Full Press Release Details
Atossa Genetics Announces 2014 Financial
and Provides Company Update
Conference Call to be Held Today at 4:30
SEATTLE, March 30, 2015 -- Atossa Genetics, Inc. (NASDAQ:
ATOS) today announced 2014 financial results and provided an update on recent company developments.
Steve Quay, President and CEO, commented,
"2014 was a pivotal year for Atossa. We developed and began to execute on a new strategy to obtain a CE-mark for our ForeCYTE
Breast Aspirator and to launch the device in the EU and to commercialize the FullCYTE Breast Aspirator in the U.S. We launched
a new pharmacogenomics test in the last quarter of 2014 with the goal of developing a non-dilutive cash flow for our business.
Our achievements in 2014 positioned us well to accomplish our 2015 key objectives, which are:
We have now made significant progress towards
accomplishing these objectives. We have launched the ForeCYTE Breast Aspirator in the EU, launched the FullCYTE Breast Aspirator
in the U.S. and we are on track to achieving or exceeding our $8 million gross revenue target in 2015," Dr. Quay continued.
Recent Corporate Developments
Important recent corporate developments include the following:
Fourth Quarter 2014 Financial Results
Revenue for the year ended December 31,
2014, totaled $525,954, mainly from pharmacogenomics testing. Total revenue for the year ended December 31, 2013 was $632,558,
primarily consisting of NAF cytology tests from January through September 2013. Cost of revenue was $340,658 for the year ended
December 31, 2014, compared to $345,519 in 2013.
For the year ended December 31, 2014,
gross profit totaled $185,296, compared to $137,093 in 2013.
Operating expenses for the year ended December
31, 2014 were $14,827,713 consisting of general and administrative (G&A) expenses of $8,625,917, research and development (R&D)
expenses of $2,577,465, selling expenses of $1,271,705, and $2,352,626 in impairment of intangibles, representing an increase of
$3,905,977, or 36% from $10,921,736 in the same period in 2013, which consisted of G&A expenses of $8,558,835, R&D expenses
of $1,105,110, and selling expenses of $1,257,791.
G&A expenses increased primarily
as a result of lower capital raising commissions, lower recall expenses, lower consulting fees, lower advertising and marketing
fees and lower bad debt expenses, offset by higher legal and regulatory and higher salaries, director fees and employees benefits.
R&D increased primarily as a result of increased expenditures on the development of our new products and tests in the pipeline,
including the NextCYTE Test and FullCYTE microcatheters.
We evaluated and reprioritized our R&D
pipeline based on recent business strategies, and as a result we have delayed plans to develop and invest further in patents and
technologies we acquired in 2012 from Acueity for at least the next year. Because of these changed business plans, we concluded
that these assets are partially impaired and recorded $2,352,626 in impairment.
We expect that our G&A and selling
expenses will increase in future periods as we hire additional administrative and sales personnel to commercialize the ForeCYTE
Breast Aspirator and FullCYTE Breast Aspirator and our pharmacogenomics test, and our other products and services under development.
We also expect that our R&D expenses will continue to increase as we add additional full time employees and incur additional
costs to continue the development of our products and services, including our planned clinical trials involving a pharmaceutical
for the potential local treatment of serious breast health diseases.
Conference Call Information
Management will host a conference call
today, March 30, 2015, at 4:30 pm Eastern Time to review the financial results and recent corporate developments. To listen to
the call by phone, interested parties within the U.S. may dial 866-652-5200 or 412-317-6060 for international callers. 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
one hour after the end of the call through April 30, 2015, and can be accessed via Atossa's website or by dialing 877-344-7529
(domestic) or 412-317-0088 (international). The replay conference ID number is 10062963.
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.
CFO and General Counsel
ATOSSA GENETICS, INC.
CONSOLIDATED BALANCE SHEETS
| As of December 31, | ||||||||
| 2014 | 2013 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 8,500,718 | $ | 6,342,161 | ||||
| Accounts receivable, net | 297,958 | 139,072 | ||||||
| Prepaid expenses | 247,207 | 280,627 | ||||||
| Inventory, net | 39,788 | - | ||||||
| Total current assets | 9,085,671 | 6,761,860 | ||||||
| Furniture and equipment, net | 357,532 | 163,147 | ||||||
| Intangible assets, net | 1,920,645 | 4,395,633 | ||||||
| Deferred financing costs | 351,961 | 651,961 | ||||||
| Other assets | 48,193 | 36,446 | ||||||
| Total assets | $ | 11,764,002 | $ | 12,009,047 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 594,357 | $ | 248,142 | ||||
| Accrued expenses | 444,861 | 295,310 | ||||||
| Deferred rent | - | 48,157 | ||||||
| Payroll liabilities | 1,056,705 | 580,645 | ||||||
| Product recall liabilities | - | 211,493 | ||||||
| Short-term lease obligations | 76,025 | 9,681 | ||||||
| Other current liabilities | 42,228 | 8,148 | ||||||
| Total current liabilities | 2,214,176 | 1,401,576 | ||||||
| Deferred rent, net of current portion | 2,483 | - | ||||||
| Long-term lease obligations | 49,216 | 5,820 | ||||||
| Total liabilities | 2,265,875 | 1,407,396 | ||||||
| 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, 24,564,058 and 18,574,334 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively | 24,564 | 18,574 | ||||||
| Additional paid-in capital | 44,648,103 | 31,099,691 | ||||||
| Accumulated deficit | (35,174,540 | ) | (20,516,614 | ) | ||||
| Total stockholders' equity | 9,498,127 | 10,601,651 | ||||||
| Total liabilities and stockholders' equity | $ | 11,764,002 | $ | 12,009,047 |
ATOSSA GENETICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Years Ended December 31, | ||||||||
| 2014 | 2013 | |||||||
| Revenue | ||||||||
| Diagnostic testing service | $ | 525,954 | $ | 409,118 | ||||
| Product sales | - | 223,440 | ||||||
| Total revenue | 525,954 | 632,558 | ||||||
| Cost of revenue | ||||||||
| Diagnostic testing service | 340,658 | 105,764 | ||||||
| Product sales | - | 239,755 | ||||||
| Total cost of revenue | 340,658 | 345,519 | ||||||
| Loss on obsolete inventory | - | 149,946 | ||||||
| Gross profit | 185,296 | 137,093 | ||||||
| Selling expenses | 1,271,705 | 1,257,791 | ||||||
| Research and development expenses | 2,577,465 | 1,105,110 | ||||||
| General and administrative expenses | 8,625,917 | 8,558,835 | ||||||
| Impairment of intangible assets | 2,352,626 | - | ||||||
| Total operating expenses | 14,827,713 | 10,921,736 | ||||||
| Operating loss | (14,642,417 | ) | (10,784,643 | ) | ||||
| Interest income | 260 | 295 | ||||||
| Interest expense | (15,769 | ) | (360 | ) | ||||
| Net loss before income taxes | (14,657,926 | ) | (10,784,708 | ) | ||||
| Income taxes | - | - | ||||||
| Net loss | $ | (14,657,926 | ) | $ | (10,784,708 | ) | ||
| Loss per common share - basic and diluted | $ | (0.61 | ) | $ | (0.70 | ) | ||
| Weighted average shares outstanding, basic and diluted | 24,038,578 | 15,484,414 |