GeneLink, Inc. Reports 2012 Financial Results
Published: Apr 04, 2013
ORLANDO, Fla., April 4, 2013 /PRNewswire/ -- GeneLink, Inc. (OTCBB: GNLK.OB, "the Company," or "GeneLink"), a leading consumer genomics biotech company, reports financial results for the fiscal year ended December 31, 2012.
- In February of 2012 the Company completed the sale of GeneWize Life Sciences, Inc. to Capsalus Corp (OTCBB: WELL.OB, or "Capsalus"). The sale and accompanying licensing fees provided $1,165,900 to GeneLink during the fiscal year.
- Annual net sales decreased from $4,684,577 to $2,136,142. The decrease is primarily related to the sale of GeneWize and the subsequent conversion from retail to wholesale business model in February of 2012.
- The operating loss in 2012 was $3,468,997. Most of the loss is attributable to the unsupported overhead costs at GeneLink, establishment of GeneLink's own manufacturing facility, and implementation of plans to support GeneLink's expansion into additional channels. In addition, we had extraordinary legal expenses related to regulatory compliance. Net losses for 2012 in the amount of $3,051,747 decreased by $748,449 or 20% compared to 2011.
- Ongoing cost initiatives resulted in the reduction of 2012 monthly recurring operating expenses by over 50% compared to 2011.
- Reduced accounts payable during 2012 by over 25%.
Dr. Bernard Kasten, GeneLink's Chairman, CEO and interim CFO stated, "2012 was a continued transition for us as we completed the sale of our direct selling subsidiary, GeneWize. We were able to utilize the proceeds from that sale to establish a unique and world class manufacturing facility for our customized nutrition and skin care products. Though the change in our business model from retail to wholesale will initially appear to reduce our revenues, we are hopeful that the our current marketing partners ForU and geneME - will be successful in selling GeneLink's unique and innovative approach to wellness through genetic customization, and that the GeneLink approach to personalized products will be revolutionary for both the nutritional and skin care industries. Due to the change in our business model as well as the reorganization of our operating infrastructure, the Company has been able to reduce its recurring monthly operating expenses by over 50% while at the same time paying down payables and opening our own internal manufacturing facility. These are, of course, important and necessary achievements towards our goal of profitability and financial stability."
"Looking forward," continued Dr. Kasten, "we hope to enter into additional licensing agreements both in the US and internationally. It is obvious that the advances in genomics and the interest in personalized products is a rapidly developing global phenomenon. GeneLink, as the early mover is in a strong position to deliver into that interest. In addition, GeneLink plans to pursue distribution of its high end nutritional and skin care products through the medical practitioner channel.
"With new and reinvigorated marketing partners, as well as fresh products and market opportunities, GeneLink believes 2013 offers new opportunities for growth in the consumer rapidly maturing genomics marketplace."
Dr. Kasten added, "In a development which should not be overlooked, GeneLink completed over 18 months of cooperation with the Federal Trade Commission (the "Commission") when it entered into a proposed Consent Agreement with the staff of the Commission. The tentative agreement, which awaits final approval by the Commissioners, does not provide for any financial obligations by the Company and provides us with useful guidance moving forward. To the best of our knowledge, GeneLink is the first consumer genetics company to negotiate such an agreement, a testament to the strength of our Scientific Advisory Board and the integrity of our approach."
About GeneLink Biosciences, Inc.:
GeneLink Biosciences is an 18-year old leading biosciences company specializing in consumer genomics. GeneLink's patented technologies include proprietary DNA test assessments linked to personalized health, beauty and wellness applications and products. Its DNA assessments provide information that enables the customization of nutritional and skincare products designed and manufactured for each individual consumer's wellness needs. For more information visit www.genelinkbio.com.
This release contains certain 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. With the exception of historical information contained herein, the matters discussed in the press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement. GeneLink disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
SOURCE GeneLink, Inc.