three major distributors during the
last two months. Domestically, we have continued our focus on capitalizing on a
strong endorsement from a well-respected mentor drug court. Within the last two
months our small initial sales group has been able to move 33 potential accounts
well into the sales process, and we expect to close on a number of these
accounts before the end of this year. Additionally, we have recently more than
doubled our sales group to continue to take advantage of this opportunity."
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LifePoint will host a conference call today at 4:30 PM EDT, (1:30 PM PDT) to
discuss the financial results for the second quarter ended September 30, 2004
and to update participants on LifePoint, Inc. To participate, please dial
1-800-299-9086 (DOMESTIC), PASSCODE 64765249 AND 1-617-786-2903 (INTERNATIONAL)
or listen via web cast at www.LifePointInc.com .
LIFEPOINT, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE FOR THE
THREE MONTHS ENDED SIX MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------------------------- -------------------------------
2004 2003 2004 2003
------------- ------------- ------------- -------------
Revenues $ 76,068 $ (18,500) $ 76,068 $ (18,500)
Costs and expenses:
Cost of goods sold 772,718 -- 1,592,835 --
Research and development 582,713 818,339 1,181,723 1,524,166
Selling and marketing 338,102 139,565 695,519 246,478
General and administrative 480,104 104,106 889,615 1,041,347
------------- ------------- ------------- -------------
Total costs and expenses from operations 2,173,637 1,062,010 4,359,692 2,811,991
------------- ------------- ------------- -------------
Loss from operations (2,097,569) (1,080,510) (4,283,624) (2,830,491)
Interest income 319 3,297 4,087 5,096
Interest expense (742) (28,037) (1,931) (312,172)
Discount on settlement of trade payables 200,049 723,613 200,049 723,613
------------- ------------- ------------- -------------
Total other income (expense) 199,626 698,873 202,205 416,537
------------- ------------- ------------- -------------
Net loss (1,897,943) (381,637) (4,081,419) (2,413,954)
Less preferred dividends 134,959 6,884,500 270,039 7,220,896
------------- ------------- ------------- -------------
Loss applicable to common shareholders $ (2,032,902) $ (7,266,137) $ (4,351,458) $ (9,634,850)
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Loss applicable to common shareholders
per common share:
Weighted average common shares
outstanding - basic and assuming dilution 95,669,131 38,027,320 78,254,200 37,633,414
============= ============= ============= =============
Basic and diluted net loss per share
applicable to common shareholders $ (0.02) $ (0.19) $ (0.06) $ (0.26)
============= ============= ============= =============
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LIFEPOINT, INC.
BALANCE SHEETS
SEPTEMBER 30, MARCH 31,
2004 2004
------------- -------------
(unaudited) (audited)
Current assets:
Cash and cash equivalents $ 694,285 $ 3,710,761
Accounts receivable 30,553 65,650
Inventory, net of allowance for excess inventory $1,354,591
at September 30, 2004 and $1,096,571 at March 31, 2004 2,601,525 2,309,343
Prepaid expenses and other current assets 115,500 245,918
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Total current assets 3,441,863 6,331,672
Property and equipment, net 1,536,209 1,881,826
Patents and other assets, net 663,601 595,673
------------- -------------
$ 5,641,673 $ 8,809,171
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 684,535 $ 976,581
Accrued expenses 664,558 1,030,848
Notes payable -short-term vendors 140,094 134,356
Note payable -bank 53,550 160,650
Capital lease - short-term 5,667 --
------------- -------------
Total current liabilities 1,548,404 2,302,435
Long-term liabilities 46,856 151,734
------------- -------------
Total liabilities 1,595,260 2,454,169
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred Stock, Series C 10% Cumulative Convertible, $.001
par value, 600,000 shares authorized, 0 and 377,434 outstanding
at September 30, 2004 and March 31, 2004, respectively -- 377
Preferred Stock, Series D 6% Cumulative Convertible, $.001
par value, 15,000 shares authorized, 9,022 and 9,584 outstanding at
September 30, 2004 and March 31, 2004, respectively 9 9
Common Stock, $.001 par value; 350,000,000 shares authorized,
96,231,196 and 57,037,597 shares issued and outstanding
at September 30, 2004 and March 31, 2004, respectively 96,231 57,039
Additional paid-in capital 80,966,268 78,231,867
Dividends payable in common stock 624,499 1,354,847
Accumulated deficit (77,640,594) (73,289,137)
------------- -------------
Total stockholders' equity 4,046,413 6,355,002
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Total liabilities and stockholders' equity $ 5,641,673 $ 8,809,171
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** On November 15, 2004, LifePoint closed on a convertible debt financing for up
to $1 million
ABOUT LIFEPOINT, INC
LifePoint, Inc., a provider of non-invasive drug diagnostic technologies and
solutions, has developed, manufactures and markets the IMPACT TEST SYSTEM - a
rapid diagnostic testing, screening and drug monitoring device for use in the
workplace, ambulances, pharmacies, law enforcement and home healthcare markets.
LifePoint's patented and proprietary technologies for the use of saliva as a
non-invasive, blood-comparable test specimen, used in conjunction with the flow
immunosensor technology licensed from the United States Navy, has allowed
LifePoint to develop a broadly applicable, rapid, on-site diagnostic test
system. The first product simultaneously detects drugs of abuse and alcohol, and
the initial three target markets - law enforcement, industrial workplace and
medical emergency room - are estimated to be over $1.6 billion worldwide.
This press release contains forward-looking statements regarding future events
and the future performance of LifePoint, Inc. that involve risks and
uncertainties that could cause actual results to differ materially. These risks
include, but are not limited to, potential need for additional financing, FDA
510(k) clearance in medical markets, dependence on third parties for certain
marketing efforts, and market acceptance. These risks are described in further
detail in the Company's reports filed with the Securities and Exchange
Commission.
LIFEPOINT(R) and IMPACT(R) are trademarks of LifePoint, Inc.
CONTACTS: INVESTORS:
LifePoint, Inc. John Nesbett/Jane Lin
Linda H. Masterson, CEO & President The Investor Relations Group, Inc.
(909) 418-3000 x 400 (212) 825-3210
e-mail: LifePoint@LFPT.com
Web site: www.LifePointInc.com
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