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Great Basin Reports Second Quarter 2016 Results

SALT LAKE CITY--(BUSINESS WIRE)--Great Basin Scientific, Inc. (NASDAQ:GBSN), a molecular diagnostic testing company, today reported financial results for the second quarter ended June 30, 2016.

“We continued to make significant strides in executing our strategic initiatives including growing our customer base, expanding use of assays within our customer base, and in meeting our product development objectives”

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Second Quarter 2016 Financial Results and Business Highlights

  • Revenue increased 38.7% to $728,957 compared with a year ago
  • Total installed customer base up 126.1% over last year to 260
  • Assay adoption rate (assays placed) up 18.2% over last year
  • Product line to double in third quarter; initial impact to revenues expected in fourth quarter
  • Closed $6 million public offering of units; secured $75 million convertible note
  • Hired Mike Blitz, vice president of US Sales, to lead expansion of sales activities including the commercial launch of the Company’s Shiga Toxin Direct test and Staph ID/R Blood Culture panel

“We continued to make significant strides in executing our strategic initiatives including growing our customer base, expanding use of assays within our customer base, and in meeting our product development objectives,” said Ryan Ashton, Co-founder and Chief Executive Officer. “Going forward, we’re excited about the commercial launch of our Shiga Toxin Direct Test and Staph ID/R Panel which will double our line of FDA-cleared products and will aid in building our total revenue base, increasing sales per customer figures and reducing seasonality in our revenue stream.”

Great Basin Scientific’s Second Quarter 2016 Results

Great Basin reported total revenues for the second quarter 2016 of $728,957, an increase of 38.7% over revenues of $525,506 for the same period in 2015. Continued growth in customer base and the adoption of Group B Strep assay drove the year-over-year increase.

The Company reported 260 customers in the second quarter 2016, compared with 114 customers a year ago, representing an increase of 126.1%.

Operating expenses were $7.7 million in the second quarter 2016 compared with $4.1 million in the second quarter 2015. Research and development expenses increased $1.6 million over the second quarter 2015 to $3.5 million, primarily due to increased clinical and regulatory activities related to the Bordetella pertussis test and bacteria stool pathogens panel and ongoing pipeline development. Selling and marketing expenses increased $850,351 to $1.8 million in the comparable quarters, reflecting increases in the Company’s sales force, higher commissions and customer acquisition costs. General and administrative expenses increased $1.2 million over the second quarter 2015 to $2.5 million in the comparable quarter 2016, primarily due to higher legal, accounting and consulting fees and the costs associated with the hiring of additional accounting and human resources personnel.

Loss from operations was $8.9 million for the second quarter 2016, compared with a loss of $4.9 million for the same period in 2015.

Great Basin reported a net loss for the second quarter 2016 of $20.3 million compared to net income of $19.2 million for the second quarter 2015. Basic and diluted net loss per share was $4.10 for the second quarter 2016, compared to basic and diluted net income per share of $6,303.25 and $1,498.09, respectively, for the same period in 2015.

Unit Offering and Additional Financing Secured

During the second quarter of 2016, Great Basin announced it closed a public offering of 3.16 million units in exchange for $6.0 million of gross proceeds. The Company also secured a $68 million funding commitment consisting of $75 million senior secured convertible notes, where $6.0 million of gross proceeds was immediately available, with the remaining $62 million of funds in restricted Company accounts and becoming available, subject to certain conditions, beginning February 2017.

Non-GAAP Financial Measure

This press release includes an Adjusted Net Loss “non-GAAP financial measure” as defined by the U.S. Securities and Exchange Commission (SEC). The presentation of this financial information, which is not prepared under any...


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