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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 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
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.