Gain on
Extinguishment of Notes Payable
Gain on extinguishment of notes payable for the three-month period
ended March 31, 2021 of $839,945 relates to the full forgiveness of
our Paycheck Protection Program (“PPP”) loan. The gain on
extinguishment represents the carrying value of the loan on the
forgiveness date.
Transaction cost
allocated to warrant liabilities
Transaction cost allocated to warrant liabilities for the
three-month period ended March 31, 2022 was $391,335.
Unrealized gain
on change in fair value of the Common Warrants
Unrealized gain on change in fair value of Common Warrants for the
three-month period ended March 31, 2022 of $782,500 relates to the
change in fair value of the Common Warrants issued as part of the
Offering (see Note E of the accompanying condensed consolidated
financial statements). The gain on change in fair value
represents the difference between the fair value of the Common
Warrants on the issuance date compared to the fair value as of
March 31, 2022.
Net
Loss
Net loss increased $242,719 or 16% to $1,759,757 for the
three-month period ended March 31, 2022 compared to $1,517,078 for
the three-month period ended March 31, 2021 due to the factors
noted above.
Comparison of Results of Operations
for the Six-Month Periods Ended March 31, 2022 and 2021
Revenues
Product
revenues
For the six-month periods ended March 31, 2022, and 2021, we
generated $1,234,662 and $1,515,207 in revenues from product sales,
respectively. Product revenues decreased by $280,545 or 19% for the
six-month period ended March 31, 2022, as compared to the six-month
period ended March 31, 2021. The decrease in product revenues was
primarily related to an decrease of approximately $650,000 in sales
of our LineaTM COVID-19 Assay Kit, which was attributable to sales
pursuant to our contract with Stony Brook University Hospital
offset by an increase of $411,000 of sales in the textile market
relating to protecting the cotton supply chain, as well as shipment
of a DNA transfer unit for the tagging of cotton in Egypt.
Service
revenues
For the six-month periods ended March 31, 2022, and 2021, we
generated $387,963 and $444,826 in revenues from sales of services,
respectively. The decrease in service revenues of $56,863 or 13%
for the six-month period ended March 31, 2022, as compared to the
same period in the prior fiscal year is attributable to a decrease
of approximately $110,000 for research and development projects in
our pharmaceutical/nutraceutical markets offset by a $44,000
increase in biopharmaceutical markets.
Clinical
laboratory service revenues
For the six-month periods ended March 31, 2022 and 2021 we
generated $8,690,364 and $2,327,650 in revenues from our clinical
laboratory testing services, respectively. Clinical laboratory
testing service revenues increased by $6,362,714, or 273% for the
six-month period ended March 31, 2022, as compared to the same
period in the prior fiscal year. The increase in revenue is
primarily due to an increase in demand for COVID-19 testing
services during the first half of fiscal 2022 compared to the same
period during fiscal 2021. Of this increase, approximately
$5,308,000 in testing services related to our contract with the
City University of New York, which began testing in August
2021.
Gross
Profit
Gross profit for the six-month period ended March 31, 2022,
increased by $766,289 or 27% from $2,831,344 for the six-month
period ended March 31, 2021 to $3,597,623. The gross profit
percentage was 35% and 66% for the six-month periods ended March
31, 2022