OpGen Reports First Quarter Financial Results and Provides Business Update
-
Completing a
$17.1 million initial public offering (IPO) of common stock and warrants -
Strengthening the management team by adding
Kevin Krenitsky , M.D. as president andTim Dec as chief financial officer -
Launching the Acuitas® Resistome Test, Whole Genome Sequence Analysis, and the Acuitas Lighthouse™ MDRO Management System at the
American Society of Microbiologists (ASM) annual meeting -
Participating in the
White House Forum on Antibiotic Stewardship
Financial Results
Total revenue for the first quarter of 2015 was
The company had cash and cash equivalents of
Management Commentary
"Recent weeks have been very productive for
"We launched our new Acuitas Resistome test and the Acuitas Lighthouse MDRO Management System at the ASM annual meeting. We hosted a Satellite Symposium, 'Standing up to Superbugs: Technologies to Improve Management of Multi-drug Resistant Organisms,' and we presented several posters highlighting the performance of our products and services.
"We were honored to be invited to the
Mr. Jones continued, "We recently strengthened our management team by bringing on
Commenting on first quarter financial results, Mr. Dec said, "The total revenue decline in the first quarter was consistent with our change in focus from life sciences research to being a molecular information company working to help combat serious multi-drug resistant infections. In the second half of 2015 we anticipate increasing momentum and revenue contribution from our new Acuitas and Lighthouse offerings. As discussed in our IPO prospectus we anticipate declining revenue for our legacy life sciences products."
Conference Call and Webcast
To access the conference call, U.S.-based participants should dial (888) 883-4599 and international participants should dial (484) 653-6821. All participants should provide the following passcode: 62157698. Following the conclusion of the conference call, a replay will be available through
About MDROs
Multi-drug resistant organisms (MDROs) are common bacteria that have developed resistance to multiple classes of antibiotics. They are a leading cause of hospital-acquired infections and are associated with an increase in morbidity and mortality. Each year, more than 2 million Americans acquire infections that are resistant to antibiotics and every year in the U.S., about 23,000 people die from them. The cost of treating these infections is estimated to be between
About
Forward-Looking Statements
This press release includes statements relating to the company's Acuitas MDRO Gene Test and Acuitas Lighthouse MDRO Management System and commercialization plans for these products and services. These statements and other statements regarding our future plans and goals constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control, and which may cause results to differ materially from expectations. Factors that could cause our results to differ materially from those described include, but are not limited to, the rate of adoption of our products and services by hospitals, the success of our commercialization efforts, the effect on our business of existing and new regulatory requirements, and other economic and competitive factors. For a discussion of the most significant risks and uncertainties associated with
(Tables to follow)
| OpGen, Inc. | ||
| Condensed Statements of Operations | ||
| Three Months Ended March 31, | ||
| (unaudited) | ||
| 2015 | 2014 | |
| Revenue | ||
| Product sales | $ 184,179 | $ 300,175 |
| Laboratory services | 35,241 | 169,250 |
| Collaborations revenue | 252,780 | 627,780 |
| Total revenue | 472,200 | 1,097,205 |
| Operating expenses | ||
| Cost of products sold | 115,389 | 136,107 |
| Cost of services | 95,430 | 97,918 |
| Research and development | 1,108,602 | 952,791 |
| General and administrative | 659,392 | 554,954 |
| Sales and marketing | 1,024,029 | 547,471 |
| Total operating expenses | 3,002,842 | 2,289,241 |
| Operating loss | (2,530,642) | (1,192,036) |
| Other income (expense) | ||
| Interest income | 35 | 37 |
| Interest expense | (96,397) | (8,202) |
| Change in fair value of derivative financial instruments | 31,831 | -- |
| Total other income (expense) | (64,531) | (8,165) |
| Net loss | (2,595,173) | (1,200,201) |
| Preferred stock dividends | (171,741) | (110,815) |
| Net loss available to common stockholders | $ (2,766,914) | $ (1,311,016) |
| Net loss per common share - basic and diluted | $ (5.61) | $ (3.62) |
| Weighted average shares outstanding - basic and diluted | 493,463 | 362,537 |
| OpGen, Inc. | ||
| Condensed Balance Sheets | ||
| (unaudited) | ||
|
March 31, 2015 |
December 31, 2014 |
|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 631,695 | $ 749,517 |
| Accounts receivable, net | 91,984 | 503,983 |
| Inventory, net | 320,807 | 369,742 |
| Prepaid expenses and other current assets | 210,057 | 90,233 |
| Total current assets | 1,254,543 | 1,713,475 |
| Property and equipment, net | 568,602 | 587,956 |
| Deferred IPO issuance costs | 767,412 | 296,041 |
| Other noncurrent assets | 57,460 | 57,459 |
| Total assets | $ 2,648,017 | $ 2,654,931 |
| Liabilities, Preferred Stock and Stockholders' Deficit | ||
| Current liabilities | ||
| Accounts payable | $ 1,059,253 | $ 1,160,081 |
| Accrued compensation and benefits | 430,972 | 423,099 |
| Accrued liabilities | 1,130,800 | 993,657 |
| Deferred revenue | 274,552 | 339,171 |
| Derivative financial instruments | 40,502 | -- |
| Short term notes payable | 2,003,750 | 1,505,000 |
| Current maturities of long-term capital lease obligation | 122,027 | 100,499 |
| Short-term convertible notes, net of discounts | 1,500,006 | 1,500,000 |
| Total current liabilities | 6,561,862 | 6,021,507 |
| Long-term capital lease obligation, less current maturities | 163,726 | 134,149 |
| Total liabilities | 6,725,588 | 6,155,656 |
| Commitments and contingencies (Note 10) | ||
| Redeemable convertible preferred stock | ||
| Series A redeemable convertible preferred stock, $.01 par value; 6,000,000 shares authorized; 3,999,864 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively; aggregate liquidation preference of $7,999,728 at March 31, 2015 and December 31, 2014 | 4,736,640 | 4,564,899 |
| Total redeemable convertible preferred stock | 4,736,640 | 4,564,899 |
| Stockholders' deficit | ||
| Common stock, $.01 par value; 7,500,000 shares authorized; 493,483 and 493,178 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 4,936 | 4,932 |
| Additional paid-in capital | 90,548,318 | 88,701,737 |
| Accumulated deficit | (99,367,465) | (96,772,293) |
| Total stockholders' deficit | (8,814,211) | (8,065,624) |
| Total liabilities, preferred stock and stockholders' deficit | $ 2,648,017 | $ 2,654,931 |
CONTACT:OpGen Michael Farmer Director, Marketing (240) 813-1284 mfarmer@opgen.com InvestorRelations@opgen.com Investors LHA Kim Sutton Golodetz (212) 838-3777 kgolodetz@lhai.com orBruce Voss (310) 691-7100 bvoss@lhai.com MediaLisa Guiterman (301) 217-9353 lisa.guiterman@gmail.com