As promised, Lifevantage Corp. (OTC:LFVN) released its quarter and annual results at the end of September, but the stock chart shows that they could not cause further LFVN share price appreciation. In the days after the 10-K LFVN price fell to $1.32, breaking the $1.40 support. 
During the session yesterday, the stock price increased to $1.6 for a while – the level before the financial report came out – but then LFVN closed the market at $1.51, which is a 2.58% decline from the previous close. Over 186,000 shares were traded for the day, a trading volume substantially lower than the average which suggests that LFVN could remain in that trading range.
In brief, the 10-K shows that the company actually managed to raise its sales in the last fiscal year from $11.48 million to $38.9 million, as claimed in a number of PRs before the filing of the report, however the other data does not look that good.
The higher revenue came at the expense of multiplied sales and marketing expenses and the net loss for the year was over $50.7 million, compared to $11 million for the preceding fiscal year. Between June 30, 2010 and June 30, 2011, Lifevantage Corp. doubled the reported total assets, but unfortunately it did the same with its total liabilities.
At the same time, during the year the company issued 27.85 million shares of common stock as a result from the conversion of debt to equity. That has brought severe dilution for the shareholders as the number of LFVN issued and outstanding shares of common stock increased, due mostly to that conversion, from 61.5 million as of end-June last year to 98.8 million as of end-June this year.
Yet, the growth of the sales has been a reason for traders to believe that LFVN is doing well as the share price of the stock has tripled since the end of last June.
