Full Press Release Details
Atossa Genetics Announces Third Quarter
2012 Financial Results
Prepares for National Roll Out of ForeCYTE
Breast Health Test for
Breast Cancer Risk Assessment
SEATTLE, December 20, 2012 -
Atossa Genetics, Inc. (NASDAQ: ATOS) today announced financial results for the third quarter of 2012, ended September 30, 2012.
"During the third quarter of 2012,
we successfully completed our initial public offering of 800,000 shares at $5.00 per share, the midpoint of our price range. The
proceeds from the IPO will enable us to accelerate the national roll-out of our first FDA-cleared and marketed product, the ForeCYTE
Breast Health Test for breast cancer risk assessment,"
stated Steven C. Quay, M.D., Ph.D., Chairman, President and CEO. "Our IPO was the only biotech IPO priced in the month of
November and was priced in the immediate aftermath of Hurricane Sandy. I believe this is a testament to the strength of our business
model and the significant revenue and earnings potential of Atossa Genetics over the next several years as we pursue the further
commercialization of the ForeCYTE and ArgusCYTE tests with the 5,000-strong launch team through our marketing partner, Diagnostics
Testing Group, LLC, the commercialization of two new tests in 2013, and the advancement of our intraductal therapeutics program
to safely and effectively treat pre-cancerous breast lesions."
Third Quarter 2012 Results
Total revenues for the third quarter of
2012 were $105,576, comprising $104,011 in diagnostic testing services and $1,565 in product sales, versus no revenues for the
third quarter of 2011. The ForeCYTE and ArgusCYTE tests were launched through a field experience trial beginning in December 2011
and are expected to be rolled out nationally starting in early 2013.
Gross margin for the third quarter was
86 percent on gross profit of $90,499.
Operating expenses are comprised of selling,
general and administrative (SG&A) expenses and research and development. For the third quarter of 2012, total operating expenses
were $1.23 million versus $1.27 million for the third quarter of 2011.
Net loss for the third quarter ended September
30, 2012, was $1.14 million, or ($0.10) per share, versus a net loss of $1.27 million, or ($0.11) per share, for the year-ago quarter.
As of September 30, 2012, the Company had
cash and cash equivalents of $418,570 versus $1.91 million at the end of December 2011. The company completed its IPO in November
2012, raising $4.0 million in gross proceeds prior to expenses and net proceeds of approximately $3.5 million.
Corporate Highlights
About Atossa Genetics, Inc.
Atossa Genetics, Inc., The Breast Health
Company , is based in Seattle, WA, and is focused on preventing breast cancer through the commercialization of patented,
FDA-cleared diagnostic medical devices and patented, laboratory developed tests (LDT) that can detect precursors to breast cancer
up to eight years before mammography, and through research and development that will permit it to commercialize treatments for
pre-cancerous lesions.
The National Reference Laboratory for Breast
Health (NRLBH), a wholly owned subsidiary of Atossa Genetics, Inc., is a CLIA-certified high-complexity molecular diagnostic laboratory
located in Seattle, WA, that provides the patented ForeCYTE Breast Health Test, a risk assessment test for women 18 to 73 years
of age akin to the Pap Smear, and the ArgusCYTE Breast Health Test, a blood test for recurrence in breast cancer survivors that
provides a "liquid biopsy" for circulating cancer cells and a tailored treatment plan for patients and their caregivers.
Forward-Looking Statements
Except for the historical information contained
herein, the matters set forth in this press release, including statements regarding Atossa's plans, expectations, projections,
potential opportunities, goals and objectives are forward-looking statements within the meaning of the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements 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 the efficacy of Atossa's products and services, the use of proceeds from Atossa's initial public offering,
statements regarding the status of the
concern qualification of Atossa's financial statements by its auditors, the ability of Atossa to fund its planned activities,
the market demand for and acceptance of Atossa's products and services, uncertainty relating to Atossa's future revenues
and profitability, the timing for a national launch of Atossa's diagnostic tests, and other risks detailed from time to time
in the Atossa's final prospectus, dated November 7, 2012, filed with the U.S. Securities and Exchange Commission. Investors
are cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are qualified in
their entirety by this cautionary statement, and Atossa undertakes no obligation to revise or update any forward-looking statement
to reflect events or circumstances after the issuance of this press release.
Atossa Genetics, Inc.
Steven C. Quay, M.D., Ph.D., FCAP
Chairman, President and CEO of Atossa Genetics and
Director of the National Reference Laboratory for Breast Health
Matthew D. Haines (Investors and Media)
| ATOSSA GENETICS, INC. |
| (A DEVELOPMENT STAGE COMPANY) |
| CONSOLIDATED BALANCE SHEETS |
| September 30, | December 31, | |||||||
| Assets | 2012 | 2011 | ||||||
| (Unaudited) | (Audited) | |||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 418,570 | $ | 1,910,821 | ||||
| Restricted cash | 250,000 | 1,000,000 | ||||||
| Accounts receivable | 175,408 | 1,224 | ||||||
| Prepaid expense | 39,975 | 31,184 | ||||||
| Rental deposits | 1,500 | 2,200 | ||||||
| Total Current Assets | 885,453 | 2,945,429 | ||||||
| Fixed Assets | ||||||||
| Furniture and Equipment, net | 67,497 | 80,467 | ||||||
| Total Fixed Assets | 67,497 | 80,467 | ||||||
| Other Assets | ||||||||
| Security deposit | 36,446 | 5,157 | ||||||
| Intangible assets, net | 4,703,078 | 40,841 | ||||||
| Total Other Assets | 4,739,524 | 45,998 | ||||||
| Total Assets | $ | 5,692,474 | $ | 3,071,894 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current Liabilities | ||||||||
| Line of Credit | $ | 250,000 | $ | 1,000,000 | ||||
| Accounts payable | 72,100 | 64,766 | ||||||
| Accrued expenses | 1,888,344 | 442,329 | ||||||
| Note payable - related party | 80,453 | 5,078 | ||||||
| Total Current Liabilities | 2,290,897 | 1,512,173 | ||||||
| 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, 12,119,367 shares issued and outstanding | 12,119 | 11,257 | ||||||
| Additional paid-in capital | 11,415,761 | 6,200,520 | ||||||
| Accumulated deficit | (8,026,303 | ) | (4,652,056 | ) | ||||
| Total Stockholders' Equity (Deficit) | 3,401,577 | 1,559,721 | ||||||
| Total Liabilities and Stockholders' Equity | $ | 5,692,474 | $ | 3,071,894 |
| ATOSSA GENETICS, INC. |
| (A DEVELOPMENT STAGE COMPANY) |
| CONSOLIDATED STATEMENTS OF OPERATIONS |
| (UNAUDITED) |
| For The Three Months Ended September 30, | For The Nine Months Ended September 30, | From April 30, 2009 (Inception) | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | Through September 30, 2012 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Diagnostic Testing Service | $ | 104,011 | $ | - | $ | 376,696 | $ | - | $ | 376,696 | ||||||||||
| Product Sales | 1,565 | - | 6,690 | - | 8,190 | |||||||||||||||
| Total Revenue | 105,576 | - | 383,386 | - | 384,886 | |||||||||||||||
| Cost of Revenue | ||||||||||||||||||||
| Diagnostic Testing Service | (9,000 | ) | - | (29,985 | ) | - | (29,985 | ) | ||||||||||||
| Product Sales | - | - | - | - | (5,164 | ) | ||||||||||||||
| Total Cost of Revenue | (9,000 | ) | - | (29,985 | ) | - | (35,149 | ) | ||||||||||||
| Loss on Reduction of Inventory to LCM | (6,077 | ) | - | (29,884 | ) | - | (121,910 | ) | ||||||||||||
| Gross Profit | 90,499 | - | 323,517 | - | 227,827 | |||||||||||||||
| Selling expenses | (87,704 | ) | - | (281,971 | ) | - | (455,026 | ) | ||||||||||||
| General and Administrative expenses | (1,138,467 | ) | (1,274,189 | ) | (3,405,198 | ) | (2,231,906 | ) | (7,766,497 | ) | ||||||||||
| Total operating expenses | (1,226,171 | ) | (1,274,189 | ) | (3,687,169 | ) | (2,231,906 | ) | (8,221,523 | ) | ||||||||||
| Operating Loss | (1,135,672 | ) | (1,274,189 | ) | (3,363,652 | ) | (2,231,906 | ) | (7,993,694 | ) | ||||||||||
| Interest Income | 46 | 2,267 | 1,219 | 3,428 | 6,588 | |||||||||||||||
| Interest Expense | (7,756 | ) | (758 | ) | (11,816 | ) | (8,388 | ) | (38,947 | ) | ||||||||||
| Net Loss before Income Taxes | (1,143,382 | ) | (1,272,680 | ) | (3,374,249 | ) | (2,236,866 | ) | (8,026,053 | ) | ||||||||||
| Income Taxes | - | - | - | - | 250 | |||||||||||||||
| Net Loss | $ | (1,143,382 | ) | $ | (1,272,680 | ) | $ | (3,374,249 | ) | $ | (2,236,866 | ) | $ | (8,026,303 | ) | |||||
| Loss per common share - basic and diluted | $ | (0.10 | ) | $ | (0.11 | ) | $ | (0.30 | ) | $ | (0.27 | ) | $ | (1.05 | ) | |||||
| Weighted average shares outstanding, basic & diluted | 11,256,867 | 11,256,867 | 11,256,867 | 8,394,219 | 7,657,400 |