SOURCE: MYOS Corporation

MYOS Corporation

April 01, 2013 08:00 ET

MYOS Corporation Reports Fourth Quarter and Year End Financial Results for 2012

CEDAR KNOLLS, NJ--(Marketwire - Apr 1, 2013) - MYOS Corporation (OTCBB: MYOS), a company focused on the discovery, development and commercialization of muscle health nutritional supplements, functional foods, and therapeutic products, today announced its financial results for the fourth quarter and twelve months ended December 31, 2012.

"The successful launch of our first product through the distribution agreement we signed during 2012 and the recently released positive study results confirming the beneficial effect of MYO-T12 on suppressing myostatin levels have established a solid foundation for future growth at MYOS," said Glen Fleischer, Chief Executive Officer of MYOS. "Sales data from our distribution partner strengthens our belief in the strong growth potential for MYO-T12 formulations, the first clinically-demonstrated natural myostatin inhibitor.

"During the year ahead we will continue to build on this foundation as we work toward our goal of sustainable and accelerated revenue growth. Currently, we are actively pursuing three critical initiatives, and working in parallel to insulate our business from competition through strong, comprehensive layers of intellectual property protection. The critical initiatives are: 1) significantly advance the science behind MYO-T12 to demonstrate efficacy in chronic clinical studies with leading academic institutions, 2) refine and optimize the product through advanced food science coupled with our expertise in protein chemistry, all in close proximity to the core consumer target for muscle health products, and 3) secure an advantaged supply chain with the capacity and cost structure to fully support our future revenue growth as an emerging muscle science company."

For the fourth quarter of 2012 ended December 31, 2012, the Company reported revenue of approximately $177,000 compared to revenue of approximately $44,000 for the fourth quarter of 2011. The loss from operations was approximately $(1.0) million for the fourth quarter of 2012 compared to approximately $(0.9) million for the fourth quarter of 2011. Net loss for the fourth quarter of 2012 was approximately $(1.0) million compared to approximately $(1.8) million for the fourth quarter of 2011. Included in the fourth quarter of 2011 was an impairment charge of approximately $2.7 million related to the carrying value of intellectual property that was partially offset by a gain in the fair value of warrants of approximately $1.8 million. 

For the twelve months ended December 31, 2012, the Company reported revenue of approximately $912,000 compared to revenue of approximately $100,000 for the twelve months of 2011. The loss from operations was approximately $(3.0) million for the twelve months of 2012 compared to approximately $(4.6) million for the twelve months of 2011. Net loss for the full year of 2012 was approximately $(3.9) million compared to approximately $(5.6) million for the full year of 2011. Included in the twelve months of 2011 was an impairment charge of approximately $2.7 million related to the carrying value of intellectual property and a write-down of approximately $2.4 million in the value of warrants then outstanding partially offset by a gain in the fair value of warrants outstanding of approximately $4.1 million. 

About MYOS Corporation

MYOS is a development stage company focused on the discovery, development and commercialization of products that improve human muscle health and performance. MYOS is the owner of MYO-T12, the first clinically demonstrated natural myostatin inhibitor. Myostatin is a natural regulatory protein, which inhibits muscle growth and recovery. MYO-T12 is manufactured to optimize biological activity, which MYOS believes has the potential to redefine existing standards for muscle health. For more information on MYO-T12 and to discover why MYOS is known as "The Muscle Company,"™ visit www.myoscorp.com.

Forward-Looking Statements

Any statements in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements involve risks and uncertainties, including but not limited to those relating to the successful continued research of MYO-T12 and its effects on myostatin inhibition, successfully achieving our critical initiatives described in this release, product and customer demand, market acceptance of our products, the ability to create new products, the ability to achieve a sustainable profitable business, the effect of economic conditions, the ability to protect our intellectual property rights, the continued growth of MYO-X in GNC, Vitamin Shoppe and other specialty retail stores, competition from other providers and products, risks in product development, our ability to raise capital to fund continuing operations, and other factors discussed from time to time in our Securities and Exchange Commission filings. We undertake no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made except as required by law.

These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.

   
MYOS CORPORATION AND SUBSIDIARY  
(a development stage company)  
CONSOLIDATED BALANCE SHEETS  
       
    December 31,  
    2012  
       
ASSETS        
Current assets        
Cash   $ 3,979,662  
Accounts receivable     201,579  
Inventories     218,317  
Prepaid expenses and other current assets     84,388  
Total current assets     4,483,946  
         
Fixed assets, net of accumulated depreciation     8,389  
Intellectual property     2,000,000  
Intangible assets     36,440  
         
Total assets   $ 6,528,775  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Accounts payable and accrued expenses   $ 208,898  
Total current liabilities     208,898  
         
Derivatives liability     121,900  
         
Total liabilities     330,798  
         
Stockholders' equity        
Preferred stock, $.001 par value; 25,000,000 shares authorized; no shares issued and outstanding     -  
Common stock, $.001 par value, 300,000,000 shares authorized; 110,033,282 shares issued and outstanding at December 31, 2012     110,033  
Additional paid-in capital     15,733,650  
Deficit accumulated during development stage     (9,645,706 )
         
Total stockholders' equity     6,197,977  
         
Total liabilities and stockholders' equity   $ 6,528,775  
The accompanying notes are an integral part of the financial statements  
   
   
   
MYOS CORPORATION AND SUBSIDIARY  
(a development stage company)  
CONSOLIDATED STATEMENTS OF OPERATIONS  
                         
                         
    Year Ended December 31,     Three Months Ended December 31,  
    2012     2011     2012     2011  
Revenue   $ 911,727     $ 99,475     $ 177,364     $ 43,634  
Cost of sales     863,034       49,932       207,037       23,922  
  Gross profit     48,693       49,543       (29,673 )     19,712  
                                 
General and administrative expenses     3,084,186       4,645,763       992,211       916,215  
  Loss from operations     (3,035,493 )     (4,596,220 )     (1,021,884 )     (896,503 )
                                 
  OTHER INCOME (EXPENSE)                                
  Interest income     8,476       -       2,915       -  
  Interest expense     (801,819 )     (24,971 )     795       (11,432 )
  Value of warrants in excess of the amount of additional paid-in capital received in the related private placement of restricted common stock     -       (2,405,303 )     -       -  
  Change in fair value of warrants     (16,173 )     4,101,743       -       1,773,257  
  Impairment charge - intellectual property     -       (2,662,000 )     -       (2,662,000 )
  Amortization of deferred financing costs     (69,451 )     (10,549 )     -       (10,549 )
  Gain on forgiveness of debt     -       -       -       -  
      (878,967 )     (1,001,080 )     3,710       (910,724 )
                                 
Net income (loss)   $ (3,914,460 )   $ (5,597,300 )   $ (1,018,174 )   $ (1,807,227 )
                                 
                                 

Contact Information

  • For additional information contact:
    Stephanie Prince/Jody Burfening
    LHA
    (212) 838-3777
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