Nutritional science for mind health products
DSM Nutritional Products
However the savings it has made in the latest quarter are not enough to straighten out the picture for the first nine months of the year. Revenues over this period were $4.7 million, compared to $6.4 million last year. Net loss more than doubled, from $585,681 to $1,283,655.
In March of this year, retailer GNC informed the company that it was discontinuing PacificHealth's NTS strength training product line, leading the latter to write off its own inventory of $679,000 in the full year results and patents in the amount of $137,138.
Although the company received a $1 million equity investment from Hormel Health Labs in January, about which it was upbeat, the management signalled that it is actively seeking additional financing.
There were fears that the company would not be able to continue operating for more than 30 to 60 days beyond 15 August 2005, if no additional financing came through.
However it did manage to raise $500,000 from the placement of convertible debt in August, but that was not enough to secure its future.
The company said in its latest SEC filing that it "continues to seek additional financing from certain strategic partners and other equity investors" and "may explore other strategic alternatives".
It is also looking at reducing operating expenses, and has negotiated better credit terms with suppliers including its contract manufacturer.
In Q3 it trimmed back its selling, general and adminsitrative expenses to $886,581 compared to $1,117,556 for the prior year period - although research and development expenses rose from $33,808 to $43,037.