SOURCE: Atossa Genetics Inc

Atossa Genetics Inc

May 13, 2015 16:01 ET

Atossa Genetics Announces First Quarter 2015 Financial Results and Provides Company Update

Achieves Total Revenue for Q1 2015 of $1.9 Million; Conference Call to Be Held Today at 4:30 pm Eastern Time

SEATTLE, WA--(Marketwired - May 13, 2015) - Atossa Genetics Inc. (NASDAQ: ATOS) today announced first quarter 2015 financial results and provided an update on recent company developments.

Steve Quay, President and CEO, commented, "We have made tremendous progress towards achieving our 2015 objectives by launching the ForeCYTE Breast Aspirator in the European Union and the FullCYTE Breast Aspirator in the United States. We engaged key national distributors in the United States and are seeing very strong growth with our pharmacogenomics tests. We look forward to continued progress towards our other key 2015 objectives, which are to begin clinical studies in a therapeutic using our devices and growing our revenue with our products and services."

Recent Corporate Developments 

Important recent corporate developments include the following:

  • Launched the ForeCYTE Breast Aspirator in the European Union

  • Launched the FullCYTE Breast Aspirator in the United States

  • Engaged two leading national distributors in the United States

  • Hired biopharmaceutical industry veteran Cindy Atha as Vice President of Sales and Marketing

  • Secured in-network contract with Meridian Health Plan of Michigan

  • The College of American Pathologists certified our laboratory, The National Reference Laboratory for Breast Health Inc.

First Quarter 2015 Financial Results  

Revenue for the three months ended March 31, 2015 totaled $1,873,268, consisting of mainly pharmacogenomics testing, compared to $24,124 in revenue in the same period in 2014 from additional cash collections on NAF cytology tests. Total cost of revenue for the three months ended March 31, 2015 was $1,207,954 and consisted of costs relating to pharmacogenomics testing services, compared to $0 for the same period in 2014.

Gross profit for the three months ended March 31, 2015 was $665,314, attributable to pharmacogenomics testing, compared to $24,124 gross profit in the same period in 2014.

Total operating expenses were $3,949,190 for the three months ended March 31, 2015, consisting of general and administrative (G&A) expenses of $2,605,111, R&D expenses of $797,225, and selling expenses of $546,854 representing an increase of $1,514,141, or 62%, from $2,435,049 for the three months ended March 31, 2014, which consisted of G&A expenses of $1,774,708, R&D expenses of $422,503, and selling expenses of $237,838.

Conference Call Information

Management will host a conference call today, Wednesday, May 13, 2015 at 4:30 pm Eastern time to review financial results and corporate highlights. Following management's formal remarks, there will be a question and answer session. To listen to the call by phone, interested parties within the U.S. should call 1-866-652-5200 and international callers should call 1-412-317-6060. All callers should ask for the Atossa Genetics conference call. The conference call will also be available through a live webcast at www.atossagenetics.com. Details for the webcast may be found on the Company's IR events page at http://ir.atossagenetics.com/ir-calendar.

A replay of the call will be available approximately one hour after the end of the call through June 14, 2015. The replay can be accessed via Atossa's website or by dialing 877-344-7529 (domestic) or 412-317-0088 (international) or Canada toll free at 855-669-9658. The replay conference ID number is 10065375.

About Atossa Genetics

Atossa Genetics Inc. is focused on improving breast health through the development of laboratory services, medical devices and therapeutics. The laboratory services are being developed by its subsidiary, The National Reference Laboratory for Breast Health Inc. The laboratory services and the Company's medical devices are being developed so they can be used as companions to therapeutics to treat various breast health conditions. For more information, please visit www.atossagenetics.com.

Forward-Looking Statements

Forward-looking statements in this press release are subject to risks and uncertainties that may cause actual results to differ materially from the anticipated or estimated future results, including the risks and uncertainties associated with actions by the FDA, the outcome or timing of regulatory approvals needed by Atossa to sell its products, responses to regulatory matters, Atossa's ability to achieve its objectives, continue to manufacture and sell its products, recalls of products, the safety and efficacy of Atossa's products and services, performance of distributors, whether Atossa can launch and commercialize in the United States and foreign markets the additional tests, devices and therapeutics in its pipeline in a timely and cost effective manner, and other risks detailed from time to time in Atossa's filings with the Securities and Exchange Commission, including without limitation its periodic reports on Form 10-K and 10-Q, each as amended and supplemented from time to time. Atossa does not undertake any obligation to update any forward-looking statement.

   
   
ATOSSA GENETICS INC.  
CONDENSED CONSOLIDATED BALANCE SHEETS  
   
    March 31,     December 31,  
    2015     2014  
    (Unaudited)        
Assets            
                 
Current assets                
  Cash and cash equivalents   $ 9,728,369     $ 8,500,718  
  Accounts receivable, net     1,280,209       297,958  
  Prepaid expense     263,763       247,207  
  Inventory, net     94,628       39,788  
    Total current assets     11,366,969       9,085,671  
                 
  Furniture and equipment, net     381,590       357,532  
  Intangible assets, net     1,877,755       1,920,645  
  Deferred financing costs     -       351,961  
  Other assets     176,551       48,193  
    Total assets   $ 13,802,865     $ 11,764,002  
                 
Liabilities and Stockholders' Equity                
                 
Current liabilities                
  Accounts payable   $ 966,208     $ 594,357  
  Accrued expenses     1,117,932       444,861  
  Payroll liabilities     1,279,528       1,056,705  
  Short-term lease obligations     79,974       76,025  
  Other current liabilities     42,914       42,228  
    Total current liabilities     3,486,556       2,214,176  
                   
  Deferred rent, net of current portion     7,227       2,483  
  Long-term lease obligations     25,230       49,216  
    Total liabilities     3,519,013       2,265,875  
                 
Commitments and contingencies                
                 
                 
Stockholders' equity                
  Preferred stock - $.001 par value; 10,000,000 shares authorized, 0 shares issued and outstanding     -       -  
  Common stock - $.001 par value; 75,000,000 shares authorized, 27,217,257 and 24,564,058 shares issued and outstanding     27,217       24,564  
  Additional paid-in capital     48,766,466       44,648,103  
  Accumulated deficit     (38,509,831 )     (35,174,540 )
    Total stockholders' equity     10,283,852       9,498,127  
                   
  Total liabilities and stockholders' equity   $ 13,802,865     $ 11,764,002  
                 
   
   
ATOSSA GENETICS INC.  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(UNAUDITED)  
   
    For the Three Months Ended
March 31,
 
    2015     2014  
Revenue                
  Diagnostic testing services   $ 1,872,798     $ 24,124  
  Product sales     470       -  
    Total revenue     1,873,268       24,124  
                 
Cost of revenue                
  Diagnostic testing services     1,206,312       -  
  Product sales     1,642       -  
    Total cost of revenue     1,207,954       -  
Gross profit     665,314       24,124  
Selling expenses     546,854       237,838  
Research and development expenses     797,225       422,503  
General and administrative expenses     2,605,111       1,774,708  
    Total operating expenses     3,949,190       2,435,049  
Operating loss     (3,283,876 )     (2,410,925 )
Interest income     279       143  
Interest expense     1,784       749  
Other losses     49,910       -  
Loss before income taxes     (3,335,291 )     (2,411,531 )
Income taxes     -       -  
Net loss   $ (3,335,291 )   $ (2,411,531 )
Loss per common share - basic and diluted   $ (0.13 )   $ (0.10 )
Weighted average shares outstanding, basic and diluted     24,916,867       24,419,060  

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