ORLANDO, Fla., April 4, 2013 /PRNewswire/ -- GeneLink,
Inc. (OTCBB: GNLK.OB, "the Company," or "GeneLink"), a leading
consumer genomics biotech company, reports financial results for
the fiscal year ended December 31,
2012.
Financial Results:
- In February of 2012 the Company completed the sale of GeneWize
Life Sciences, Inc. to Capsalus Corp (OTCBB: WELL.OB, or
"Capsalus"). The sale and accompanying licensing fees provided
$1,165,900 to GeneLink during the
fiscal year.
- Annual net sales decreased from $4,684,577 to $2,136,142. The decrease is primarily
related to the sale of GeneWize and the subsequent conversion from
retail to wholesale business model in February of 2012.
- The operating loss in 2012 was $3,468,997. Most of the loss is
attributable to the unsupported overhead costs at GeneLink,
establishment of GeneLink's own manufacturing facility, and
implementation of plans to support GeneLink's expansion into
additional channels. In addition, we had extraordinary legal
expenses related to regulatory compliance. Net losses for
2012 in the amount of $3,051,747
decreased by $748,449 or 20% compared
to 2011.
- Ongoing cost initiatives resulted in the reduction of 2012
monthly recurring operating expenses by over 50% compared to
2011.
- Reduced accounts payable during 2012 by over 25%.
Dr. Bernard Kasten, GeneLink's
Chairman, CEO and interim CFO stated, "2012 was a continued
transition for us as we completed the sale of our direct selling
subsidiary, GeneWize. We were able to utilize the proceeds
from that sale to establish a unique and world class manufacturing
facility for our customized nutrition and skin care products.
Though the change in our business model from retail to wholesale
will initially appear to reduce our revenues, we are hopeful that
the our current marketing partners – ForU and geneME - will be
successful in selling GeneLink's unique and innovative approach to
wellness through genetic customization, and that the GeneLink
approach to personalized products will be revolutionary for both
the nutritional and skin care industries. Due to the change
in our business model as well as the reorganization of our
operating infrastructure, the Company has been able to reduce its
recurring monthly operating expenses by over 50% while – at the
same time – paying down payables and opening our own internal
manufacturing facility. These are, of course, important and
necessary achievements towards our goal of profitability and
financial stability."
"Looking forward," continued Dr. Kasten, "we hope to enter into
additional licensing agreements both in the US and
internationally. It is obvious that the advances in genomics
and the interest in personalized products is a rapidly developing
global phenomenon. GeneLink, as the early mover is in a strong
position to deliver into that interest. In addition, GeneLink
plans to pursue distribution of its high end nutritional and skin
care products through the medical practitioner channel.
"With new and reinvigorated marketing partners, as well as fresh
products and market opportunities, GeneLink believes 2013 offers
new opportunities for growth in the consumer rapidly maturing
genomics marketplace."
Dr. Kasten added, "In a development which should not be
overlooked, GeneLink completed over 18 months of cooperation with
the Federal Trade Commission (the "Commission") when it entered
into a proposed Consent Agreement with the staff of the
Commission. The tentative agreement, which awaits final
approval by the Commissioners, does not provide for any financial
obligations by the Company and provides us with useful guidance
moving forward. To the best of our knowledge, GeneLink is the
first consumer genetics company to negotiate such an agreement, a
testament to the strength of our Scientific Advisory Board and the
integrity of our approach."
About GeneLink Biosciences, Inc.:
GeneLink Biosciences is an 18-year old leading biosciences
company specializing in consumer genomics. GeneLink's patented
technologies include proprietary DNA test assessments linked to
personalized health, beauty and wellness applications and products.
Its DNA assessments provide information that enables the
customization of nutritional and skincare products designed and
manufactured for each individual consumer's wellness needs. For
more information visit www.genelinkbio.com.
This release contains certain 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. With the
exception of historical information contained herein, the matters
discussed in the press release involve risk and uncertainties.
Actual results could differ materially from those expressed in any
forward-looking statement. GeneLink disclaims any intention or
obligation to revise any forward-looking statements, whether as a
result of new information, future developments or otherwise.
SOURCE GeneLink, Inc.
