HTG Molecular Diagnostics Reports First Quarter 2017 Results
May 15 2017 - 4:01PM
HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM) (HTG), a provider of
instruments, reagents and services for molecular profiling
applications, today reported financial results for the three months
ended March 31, 2017.
Recent Accomplishments & Highlights:
- Entered into several key agreements including:- a research
agreement with Centre Léon Bérard, which provides the framework for
molecular profiling studies aimed to advance precision medicine- a
Master Services Agreement with Daiichi Sankyo Company, Limited, for
work to be performed in HTG’s VERI/O laboratory- a research
collaboration agreement with Instituto Valenciano de Oncología
(IVO), with the initial project utilizing the HTG EdgeSeq Oncology
Biomarker Panel to develop and validate a breast cancer recurrence
risk score
- Launched direct-target sequencing technology and initial DNA
mutation panel in our VERI/O laboratory
- Announced HTG EdgeSeq PATH Assay to launch in the second
quarter of 2017
- Achieved revenue of $1.4 million for the first quarter of
2017
“We are pleased with our momentum as we make progress towards
increasing adoption of our products and services,” said TJ Johnson,
President and CEO. “Going forward we will continue to focus on
growing our partnerships with pharma and developing high-value
diagnostic tests.”
First Quarter 2017 Financial Results:
Revenue for the first quarter of 2017 was $1.4 million, an
increase of 58% over the same period in the prior year. In Q1 2017,
product revenue included $23,000 instrument rental and extended
warranty services and $0.5 million of consumable sales, with
service revenue totaling $0.8 million, comprised primarily of
sample processing services. Net loss from operations for the first
quarter of 2017 was $5.4 million, compared to $6.7 million for the
first quarter of 2016. Net loss per share was $(0.73) for the first
quarter of 2017 compared to $(1.02) for the first quarter of
2016.
HTG ended the first quarter with $5.4 million in total cash and
investments, including $2.8 million in cash and equivalents and
$2.6 million in short term, available-for-sale investments.
Following the end of the first quarter and through May 12, 2017,
HTG sold 1.78 million shares of common stock under a sales
agreement with Cantor Fitzgerald & Co. at a weighted average
share price of $5.66, for gross proceeds of approximately $10.0
million.
Conference Call and Webcast:
HTG will host an investment community conference call today
beginning at 4:30 p.m. ET. Individuals interested in listening to
the conference call may dial (866) 394-4225 for domestic callers,
or (678) 509-7535 for international callers, conference ID
13619211, or access the webcast on the investor relations section
of the Company’s website at: www.htgmolecular.com. The webcast will
be available on the Company’s website for 90 days following the
completion of the call.
About HTG:
Headquartered in Tucson, Arizona, the mission of HTG Molecular
Diagnostics (HTG) is to empower precision medicine at the local
level. In 2013, the company commercialized its first instrument
platform and a portfolio of RNA assays that leveraged HTG's
original proprietary nuclease protection chemistry. Continuous
improvement led to the 2014 launch of the company’s HTG EdgeSeq
product line, which automates sample and targeted library
preparation for next-generation sequencing. Additional information
is available at www.htgmolecular.com.
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 regarding our strategic priorities.
Words such as “believes,” “anticipates,” “plans,” “expects,”
“intends,” “will,” “goal,” “potential” and similar expressions are
intended to identify forward-looking statements, although 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, the risk that we may not realize the
benefits expected under our collaboration agreements, risks
associated with our ability to successfully commercialize our
products; the risk that our products and services may not be
adopted by biopharmaceutical companies or other customers as
anticipated, or at all; our ability to manufacture our products to
meet demand; the level and availability of first 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 first 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 filings with the Securities and Exchange Commission,
including without limitation our Annual Report on Form 10-K for the
year ended December 31, 2016. All forward-looking statements
contained in this press release speak only as of the date on which
they were made, and we undertake no obligation to update such
statements to reflect events that occur or circumstances that exist
after the date on which they were made.
-Financial tables follow-
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HTG Molecular Diagnostics, Inc. |
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Statements of Operations |
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(Unaudited) |
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Three Months Ended March 31, |
|
|
|
2017 |
|
|
2016 |
|
Revenue: |
|
|
|
|
|
|
|
|
Product |
|
$ |
541,144 |
|
|
$ |
600,190 |
|
Service |
|
|
830,025 |
|
|
|
265,042 |
|
Total revenue |
|
|
1,371,169 |
|
|
|
865,232 |
|
Cost of revenue |
|
|
1,295,302 |
|
|
|
843,470 |
|
Gross margin |
|
|
75,867 |
|
|
|
21,762 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling,
general and administrative |
|
|
4,238,467 |
|
|
|
4,693,708 |
|
Research
and development |
|
|
1,267,063 |
|
|
|
1,994,101 |
|
Total operating
expenses |
|
|
5,505,530 |
|
|
|
6,687,809 |
|
Operating loss |
|
|
(5,429,663 |
) |
|
|
(6,666,047 |
) |
Interest expense,
net |
|
|
(386,331 |
) |
|
|
(356,978 |
) |
Net loss before income
taxes |
|
|
(5,815,994 |
) |
|
|
(7,023,025 |
) |
Provision for income
taxes |
|
|
280 |
|
|
|
3,399 |
|
Net loss |
|
$ |
(5,816,274 |
) |
|
$ |
(7,026,424 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted |
|
$ |
(0.73 |
) |
|
$ |
(1.02 |
) |
Shares used in
computing net loss per share, basic and diluted |
|
|
7,971,097 |
|
|
|
6,885,522 |
|
|
|
|
|
|
|
|
|
|
HTG Molecular Diagnostics, Inc. |
|
Balance Sheets |
|
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|
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|
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|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
Assets |
|
(Unaudited) |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
2,767,780 |
|
|
$ |
7,507,659 |
|
Short-term investments available-for-sale, at fair value |
|
|
2,610,828 |
|
|
|
4,304,901 |
|
Accounts
receivable |
|
|
1,196,129 |
|
|
|
1,377,441 |
|
Inventory, net |
|
|
1,255,428 |
|
|
|
1,511,053 |
|
Prepaid
expenses and other |
|
|
368,563 |
|
|
|
433,328 |
|
Total current
assets |
|
|
8,198,728 |
|
|
|
15,134,382 |
|
|
|
|
|
|
|
|
|
|
Deferred
offering costs |
|
|
115,062 |
|
|
|
49,630 |
|
Property
and equipment, net |
|
|
3,083,793 |
|
|
|
3,270,197 |
|
Total assets |
|
$ |
11,397,583 |
|
|
$ |
18,454,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
stockholders' deficit |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
1,193,217 |
|
|
$ |
761,663 |
|
Accrued
liabilities |
|
|
1,281,947 |
|
|
|
1,670,286 |
|
Deferred
revenue |
|
|
255,477 |
|
|
|
335,659 |
|
NuvoGen
obligation - current |
|
|
557,634 |
|
|
|
604,751 |
|
Term loan
payable - current |
|
|
6,527,795 |
|
|
|
6,389,782 |
|
Other
current liabilities |
|
|
241,274 |
|
|
|
258,850 |
|
Total current
liabilities |
|
|
10,057,344 |
|
|
|
10,020,991 |
|
Term loan payable -
non-current, net of discount and debt issuance costs |
|
|
3,827,095 |
|
|
|
5,389,137 |
|
NuvoGen obligation -
non-current, net of discount |
|
|
7,914,597 |
|
|
|
8,017,356 |
|
Other non-current
liabilities |
|
|
560,772 |
|
|
|
619,587 |
|
Total liabilities |
|
|
22,359,808 |
|
|
|
24,047,071 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
Total stockholders’
deficit |
|
|
(10,962,225 |
) |
|
|
(5,592,862 |
) |
Total liabilities and
stockholders' deficit |
|
$ |
11,397,583 |
|
|
$ |
18,454,209 |
|
|
|
|
|
|
|
|
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|
Contact:
Westwicke Partners
Jamar Ismail
Phone: (415) 513-1282
Email: jamar.ismail@westwicke.com
TJ Johnson
President / CEO
HTG Molecular Diagnostics
Phone: (520) 547-2827 x130
Email: tjjohnson@htgmolecular.com
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