NEW YORK (GenomeWeb) — Interleukin today reported a 38 percent year-over year drop in its revenues, with genetic testing service revenues down 36 percent.
The firm said that for the three months ended Dec. 31, 2016, total revenues fell to $227,861 from $365,648 in Q4 2014. Genetic testing service revenues for the recently completed quarter was $150,993, compared to $234,369. Other revenues declined 41 percent in Q4 2016 to $76,868 from $131,279.
Interleukin said the reduction in revenues resulted from lower contract research revenue, fewer kits returned for processing related to a promotional product bundle program, and reduced breakage revenue compared to the year-ago period.
The company's R&D spending was cut 59 percent year over year to $130,243 from $320,571, while its SG&A costs rose 17 percent to $1.4 million from $1.2 million.
Interleukin posted a net loss of $1.8 million, or $.01 per share, for Q4 2016, compared to a net loss of $1.9 million, or $.01 per share, a year ago.
It said in a statement that it has secured $1 million in new financing in the form of a subordinated convertible note from Bay City Capital and Horizon Technology Finance. It also restructured its existing debt facility with Horizon. As a result, its principal payments will be deferred, reducing Interleukin's near-term cash requirements.
The company said in a document filed late last month with the US Securities and Exchange Commission that it had reduced its work force by eight employees as part of a restructing to support its emerging cardiovascular testing program and to streamline its commercial strategy for its ILUSTRA Inflammation Management Program, a genetic testing benefit program offered to employers.
For full-year 2016, the firm recorded total revenues of $2.5 million, a 79 percent increase over $1.4 million in 2015. Genetic testing service revenues contracted 17 percent to $1.0 million from $1.2 million, while other revenues shot up more than fivefold to $1.5 million from $284,930.
Its R&D costs grew 15 percent to $1.5 million from $1.3 million, while its SG&A costs rose 3 percent to $6.1 million from $5.9 million.
Interleukin's net loss for 2016 narrowed to $7.4 million, or $.04 per share, from a net loss of $7.9 million, or $.05 per share, in 2015.
The company reported $2.7 million in cash and cash equivalents as of Dec. 31, 2016.