1. health and fitness
2. disease
3. cholesterol

The Science of Success™
Confidential Investor Presentation
Created by Ardent Advisors
Safe 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 Company’s 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.
2
Corporate 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)
Revenue
EBITDA
Net Income
•
FY09A
$1.39
($3.51)
($8.36)
FY10E
$2.05
($1.32)
$0.58
Stock Symbol
– Shares Outstanding
– Closing Stock Price as of 4/27/10
– Average Volume (3 months)
– Additional Paid in Capital
– Net Operating Loss (carry forward)
FY11E
$23.52
$4.06
$3.64
OTC: NRTI
31,092,796*
$1.20*
19,086
$55,188,466
$68,388,118
* Assumes 60 to 1 reverse split ( Date TBD)
3
FY12E
$46.22
$10.58
$10.17
Recapitalization & Corporate Changes
•
Initial recapitalization in November 2009
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–
–
–
•
Secondary recapitalization in May 2010
–
–
–
–
–
–
•
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
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:
Current Liabilities:
Long Term Liablilities:
Total Liabilities:
Jun-09
18,293,279
2,500
18,295,779
4
Jun-10
4,017,473
5,276,838
9,294,311
%∆
-49.20%
NRTI Product Portfolio
Clinical Nutrition
Performance Nutrition
RESURGEX Select™
RESURGEX Essential™
SURGEX™
• Oncology & HIV
• Easy to use powder
• Long Term Care & Home Care
• Ready to Drink
• Sports & Government
• Powder and RTD (in dev)
5
Resurgex™: Oncology
Product
•
•
•
•
Point of
Difference
Market
Opportunity
•
•
•
•
•
•
•
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
*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.
6
Resurgex Essential™: LTC
Product
•
•
•
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
Point of
Difference
•
•
•
•
•
•
Great tasting premium nutritional drink, fortified with high-quality ingredients
High Biological Whey Protein
No high fructose corn syrup, high MCT’s, 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
Market
Opportunity
•
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 > 17,000 providers
Alternatives are unhealthy alternatives such as Ensure and Boost
•
7
Resurgex Essential™
Comparative Composition
8
Surgex™: Sports
Product
•
•
•
Point of
Difference
•
•
•
Market
Opportunity
•
•
•
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
9
The Science of Success™
- Superoxide Dismutase (SOD)
•
SOD is the body’s (cell’s) most important antioxidant and plays a major role in
many pathological conditions:
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–
•
GliSODin®, a patented, orally effective ingredient, clinically shown to:
–
–
–
–
•
Cardiovascular Issues, Exercise/Stress Response, Inflammation
Pulmonary edema, rheumatoid arthritis, Alzheimer's, cancer, asthma
Promote the production of the body’s 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
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Pharmaceutical compositions comprising a superoxide dismutase
•
–
–
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. 96 901 386-1, USA. 6 04 5809 and Japan HEI.8 1996 520 6 16)
(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
The 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.
11
Surgex™ Clinical Validation
Rutgers University conducted two single-blinded, controlled studies
to establish the clinical efficacy of Surgex
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Clinical Study I: Rutgers endurance athletes (Men’s Division 1 Soccer Team) saw a
dramatic improvement, compared to Boost, in recovery and performance parameters
–
Clinical Study II: Rutgers strength athletes (Men’s 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
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Surgex™
Comparative Composition
Carbohydrate
Source
• Maltodextrin
Protein
Source
• Whey
Fat
Source
Specialty
Nutrients
Calories &
Protein
• MCT (5g)
• SOD
• CoQ10
(180 for the
Lite version)
• FOS
Protein
• High Oleic
• Oat Fiber
Isolate
Safflower
• Nucleotides
• Brown Rice
(80%)
Oil
• Ribose
• Rice Syrup
• Casein
• Black Bean
(20%)
• 360 Kcal
• 20 g Protein
• Beta
Glucans
• Cane Juice
• Fruit &
Vegetable
Extracts
• FOS
• Maltodextrin
• Casein
• MCT
• Fructose
• Milk
• Sunflower
• Artificial
Sweetners
• Acesulfame K
Protein
Oil
• Whey
(small amt)
• Sucralose
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• FOS
• 150 Kcal
• 16 g Protein
The Science of Success™
- Intellectual Property
•
Patents & Trademarks
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–
•
Clinical Partners
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–
•
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)
Center for Family Of Health , UMDNJ/ St Mary's Hospital
Rutgers University
• Division 1 Soccer: Double Blind, Placebo Controlled Study on University’s Soccer Team
• Division 1 Football: Double Blind, Placebo Controlled Study on University’s 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
14
Strategic 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
Company’s 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 PSI’s
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.
15
Manufacturing 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 today’s consumer demands for healthy, convenient, tasteful food and
beverages.
Garden State Nutritionals, Inc. (GSN) a division of Vitaquest International, Inc. the
world’s leading manufacturer of lifestyle specific nutritional supplements,
manufacturers the Inergetic’s Surgex™ product line.
Farmland Dairies™, LLC recently purchased by Grupo LALA and is now part of
LALA-National Dairy Group, is the Company’s outsourced manufacturer and copackager for the Company’s RTD Essential™ product line in its kosher designated,
aseptic facility in Grand Rapids, MI.
16
Pro Forma Capitalization Table
60 to 1 Reverse Stock Split (Announcement Date: TBD)
•
Pro Forma shares issued and outstanding
–
–
–
•
~ 20,195,339
~ 30,483,532
~ 31,078,561
Strong Management Alignment
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–
•
Float
Shares Outstanding
Fully Diluted Shares
Executive ownership
Ken Sadowsky (Board Member)
~ 10.10%
~ 6.71%
Strong Institutional Ownership
–
–
–
–
Triage Capital
Seahorse Enterprises, LLC
Charlie Lanktree
Ardent Advisors (Brian Corbman)
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~16.94%
~ 7.86%
~ 6.89%
~ 5.40%
Pro Forma Guidance
FY Ends 6/30
Gross Revenue
Total COGS
Gross Profit
Gross Margin %
FY09A
1,392,190
512,950
879,240
63.16%
FY10E
2,052,850
1,256,970
795,880
38.77%
FY11E
23,522,000
16,019,268
7,502,732
31.90%
FY12E
46,216,975
30,326,761
15,890,214
34.38%
SG&A
Advertising
Office & Distributor Expenses
Professional Fees Subtotal
Payroll Taxes
Payroll
Miscellaneous Expense
Research & Development
Total Operating Expenses
627,943
8,776
342,990
1,946,210
232,987
1,134,768
142,138
(44,059)
(4,391,753)
264,413
54,000
240,970
390,794
194,938
726,200
115,212
126,644
(2,113,172)
1,237,331
171,000
217,339
399,756
214,017
806,520
168,600
225,000
(3,439,563)
2,108,339
477,000
379,693
465,000
241,359
1,106,340
234,000
300,000
(5,311,730)
EBITDA
(3,512,513)
NA
1,472,417
87,055
3,461,989
(178,478)
(8,355,496)
(1,317,292)
NA
286,161
395,392
(2,586,840)
587,995
4,063,169
17.27%
306,034
116,774
10,578,483
22.89%
103,647
2,056
3,640,361
10,472,781
$0.12
$0.11
$0.33
$0.33
41,557,555
42,152,584
41,557,555
42,152,584
EBITDA Margin %
Interest
Expense
Misc
Other
Exp
Depreciation & Amortization
Extraordinary Loss (Income)
Less Income Tax
Net Income
Earnings per Share
Fully Diluted EPS
Basic Shares Outstanding
Fully Diluted Shares Outstanding
($0.26)
($0.26)
$0.02
$0.02
5,590,122
6,548,175
31,557,555
32,152,584
18
Executive Officers
Mark C. Mirken, CEO & Chairman: has been Inergetic’s President & Chief Executive Officer since
August 2008. He has transitioned the company’s 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 Company’s 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
Executive 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 Company’s
investor base and actively participates in all funding. Mr. Guarino earned a Bachelor of Science in
Accounting from St. Peter’s 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 Company’s 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 Company’s board of directors which is subject to shareholder
approval
20
Investment Summary
•
Superior Products:
–
–
•
Favorable Macro Industry Trends
–
–
–
•
Additional working capital required ~ $2.5mm
Pro Forma Financials (Fiscal Year ends June 30th)
–
–
–
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Proven track record of creating shareholder value
Public market experience
Minimal corporate capital needs
–
•
Growth in aging population
Trend toward healthy living
Science-based products supported by healthcare professionals
Management team led by CEO Mark Mirken
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–
•
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
FY10A revenue of $2.05M and EBITDA of ($1.32M)
FY11E revenue of $23.5M and EBITDA of $4.06M
FY12E revenue of $46.2M and EBITDA of $10.58M
Valuation
–
–
10.05x current year earnings (FY11 Estimate) per share of $0.12
3.56x out year earnings (FY12 Estimate) per share $0.33
21
Inergetics: NRTI
22