Exhibit Number | Description |
99.1 | Press release, dated November 10, 2014. |
▪ | Third quarter revenue of $3.22 million – overall revenue growth of ~90% over the same quarter of 2013, including 159% revenue growth in Biopharma Services and 44% revenue growth in Clinical Services. |
▪ | Revenue grew 110% sequentially over the second quarter of 2014. |
▪ | Signed contracts with biopharma customers increased 33% to over $24 million with significant increases from additional trials in hematological cancers. |
▪ | Closed acquisitions of BioServe Biotechnologies in Hyderabad, India and Gentris in Raleigh, North Carolina during the third quarter; demonstrating rapid progress on integration and capturing sales synergies. |
▪ | The company closed the quarter with cash and cash equivalents of $37.0 million with $30.7 million in unrestricted cash. |
▪ | Achieved major commercial milestones for the DNA-based cervical cancer test FHACT® including: patent issuance by the US Patent Office, obtaining the CE mark to sell FHACT® as an In-Vitro-Diagnostic for HPV-associated cervical cancer in the European Union. |
▪ | Advanced the validation and clinical utility of the proprietary genomic panel for diffuse large B-cell lymphoma (DLBCL) through collaborations with Beth Israel Deaconess Medical Center and Keck School of Medicine at USC on over 280 patients. |
▪ | Multiple presentations and papers were accepted for the 56th Annual American Society of Hematology (ASH) Meeting in December on genomic panels for DLBCL and Multiple Myeloma. |
▪ | Conference call today, Monday, November 10th at 8:30am Eastern / 5:30am Pacific. |
• | Revenues increased ~90% to $3.2 million |
• | Clinical services revenue increased 44% |
• | BioPharma revenue grew 159% |
• | Operating expenses were $5.6 million compared to $2.2 million in 2013 |
• | Operating expenses during this period include $1 million in non-cash, stock based compensation and one-time expenses related to our M&A activity |
• | Net loss in the third quarter was $4.8 million, or ($0.51) per diluted share |
• | Adjusted net loss was $3.8 million, or ($0.41) per diluted share |
• | Adjusted net loss, which is a non-GAAP measure, excludes the effect of non-cash employee stock based compensation and one-time expenses related to our M&A activity |
• | Revenues increased 30% to $6.2 million |
• | BioPharma revenue grew $900 thousand |
• | Clinical services test volume increased 30% to 6,740 |
• | Operating expenses were $14.1 million, compared with $6.9 million in 2013 |
• | Operating expenses during this period include $2.3 million in non-cash, stock based compensation and one-time expenses related to our M&A activity |
• | Net loss for the nine-month period ending September 30, 2014 was $11.5 million or ($1.25) per diluted share |
• | Adjusted net loss was $9.1 million, or ($1.01) per diluted share |
• | Adjusted net loss, which is a non-GAAP measure, excludes the effect of non-cash employee stock based compensation and one-time expenses related to our M&A activity |
• | Cash and cash equivalents totaled $37 million with $30.7 million unrestricted at September 30, 2014 |
• | Non-GAAP net loss for the third quarter of 2014 excludes the effect of stock based compensation and expenses related to our M&A activity of $1 million in 2014 and $117,000 in 2013. This results in a Non-GAAP loss of $3.8 million, or ($0.41) per diluted share in the third quarter of 2014, compared with a non-GAAP net loss of $2.9 million, or ($0.58) per diluted share, for the third quarter of 2013. The comparable GAAP numbers are a net loss in the third quarter of $4.8 million, or ($.51) per diluted share compared to a loss of $3.1 million or ($0.61) per diluted share in the third quarter of 2013. |
• | Non-GAAP net loss for the nine-month period excludes the effect of employee stock based compensation and expenses related to our M&A activity of $2.3 million in 2014 and $407,000 in 2013. This results in a Non-GAAP loss of $9.1 million, or ($1.01) per diluted share, compared with a non-GAAP net loss of $9.4 million, or ($3.90) per diluted share, for the nine-month period ending September 30, 2013. The comparable GAAP numbers are a net loss for the nine-month period ending September 30, 2014 of $11.5 million or ($1.25) per diluted share, compared with a loss of $9.9 million or ($4.02) per diluted share in the comparable period in 2013. |
• | Internet: www.cancergenetics.com |
• | Twitter: @Cancer_Genetics |
• | Facebook: www.facebook.com/CancerGenetics |
September 30, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $30,748,275 | $49,459,564 | |||||
Accounts receivable, net of allowance for doubtful accounts of $36,000 | 4,108,567 | 1,567,039 | |||||
Other current assets | 1,161,532 | 864,616 | |||||
Total current assets | 36,018,374 | 51,891,219 | |||||
FIXED ASSETS, net of accumulated depreciation | 4,338,146 | 1,264,624 | |||||
OTHER ASSETS | |||||||
Security deposits | 1,564 | 1,564 | |||||
Restricted cash | 6,300,000 | 300,000 | |||||
Loan guarantee and financing fees, net of accumulated amortization of $517,500 in 2013 | — | 310,500 | |||||
Patents | 476,971 | 401,709 | |||||
Investment in joint venture | 1,328,231 | 987,657 | |||||
Other investments | 39,393 | — | |||||
Goodwill | 3,130,574 | — | |||||
Total other assets | 11,276,733 | 2,001,430 | |||||
Total Assets | $51,633,253 | $55,157,273 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $4,564,065 | $2,346,240 | |||||
Obligations under capital leases, current portion | 57,606 | 51,400 | |||||
Deferred revenue | 384,354 | 199,560 | |||||
Notes payable, current portion | 280,854 | 22,298 |
Line of credit | — | 6,000,000 | |||||
Total current liabilities | 5,286,879 | 8,619,498 | |||||
Obligations under capital leases | 322,939 | 309,777 | |||||
Deferred rent payable | 152,739 | 170,789 | |||||
Line of credit | 6,000,000 | — | |||||
Warrant liability | 145,000 | 594,000 | |||||
Other long-term liabilities | 767,663 | — | |||||
Deferred revenue, long-term | 936,496 | — | |||||
Total liabilities | 13,611,716 | 9,694,064 | |||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock, authorized 9,764,000 shares, $0.0001 par value, none issued | — | — | |||||
Common stock, authorized 100,000,000 shares, $0.0001 par value, 9,723,669 and 9,275,384 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 970 | 927 | |||||
Additional paid-in capital | 110,814,811 | 106,786,862 | |||||
Accumulated deficit | (72,794,244) | (61,324,580) | |||||
Total Stockholders’ Equity | 38,021,537 | 45,463,209 | |||||
Total Liabilities and Stockholders’ Equity | $51,633,253 | $55,157,273 | |||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue | $3,221,850 | $1,705,146 | $6,163,895 | $4,755,462 | |||||||||||
Cost of revenues | 2,565,715 | 1,211,384 | 5,358,872 | 3,560,678 | |||||||||||
Gross margin | 656,135 | 493,762 | 805,023 | 1,194,784 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 1,390,189 | 433,525 | 3,092,733 | 1,384,122 | |||||||||||
General and administrative | 3,104,100 | 1,297,801 | 8,230,966 | 4,259,175 | |||||||||||
Sales and marketing | 1,070,531 | 442,665 | 2,737,967 | 1,274,620 | |||||||||||
Total operating expenses | 5,564,820 | 2,173,991 | 14,061,666 | 6,917,917 | |||||||||||
Loss from operations | (4,908,685) | (1,680,229) | (13,256,643) | (5,723,133) | |||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (36,166) | (356,442) | (408,087) | (2,039,750) | |||||||||||
Interest income | 18,789 | 3,295 | 57,130 | 4,649 | |||||||||||
Debt conversion costs | — | — | — | (6,849,830) | |||||||||||
Change in fair value of warrant liability | 129,000 | (1,033,000) | 324,000 | 4,096,000 | |||||||||||
Total other income (expense) | 111,623 | (1,386,147) | (26,957) | (4,788,931) | |||||||||||
Income (loss) before income taxes | (4,797,062) | (3,066,376) | (13,283,600) | (10,512,064) | |||||||||||
Income tax provision (benefit) | — | — | (1,813,941) | (663,900) | |||||||||||
Net income (loss) | $(4,797,062) | $(3,066,376) | $(11,469,659) | $(9,848,164) | |||||||||||
Basic net income (loss) per share | $(0.500) | $(0.610) | $(1.220) | $(2.840) | |||||||||||
Diluted net loss per share | $(0.510) | $(0.610) | $(1.250) | $(4.020) | |||||||||||
Basic Weighted Average Shares Outstanding | 9,575,789 | 5,055,591 | 9,386,613 | 3,463,730 | |||||||||||
Diluted Weighted Average Shares Outstanding | 9,575,789 | 5,055,591 | 9,403,245 | 3,468,627 | |||||||||||