Full Press Release Details
Applied DNA Sciences Quarterly Revenues Increase 138%
Year over Year in Second Quarter Fiscal 2015
Financial Results Driven by Revenue Enhancement and Reduced Expenses.
Webcast To Be Held Today at 9:00 AM EDT.
STONY BROOK, NY. May 12, 2015. Applied DNA Sciences, Inc. (NASDAQ: APDN) (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology and product authentication solutions, announced results of its second quarter of fiscal 2015.
"Our record quarterly revenues contributed to six-month revenues that are greater than any prior full fiscal year. This is an exciting achievement for our Company," stated Beth Jantzen, Chief Financial Officer of Applied DNA Sciences.
Financial Highlights for the Second Quarter:
Financial Highlights for the First Six Months:
Dr. James A. Hayward, President and Chief Executive Officer, stated: "We are very pleased with the increase in revenues, the continued recognition of our technology and products on a global basis, and the many business opportunities that have opened up to us as we increase our customer base. In addition to top-line improvements, we reduced our expenses and successfully completed a public offering right after the quarter ended that brought us new investors and capital to support our commitment to turning a profit. We expect continued growth in our government revenue for the year, the recruitment of new brands and retailers in our textiles business, and a strong response to our Home Asset Marking initiatives."
Dr. Hayward concluded: "We continue to focus on new business opportunities, operational improvements and efficiencies as we expand our customer base and penetration of key industry verticals."
Webcast Information:
The Company will be hosting a webinar today, May 12, 2015 at 9:00 AM EDT. To participate in the webinar, please follow the instructions below:
Reserve your webinar seat now at: https://attendee.gotowebinar.com/register/935241658046078977
Please email questions prior to the call to investor@adnas.com. While every attempt will be made to answer your questions, due to the large number of expected participants, not all questions may be answered on the call. For those of you unable to participate, the webinar will be posted by end of business on May 12, 2015, and available under the "Investors" tab of the Company's website.
Information about Non-GAAP Financial Measures
As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America. To supplement our condensed consolidated financial statements prepared and presented in accordance with GAAP, this earnings release includes Adjusted EBITDA, which is a non-GAAP financial measure as defined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared in presented in accordance with GAAP.
We use this non-GAAP financial measure for internal financial and operational decision making purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core business. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the performance of our business by excluding non-cash expenses that may not be indicative of our recurring operating results. We believe this non-GAAP financial measure is useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
"EBITDA" - is defined as earnings (loss) before interest expense, income tax expense and depreciation and amortization expense.
"Adjusted EBITDA" - is defined as EBITDA adjusted to exclude (i) change in fair value of warrant liability, (ii) the loss on conversion of promissory notes, (iii) stock-based compensation and (iv) other non-cash expenses.
The accompanying table below provides a reconciliation of the non-GAAP financial measure presented to the most directly comparable financial measure prepared in accordance with GAAP.
About Applied DNA Sciences
We make life real and safe by providing botanical-DNA based security and authentication solutions and services that can help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature DNA describes the platform ingredient that is at the heart of all of our security and authentication solutions. SigNature DNA is at the core of a family of uncopyable products such as DNAnet , our anti-theft product, SigNature T, targeted toward textiles, and digitalDNA , providing powerful track and trace. All provide a forensic chain of evidence and can be used to prosecute perpetrators.
Applied DNA Sciences common stock is listed on NASDAQ under the symbol APDN, and its warrants are listed under the symbol APDNW.
Forward Looking Statements
The statements made by APDN in this press release may be "forward-looking" in nature within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K filed on December 15, 2014, as amended on March 6, 2015, and our subsequent quarterly reports on Form 10-Q filed on February 9, 2015 and May 11, 2015, which are available at www.sec.gov. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events, unless otherwise required by law.
investor contact: Debbie Bailey, 631-240-8817, debbie.bailey@adnas.com
media contact: Enrique Briz, Dian Griesel Int'l., 212-825-3210, ebriz@dgicomm.com
Financial Tables Follow
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2015 | September 30, 2014 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 984,050 | $ | 1,393,132 | ||||
| Accounts receivable, net of allowance of $11,257 and $9,634 at March 31, 2015 and September 30, 2014, respectively | 1,160,304 | 834,818 | ||||||
| Prepaid expenses and other current assets | 155,593 | 135,365 | ||||||
| Total current assets | 2,299,947 | 2,363,315 | ||||||
| Property, plant and equipment, net of accumulated depreciation of $645,855 at March 31, 2015 and $759,087 at September 30, 2014 | 587,600 | 576,128 | ||||||
| Other assets: | ||||||||
| Deposits | 61,988 | 57,638 | ||||||
| Deferred offering costs | 287,831 | 181,104 | ||||||
| Intangible assets, net of accumulated amortization and impairment of $302,610 and $256,208 at March 31, 2015 and September 30, 2014, respectively | 389,470 | 327,872 | ||||||
| Total Assets | $ | 3,626,836 | $ | 3,506,057 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities, including related party accrued interest of $-- and $6,597 at March 31, 2015 and September 30, 2014, respectively | $ | 1,443,665 | $ | 1,494,759 | ||||
| Promissory notes payable, including $1,000,000 with a related party | - | 1,800,000 | ||||||
| Deferred revenue | 227,810 | 583,362 | ||||||
| Total current liabilities | 1,671,475 | 3,878,121 | ||||||
| Warrant liability | - | 1,096,412 | ||||||
| Total liabilities | 1,671,475 | 4,974,533 | ||||||
| Commitments and contingencies (Note I) | ||||||||
| Stockholders' Equity (Deficit) | ||||||||
| Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of March 31, 2015 and September 30, 2014 | - | - | ||||||
| Series A Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of March 31, 2015 and September 30, 2014 | - | - | ||||||
| Series B Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of March 31, 2015 and September 30, 2014 | - | - | ||||||
| Common stock, par value $0.001 per share; 500,000,000 and 1,350,000,000 shares authorized; 17,369,202 and 13,935,954 shares issued and outstanding as of March 31, 2015 and September 30, 2014, respectively | 17,370 | 13,937 | ||||||
| Additional paid in capital | 211,412,483 | 198,277,859 | ||||||
| Accumulated deficit | (209,474,492 | ) | (199,760,272 | ) | ||||
| Total stockholders' equity (deficit) | 1,955,361 | (1,468,476 | ) | |||||
| Total Liabilities and Stockholders' Equity (Deficit) | $ | 3,626,836 | $ | 3,506,057 |
APPLIED DNA SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenues | $ | 1,518,761 | $ | 637,146 | $ | 2,760,563 | $ | 1,234,500 | ||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 2,901,207 | 3,297,739 | 7,569,950 | 7,143,317 | ||||||||||||
| Research and development | 373,380 | 359,782 | 651,652 | 819,086 | ||||||||||||
| Depreciation and amortization | 123,079 | 106,810 | 232,805 | 212,025 | ||||||||||||
| Total operating expenses | 3,397,666 | 3,764,331 | 8,454,407 | 8,174,428 | ||||||||||||
| LOSS FROM OPERATIONS | (1,878,905 | ) | (3,127,185 | ) | (5,693,844 | ) | (6,939,928 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income (expense), net | 16 | 239 | (31,859 | ) | 673 | |||||||||||
| Other (expense) income, net | (6,693 | ) | (79,389 | ) | (13,135 | ) | 76,028 | |||||||||
| Loss on conversion of promissory notes | - | - | (980,842 | ) | - | |||||||||||
| Gain (loss) on change in fair value of warrant liability | - | 455,899 | (2,994,540 | ) | (2,178,859 | ) | ||||||||||
| Net loss before provision for income taxes | (1,885,582 | ) | (2,750,436 | ) | (9,714,220 | ) | (9,042,086 | ) | ||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| NET LOSS | $ | (1,885,582 | ) | $ | (2,750,436 | ) | $ | (9,714,220 | ) | $ | (9,042,086 | ) | ||||
| Net loss per share-basic and diluted | $ | (0.11 | ) | $ | (0.20 | ) | $ | (0.59 | ) | $ | (0.68 | ) | ||||
| Weighted average shares outstanding- | ||||||||||||||||
| Basic and diluted | 17,362,573 | 13,470,806 | 16,404,299 | 13,316,179 |
APPLIED DNA SCIENCES, INC.
CALCULATION AND RECONCILIATION OF ADJUSTED EBITDA
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net Loss | $ | (1,885,582 | ) | $ | (2,750,436 | ) | $ | (9,714,220 | ) | $ | (9,042,086 | ) | ||||
| Operating expenses: | ||||||||||||||||
| Interest (income) expense, net | (16 | ) | (239 | ) | 31,859 | (673 | ) | |||||||||
| Depreciation and amortization | 123,079 | 106,810 | 232,805 | 212,025 | ||||||||||||
| (Gain) loss on change in fair value of warrant liability | - | (455,899 | ) | 2,994,540 | 2,178,859 | |||||||||||
| Stock based compensation expense | 539,996 | 547,784 | 2,538,519 | 1,650,831 | ||||||||||||
| Loss on conversion of promissory notes | - | - | 980,842 | - | ||||||||||||
| Bad debt expense | - | 1,144 | 2,779 | 16,144 | ||||||||||||
| Total non-cash items | 663,059 | 199,600 | 6,781,344 | 4,057,186 | ||||||||||||
| Consolidated Adjusted EBITDA (loss) | $ | (1,222,523 | ) | $ | (2,550,836 | ) | $ | (2,932,876 | ) | $ | (4,984,900 | ) |