NEW YORK (GenomeWeb News) – Consumer genomics firm GeneLink reported that its first-quarter revenues dropped 45 percent year over year following the sale of its GeneWize Life Sciences subsidiary.
For the three months ended March 31, the Orlando, Fla.-based company posted $771,664 in revenues, down from $1.4 million a year ago, it said in its Form 10-Q filed with the US Securities and Exchange Commission on Monday.
The company said that it closed the sale of GeneWize to Capsalus in February for $500,000 and a monthly earn-out provision for five years, which will provide GeneLink between $1.5 million and $4.5 million depending on GeneWize revenues. It said in the quarterly statement that it recognized a book gain of $759,054 from the sale of GeneWize.
GeneLink also inked a licensing and distribution deal with Gene Elite for certain skin care and nutrition product technologies, resulting in a payout of $1.5 million to GeneLink, of which $1 million was received in 2011 and $500,000 was received in February, the company said in its SEC document.
During the first quarter, GeneLink's R&D costs rose 82 percent year over year to $16,437 from $9,024 a year ago, and SG&A costs dropped 14 percent to $1.2 million from $1.4 million.
The company's net loss for the quarter was $105,673, or break-even on a per-share basis, compared to a net loss of $592,223, or break-even on a per-share basis, in Q1 2011. The company used more than 204.9 million shares in calculating its per-share figure in the recent quarter, compared to more than 157.1 million shares in the year-ago period.
GeneLink ended the quarter with $635,540 in cash and cash equivalents.