HTG Molecular Diagnostics Reports First Quarter 2015 Results
Recent Accomplishments & Highlights:
-
Completed initial public offering, receiving net proceeds of
$44.2 million
-
Completed research agreement with
MD Anderson Cancer Center for Targeted Sequencing-based expression panels for lung cancer classification, fusion status and immune profiling
-
Collaborated with advisory groups on suggested changes to the Genomic Sequencing Procedure codes which were accepted by the
CPT Editorial Panel , and HTG Lung Fusion & Insertion panel received Z-Code from the McKesson Diagnostics Exchange
-
Achieved revenue of
$1.0 million in the first quarter of 2015, an increase of 24% over the first quarter of the prior year
-
Launched Oncology Biomarker Panel , the second profiling panel on the HTG EdgeSeq platform
"After completing our successful initial public offering, we are excited to begin working to accelerate our business strategies," said TJ Johnson, President and Chief Executive Officer. "We continue to make progress in our growth initiatives in panel expansion, market development in reimbursement and key research collaborations, and preparation for our first
First Quarter 2015 Financial Results:
Revenue for the first quarter of 2015 was
Gross margin for the first quarter of 2015 and 2014 was 12.7% and 22.3%, respectively. The decrease in gross margin was due to a higher component of fixed costs, driven primarily by the addition of field service engineers who install and maintain HTG systems. The Company expects improvement to gross margins in the second half of the year as revenue mix transitions further to products.
Operating expenses for the first quarter of 2015 were
Net loss from operations for the first quarter of 2015 was
HTG ended the first quarter with
2015 Strategic Priorities
HTG is focused on the following priorities for the remainder of 2015:
- Increase product offerings with four new HTG EdgeSeq panels and an HTG EdgeSeq instrument refresh
-
Make significant progress in initial IVD program, targeting an early 2016 submission to
FDA - Improve commercial productivity with acceleration of instrument placements driven by menu expansion
- Accelerate market development efforts
- Initiate development on its low volume HTG EdgeSeq instrument
Conference Call and Webcast
HTG will host an investment community conference call today beginning at
About HTG:
Headquartered in
Safe Harbor Statement:
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements associated with our business, capital resources, strategic and growth initiatives, and expectations regarding revenue, gross margin, operating expenses and other financial results. Words such as "believes," "anticipates," "plans," "expects," "intends," "will," "goal," "potential" and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements necessarily contain these identifying words. These forward-looking statements are based upon management's current expectations, are subject to known and unknown risks, and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, including, without limitation, risks associated with our ability to successfully commercialize our products; our ability to manufacture our products to meet demand; the level and availability of third party payor reimbursement for our products; our ability to effectively manage our anticipated growth; our ability to protect our intellectual property rights and proprietary technologies; our ability to operate our business without infringing the intellectual property rights and proprietary technology of third parties; competition in our industry; additional capital and credit availability; our ability to attract and retain qualified personnel; and product liability claims. These and other factors are described in greater detail in our final prospectus for our initial public offering, filed with the
-Financial tables follow-
| HTG Molecular Diagnostics, Inc. | ||
| Statements of Operations | ||
| (Unaudited) | ||
| Three Months Ended March 31, | ||
| 2015 | 2014 | |
| Revenue: | ||
| Product | $ 727,438 | $ 370,007 |
| Service | 62,292 | 214,850 |
| Other | 234,585 | 241,666 |
| Total revenue | 1,024,315 | 826,523 |
| Cost of revenue | 894,627 | 642,408 |
| Gross margin | 129,688 | 184,115 |
| Operating expenses: | ||
| Selling, general and administrative | 3,439,269 | 2,076,801 |
| Research and development | 688,214 | 857,483 |
| Total operating expenses | 4,127,483 | 2,934,284 |
| Operating loss | (3,997,795) | (2,750,169) |
| Other expense, net | (90,339) | (77,419) |
| Net loss before income taxes | (4,088,134) | (2,827,588) |
| Income taxes | — | — |
| Net loss | (4,088,134) | (2,827,588) |
| Accretion of redeemable convertible preferred stock discount and dividends | (910,129) | (814,495) |
| Net loss attributable to common stockholders | (4,998,263) | (3,642,083) |
| Net loss per share attributable to common stockholders, basic and diluted | $ (14.99) | $ (37.80) |
| Shares used in computing net loss per share attributable to common stockholders, basic and diluted | 333,408 | 96,349 |
| HTG Molecular Diagnostics, Inc. | ||
| Balance Sheets | ||
| (Unaudited) | ||
| March 31, | December 31, | |
| 2015 | 2014 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 1,564,244 | $ 3,613,392 |
| Accounts receivable, net | 852,285 | 801,125 |
| Inventory, net | 2,095,486 | 1,685,814 |
| Prepaid expenses and other | 122,149 | 112,035 |
| Total current assets | 4,634,164 | 6,212,366 |
| Deferred financing and offering costs | 1,742,707 | 1,369,281 |
| Property and equipment, net | 1,289,468 | 1,146,599 |
| Total assets | $ 7,666,339 | $ 8,728,246 |
| Liabilities and stockholders' deficit | ||
| Current liabilities: | ||
| Accounts payable | $ 878,973 | $ 948,429 |
| Accrued liabilities | 1,692,892 | 1,499,750 |
| Deferred revenue | 32,015 | 41,248 |
| Term loan | 1,644,845 | 813,715 |
| Convertible notes, less discount | 2,290,178 | — |
| Total current liabilities | 6,538,903 | 3,303,142 |
| Redeemable convertible preferred stock warrant liability | 1,079,295 | 730,543 |
| Term loan payable - non-current, net of discount | 8,935,282 | 9,705,655 |
| Nuvogen obligation - non-current | 8,804,425 | 8,677,859 |
| Other | 51,069 | 58,380 |
| Total liabilities | 25,408,974 | 22,475,579 |
| Redeemable convertible preferred stock | 56,844,034 | 55,922,593 |
| Commitments and Contingencies | ||
| Total stockholders' deficit | (74,586,669) | (69,669,926) |
| Total liabilities and stockholders' deficit | $ 7,666,339 | $ 8,728,246 |
CONTACT:Westwicke Partners Jamar Ismail Phone: 415-513-1282 Email: jamar.ismail@westwicke.com TJ Johnson President / CEOHTG Molecular Diagnostics Phone: 520-547-2827 x130 Email: tjjohnson@htgmolecular.com
