GENELINK INC

CIK:0000941020|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Dec. 31, 2012	Dec. 31, 2011
Revenues	$ 2,136,142	$ 4,684,577
Cost of goods sold	1,671,459	1,734,831
Gross profit	464,683	2,949,746
Operating Expenses:
Selling, general and administrative	3,442,362	6,247,084
Research and development	250,808	134,500
Depreciation and amortization	174,993	134,777
Loss on abandonment of patents	65,517	0
Operating Expenses	3,933,680	6,516,361
OPERATING LOSS	(3,468,997)	(3,566,615)
OTHER INCOME (EXPENSE)
Gain on sale of subsidiary	669,054	0
Gain on settlement of lawsuit	77,742	0
Interest expense	(331,085)	(265,814)
Interest income	1,539	2,233
Nonoperating Income (Expense)	417,250	(263,581)
NET LOSS	$ (3,051,747)	$ (3,830,196)
Loss per common share - basic and diluted (in dollars per share)	$ (0.01)	$ (0.02)
Weighted average common shares - basic and diluted (in shares)	214,447,037	180,567,494

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (3,051,747)	$ (3,830,196)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	174,993	134,777
Depreciation included in cost of goods sold	38,003	0
Amortization of debt discounts	124,533	113,649
Amortization of loan origination costs	45,554	41,565
Common stock issued for services	74,862	22,745
Gain on sale of subsidiary	(669,054)	0
Gain on settlement of lawsuit	(77,742)	0
Loss on abandonment of patents	65,517	0
Amortization of prepaid sales incentives	76,670
Amortization of customer deposit	(24,957)
Amortization of deferred license fees	(137,500)
Stock-based compensation	292,525	356,925
Changes in assets and liabilities:
Accounts receivable	(74,789)	70,166
Inventory	170,770	(338,495)
Prepaid expenses	128,836	(157,693)
Other assets	9,536	4,100
Accounts payable and accrued expenses	34,345	492,404
Accrued compensation	(3,781)	(113,652)
Deferred revenue	(80,181)	52,612
Deferred revenues - license fees	500,000	250,000
Net cash used in operating activities	(2,383,607)	(2,901,093)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures	(241,966)	(41,327)
Proceeds from sale of subsidiary, net of cash transferred	539,272	0
Long-term receivable related to sale of subsidiary, net	(164,358)	0
Collections on receivable from sale of subsidiary	164,358	0
Net cash provided (used) in investing activities	297,306	(41,327)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances from purchaser	0	204,500
Proceeds from issuance of common stock and warrants, net	1,504,000	2,299,320
Proceeds from exercise of stock options	0	70
Proceeds from non-refundable advance deposit	0	750,000
Net cash provided by financing activities	1,504,000	3,253,890
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(582,301)	311,470
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	740,769	429,299
CASH AND CASH EQUIVALENTS, END OF PERIOD	158,468	740,769
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for interest	1,642	4,752
Conversion of accrued consulting fees to common stock	0	90,000
Issuance of warrants in exchange for prepaid sales incentives	$ 0	$ 460,000

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 158,468	$ 740,769
Accounts Receivable, net	77,966	235,458
Inventory	393,588	562,191
Prepaid Expenses	50,258	244,248
Current portion of Prepaid Sales Incentive	92,000	76,667
Total Current Assets	772,280	1,859,333
Property and Equipment	257,769	167,812
Prepaid Sales Incentives	291,330	383,333
Intangible Assets	54,905	235,587
Loan Costs, net of accumulated amortization of $154,100 and $108,544	58,703	104,257
Other Assets	19,814	29,343
Total Assets	1,454,801	2,779,665
LIABILITIES AND SHAREHOLDERS EQUITY
Accounts payable	1,019,372	1,370,849
Accrued interest	463,815	304,457
Accrued compensation	34,698	94,188
Other accrued expenses	139,827	103,370
Deferred revenue	21,352	208,279
Advances from purchaser of subsidiary	0	204,500
Current portion of deferred revenue-license fees	150,000	0
Due to shareholder	10,000	10,000
Total current liabilities	1,839,064	2,295,643
Non-refundable advance deposit for licensing agreement	725,043	750,000
Deferred revenue - license fees	462,500	250,000
Convertible notes payable, net of discounts - related parties	1,089,547	965,015
Total Liabilities	4,116,154	4,260,658
STOCKHOLDERS' DEFICIT
Common stock, par value $0.01 per share; authorized 350,000,000 shares; issued: 257,711,181 and 204,944,485 shares; outstanding: 253,352,022 and 200,585,326 shares	2,577,112	2,049,448
Additional paid in capital	22,925,832	21,582,109
Accumulated deficit	(27,612,062)	(24,560,315)
Treasury stock, 4,359,159 shares, at cost	(552,235)	(552,235)
Total stockholders' deficit	(2,661,353)	(1,480,993)
Total liabilities and stockholders' deficit	$ 1,454,801	$ 2,779,665