Full Press Release Details
LIFEVANTAGE ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2009 FINANCIAL AND
San Diego, CA, September 29, 2009, LifeVantage Corporation (OTCBB: LFVN), a science-based, natural
products company dedicated to helping people reach their health and wellness goals through
science-based solutions for oxidative stress and the maker of both Protandim and TrueScience
Anti-Aging Cream, announced today fourth quarter and fiscal year 2009 financial and operating
The Company recorded net revenues of $4.1 million and a net loss of ($9.1) million, or ($0.23) per
share, for its year ended June 30, 2009. For its year ended June 30, 2008, the Company recorded net
revenues of $3.2 million and a net loss of ($2.1) million or ($0.09) per share.
During its fourth quarter fiscal year 2009, the Company recorded net revenue of $1.6 million, which
represents an increase of approximately 150% from the net revenue of $0.6 million for the third
quarter fiscal year 2009 and a net loss of ($5.3) million or ($0.11) per share. During its fourth
quarter fiscal year 2008, the Company recorded net revenues of $0.8 million and a net loss of
$(0.7) million, or $(0.03) per share.
This past fiscal year has been a transitional one for LifeVantage, stated David W. Brown,
President CEO. We entered the multi-billion dollar network marketing industry, by far the
fastest growing sales channel for dietary supplements, and we believe, the best avenue for
marketing the Company s products. Furthermore, we announced a unique inside-out approach to
anti-aging with the launch of our second product, TrueScience Anti-Aging Cream. On the inside of
the body, Protandim, our flagship nutritional supplement, has been clinically proven to reduce the
rate of cellular aging. Offering a unique, effective skin care product to address the skin, or the
outside, was a logical extension of our Protandim product line. Continuing with our expansion, we
entered the international market with a pre-launch in Mexico, which ranks among the top five
countries in terms of network marketing, with a full launch anticipated later this year.
The increase in yearly as well as fourth quarter revenue is directly attributable to our launch
into network marketing as well as the addition of a team of some of the most sought after and
highest producing independent distributors in the network marketing industry, added Brown.
Furthermore, we believe our executive team members, CFO Carrie Carlander and COO Kirby Zenger,
have proven to be tremendous assets to the Company. Carrie has an impressive background and track
record with dynamic public companies with proven abilities in corporate governance, strategic
planning, investor relations, and finance. Kirby brings varied and invaluable experience from the
network marketing industry as well as traditional business and has a proven track record in
building and growing network marketing sales organizations at an impressive rate. We believe the
team we now have in place can best continue to move the Company forward and significantly impact
the growth of our network marketing distribution model.
Carrie Carlander, CFO, added: Earlier this year, LifeVantage launched into the network marketing
sales channel and we look forward to continuing to realize the benefits of our new team and revenue
model. Most of the expenses related to the addition of the new team, marketing expenses necessary
to re-launch the Company and our second product, TrueScience Anti-Aging Cream, as well as
litigation expenses have now been recognized. We have also implemented reductions in overhead and
operating expenses and moving forward we are poised to execute our growth plans with a more
efficient corporate and operational structure.
Key Corporate Developments
Third Patent for Protandim Issued
In September 2009, the Company announced that it had been granted a third patent for Protandim,
"Methods for Enhancing Antioxidant Enzyme Activity and Reducing C-Reactive Protein Levels, which
was issued on August 25, 2009. This patent claims the use of Protandim for increasing antioxidant
enzyme activity and further documents Protandim s effect on antioxidant enzymes in vivo, describing
anti-inflammatory effects such as the lowering of C-reactive protein. C-reactive protein is widely
considered by doctors and researchers as an indicator of the amount of inflammation present in the
body. Elevated basal levels of C-reactive protein are considered risk factors for diabetes,
hypertension, and cardiovascular disease.
Mexico Pre-Launch Announced
In August 2009, the Company announced that it was entering the international market with a
pre-launch in Mexico, one of the top network marketing countries in the world, with independent
distributor applications and orders being accepted in anticipation of a launch later this year.
Network marketing companies have traditionally achieved outstanding results in Mexico and that,
coupled with the fact that LifeVantage has strong distributor relationships in the country, were
key factors in the expansion decision. As well, nutrition and wellness product sales are booming in
Mexico and the Company believes that Protandim and TrueScience are ideal for this market,
especially with the research and science that supports the Company s products.
TrueScience Anti-Aging Cream Launched
In June 2009, the Company launched its LifeVantage TrueScience Anti-Aging Cream, a
scientifically-based, groundbreaking and unique skin care product which includes natural and
effective ingredients, including those found in Protandim. This new, proprietary skin care formula
was developed in association with Kimberly Stone, M.D., a Denver-based board certified
dermatologist, and is formulated to protect the skin from a variety of factors that contribute to
aging and the symptoms of unhealthy skin.
Peer-Reviewed Publications Surrounding Protandim
During fiscal year 2009, several peer-reviewed preclinical studies involving our flagship product
Protandim, were published.
In April 2009, the findings from a Louisiana State University peer-reviewed study were published in
the journal PLoS ONE, an international, peer-reviewed, open-access journal published by the Public
Library of Science. The abstract was entitled Protandim, a Fundamentally New Antioxidant Approach
in Chemoprevention Using Mouse Two-Stage Skin Carcinogenesis as a Model . A two-stage mouse skin
carcinogenesis study was performed to investigate whether Protandim could suppress tumor formation
by a dietary approach. The preclinical study concluded that overall, induction of antioxidant
enzymes by Protandim may serve as a practical and potent approach for cancer prevention.
In February 2009, the results of a preclinical study were published in the journal Free Radical
Biology and Medicine. The study was conducted by scientists at the University of Colorado Denver
and Ochsner Medical Center and demonstrated that all five of Protandim s active ingredients
contribute synergistically to the composition s activity, allowing it to work at low,
pharmacologically attainable doses of each. Even low doses of Protandim were shown to induce human
cells to increase their production of many antioxidant enzymes, and other anti-aging factors.
Furthermore, this study demonstrated that the synergistic impact of the active ingredients used in
the formulation of Protandim increases the cell s production of glutathione, a key antioxidant and
anti-aging factor, by more than 300 percent, as well as increases the important antioxidant enzyme
heme oxygenase-1. Glutathione plays a key role in the immune system and when glutathione levels
drop, a person s ability to fight disease decreases. The study also demonstrated that Protandim
delivered antioxidant benefits to cells in ways that are not affected at all by conventional direct
antioxidants such as vitamins E and C.
Protandim is currently the subject of approximately 20 independent scientific studies at various
universities and research facilities. The nature and stages of the studies vary, as some are still
in planning stages, while other studies are currently in progress. Universities and institutions
conducting research include the University of Colorado; Colorado State University; Denver Health
Medical Center; Children s Hospital, Denver; the University of Florida; the University of Kentucky;
the University of Michigan; Louisiana State University; Ohio State University; Vanderbilt
University; Glamorgan University, Wales; Sahlgrenska University Hospital, Sweden; Harvard
University; and the Mexican Institute of Social Security, Mexico City. The various studies deal
with the alleviation of oxidative stress under the following conditions: altitude sickness,
non-alcoholic steatohepatitis, lung antioxidant status in withdrawing alcoholics, autonomic