Inergetics Inc (OTCMKTS:NRTI)’s total revenue in 1Q2015 came at $283,299 compared to $479,802 in the same quarter, a year ago. The total revenue included the revenue from the sales of Martha Stewart Essentials, SlimTrim, BikiniReady and Surgex.
The decline in revenue can be attributed to the loss of distribution of Martha Stewart Essentials which was partially offset by an increase in sales of Surgex, SlimTrim, Om Essentials and BikiniReady. However, the company reported that at this stage, revenues are not sufficient to support ongoing operations.
Inergetics reported that gross profit in 1Q2015 declined $583,051 to a negative $465,852. The decline in gross profit was due to increased reserve against its product inventory of ‘Martha Stewart Essentials.’ The R&D cost and S,G& A expenses came at $1.67 million to $3.14 million. The decline can be attributed to lower promotional cost, computer cost, consultants’ costs and reduced compensation and benefits.
The management reduced various expenses including insurance, professional fees and other due to lack of capital. The decline in expenses was offset by surge in licensing fee due to MSLO terminating the licensing deal. Also, the company recorded an impairment of intangible assets amounting to $41,000 linked to the MSLO agreement.
Inergetics Inc (OTCMKTS:NRTI) posted an operating loss of $2.14 million in the 1Q2015 compared an operating loss of $3.02 million in same quarter, a year earlier. The non-operating expenses increased to $2.2 million from $1.49 million for the quarter ending March 31, 2014.The non-operating income increased due to the jump in accretion of debt discount and a Loss on extinguishment of debt. The management said that they will continue to take measures to lower operating expenses and enhance revenue.
In last trading session, the stock price of NRTI declined more than 22% to close the trading session at $0.00070. The decline came at a share volume of 59.05 million compared to average share volume of 16.34 million.