Full Press Release Details
Atossa Genetics Announces First Quarter
2015 Financial Results
and Provides Company Update
Achieves Total Revenue for Q1 2015 of
Conference Call to be Held Today at 4:30
SEATTLE, 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:
First Quarter 2015 Financial Results
Revenue for the three months March 31, 2015 totaled $1,873,268,
consisting of mainly pharmacogenomics testing, compared to $24,124 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
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
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.
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
| 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 |