EX-99.1 2 a4945617ex991.txt INTERLEUKIN GENETICS, INC. EXHIBIT 99.1 Exhibit 99.1 Interleukin Genetics Reports Second Quarter Financial Results WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 3, 2005--Interleukin Genetics, Inc. (OTCBB: ILGN) a leader in the development of personalized health products, today reported a net loss of $1.8 million or $0.08 basic and diluted net loss per common share, for the quarter ended June 30, 2005. Financial Results: Revenue for the quarter was $8,000 compared to $10,000 for the same quarter in 2004 reflecting in both periods royalties on PST(R) sales and licensing revenue associated with one of the Company's patents. In addition, 2005 includes $1,000 of revenue from tests processed in the Company's commercial laboratory for external research laboratories. For the quarter, the Company reported a net loss of $1.8 million or $0.08 basic and diluted net loss per common share as compared to a net loss of $2.1million or $0.09 basic and diluted net loss per common share for the same period last year. Revenue for the six months ended June 30, 2005 was $15,000 compared to $18,000 for the six months ended June 30, 2004. For the six months ended June 30, 2005, the Company reported a net loss of $3.3 million or $0.14 basic and diluted net loss per common share as compared to $3.8 million or $0.16 basic and diluted net loss per common share for the same period last year. Management noted that research and development expenses were $609,000 for the quarter ended June 30, 2005 compared to $1.3 million for the quarter ended June 30, 2004. These expenses include research and development expenses funded by Alticor under research and development agreements. The decrease is primarily the result of timing of clinical studies and temporary reductions in labor and overhead. Research and development expenses were $1.3 million for the six months ended June 30, 2005 compared to $2.1 million for the same period in 2004. These expenses include, as well, research and development expenses funded by Alticor under various research and development agreements. The decrease is also the result of timing of clinical studies and temporary reductions in labor and overhead. Management further noted that general and administrative expenses were $1.1 million for the three months ended June 30, 2005 compared to $740,000 during the same period last year. These expenses for 2005 include $310,000 of expenses associated with Sarbanes-Oxley Act of 2002 Section 404 compliance costs. General and administrative expenses were $1.8 million for the six months ended June 30, 2005 compared to $1.5 million for the same period last year. These expenses for 2005 include $365,000 of expenses associated with Sarbanes-Oxley Act of 2002 Section 404 compliance costs. Other income (expense) was essentially constant at $129,000 expense for the three months ended June 30, 2005 compared to $135,000 expense during the same period last year and $263,000 expense for the six months ended June 30, 2005 compared to $275,000 expense during the same period last year. Other income (expense) includes interest income, interest expense and the amortization of the note discount. As of June 30, 2005, the Company reported total assets of $6.5 million, including $4.9 million of cash and cash equivalents as compared to total assets of $6.2 million including $4.5 million of cash and cash equivalents as of December 31, 2004. About Interleukin Interleukin Genetics is a biotechnology company focused on developing personalized health products. The company uses functional genomics to help in the development of risk assessment tests, pharmacogenetic tests, nutritional and therapeutic products based on the genetic variations in people. Interleukin's current programs focus on cardiovascular disease, osteoporosis, rheumatoid arthritis, endometriosis, periodontal disease and weight management. Interleukin expects that these programs will lead to products that will personalize the selection of nutritional and therapeutic products and enable the managed care industry to improve patient care and better allocate resources. For more information about Interleukin and its ongoing programs, please visit http://www.ilgenetics.com. Certain statements contained herein are "forward-looking" statements including statements regarding our ability to develop diagnostic, personalized nutritional and therapeutic products to prevent or treat diseases of inflammation and other genetic variations, our ability to screen nutritional compounds for their effects on inflammatory responses and other genetic variations, given specific genetic patterns and our ability to make progress in advancing our core technologies. Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, our ability to develop diagnostic, personalized nutritional and therapeutic products to prevent or treat diseases of inflammation and other genetic variations, our ability to screen nutritional compounds for their effects on inflammatory responses and other genetic variations, given specific genetic patterns, our ability to complete all of our key milestones with regard to Alticor programs, our ability to make progress in advancing our core technologies and our ability to launch new commercial products and those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2004 filed with the Securities and Exchange Commission on April 26, 2005, our quarterly reports on Form 10-Q and in other filings made by us with the Securities and Exchange Commission. We disclaim any obligation or intention to update these forward-looking statements. Interleukin Genetics, Inc. Financial Highlights June 30, December 31, Balance sheet data 2005 2004 ----------------------------------- (Unaudited) (Audited) Cash and cash equivalents $ 4,897,222 $ 4,528,425 Total current assets 5,071,607 4,721,375 Total assets $ 6,466,234 $ 6,185,501 Total current liabilities $ 3,346,253 $ 1,445,303 Total liabilities 4,786,903 2,657,994 Total shareholders' equity 1,679,331 3,527,507 Total liabilities and shareholders' equity $ 6, 466,234 $ 6,185,501 Three Months Ended Six Months Ended Statement of June 30, June 30, June 30, June 30, operations data 2005 2004 2005 2004 ------------------------------- ------------ ------------ ------------ (As Restated (As Restated and and (Unaudited) Unaudited) (Unaudited) Unaudited) Revenue $ 7,694 $ 9,977 $ 15,053 $ 18,320 Gross profit 7,694 9,934 15,053 18,222 Research and development expenses 608,859 1,274,606 1,292,862 2,099,641 General and administrative expenses 1,063,703 740,122 1,767,642 1,464,800 ----------- ----------- ----------- ----------- Total operating expenses 1,672,562 2,014,728 3,060,504 3,564,441 ----------- ----------- ----------- ----------- Loss from operations (1,664,868) (2,004,794) (3,045,451) (3,546,219) Total other income and expense (128,923) (135,211) (263,304) (274,817) ----------- ----------- ----------- ----------- Net loss $(1,793,791) $(2,140,005) $(3,308,755) $(3,821,036) =========== =========== =========== =========== Basic and diluted net loss per common share $ (0.08) $ (0.09) $ (0.14) $ (0.16) Weighted average common shares outstanding 23,653,280 23,501,709 23,629,082 23,412,390 CONTACT: Interleukin Genetics Fenel M. Eloi, 781-398-0700