Welcome!

News Feed Item

Inergetics: 2014 Second Quarter Earnings Announcement

Company Delivered Substantial Improvements in Gross Profit and Gross Margin As It Continued to Broaden Retail Distribution of An Enhanced Range of Proprietary Products

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 recognition

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

RLM Finsbury
(646) 805-2025
[email protected] 

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
SYS-CON Events announced today that IoT Now has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...