Full Press Release Details
Atossa Genetics Announces First Quarter
2016 Financial Results
and Provides Company Update
Conference Call to be Held Today at 4:30
SEATTLE, May 5, 2016 -- Atossa Genetics Inc. (NASDAQ:
ATOS) today announced First Quarter ended March 31, 2016 financial results and provided an update on recent company developments.
Steve Quay, President and CEO, commented, "We were especially
pleased to announce in early March, 2016 the opening for enrollment of our "007" trial, a Phase 2 clinical trial of intraductal
fulvestrant administration in women with ductal carcinoma in situ (DCIS) or invasive breast cancer slated for mastectomy or lumpectomy.
This study will assess the safety and tolerability of fulvestrant when delivered directly into breast milk ducts of these patients.
We look forward to reviewing study data in the second half of the year and are optimistic about its outcomes. The primary endpoint
of the clinical trial is to assess the safety and tolerability of intraductal administration of fulvestrant in women with DCIS
or Stage 1 or 2 invasive ductal carcinoma prior to mastectomy or lumpectomy. The secondary objective of the study is to determine
if there are changes in the expression of Ki67 as well as estrogen and progesterone receptors between a pre-fulvestrant biopsy
and post-fulvestrant surgical specimen." Dr. Quay continued, "We are continuing in our strident efforts in identifying
one or more additional drug candidates to enhance our business and drive shareholder value."
Recent Corporate Developments
Atossa's important recent developments include the following:
Q1 2016 Financial Results
As a result of the sale of the NRLBH in December 2015, we generated
no revenue or cost of revenue for the three months ended March 2016. Revenue and cost of service from NRLBH activities are presented
as discontinued operations for the three months ended 2015. The NLRBH had total net revenue of $1,871,137 and cost of revenue of
$1,206,311, for the three months ended March 31, 2015, consisting of mainly pharmacogenomics testing.
Total operating expenses were $2,327,540 for the three months
ended March 31, 2016, consisting of general and administrative (G&A) expenses of $2,177,569 and R&D expenses of $149,971.
As a result of the sale of NRLBH, operating expenses related to the NRLBH are presented separately as discontinued operations for
the three months ended March 31, 2015.
Operating expenses from continuing operations for three months
ended March 31, 2016 decreased $945,132, or 29%, from $3,272,672 for the three months ended March 31, 2015, which consisted of
G&A expenses of $2,361,026, R&D expenses of $565,801, and selling expenses of $345,845. The decrease in operating expenses
is mainly attributed to the 2015 launch of new devices and services which are not being pursued in 2016 and investing more in new
R&D programs in the first quarter of 2015 compared to 2016.
The Company recorded a net loss of $2,327,540, for the three
months ended March 31, 2016. The loss from discontinued operations for the three months ended March 31, 2015 was $61,204.
Conference Call Information
Management will host a conference call today, May 5, 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 June 5, 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 10085791.
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.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2016 | 2015 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 2,882,657 | $ | 3,715,895 | ||||
| Restricted cash | 275,000 | 275,000 | ||||||
| Prepaid expense | 227,936 | 193,293 | ||||||
| Other current assets | - | 110,663 | ||||||
| Total current assets | 3,385,593 | 4,294,851 | ||||||
| Furniture and equipment, net | 145,970 | 171,568 | ||||||
| Intangible assets, net | 1,492,121 | 1,700,565 | ||||||
| Other assets | 76,337 | 76,337 | ||||||
| Total assets | $ | 5,100,021 | $ | 6,243,321 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 429,052 | $ | 814,448 | ||||
| Accrued expenses | 169,001 | 463,676 | ||||||
| Payroll liabilities | 724,934 | 1,159,335 | ||||||
| Other current liabilities | 3,848 | 64,128 | ||||||
| Total current liabilities | 1,326,835 | 2,501,587 | ||||||
| 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, 38,823,464 and 32,657,257 shares issued and outstanding | 38,823 | 32,657 | ||||||
| Additional paid-in capital | 56,996,766 | 54,643,940 | ||||||
| Accumulated deficit | (53,262,403 | ) | (50,934,863 | ) | ||||
| Total stockholders' equity | 3,773,186 | 3,741,734 | ||||||
| Total liabilities and stockholders' equity | $ | 5,100,021 | $ | 6,243,321 |
ATOSSA GENETICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended March 31 , | ||||||||
| 2016 | 2015 | |||||||
| Net revenue | - | - | ||||||
| Cost of revenue | - | - | ||||||
| Gross profit | - | - | ||||||
| Selling expenses | - | 345,845 | ||||||
| Research and development expenses | 149,971 | 565,801 | ||||||
| General and administrative expenses | 2,177,569 | 2,361,026 | ||||||
| Total operating expenses | 2,327,540 | 3,272,672 | ||||||
| Operating loss | (2,327,540 | ) | (3,272,672 | ) | ||||
| Other expenses | - | (1,415 | ) | |||||
| Loss before income taxes | (2,327,540 | ) | (3,274,087 | ) | ||||
| Income taxes | - | - | ||||||
| Loss from continuing operations | $ | (2,327,540 | ) | $ | (3,274,087 | ) | ||
| Loss from discontinued operations | - | (61,204 | ) | |||||
| Net loss | $ | (2,327,540 | ) | $ | (3,335,291 | ) | ||
| Loss per common share from continuing operations - basic and diluted | $ | (0.07 | ) | $ | (0.13 | ) | ||
| Loss per common share from discontinued operations- basic and diluted | - | - | ||||||
| Loss per common share - basic and diluted | $ | (0.07 | ) | $ | (0.13 | ) | ||
| Weighted average shares outstanding, basic and diluted | 31,511,623 | 24,916,867 |