Title: The Science of Success
1The Science of Success
Confidential Investor Presentation Created by
Ardent Advisors
2Safe Harbor
- Statements in this presentation that are not
descriptions of historical facts are
forward-looking statements relating to future
events, and as such all forward-looking
statements are made pursuant to the Securities
Litigation Reform Act of 1995. Statements may
contain certain forward-looking statements
pertaining to future anticipated or projected
plans, performance and developments, as well as
other statements relating to future operations
and results. Any statements in this presentation
that are not statements of historical fact may be
considered to be forward-looking statements.
Words such as "may," "will," "expect," "believe,"
"anticipate," "estimate," "intends," "goal,"
"objective," "seek," "attempt," or variations of
these or similar words, identify forward-looking
statements. These forward-looking statements by
their nature are estimates of future results only
and involve substantial risks and uncertainties,
including but not limited to risks associated
with the uncertainty of future financial results,
additional financing requirements, development of
new products, successful completion of the
Companys proposed restructuring, the impact of
competitive products or pricing, technological
changes, the effect of economic conditions and
other uncertainties detailed from time to time in
our reports filed with the Securities and
Exchange Commission. There can be no assurance
that our actual results will not differ
materially from expectations and other factors
more fully described in our public filings with
the U.S. Securities and Exchange Commission,
which can be reviewed at www.sec.gov.
3Corporate Profile
- Inergetics, Inc. (NRTI) is a leading developer
of patented nutritional products comprised of
high-quality ingredients and proprietary
formulations. The Company is leading the way in
nutritional excellence with targeted brands that
independently serve the Clinical Oncology, Long
Term Care (Senior Care), and Sports Nutrition
Markets. - Financial Guidance (millions)
- Next 12 Months (Assumes calendar year end changed
to FYE June 30th) - Stock Symbol OTC NRTI
- Shares Outstanding 31,092,796
- Closing Stock Price as of 4/27/10 1.20
- Average Volume (3 months) 19,086
- Additional Paid in Capital 55,188,466
- Net Operating Loss (carry forward)
68,388,118 -
Assumes 60 to 1 reverse split ( Date TBD)
4Recapitalization Corporate Changes
- Initial recapitalization in November 2009
- Eliminated 13,500,000 of current liabilities
- Converted 7,700,000 of unsecured debt into
equity at 2.10 a share - Wrote off 3,000,000 of secured debt
- Raised 1,382,050 of new capital in
senior secured debenture - Secondary recapitalization in May 2010
- Raised an additional 1,187,500 in extended
offering - Changed name from Millennium Biotechnologies
Group, Inc. to Inergetics, Inc. - Changed ticker from MBTG to NRTI
- Announced 60 to 1 stock reverse (Date TBD)
- Changing calendar year end to FYE June 30th
- Converting newly issued senior secured debt to
equity at 1.20 per share - Senior secured debt outstanding 3,134,510 as of
6/8/10 - Converted 2,664,838 as of 6/8/10
- Balance Sheet Comparative Analysis
5NRTI Product Portfolio
Clinical Nutrition
Performance Nutrition
- SURGEX
- Sports Government
- Powder and RTD (in dev)
- RESURGEX Select
- Oncology HIV
- Easy to use powder
- RESURGEX Essential
- Long Term Care Home Care
- Ready to Drink
6Resurgex Oncology
Product
- Comprehensive nutritional support for actively
treated cancer patients as well as those in
post-treatment care - National Federal Medicare HCPCS Coding Medicaid
Approval in various States - Over 4 million servings consumed over past decade
- Powder formulations
- Unique whole foods based quality ingredient
formula to assist in weight maintenance, reduce
fatigue and support immunity - Prescribed by leading Oncology Institutions such
as Dana Farber MD Anderson - Clinical Trials
- Center for Family Of Health , UMDNJ/ St Mary's
Hospital - Columbia University Pediatric Oncology Clinical
Trial - Over 1.5mm new cancer cases annually and 13
million survivors - Only options are unhealthy alternatives such as
Ensure and Boost - 90 of cancer patients face fatigue
- Over 60 cancer patients look to Complementary
and Alternative Medicine (CAM) to complement
their treatment
Point of Difference
Market Opportunity
U.S. Complete Prevalence Counts, Invasive
Cancers Only, 1/1/2006 - U.S. 2006 cancer
prevalence counts are based on 2006 cancer
prevalence proportions from the SEER 9 registries
(San Francisco, Connecticut, Detroit, Hawaii,
Iowa, New Mexico, Seattle, Utah, and Atlanta) and
1/1/2006 U.S. population estimates based on the
average of 2005 and 2006 population estimates
from the U.S. Bureau of the Census. Estimated
new Cancer Cases and Deaths for 2009 Cancer
Facts Figures 2009, American Cancer Society
(ACS), Atlanta, Georgia, 2009.
7Resurgex Essential LTC
- Comprehensive, caloric dense formulations that
exceed the nutritional requirements of the Long
Term Care community - Natural extension of heritage in addressing the
needs of the elderly - Ready-to-Drink (RTD) formulations in easy to
administer Tetra Paks - Great tasting premium nutritional drink,
fortified with high-quality ingredients - High Biological Whey Protein
- No high fructose corn syrup, high MCTs, low
Omega 6 - Contains fruit vegetable powders, less sugar
- Excellent for weight maintenance and wound
healing - Helps maintain body weight, support a healthy
G.I. tract and keeps bodies strong - According to the American Healthcare Association,
as of December 2008 - 1,410,900 residents lived in Skilled Nursing
Facilities - 1,100,000 residents lived in Assisted Living
Facilities - 7,600,000 individuals were receiving Home Care
from gt 17,000 providers - Alternatives are unhealthy alternatives such as
Ensure and Boost
Product
Point of Difference
Market Opportunity
7
8Resurgex Essential Comparative Composition
9Surgex Sports
- Comprehensive, caloric dense formulations that
exceed the nutritional requirements of the
athletic community - Natural extension of heritage in addressing the
needs of the athletically inclined - Bulk and individual servings in powder format and
TetraPak RTD format - Unique high performing formula with the only form
of water soluble Superoxide Dismutase (SOD) which
is clinically proven to help cells adapt to
stress - Surgex is the only nutritional supplement
clinically proven to to increase energy, build
lean muscle mass, increase strength and power,
increase endurance and boost recovery and
immunity - NCAA compliant approved by the Banned Substances
Control Group - According to BCC Research, Sports Nutrition and
High Energy Supplements The Global Market
9/17/08, the Global Sports Nutrition Market is
estimated 27 Billion - Industry segments
- Sports Beverages 24.9 Billion
- Sports Food 1.2 Billion
- Sports Nutrition Supplements 1.1 Billion
- Alternative products have no scientific evidence
to support claims
Product
Point of Difference
Market Opportunity
9
10The Science of Success- Superoxide Dismutase
(SOD)
- SOD is the bodys (cells) most important
antioxidant and plays a major role in many
pathological conditions - Cardiovascular Issues, Exercise/Stress Response,
Inflammation - Pulmonary edema, rheumatoid arthritis,
Alzheimer's, cancer, asthma - GliSODin, a patented, orally effective
ingredient, clinically shown to - Promote the production of the bodys own natural
antioxidants - Help maintain cellular health and protect against
oxidative stress damage - Reduce lactic acid buildup in humans under
physical stress - Support healthy immune function
- GliSODin) The First Orally Effective SOD
- Pharmaceutical compositions comprising a
superoxide dismutase - (CEE. 96 901 386-1, USA. 6 04 5809 and Japan
HEI.8 1996 520 6 16) - The patent describes the first oral composition
of SOD using vegetal prolamines (gliadin) as
natural support for oral delivery - New therapeutics use of heterologous SOD and
their process of selection - (CEE 99 901 386-1 USA 09/600 062 and Japan HEI
2000. 527633) - The patent describes the mechanism of action of
heterologous SODs and details new therapeutic
applications
11The Science of Success- Superior Ingredients
Whey Protein Fast acting, easy to digest protein with a superior biological value that helps preserve lean muscle mass and supports immunity
Vitamin D Twice the RDA recommended amount to support bone health, muscle strength and immunity
FOS High quality fiber that supports healthily GI tract and normalize bowel function to help with the most common conditions in elderly
Fruits Vegetables Juice powders from many healthy ingredients blended together to contribute whole food phytonutrients and antioxidants
Low Carbohydrates Resurgex products are lower in simple carbohydrates, which is important for good blood sugar control. In addition, they do not contain high fructose corn syrup which has been shown in studies to increase risk of insulin resistance.
No Trans Fats Not only are Resurgex products cholesterol free, but it also contains Monounsaturated Fatty Acids which has been proven in research studies to lower LDL (bad) cholesterol. The Monounsaturated Fat in Resurgex is in the form of high oleic Safflower oil rather than corn oil. Other brands use corn oil, which is high in Omega-6 Fatty Acids.
12Surgex Clinical Validation
- Rutgers University conducted two single-blinded,
controlled studies to establish the clinical
efficacy of Surgex? - Clinical Study I Rutgers endurance athletes
(Mens Division 1 Soccer Team) saw a dramatic
improvement, compared to Boost, in recovery and
performance parameters - Clinical Study II Rutgers strength athletes
(Mens Division 1 Football Team) saw a dramatic
improvements in recovery, strength and endurance
when compared to Gatorade Sports Nutritional
Product - Performance Results Validation
- Improvements in Performance, Lactic Acid
Response, Reduced Oxidative Stress - Significant changes in performance capacity and
endurance markers - Less soreness and fatigue following intense
training sessions - Significantly lower oxidative stress markers,
isoprostanes and LPOs - Improvements in Power Body Composition Recovery
Parameters - Significant increase in peak power as measured by
Wingate Testing - Increased lean muscle mass and decreased in
weight gain as body fat - Significantly improved testosterone cortisol
ratio - Significantly lower ILS, Creatine Kinase,
Isoporstanes
13Surgex Comparative Composition
14The Science of Success- Intellectual Property
- Patents Trademarks
- Resurgex was issued U.S. Patent 6,503,506 for
nutrient therapy for immuno-compromised patients
on January 7th, 2003. - Patents pending in 57 countries worldwide
- 4 Registered trademarks filed with the U.S.
Patent and Trademark Office (USPTO) - Clinical Partners
- Center for Family Of Health , UMDNJ/ St Mary's
Hospital - Rutgers University
- Division 1 Soccer Double Blind, Placebo
Controlled Study on Universitys Soccer Team - Division 1 Football Double Blind, Placebo
Controlled Study on Universitys Football Team - Columbia University Division of Pediatric
Oncology - Scheduled to occur during the summer of 2010 and
last for 12 weeks - Multi-site study at St. Jude Children's Research
Hospital (SJCRH), Alberta Health Services, and
the Regional Cancer Center (RCC) at Capital
Health. - Industry Journals
- The Journal of Strength Conditioning Research
- Published Rutgers Soccer Study
- Comparative Exercise Physiology
- Published the Rutgers Football Study
15Strategic Distribution Partners
- Windmill Health Products LLC, is a leading
marketer and distributor of lifestyle nutritional
products to all major classes of trade, including
Food, Drug, Mass Market Retailers, Health Food
Retailers and various distributors. - KTK Business Development Group, LLC, is a leading
government contracting process consultant for
small and medium businesses. KTK provides the
business development, contract support, a
proprietary partner community, grant writing
services, and certification services to become
GSA vendor - Ferring Inc. (Canada), a wholly owned subsidiary
of Ferring Pharmaceuticals, Inc., is the
Companys Canadian distributor and co-marketer of
Resurgex products. With corporate headquarters
in Saint-Prex, Switzerland, operate from more
than 45 countries and employ more than 3700
people throughout the world, while treatments are
available in more than 70 countries. - New Marketlink Pharmaceutical Corp. (NMPC), a
Filipino-owned and managed corporation, is
engaged in importation, sales, promotion and
distribution of a diverse specialty line of
pharmaceutical and related products. NMPC has
strategic manpower of 151 sales personnel and
managers covering more than 15,000 physicians
nationwide. - Provider Services Inc. (PSI) is the second
largest operator of LTC facilities in the state
of Ohio. Inergetics is the exclusive provider of
nutritional supplementation products to PSIs
6,000 beds, per the 5 year Master Purchase
Agreement. - Ventiv Commercial Services, a wholly owned
subsidiary of NASDQ-listed inVentiv Health Inc.
(VTIV), provides two (2) full time personnel,
with over 30 years experience, to market and sell
Resurgex Essential and Resurgex Essential Plus
into the Long Term Care Channel.
16Manufacturing Partners
- Isocell SA, a French Company owns the patented
rights to the only oral form of superoxide
dismutase (SOD). Inergetics has an exclusive
sublicense for use of SOD as a dietary supplement
or functional foods worldwide. - TetraPak USA, a leader in innovative packaging
and state-of-the-art processing solutions, that
provides the packaging for the Resurgex Select
RTD product lines. - Kerry Food Beverage, Inc., a leader in the
global food industry, developing, producing and
marketing lifestyle and nutritional foods,
flavors and ingredients, meeting todays consumer
demands for healthy, convenient, tasteful food
and beverages. - Garden State Nutritionals, Inc. (GSN) a division
of Vitaquest International, Inc. the worlds
leading manufacturer of lifestyle specific
nutritional supplements, manufacturers the
Inergetics Surgex product line. - Farmland Dairies, LLC recently purchased by
Grupo LALA and is now part of LALA-National Dairy
Group, is the Companys outsourced manufacturer
and co-packager for the Companys RTD Essential
product line in its kosher designated, aseptic
facility in Grand Rapids, MI.
17Pro Forma Capitalization Table
- 60 to 1 Reverse Stock Split (Announcement Date
TBD) - Pro Forma shares issued and outstanding
- Float 20,195,339
- Shares Outstanding 30,483,532
- Fully Diluted Shares 31,078,561
- Strong Management Alignment
- Executive ownership 10.10
- Ken Sadowsky (Board Member) 6.71
- Strong Institutional Ownership
- Triage Capital 16.94
- Seahorse Enterprises, LLC 7.86
- Charlie Lanktree 6.89
- Ardent Advisors (Brian Corbman) 5.40
18Pro Forma Guidance
19Executive Officers
- Mark C. Mirken, CEO Chairman has been
Inergetics President Chief Executive Officer
since August 2008. He has transitioned the
companys major revenue sources from a powdered
formulation to Ready-to-Drink (RTD) formulations
and established contractual relationships with
major pharmaceutical and international
distributors. Additionally, Mark has increased
shareholder value via overseeing the
restructuring of the Companys financial
position. Previously, Mr. Mirken was affiliated
with Vista Research Inc., a Standard Poors
business unit, where he consulted The Middleby
Corp. (NASDAQ MIDD), Pequot Capital, Fidelity
Family of Funds, and KKR on various acquisitions
Prior, he was President COO, of TurboChef
Technologies, Inc. (OVEN) a world leader in
technology, equipment services, for high-speed
food preparation (2000-2005). Mr. Mirken was
credited creating the strategic alliance with
Coke and engineering the Coke, Subway agreement
and enhanced shareholder value by over 1,000. - Carl Germano, RD, CNS, CDN is a registered,
certified clinical nutritionist appointed as
Chief Science Officer/Research Product
Development for Inergetics, Inc. and a frequent
radio guest and lecturer. He holds a masters
degree in clinical nutrition from New York
University and has over 30 years experience using
innovative, complementary nutritional therapies
in private practice and in product development.
For the past 25 years, he has dedicated his
efforts to research and product development for
the nutritional supplement industry (medical
foods, functional beverages and dietary
supplements), where he has been instrumental in
bringing cutting-edge nutritional substances and
formulations to market. He is the author of the
following books - SOD/Gliadin - The Ultimate Cellular Defense
Against Ageing and Disease, - Nucleotides - The Buliding Blocks To Optimal
Health, - Rhodiola rosea - Natures Answer To Stress,
- The Osteoporosis Solution,
- The Brain Wellness Plan,
- Natures Pain Killers
20Executive Officers Board of Directors
- Frank Guarino III, CFO is the Chief Financial
Officer and is responsible for corporate
budgeting, SEC compliance, and corporate
operations. He maintains institutional
relationships with the Companys investor base
and actively participates in all funding. Mr.
Guarino earned a Bachelor of Science in
Accounting from St. Peters College in 1997. - Benjamin R Custodio, Executive Vice President and
Board Member, As Executive Vice President of
International Sales, Mr. Custodio is responsible
for expanding the Companys product line
globally. Mr. Custodio has over 30 years of
experience in the pharmaceutical and nutritional
supplement industries, specializing in launching
new products into international markets. - Ken Sadowsky, Board Member, Mr. Sadowsky was a
principal of Atlas Distributing Inc., overseeing
the non-alcoholic beverage division which he
created. The division was founded in 1988 and
sales were 50,000 that year. In 2007 sales were
over 16,000,000 and the total company sales were
in excess of 75 million. He was a director of
Energy Brands, Inc. (Glaceau) makers of Glaceau
vitaminwater, smartwater, and fruitwater from
2000 to 2006 when the company sold a minority
interest to The Tata Group. The company
eventually sold to Coca Cola for over 4.1
Billion. Ken is the Senior Beverages Advisor for
Verlinvest, a Brussels based investment holding
company founded by family tied to Interbrew now
ABI (Anheuser Busch InBev). Ken is the Executive
Director of NIDA, a group of independent beverage
distributors in the Northeast of the USA who are
members of a trade association. Mr. Sadowsky is
a member of the Board of Directors for All Market
Inc., makers of Vita Coco coconut water and Hint
Inc., makers of Hint Water. - Michael C. James, Board Member is the Managing
Partner of Kuekenhof Capital Management.
Previously he served as CEO of Nestor, Inc., and
is a director of Guided Therapeutics, Inc. Mr.
James has accepted the nomination to the
Companys board of directors which is subject to
shareholder approval
21Investment Summary
- Superior Products
- Resurgex? is clinically validated to improve
Quality of Life indicators for HIV/AIDS
patients - Surgex? is clinically validated to improve
athletic performance through optimized recovery - Favorable Macro Industry Trends
- Growth in aging population
- Trend toward healthy living
- Science-based products supported by healthcare
professionals - Management team led by CEO Mark Mirken
- Proven track record of creating shareholder value
- Public market experience
- Minimal corporate capital needs
- Additional working capital required 2.5mm
- Pro Forma Financials (Fiscal Year ends June 30th)
- FY10A revenue of 2.05M and EBITDA of (1.32M)
- FY11E revenue of 23.5M and EBITDA of 4.06M
22Inergetics NRTI