Inergetics: 2014 First Quarter Earnings Announcement - KNOE 8 News; KNOE-TV; KNOE.com |

Inergetics: 2014 First Quarter Earnings Announcement

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SOURCE Inergetics, Inc.

Substantial Year-on-Year Progress Recognizing the Broader Retail Distribution and Growth of Inergetics' Products

NEWARK, N.J., May 16, 2014 /PRNewswire/ -- Inergetics, Inc. (OTCBB: NRTI), a leading developer of nutritional supplements, yesterday filed its 10-Q for the first quarter ending March 31, 2014.

  • Total revenues generated from the sales of Martha Stewart™ Essentials, Surgex® Sports Nutrition, Bikini Ready®, SlimTrim™ and Muscle Maker Grill® "42" for the quarter ended March 31, 2014 totaled $479,802, an increase of 6,982% from the quarter ended March 31, 2013 which totaled $6,775.
  • Gross profit for the quarter amounted to $117,119 for a 24% gross margin.  Gross profit increased $115,194 or 5,745% compared to $2,005 for the quarter ended March 31, 2013.
  • After research, development and selling costs and general and administrative expenses of $3,145,128, an operating loss of $3,027,929 was realized for the quarter.  Operating losses increased $1,753,232 compared to the first quarter of 2013.  The majority of this increase was due to the increase in royalty payments and promotion and marketing costs to support the launch of Inergetics' range of products.
  • The net result for the quarter was a loss of $4,785,499 or $0.07 per share, compared to a loss of $2,024,151 or $0.04 per share for the first quarter of 2013.  The net loss increased by $2,761,348 compared to the first quarter of 2013, primarily due to an increase in selling, general and administrative expenses associated with the expansion of the company's product lines.

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 under the U.S. Generally Accepted Accounting Principles, Inergetics defers revenues as returns are not reasonably estimable.  As of March 31, 2014 and December 31, 2013, deferred revenue totaled $1,010,178 and $1,268,470, respectively.

"Our first quarter earnings highlight the substantial progress made by Inergetics over the past twelve months.  Year-on-year, we have significantly increased total revenues through the successful launch of Martha Stewart Essentials and the newly formulated Surgex brand, along with the introduction of Bikini Ready and SlimTrim to major U.S. retailers this quarter," said Mike James, CEO.  "We continue to see strong demand for our products and interest in our innovative development pipeline from leading retailers in the U.S. and internationally, which I am confident will be realized in our numbers in the coming months as we continue to invest in the growth of the business."

Key developments in the quarter

  • Strategic partnership with Terra Tech announced: Inergetics is working with Terra Tech to develop a line of natural Cannibidiol-based (CBD) nutritional supplements.
  • Formation of the Scientific and Medical Advisory Board: The board is working closely with Inergetics' Chief Science Officer, Carl Germano, RD, CNS, CDN, to ensure that the new CBD-based supplements are world-class in terms of medical effectiveness, quality and safety.
  • Multiple product launches: Launched Martha Stewart Essentials Multi Gummies and Bikini Ready Energy Gum Drops at ECRM tradeshow in Chicago; and launched exclusive partnership and sales distribution agreement with Muscle Maker Grill for protein shake Muscle Maker Grill "42" – now available at 70 store locations.
  • Expanded distribution: Q1 distribution gains include penetration at Bed Bath & Beyond, Discount Drug Mart, Harmon, and Kings Food Markets. Products are now available to consumers in more than 15,500 retail stores and online.
  • Significant Q1 marketing support: Launched Martha Stewart Essentials integrated marketing campaign in national print, broadcast, FSIs and social media platforms.  Supported Bikini Ready with a multi-faceted national advertising campaign featuring professional surfer and Sports Illustrated swimsuit model - Anastasia Ashley.  Hosted promotional events at Winn-Dixie locations with professional surfer Christa Alves. Title sponsor of the 50th Annual Easter Surf Fest Competition in Cocoa Beach, FL. Highlighted NFL Rookie of the Year and Surgex Sports Nutrition spokesperson, Keenan Allen in Super Bowl advertising in USA Today.

"We've also boosted the capabilities of our management team in the quarter with the promotion of Scott Zitiello to National Sales Director and the appointment of Sara Barth as Creative Director," added Mr. James.  "I'm confident that the addition of these excellent talents to Inergetics rounds out our terrific team and significantly enhances our ability to expand into new markets with an exciting mix of current and new product lines." 

Inergetics Media Contact

RLM Finsbury
(646) 805-2025
Inergetics@rlmfinsbury.com

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.

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