NEWARK, N.J., Nov. 17, 2014 /PRNewswire/ -- Inergetics, Inc. (OTCBB: NRTI), a world-class developer of nutritional supplements, filed its 10Q for the third quarter ending September 30, 2014.
For the nine-month period ending September 30, 2014, the company continued to expand market and sales penetration, yielding a 518% increase in sales revenue over the same period last year and achieving gross margins of 28% compared to a negative gross margin for the nine months ending September 30, 2013. Specific results figures for the quarter ended September 30, 2014 include:
- Total revenues generated from the sales of Surgex®, Bikini Ready®, SlimTrim and Martha Stewart™ Essentials for the quarter ended September 30, 2014 totaled $430,242, an increase of 112% from the quarter ended September 30, 2013.
- Gross profit for the quarter amounted to $70,075 for a 16% gross margin. Gross profit increased $94,844 for the quarter ended September 30, 2014 compared to a negative gross margin of $24,769 for the quarter ended September 30, 2013. The increase in gross profit is a result of higher sales in the quarter ended September 30, 2014.
- After research and development cost and selling, general and administrative expenses of $1,304,661, an operating loss of $1,234,586 was realized for the quarter. Operating losses decreased $1,005,567 or 45% compared to the third quarter of 2013 operating loss of $2,240,153. The majority of the decrease in operating loss was due to the decrease in promotional costs in support of the launch of the Martha Stewart line from the prior year in the approximate amount of $843,000.
- Non-operating expense totaled $3,182,257 for the quarter ended September 30, 2014, an increase of $2,740,239 as compared to an expense of $442,018 for the quarter ended September 30, 2013. The increase in non-operating expense of $2,740,239 was due to the decrease in accretion of debt discount in the amount of $113,944 and an increase in loss associated with the fair value of the derivative instruments issued with the convertible debt in the amount of $1,196,000. There was a loss of $2,043,000 from equity instruments issued with debt greater than debt carrying amount. There was a decrease in interest expense of $384,817 due to an over accrual.
- The net result for the quarter ended September 30, 2014 was a loss of $4,877,623 or $0.05 per share, which included a preferred dividend on the Series G stock in the amount of $459,280, compared to a loss of $3,058,571 or $0.05 per share for the third quarter of 2013. The net loss for the third quarter of 2014 increased by $1,819,052 or 59% as compared to the third quarter of 2013, primarily due to an increase in selling, general and administrative expenses and gain on fair valuation of derivatives.
"Inergetics continues to execute against our business plan and position the company for future growth through increased distribution of our growing product lines," said Mike James, CEO. "One of the key pillars of our strategy is to develop unique product lines within the Inergetics portfolio – with each targeting a different demographic group and its unique health needs. This market segmentation has diversified the outlets that carry our products, highlighted by our recent entrance into prominent health food chains. At the same time, we continue to mark progress toward the 2015 launch of the first in our line of CBD-based nutritional supplements."
Key developments in the quarter
- Expanded Distribution at Major Food and Retail Outlets: Inergetics announced the Surgex Warrior™ Sports Nutrition Products are now available at Winn-Dixie, in addition to the Martha Stewart Essentials line of products and Bikini Ready line already on the shelves of the chain's more than 700 stores. Also announced this quarter was the availability of Bikini Ready Lifestyle products at ShopRite. Since the conclusion of the third quarter, the company announced that H-E-B stores will carry its Bikini Ready Lifestyle brand ahead of the upcoming peak diet season.
- First Product Availability at Leading Health Food Chains: The company announced the availability of its OmEssentials® Line at a leading health food chain, AKiN'S Natural Foods Stores. Since the end of the third quarter, Inergetics announced its OmEssentials line of supplements also will be available at Whole Foods.
- Continued Progress Toward Development of Natural CBD-Based Line of Nutritional Supplements: Inergetics is entering the final phase of the development process ahead of the 2015 launch of its "first to market" line of CBD-based supplements.
- Significant Marketing Support: In support of the Bikini Ready Lifestyle line of products, Inergetics sponsored the 2014 BB&T Atlanta Open as well as the 2014 Belmar ASP Pro Surfing Competition featuring brand spokeswoman, Christa Alves. Also this quarter, Inergetics announced a partnership with Influenster and Bulu Box™ in which Influenster members received Bikini Ready Energy Gummies and shared their product opinions and experiences via Twitter, Facebook, Instagram, YouTube, Amazon and blogs.
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 September 30, 2014 and December 31, 2013, deferred revenue totaled $756,992 and $1,269,470, respectively.
Mr. James added, "Significantly expanding distribution in the third quarter further demonstrates the increasingly positive response our brands are receiving from retailers across health, specialty, food and online outlets. As we continue to improve our existing brands and develop new ones, we remain confident that our products will generate increasingly positive feedback from retailers."
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.