-----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, LsfpioA4atSriQPhrArhgeZO589lt+CbEdDoxFVgv9supwAKYGru/UWrerB2ltk4 3vadgtKR5kZFHxiSdVGJVQ== 0001157523-06-008263.txt : 20060810 0001157523-06-008263.hdr.sgml : 20060810 20060810090515 ACCESSION NUMBER: 0001157523-06-008263 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060809 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060810 DATE AS OF CHANGE: 20060810 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: 061019581 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 a5206888.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) August 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: |_| 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 August 9, 2006, Interleukin Genetics, Inc. issued a press release to report its consolidated financial results for the quarter ended June 30, 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 August 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: August 10, 2006 /s/ KENNETH S. KORNMAN ---------------------- Philip R. Reilly Chief Executive Officer (Signature) EX-99.1 2 a5206888ex991.txt EXHIBIT 99.1 Exhibit 99.1 Interleukin Genetics Reports Second Quarter Financial Results; Conference Call Scheduled for 8:30 AM EDT - August 10, 2006 WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 9, 2006--Interleukin Genetics, Inc. (AMEX: ILI) today reported financial results for the second quarter and six months ended June 30, 2006. The Company generated revenue of $1.3 million in the second quarter of 2006 and a net loss of $923,000, or $(0.04) per basic and diluted common share, for the quarter. Interleukin Genetics' reported revenues resulted almost entirely from the processing of genetic assessment tests for cardiovascular health and general nutrition. "These strong revenue results for the quarter have validated the consumer interest in predictive genetic tests that are based on strong science," said Ken Kornman, Interleukin Genetics' CEO. "Interleukin has established a solid foundation on which to build our DNA laboratory business with this first major launch of genetic tests through our strategic partner, Alticor. We can now focus our efforts on expanding our product pipeline, preparing for additional product launches, and developing opportunities to further commercialize our technology." Operating Highlights for the quarter ended June 30, 2006 included: -- The Company reported its first full quarter of revenues from two new genetic assessment tests. -- The Company expanded and upgraded its DNA analysis laboratory operation by adding equipment and staff to increase its throughput capabilities. -- The Company secured an exclusive license for weight management technology from GeneOb as an essential component in the development of a new genetic assessment test for weight management intended for future release. -- The Company initiated a study with Catholic University Center for High Technology Research and Education in Biomedical Sciences in Campobasso, Italy to study the link between inflammation and stroke affecting men and women at a young age using Interleukin's genetic tests. This study may support the development of new genetic tests that provide important information about common diseases. Revenue for the three months ended June 30, 2006 was $1.3 million compared to $8,000 in the same period of 2005. The increase was largely due to the revenues received from processing the cardiovascular health and general nutrition genetic assessment tests, both launched in the first quarter of 2006. While Interleukin anticipates variability of sales due to the inherent uncertainty in the introduction of new technology, the Company is providing guidance for fiscal year 2006 annual revenues from genetic testing between $3 to $4 million. Cost of revenue, which includes fixed overhead costs associated with laboratory operations, was $408,000 for the three months ended June 30, 2006, resulting in a gross profit of $936,000, or 70% of revenue. This gross margin was a result, in part, of one-time supplier discounts and complimentary support from suppliers received by the Company during its initial launch phase. For fiscal year 2006, the Company expects its gross profit margin to be between 45% and 50% from these genetic tests. Research and development expenses were $839,000 for the quarter ended June 30, 2006 compared to $609,000 for the quarter ended June 30, 2005, an increase of approximately 38%. This increase is due to research and development expenses funded by Alticor under agreements for the development of new genetic tests, as well as expenses related to the recording of $73,000 for stock-based compensation expense as a result of new accounting rules. General and administrative expenses were $882,000 for the three months ended June 30, 2006 compared to $1,064,000 during the same period in the prior year, a decrease of approximately 17%. This decrease was primarily attributable to the reduction of non-recurring professional fees incurred by the company in 2006 compared to expenses incurred in 2005 that were associated with the implementation of Sarbanes-Oxley Section 404, partially offset by the recording of $134,000 for stock-based compensation expense as a result of new accounting rules. The Company reported a net loss of $923,000, or $(0.04) per basic and diluted common share, for the second quarter of 2006 compared to a net loss of $1.8 million, or $(0.08) per basic and diluted common share, for the second quarter of 2005. On June 30, 2006, the Company reported cash and cash equivalents of $2.4 million compared to $3.4 million of cash and cash equivalents on December 31, 2005. In addition, on June 30, 2006, the Company had access to $3.5 million under credit facilities with Alticor. Conference Call Details To access the live call on August 10, 2006 at 8:30 AM EDT, dial (877) 502-9272 (domestic) or (913) 981-5581 (international). The call will also be available live via webcast at www.ilgenetics.com. Replay access of the teleconference will be available for two weeks following the call by calling (719) 457-0820 (domestic) or (888) 203-1112 (international). The passcode for the replay is 4134319. The webcast will be archived following the call at www.ilgenetics.com. 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 expectations regarding future revenues and gross profit margin, 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 June 30, December 31, 2006 2005 (Unaudited) (Audited) - ---------------------------------------------- Cash, cash equivalents and marketable securities $2,425,123 $3,415,174 Total current assets 3,283,551 3,589,656 Total assets $4,687,819 $4,970,075 Total current liabilities $1,162,515 $3,014,742 Total liabilities 3,065,040 4,686,330 Total shareholders' equity 1,622,779 283,745 Total liabilities and shareholders' equity $4,687,819 $4,970,075 Three Months Ended Six Months Ended Statement of operations June 30, June 30, June 30, June 30, data (Unaudited) 2006 2005 2006 2005 - ---------------------------------------------------------------------- Revenue $1,344,680 $7,694 $1,576,914 $15,053 Gross profit 936,398 7,694 970,980 15,053 Research and development expenses 839,375 608,859 1,568,470 1,292,862 General and administrative expenses 881,840 1,063,703 1,646,951 1,767,642 ----------------------------------------------- Total operating expenses 1,721,215 1,672,562 3,215,421 3,060,504 ----------------------------------------------- Loss from operations (784,817) (1,664,868) (2,244,441) (3,045,451) Total other income and expense (138,365) (128,923) (268,219) (263,304) ----------------------------------------------- Net loss $(923,182)$(1,793,791)$(2,512,660)$(3,308,755) =============================================== Basic and diluted loss per share $(0.04) $(0.08) $(0.10) $(0.14) Weighted average common shares outstanding 24,190,841 23,653,280 24,105,396 23,629,082 CONTACT: Interleukin Genetics, Inc. Janet Perry, 781-398-0700 -----END PRIVACY-ENHANCED MESSAGE-----