Full Press Release Details
Atossa Genetics Announces 2015 Financial
and Provides Company Update
Conference Call to be Held Today at 4:30
SEATTLE, March 30, 2016 - Atossa Genetics Inc.
(NASDAQ: ATOS) today announced 2015 financial results and provided an update on recent company developments.
Steve Quay, President and CEO, commented, "2015 was a
transitional year for us as we shifted our focus to becoming a Phase 2 drug development company and are now developing novel therapeutics
and delivery methods to treat breast cancer and other breast conditions. Our leading program uses our patented intraductal microcatheters,
which deliver locally-administered pharmaceuticals through the breast ducts. We are pleased to have recently commenced our Phase
2 clinical study in March 2016 using our microcatheters to deliver fulvestrant as a potential treatment of ductal carcinoma in-situ,
or DCIS, and breast cancer."
"We are also in the process of identifying an additional
drug candidate to enhance our business and drive shareholder value. We are optimistic about our new focus and opportunities as
we proceed in 2016," continued Dr. Quay.
Recent Corporate Developments
Atossa's important recent
developments include the following:
2015 Financial Results
For the year ended December 31, 2015, substantially all of the
revenue we recognized consisted of pharmacogenomics testing by the NRLBH. As a result of the sale of the NRLBH in December 2015,
the revenue and cost of revenue are presented as discontinued operations for both years ended 2015 and 2014. The NLRBH had a total
net revenue of $5,524,874 for the year ended December 31, 2015, consisting of mainly pharmacogenomics testing. This represents
an increase of approximately $5 million from the total net revenue of $525,954 from our ForeCYTE device sales and laboratory testing
for the year ended December 31, 2014.
As a result of the sale of the NRLBH, operating expenses related
to the NRLBH are presented separately as discontinued operations for both years ended 2015 and 2014.
Total operating expenses from continuing operations were $12,627,965
for the year ended December 31, 2015, consisting of general and administrative (G&A) expenses of $8,842,938, R&D expenses
of $2,359,593, and selling expenses of $1,421,409. Operating expenses from continuing operations increased $416,799, or 3%, from
$12,211,166 for the year ended December 31, 2014, which consisted of G&A expenses of $8,052,281, R&D expenses of $1,110,329,
selling expenses of $695,930, and impairment expenses of $2,352,626. The increase was mainly due to additional costs attributed
to the commercialization and launch of our ForeCYTE and FullCYTE devices in EU and the U.S., additional R&D spending on developing
our medical devices and costs associated with AfTG drug development.
We incurred $3,002,136 in loss from discontinued operations,
which includes $2,331,192 in operating expenses from the NLRBH, $399,394 in exit costs, and $670,943 in loss on disposal of the
NLRBH. Operating expenses from discontinued operations are primarily from activities related to the NRLBH operations, which were
consistent with 2014 amounts.
Conference Call Information
Management will host a conference call today, March 30, 2016,
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. 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 April 30, 2016. 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 10083273.
About Atossa Genetics
Atossa Genetics Inc., is a clinical-stage pharmaceutical company
developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions. For more information, please
visit www.atossagenetics.com.
Forward-Looking Statements
Forward-looking statements in this press release, which Atossa
undertakes no obligation to update, 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 and inactions by the
FDA, the outcome or timing of regulatory approvals needed by Atossa, lower than anticipated rate of patient enrollment, results
of clinical studies, the safety and efficacy of Atossa's products and services, performance of clinical research organizations
and investigators, obstacles resulting from proprietary rights held by others, such as patent rights, 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 Genetics Company Contact:
Atossa Genetics Inc.
CFO and General Counsel
Investor Relations Contact
Garden City, NY 11530
Office: 516.222.2560
Source: Atossa Genetics Inc.
ATOSSA GENETICS, INC.
CONSOLIDATED BALANCE SHEETS
| As of December 31, | ||||||||
| 2015 | 2014 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,715,895 | $ | 8,500,718 | ||||
| Restricted cash | 275,000 | - | ||||||
| Prepaid expenses | 193,293 | 193,964 | ||||||
| Inventory, net | - | 9,276 | ||||||
| Other current assets | 110,663 | - | ||||||
| Assets of discontinued operations | - | 636,239 | ||||||
| Total current assets | 4,294,851 | 9,340,197 | ||||||
| Furniture and equipment, net | 171,568 | 136,693 | ||||||
| Intangible assets, net | 1,700,565 | 1,886,958 | ||||||
| Deferred financing costs | - | 351,961 | ||||||
| Other assets | 76,337 | 48,193 | ||||||
| Total assets | $ | 6,243,321 | $ | 11,764,002 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 814,448 | $ | 513,045 | ||||
| Accrued expenses | 463,676 | 254,126 | ||||||
| Payroll liabilities | 1,159,335 | 959,741 | ||||||
| Other current liabilities | 64,128 | 42,228 | ||||||
| Liabilities of discontinued operations | - | 494,252 | ||||||
| Total current liabilities | 2,501,587 | 2,263,392 | ||||||
| Deferred rent, net of current portion | - | 2,483 | ||||||
| Total liabilities | 2,501,587 | 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, 32,657,257 and 24,564,058 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively | 32,657 | 24,564 | ||||||
| Additional paid-in capital | 54,643,940 | 44,648,103 | ||||||
| Accumulated deficit | (50,934,863 | ) | (35,174,540 | ) | ||||
| Total stockholders' equity | 3,741,734 | 9,498,127 | ||||||
| Total liabilities and stockholders' equity | $ | 6,243,321 | $ | 11,764,002 |
ATOSSA GENETICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Years Ended December 31, | ||||||||
| 2015 | 2014 | |||||||
| Revenue | ||||||||
| Diagnostic testing service | $ | - | $ | 40,138 | ||||
| Product sales | 1,758 | - | ||||||
| Total revenue | 1,758 | 40,138 | ||||||
| Cost of revenue | ||||||||
| Product sales | 132,411 | - | ||||||
| Total cost of revenue | 132,411 | - | ||||||
| Gross profit (loss) from continuing operations | (130,653 | ) | 40,138 | |||||
| Selling expenses | 1,421,409 | 695,930 | ||||||
| Research and development expenses | 2,359,593 | 1,110,329 | ||||||
| General and administrative expenses | 8,846,963 | 8,052,281 | ||||||
| Impairment of intangible assets | - | 2,352,626 | ||||||
| Total operating expenses | 12,627,965 | 12,211,166 | ||||||
| Operating loss | (12,758,618 | ) | (12,171,028 | ) | ||||
| Other income | 431 | 260 | ||||||
| Loss before income taxes | (12,758,187 | ) | (12,170,768 | ) | ||||
| Income taxes | - | - | ||||||
| Loss from continuing operations | (12,758,187 | ) | (12,170,768 | ) | ||||
| Loss from discontinued operations (including loss on disposal of $670,943 for the year ended December 31, 2015) | (3,002,136 | ) | (2,487,158 | ) | ||||
| Net loss | $ | (15,760,323 | ) | $ | (14,657,926 | ) | ||
| Loss per common share from continuing operations - basic and diluted | $ | (0.45 | ) | $ | (0.51 | ) | ||
| Loss per common share from discontinued operations - basic and diluted | $ | (0.10 | ) | $ | (0.10 | ) | ||
| Loss per common share - basic and diluted | $ | (0.55 | ) | $ | (0.61 | ) | ||
| Weighted average shares outstanding, basic & diluted | 28,427,523 | 24,038,578 |