Company Looks Forward with Cautious Optimism
Irvine, CA, May 5, 1998 — InVitro International’s (Bulletin Board Symbol “INVI”) second fiscal quarter, ended March 31, 1998, resulted with revenues of $135,744, an increase of 2% over the revenues of $133,272 for quarter ended December 31, 1997; net loss for the second quarter was $36,069 or .003¢ per share, a decrease of $ 21,700 compared to first quarter losses and 91% less than second quarter 1997 losses of $395,000, or .02¢ per share. Management anticipates that the losses will continue to narrow if revenues increase only slightly above their current rate.
President and Chief Executive Officer, W. Richard Ulmer, stated “INVI’s unaudited second quarter financial for the period ending March 31, 1998, again showed an increase in cash with slightly higher sales than in the first quarter(ended December 31, 1997); profit and loss results were very near break-even for this second quarter.” Most of the quarter’s loss is attributable to fiscal year end audit, and shareholder/ broker printing and mailing expenses.
In reviewing current opportunities for INVI, Ulmer indicated that the recent increase in Department of Transportation enforcement personnel appears to have spurred more interest in Corrositex® testing in the United States; in addition, INVI’s agents and partner laboratories in both Asia and Europe have developed several new business opportunities for the Company’s Irritection Assay System® during the last year. Ulmer commented, “InVitro International has demonstrated a mental toughness and shown its ability to stay on course under difficult circumstances; we continue to believe that we are ahead of our time both with the non-animal testing core business as well as with the infant safety and identification product, Guardian DNA.” He continued by saying, “with the November 1997 United Kingdom legislation preventing future new finished cosmetics from being tested on animals, there is potential for more demand for non-animal test methodologies such as INVI’s Irritection Assay System in its Ocular and Dermal forms.”
Finally, Ulmer noted that as had been mentioned in the recent 1997 Letter to Shareholder, the Company’s current plan of operation includes a continuing effort to find a suitable merger partner. There is no new news on that activity at this time.
InVitro’s annual shareholder’ meeting was held on April 17, 1998, at which five incumbent directors were re-elected.
InVitro International is engaged in the development, manufacture and sale of proprietary, non-animal toxicity testing products and services that ensure the safekeeping of humans and the environment, and that minimize animal testing in commercial and academic enterprise.
Certain information in this document includes “forward-looking statements” within the meaning of applicable securities laws. In addition, from time to time the Company or its executive officers have made or may make forward-looking statements, orally or in writing, that involve substantial risks and uncertainties. Actual results could differ materially from those projected or suggested by any forward-looking statements as a result of a wide variety of factors and conditions, including but not limited to, the ability of the Company to continue as a going concern, market acceptance of new products and technologies, economic, competitive, governmental and technological factors affecting the Company’s operations, markets, services and prices, significant disruptions caused by third parties failures to address the Year 2000 issues, litigation costs, changes in the Company’s operations, unanticipated events and various other factors. The reader is specifically referred to disclosures contained in this document and in prior documents publicly disseminated by the Company.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three months ended March 31 Six months ended March 31
1998 1997 1998 1997 (unaudited) Revenues $136,000 $164,000 $269,000 $423,000
Costs and expenses 172,000 567,000 363,000 1,346,000
Loss from operations (36,000) (403,000) (94,000) (923,000)
Other income 0 8,000 0 22,000
Net loss $(36,000) $(395,000) $(94,000) $(901,000)
Loss per common share $(0.003) (0.02) $(0.01) (0.06)
Weighted average common
shares outstanding 14,028,300 14,023,300
Condensed Consolidated Balance Sheet
(unaudited) March 31, March 31, 1998 1997
Cash and cash equivalents $56,000 54,000
Other current assets 566,000 584,000
Total current assets 622,000 638,000
Noncurrent assets 204,000 255,000
Total assets $826,000 $893,000
Current liabilities $199,000 $169,000
Shareholders' equity 627,000 724,000
Total liabilities & equity $826,000 893,000