OpGen Reports Third Quarter Financial Results and Provides Business Update
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OpGen chosen to track the threat of potentially lethal multi-drug resistant infectious in a major metro region; government funded program to commence in November -
Acquired AdvanDx, Inc. , a market leader in rapid molecular testing for microorganism identification -
Completed a
$6 million financing withMerck Global Health Innovation Fund, LLC (Merck GHI)
Financial Results
Total revenue for the third quarter of 2015 was
The net loss for the third quarter of 2015 was
Total revenue for the nine months ended
Net loss was
The Company had cash and cash equivalents of
Management Commentary
"The third quarter and recent weeks were a productive time for
Mr. Jones continued, "We are well positioned with
Commenting on the third 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: 63158584. 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 QuickFISH products 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 Consolidated Balance Sheets | ||
| (unaudited) | ||
| September 30, 2015 | December 31, 2014 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 11,187,129 | $ 749,517 |
| Accounts receivable, net | 553,938 | 503,983 |
| Inventory, net | 1,155,488 | 369,742 |
| Prepaid expenses and other current assets | 538,312 | 90,233 |
| Total current assets | 13,434,867 | 1,713,475 |
| Property and equipment, net | 1,021,971 | 587,956 |
| Deferred IPO issuance costs | -- | 296,041 |
| Intangible assets, net | 1,955,769 | -- |
| Goodwill | 291,747 | -- |
| Other noncurrent assets | 293,135 | 57,459 |
| Total assets | $ 16,997,489 | $ 2,654,931 |
| Liabilities, Redeemable Preferred Stock and Stockholders' Equity (Deficit) | ||
| Current liabilities | ||
| Accounts payable | $ 1,274,657 | $ 1,160,081 |
| Accrued compensation and benefits | 840,637 | 423,099 |
| Accrued liabilities | 1,232,328 | 993,657 |
| Deferred revenue | 158,860 | 339,171 |
| Short-term notes payable | 1,250 | 1,505,000 |
| Current maturities of long-term capital lease obligation | 227,049 | 100,499 |
| Short-term convertible notes, net of discounts | -- | 1,500,000 |
| Total current liabilities | 3,734,781 | 6,021,507 |
| Note payable | 1,000,000 | -- |
| Long-term capital lease obligations and other noncurrent liabilities | 317,854 | 134,149 |
| Total liabilities | 5,052,635 | 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 September 30, 2015); aggregate liquidation preference of $7,999,728 at December 31, 2014 (none at September 30, 2015) | -- | 4,564,899 |
| Total redeemable convertible preferred stock | -- | 4,564,899 |
| Stockholders' equtiy (deficit) | ||
| Common stock, $.01 par value; 200,000,000 shares authorized; 12,539,704 and 493,178 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively | 125,397 | 4,932 |
| Additional paid-in capital | 121,216,140 | 88,701,737 |
| Accumulated other comprehensive loss | (49) | -- |
| Accumulated deficit | (109,396,634) | (96,772,293) |
| Total stockholders' equity (deficit) | 11,944,854 | (8,065,624) |
| Total liabilities, redeemable preferred stock and stockholders' equity (deficit) | $ 16,997,489 | $ 2,654,931 |
| OpGen, Inc. | ||||
| Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||
| (unaudited) | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
| 2015 | 2014 | 2015 | 2014 | |
| Revenue | ||||
| Product sales | $ 929,241 | $ 268,854 | $ 1,432,592 | $ 841,567 |
| Laboratory services | 23,765 | 88,190 | 87,201 | 379,339 |
| Collaboration revenue | 27,780 | 477,780 | 308,340 | 1,783,340 |
| Total revenue | 980,786 | 834,824 | 1,828,133 | 3,004,246 |
| Cost of products sold (excluding depreciation and amortization) | 562,694 | 101,425 | 712,016 | 276,831 |
| Cost of services (excluding depreciation and amortization) | 46,634 | 129,120 | 191,738 | 336,616 |
| Total costs of sales (excluding depreciation and amortization) | 609,328 | 230,545 | 903,754 | 613,447 |
| Gross profit | 371,458 | 604,279 | 924,379 | 2,390,799 |
| Operating expenses | ||||
| Research and development | 1,724,127 | 1,029,650 | 3,741,247 | 3,075,420 |
| General and administrative | 1,610,828 | 555,444 | 3,687,313 | 1,590,085 |
| Sales and marketing | 979,681 | 459,064 | 2,815,976 | 1,486,801 |
| Depreciation and amortization | 185,177 | 141,060 | 392,404 | 461,432 |
| Transaction expenses | 525,596 | -- | 525,596 | -- |
| Total operating expenses | 5,025,409 | 2,185,218 | 11,162,536 | 6,613,738 |
| Operating loss | (4,653,951) | (1,580,939) | (10,238,157) | (4,222,939) |
| Other income (expense) | ||||
| Interest income | 2,513 | 37 | 9,675 | 120 |
| Interest expense | (17,482) | (32,331) | (1,746,853) | (47,468) |
| Change in fair value of derivative financial instruments and other | -- | 4,400 | (647,342) | 4,400 |
| Total other income (expense) | (14,969) | (27,894) | (2,384,520) | (42,948) |
| Loss before income taxes | (4,668,920) | (1,608,833) | (12,622,677) | (4,265,887) |
| Provision for income taxes | 1,662 | -- | 1,662 | -- |
| Net loss | (4,670,582) | (1,608,833) | (12,624,339) | (4,265,887) |
| Preferred stock dividends | -- | (175,246) | (244,508) | (458,799) |
| Net loss available to common stockholders | $ (4,670,582) | $ (1,784,079) | $ (12,868,847) | $ (4,724,686) |
| Net loss per common share - basic and diluted | $ (0.38) | $ (4.92) | $ (2.00) | $ (13.03) |
| Weighted average shares outstanding - basic and diluted | 12,261,238 | 362,537 | 6,444,373 | 362,537 |
| Net loss | (4,670,582) | (1,608,833) | (12,624,339) | (4,265,887) |
| Other comprehensive loss - foreign currency translation | (49) | -- | (49) | -- |
| Comprehensive loss | $ (4,670,631) | $ (1,608,833) | $ (12,624,388) | $ (4,265,887) |
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