htgm-ex991

TUCSON, Ariz., August 9, 2016 (GLOBE NEWSWIRE) -- ~~HTG Molecular Diagnostics, Inc. (NASDAQ:HTGM)~~, a provider of instruments and reagents for molecular profiling applications, today reported financial results for the three and six month periods ended June 30, 2016.

“At the midpoint of our year we are very pleased with progress against our strategic milestones. The building blocks of our diagnostic business are coming together,” said TJ Johnson, HTG President and CEO. “Obtaining our first regulatory approval was a major accomplishment for our organization.”

Revenue for the second quarter of 2016 was $1.9 million, a 140% increase over the second quarter of 2015, primarily a result of increased service revenue, which was $1.3 million for the quarter. Consumables revenue was $0.6 million for the quarter.

Net loss from operations for the second quarter of 2016 was $6.4 million, compared to $4.7 million for the second quarter of 2015. Net loss per share was $(0.98) for the second quarter of 2016 compared to $(1.73) for the second quarter of 2015.

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 47539777, 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.

Headquartered in Tucson, Arizona, HTG's mission is to empower precision medicine at the local level. In 2013 the company commercialized its HTG Edge instrument platform and a portfolio of RNA assays that leverage HTG's proprietary nuclease protection chemistry. HTG's product offerings have since expanded to include its HTG EdgeSeq product line, which automates sample and targeted library preparation for next-generation sequencing.

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 activities expected to occur in connection with Firalis’ assay development, the expected benefits of our VERI/O laboratory service offerings, our ability to commercialize diagnostic products in Europe, and our planned clinical trials. 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 agreements, risks associated with our ability to successfully commercialize our products; 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 Quarterly Report on Form 10-Q for the quarter ended March 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.

HTG Molecular Diagnostics, Inc.
Statements of Operations
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenue:
Product	$	577,127		$	648,347		$	1,177,317		$	1,375,785
Service		1,318,689			51,000			1,583,731			113,292
Other		—			91,204			—			325,789
Total revenue		1,895,816			790,551			2,761,048			1,814,866
Cost of revenue		932,976			834,949			1,776,446			1,729,575
Gross margin		962,840			(44,398	)		984,602			85,291

Operating expenses:
Selling, general and administrative		4,712,637			3,726,490			9,406,345			7,165,759
Research and development		2,611,591			953,222			4,605,692			1,641,437
Total operating expenses		7,324,228			4,679,712			14,012,037			8,807,196
Operating loss		(6,361,388	)		(4,724,110	)		(13,027,435	)		(8,721,905	)
Loss from change in stock warrant valuation		—			(628,643	)		—			(239,683	)
Interest expense, net		(507,797	)		(465,006	)		(864,775	)		(944,306	)
Loss on settlement of convertible debt		—			(705,217	)		—			(705,217	)
Other		18,442			70,634			18,442			70,634
Net loss before income taxes		(6,850,743	)		(6,452,342	)		(13,873,768	)		(10,540,477	)
Income taxes		860			—			4,259			—
Net loss		(6,851,603	)		(6,452,342	)		(13,878,027	)		(10,540,477	)
Accretion of redeemable convertible preferred stock discount, issuance costs and dividends		—			(418,465	)		—			(1,328,594	)
Net loss attributable to common stockholders	$	(6,851,603	)	$	(6,870,807	)	$	(13,878,027	)	$	(11,869,071	)

Net loss per share attributable to common stockholders, basic and diluted	$	(0.98	)	$	(1.73	)	$	(2.00	)	$	(5.49	)
Shares used in computing net loss per share attributable to common stockholders, basic and diluted		7,018,502			3,973,055			6,952,012			2,163,295

HTG Molecular Diagnostics, Inc.
Balance Sheets


	June 30,		December 31,
	2016		2015
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	7,510,493	$	3,293,983
Short-term investments available-for-sale, at fair value		15,405,414		28,201,507
Accounts receivable		1,911,394		716,246
Inventory, net		2,213,108		2,201,301
Prepaid expenses and other		673,940		445,217
Total current assets		27,714,349		34,858,254

Long-term investments available-for-sale, at fair value		—		2,603,901
Property and equipment, net		3,957,952		1,932,213
Total assets	$	31,672,301	$	39,394,368


Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	1,607,044	$	724,805
Accrued liabilities		1,639,534		1,915,268
Deferred revenue		183,707		47,476
NuvoGen obligation		762,500		543,750
Term loan		6,122,450		3,059,068
Other current liabilities		264,578		29,243
Total current liabilities		10,579,813		6,319,610
Term loan payable - non-current, net of discount and debt issuance costs		8,368,215		7,737,586
NuvoGen obligation - non-current, net of discount		8,119,589		8,415,122
Other		587,034		28,652
Total liabilities		27,654,651		22,500,970

Commitments and Contingencies
Total stockholders’ equity		4,017,650		16,893,398
Total liabilities and stockholders' equity	$	31,672,301	$	39,394,368

TJ Johnson
President / CEO
HTG Molecular Diagnostics
Phone: 520-547-2827 x130
Email: tjjohnson@htgmolecular.com