EX-99.1 2 lifepoint_8kex99-1.txt EXHIBIT 99.1 [LifePoint] NEWS RELEASE FOR IMMEDIATE RELEASE CONTACT: Richard Wadley Acting CEO & President (909) 418-3000 x 400 e-mail: LifePoint@LFPT.com LIFEPOINT, INC. RELEASES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2004 ONTARIO, CALIF. - February 14, 2005- LifePoint, Inc. (AMEX: LFP), a provider of non-invasive drug diagnostic technologies and solutions, announced financial results for the third quarter ended December 31, 2004. Net loss applicable to common shareholders for the third quarter ended December 31, 2004, was $6,915,896, or $0.07 per share, compared to a net loss of $2,313,320, or $0.05 per share, for the third quarter ended December 31, 2003. Included in the net loss applicable to common shareholders for the third quarter ended December 31, 2004, was a charge of $3,709,203 attributable to the beneficial conversion valuation and warrant valuation associated with the private placement of the Series E Convertible Preferred Stock in November, 2004. The net loss for the third quarter ended December 31, 2004, excluding the impact of the warrant and beneficial conversion feature valuation associated with the Series E Preferred Stock, was $2,475,128, or $0.03 per share, compared to a net loss of $1,792,937, or $0.04 per share, for the third quarter ended December 31, 2003. During the third quarter ended December 31, 2003, the Company had re-started operations after being in an employee furlough earlier in the fiscal year due to the loss of its critical funding, which was the main factor for the lower operating expenses incurred during the nine months. "Revenue results in third quarter 2004 were below earlier projections, largely as a result of certain technical performance problems that have slowed LifePoint's ability to penetrate its key market segments as quickly as anticipated," said Richard Wadley, the Company's CEO. "These issues were referenced in LifePoint's February 1, 2005 Press Release along with some of the actions being taken to solve those issues. The Company's technical staff, along with the outside bio-med engineering group LifePoint brought in to help, have been focused on three `pesky' problems that have been roadblocks to more rapid market penetration. While the evaluation process is continuing, I am happy to report that solid progress in identifying the causes and potential solutions for these technical issues is being made and we are increasingly optimistic that these issues will be satisfactorily resolved in a timely manner." more... "For perspective, one of the technical problems involves improving the saliva collection and distribution process that is critical for the IMPACT SYSTEM(R) to consistently and accurately perform its diagnostic tests. Several solutions have been explored and the most promising steps are currently in field testing with encouraging results. Once fully tested and verified, these improvements will be incorporated for marketplace use over the next few months as appropriate," "We are pleased with the technical progress being made on the remaining other product issues as well, and will report on their status as appropriate over the next few weeks. Another area of improvement worth noting," said Mr. Wadley "is that the Company has reduced its current corporate burn-rate by about one-third compared to the rate operable in the third quarter. We will continue to emphasize strict cost control and expect LifePoint's going-forward burn rate to be reduced even further." Page 2. FINANCIAL INFORMATION LIFEPOINT, INC. BALANCE SHEET December 31, 2004 March 31, 2004 ---------------- ---------------- ASSETS Current assets: Cash and cash equivalents $ 2,190,606 $ 3,710,761 Accounts receivable 52,357 65,650 Inventory, net of allowance for excess inventory of $1,354,591 at December 31, 2004 and $1,096,571 at March 31, 2004 2,443,018 2,309,343 Prepaid expenses and other current assets 292,452 245,918 ---------------- ---------------- Total current assets 4,978,433 6,331,672 Property and equipment, net 1,369,753 1,881,826 Patents and other assets, net 568,242 595,673 ---------------- ---------------- $ 6,916,428 $ 8,809,171 ================ ================ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 685,425 $ 976,581 Accrued expenses 720,393 1,030,848 Note Payable - short term 121,442 134,356 Note Payable - bank 0 160,650 Capital lease, short-term 5,667 0 ---------------- ---------------- Total current liabilities 1,532,927 2,302,435 Note Payable - long term 59,497 151,734 Convertible Debt, net of discount 0 0 ---------------- ---------------- Total liabilities 1,592,424 2,454,169 Stockholders' equity: Series C 10% Cumulative Convertible Preferred Stock, $.001 par value, 600,000 shares authorized, 0 outstanding at December 31, 2004 and 377,434 at March 31, 2004 0 377 Series D 6% Cumulative Convertible Preferred Stock, $.001 par value, 15,000 shares authorized, 8,872 and 9,584 outstanding at December 31, 2004 and March 31, 2004, respectively 9 9 Series E 5% Cumulative Convertible Preferred Stock, $.001 par value, 4,000 shares authorized, 4,000 and 0 outstanding at December 31, 2004 and March 31, 2004, respectively 4 0 Common Stock, $.001 par value; 350,000,000 shares authorized, 97,040,860 and 57,037,597 shares issued and outstanding at December 31, 2004 and March 31, 2004, respectively 97,041 57,039 Additional paid-in capital 89,010,685 78,231,867 Dividends payable in common stock 772,755 1,354,847 Notes receivable-key employee 0 0 Accumulated deficit (84,556,490) (73,289,137) ---------------- ---------------- Total stockholders' equity 5,324,004 6,355,002 ---------------- ---------------- $ 6,916,428 $ 8,809,171 ================ ================ Page 3.
LIFEPOINT, INC. STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE FOR THE THREE MONTHS ENDED NINE MONTHS ENDED DECEMBER 31 DECEMBER 31 ------------------------------- ------------------------------- 2004 2003 2004 2003 ------------- ------------- ------------- ------------- Revenues $ 5,836 0 $ 81,904 $ (18,500) Costs and expenses: Cost of goods sold 966,466 0 2,559,301 0 Research and development 389,235 1,032,061 1,570,958 2,556,230 Selling and marketing 414,913 173,489 1,110,432 419,967 General and administration 710,350 587,387 1,599,965 1,628,735 ------------- ------------- ------------- ------------- Total costs and expenses from operations 2,480,964 1,792,937 6,840,656 4,604,932 ------------- ------------- ------------- ------------- Loss from operations (2,475,128) (1,792,937) (6,758,752) (4,623,432) Interest income 4,617 590 8,704 16,656 Interest expense (576,501) 0 (578,432) (323,140) Discount on settlement of trade payables 3,694 3,558 203,743 727,171 ------------- ------------- ------------- ------------- Total other income (expense) (568,190) 4,148 (365,985) 420,687 ------------- ------------- ------------- ------------- Net loss (3,043,318) (1,788,789) (7,124,737) (4,202,745) Income taxes 800 800 Less preferred dividends 3,871,778 524,531 4,141,817 7,745,427 ------------- ------------- ------------- ------------- Loss applicable to common shareholders $ (6,915,896) $ (2,313,320) $(11,267,354) $(11,948,172) ============= ============= ============= ============= Loss applicable to common stockholders per common share: Weighted average common shares outstanding - basic and assuming dilution 96,319,203 42,122,394 84,297,764 39,135,182 ============= ============= ============= ============= Net loss per share applicable to common stockholders $ (0.07) $ (0.05) $ (0.13) $ (0.31) ============= ============= ============= ============= Page 4.
more... ABOUT LIFEPOINT, INC LifePoint, Inc., a provider of noninvasive drug diagnostic technologies and solutions, has developed, manufactures and markets the IMPACT Test System - a rapid diagnostic testing, screening and drug monitoring device for use in the workplace, law enforcement, ambulances, pharmacies, and home healthcare markets. LifePoint's patented and proprietary technologies for the use of saliva as a non-invasive, blood-comparable test specimen, used in conjunction with the flow immunosensor technology licensed from the United States Navy, has allowed LifePoint to develop a broadly applicable, rapid, on-site diagnostic test system. The first product will be able to detect drugs of abuse and alcohol, and the initial three target markets--law enforcement, industrial workplace and medical emergency room--are estimated to be over $1.6 billion worldwide. For further information, visit the Company's Web site: . This press release contains forward-looking statements regarding future events and the future performance of LifePoint, Inc. that involve risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, potential need for additional financing, FDA 510(k) clearance for additional tests in medical markets, dependence on third parties for certain marketing efforts, and market acceptance. These risks are described in further detail in the Company's reports filed with the Securities and Exchange Commission. LifePoint(R) and IMPACT(R) are trademarks of LifePoint, Inc. ##### Page 5.