OpGen Reports Second Quarter Financial Results and Provides Business Update
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Acquisition of
AdvanDx, Inc. , a market leader in rapid molecular testing for microorganism identification -
Completion of a
$6 million financing withMerck Global Health Innovation Fund, LLC (Merck GHI) -
Expansion and renewal of a strategic development agreement with
Fluidigm Corporation for multi-drug resistance testing kits and equipment
Financial Results
Total revenue for the second quarter of 2015 was
Total operating expenses for the second quarter of 2015 were
The net loss for the second quarter of 2015 was
Total revenue for the six months ended
The Company had cash and cash equivalents of
Management Commentary
"During the second quarter we continued building the foundation to support the growth we expect to realize in 2016, including launching and adding products, hiring management and sales staff and entering into strategic agreements," said
"Subsequent to the quarter close, we completed a
Mr. Jones added, "In June we renewed and expanded our strategic agreement with
Commenting on second quarter financial results,
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: 99480546. 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 | ||||
| (unaudited) | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Revenue | ||||
| Product sales | $ 319,171 | $ 272,538 | $ 503,350 | $ 572,713 |
| Laboratory services | 28,195 | 121,899 | 63,436 | 291,149 |
| Collaborations revenue | 27,780 | 677,780 | 280,560 | 1,305,560 |
| Total revenue | 375,146 | 1,072,217 | 847,346 | 2,169,422 |
| Operating expenses | ||||
| Cost of products sold | 48,231 | 65,102 | 163,620 | 201,209 |
| Cost of services | 54,794 | 140,302 | 150,224 | 238,220 |
| Research and development | 999,699 | 1,247,077 | 2,108,301 | 2,199,868 |
| General and administrative | 1,420,219 | 523,120 | 2,079,611 | 1,078,073 |
| Sales and marketing | 905,767 | 546,581 | 1,929,796 | 1,094,053 |
| Total operating expenses | 3,428,710 | 2,522,182 | 6,431,552 | 4,811,423 |
| Operating loss | (3,053,564) | (1,449,965) | (5,584,206) | (2,642,001) |
| Other income (expense) | ||||
| Interest income | 7,127 | 46 | 7,162 | 83 |
| Interest expense | (1,632,974) | (6,935) | (1,729,371) | (15,137) |
| Change in fair value of derivative financial instruments | (679,173) | -- | (647,342) | -- |
| Total other income (expense) | (2,305,020) | (6,889) | (2,369,551) | (15,054) |
| Net loss | (5,358,584) | (1,456,854) | (7,953,757) | (2,657,055) |
| Preferred stock dividends | (72,767) | (172,738) | (244,508) | (283,553) |
| Net loss available to common stockholders | $ (5,431,351) | $ (1,629,592) | $ (8,198,265) | $ (2,940,608) |
| Net loss per common share - basic and diluted | $ (0.84) | $ (4.49) | $ (2.35) | $ (8.11) |
| Weighted average shares outstanding - basic and diluted | 6,449,108 | 362,537 | 3,487,734 | 362,537 |
| OpGen, Inc. | ||
| Condensed Balance Sheets | ||
| (unaudited) | ||
|
June 30, 2015 |
December 31, 2014 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 10,215,809 | $ 749,517 |
| Accounts receivable, net | 214,043 | 503,983 |
| Inventory, net | 347,463 | 369,742 |
| Prepaid expenses and other current assets | 490,201 | 90,233 |
| Total current assets | 11,267,516 | 1,713,475 |
| Property and equipment, net | 483,147 | 587,956 |
| Deferred IPO issuance costs | -- | 296,041 |
| Other noncurrent assets | 46,380 | 57,459 |
| Total assets | $ 11,797,043 | $ 2,654,931 |
| Liabilities, Redeemable Preferred Stock and Stockholders' Deficit | ||
| Current liabilities | ||
| Accounts payable | $ 1,115,859 | $ 1,160,081 |
| Accrued compensation and benefits | 702,692 | 423,099 |
| Accrued liabilities | 583,851 | 993,657 |
| Deferred revenue | 234,508 | 339,171 |
| Short term notes payable | 2,500 | 1,505,000 |
| Current maturities of long-term capital lease obligation | 118,579 | 100,499 |
| Short-term convertible notes, net of discounts | -- | 1,500,000 |
| Total current liabilities | 2,757,989 | 6,021,507 |
| Long-term capital lease obligations and other noncurrent liabilities | 210,758 | 134,149 |
| Total liabilities | 2,968,747 | 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 December 31, 2014 (none at June 30, 2015); aggregate liquidation preference of $7,999,728 at December 31, 2014 (none at June 30, 2015) | -- | 4,564,899 |
| Total redeemable convertible preferred stock | -- | 4,564,899 |
| Stockholders' equity (deficit) | ||
| Common stock, $.01 par value; 200,000,000 shares authorized; 10,719,272 and 493,178 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively | 107,193 | 4,932 |
| Additional paid-in capital | 113,447,153 | 88,701,737 |
| Accumulated deficit | (104,726,050) | (96,772,293) |
| Total stockholders' equity (deficit) | 8,828,296 | (8,065,624) |
| Total liabilities, redeemable preferred stock and stockholders' equity (deficit) | $ 11,797,043 | $ 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