-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Jp0rURAFPeoA/P4Mf8Z/Y+/LJYHdvh5DDKX+JiNh+b/VynoKUFQ8DY3F/xtMrbav OxQ8yVj3XUbkD76UJOXIDA== 0001157523-06-004983.txt : 20060510 0001157523-06-004983.hdr.sgml : 20060510 20060510140240 ACCESSION NUMBER: 0001157523-06-004983 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060509 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060510 DATE AS OF CHANGE: 20060510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERLEUKIN GENETICS INC CENTRAL INDEX KEY: 0001037649 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 943123681 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32715 FILM NUMBER: 06825049 BUSINESS ADDRESS: STREET 1: 135 BEAVER ST CITY: WATHAM STATE: MA ZIP: 02452 BUSINESS PHONE: 1-781-398-0700 MAIL ADDRESS: STREET 1: 135 BEAVER ST CITY: WATHAM STATE: MA ZIP: 02452 FORMER COMPANY: FORMER CONFORMED NAME: MEDICAL SCIENCE SYSTEMS INC DATE OF NAME CHANGE: 19971003 8-K 1 a5144879.txt INTERLEUKIN GENETICS 8K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) May 9, 2006 Interleukin Genetics, Inc. - ------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Delaware - ------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 001-32715 94-3123681 - ------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 135 Beaver Street Waltham, MA 02452 - ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (781) 398-0700 - ------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) - ------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition. On May 9, 2006, Interleukin Genetics, Inc. issued a press release to report its consolidated financial results for the quarter ended March 31, 2006. A copy of the earnings press release is being furnished pursuant to this Item 2.02 as Exhibit 99.1 to this Current Report on Form 8-K. Item 9.01 Financial Statements and Exhibits. (c) The following exhibit is furnished with this report: Exhibit No. Description - ----------- ------------- 99.1 Earnings Press Release dated May 9, 2006. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Interleukin Genetics, Inc. (Registrant) Date: May 10, 2006 /s/ KENNETH S. KORNMAN ----------------------------- Kenneth S. Kornman Chief Executive Officer (Signature) EX-99.1 2 a5144879ex991.txt EXHIBIT 99.1 Exhibit 99.1 Interleukin Genetics Reports First Quarter Financial Results WALTHAM, Mass.--(BUSINESS WIRE)--May 9, 2006-- - Commercial Launch of New Genetic Tests Begins - Interleukin Genetics, Inc. (AMEX: ILI) today reported financial results for the quarter ended March 31, 2006. The company generated revenue of $232,000 and a net loss of $1.6 million or $0.07 per basic and diluted common share for the quarter. Interleukin Genetics' reported revenues resulted almost entirely from the processing of genetic tests for cardiovascular health and general nutrition. "Interleukin Genetics has made the successful transition to commercial operations in the first quarter through the introduction of two new genetic assessment tests," said Ken Kornman, Interleukin Genetics' CEO. "Our objective is to now build on this key operational milestone by focusing our attention on expanding our genetic testing services and business development initiatives, as well as our development pipeline. In addition, we are committed to increasing the scope of applications utilizing the Company's intellectual property, and we look forward to reporting on our progress going forward." Operating Highlights for the quarter ended March 31, 2006: -- The Company commenced sales of two new genetic tests for personal wellness assessment - the interleukin-1 test for cardiovascular health and the general nutrition test. -- Interleukin Genetics began operations in its specially designed and constructed genetic testing laboratory. The laboratory is registered under CLIA, the Clinical Laboratory Improvements Amendments, with the Division of the Centers for Medicare and Medicaid Services that regulates laboratory testing in the United States. Samples were first processed in February, 2006. -- The Company initiated a new study in China utilizing its proprietary interleukin-1 technology to evaluate potential population-specific genetic links to myocardial infarction at an early age and expects to enroll approximately 1,300 subjects. A similar study that is ongoing in Korea will enroll approximately 750 subjects. -- Interleukin Genetics announced executive management changes as it focuses on executing its commercial strategy and expanding development programs. Ken Kornman, the company's founder and Chief Scientific Officer, assumed the additional role of CEO, replacing Phil Reilly who will remain Chairman of the Board of Directors. Gregg Mayer joined the company as Chief Business Officer and is driving business operations and strategy. Interleukin Genetics is actively seeking new opportunities and strategic alliances that capitalize on its proprietary interleukin-1 technology for the development of genetic tests and therapeutic products. Financial Results: Revenue for the three months ended March 31, 2006 was $232,000 compared to $7,000 in the same period of 2005. The increase was largely due to the amounts received for processing the cardiovascular health and general nutrition genetic tests that are sold by the company's strategic partner, Alticor. Cost of revenue, which includes fixed overhead costs associated with laboratory operations, was $198,000 for the three months ended March 31, 2006, resulting in a gross profit of $34,000. For fiscal year 2006, the company is currently projecting a gross profit margin of 40-45% from these genetic tests. Research and development expenses were $729,000 for the quarter ended March 31, 2006 compared to $684,000 for the quarter ended March 31, 2005, an increase of approximately 7%. These expenses include research and development expenses funded by Alticor under research and development agreements for the development of new tests. This increase was the result of new accounting rules that required the recording of stock-based compensation of approximately $74,000. General and administrative expenses were $765,000 for the three months ended March 31, 2006 compared to $704,000 during the same period in the prior year, an increase of approximately 9%. This increase was the result of new accounting rules that required the recording of stock-based compensation of approximately $69,000. The company reported a net loss of $1.6 million, or $0.07 per basic and diluted common share, in the first quarter of 2006 compared to a net loss of $1.5 million, or $0.06 per basic and diluted common share, in the first quarter of 2005. On March 31, 2006, the company reported cash and cash equivalents of $2.9 million compared to $3.4 million of cash and cash equivalents on December 31, 2005. About Interleukin Interleukin Genetics is a biotechnology company focused on developing and commercializing personalized health products. The company uses its proprietary technology to help in the development of risk assessment tests, pharmacogenetic tests, nutritional and therapeutic products based on the genetic variations in people. Interleukin Genetics has commercialized genetic tests for periodontal disease risk assessment, cardiovascular risk assessment and general nutrition assessment, and its current development programs focus on osteoporosis and weight management. Interleukin expects that these programs will also 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 construct a DNA testing laboratory, 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, 2005 filed with the Securities and Exchange Commission, 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 Balance Sheet data: 03/31/2006 12/31/2005 - ---------------------------------------------------------------------- (Unaudited) (Audited) Cash and cash equivalents $2,896,248 $3,415,174 Total current assets 3,139,154 3,589,656 Total assets $4,513,282 $4,970,075 Total current liabilities $1,400,249 $3,014,742 Total liabilities 3,187,305 4,686,330 Total shareholders' equity 1,325,977 283,745 Total liabilities and shareholders' equity $4,513,282 $4,970,075 Statement of Operations data: Three Months Ended - -------------------------------------- 03/31/2006 03/31/2005 -------------------------------- (Unaudited) (Unaudited) Revenue $232,234 $7,359 Gross profit 34,582 7,359 Research and development 729,095 684,003 General and administrative 765,111 703,939 ------------ ------------ Total operating expenses 1,494,206 1,387,942 ------------ ------------ Loss from operations (1,459,624) (1,380,583) Total other income and expense (129,854) (134,381) ------------ ------------ Net loss $(1,589,478) $(1,514,964) ============ ============ Basic and diluted loss per share $(0.07) $(0.06) Weighted average common shares outstanding 24,019,004 23,604,882 CONTACT: For Interleukin Genetics: Janet Perry, 781-398-0700 -----END PRIVACY-ENHANCED MESSAGE-----