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Great Basin Reports Third Quarter 2015 Results

SALT LAKE CITY--(BUSINESS WIRE)--

Great Basin Scientific, Inc. (GBSN), a molecular diagnostic testing company, today reported financial results for the third quarter ended September 30, 2015.

Third Quarter 2015 Financial and Business Highlights

  • Revenue for the third quarter was $545,934, representing a 33.4% year-over-year increase
  • 143 revenue-generating U.S. customers as of September 30, 2015
  • Continued adoption of its Group B Strep (GBS) assay, with over 87 customers using or evaluating the test, representing 57% of its installed base
  • On September 1, 2015 submitted 510(k) application to the FDA for Staph ID/R Blood Culture, its first multiplex panel, capable of detecting Staph aureus, Staphylococcus lugdunensis and Staphylococcus epidermidis as well as the presence of the mecA gene, a drug resistance marker that enables resistance to methicillin and creates the superbug MRSA
  • On October 8, 2015 submitted 510(k) application to the FDA for its fourth test, Shiga Toxin Direct. Upon Shiga Toxin Direct FDA approval, Great Basin will have the only stand-alone molecular test for detecting Shiga toxin-producing E. coli (STEC) and the serotype O157 directly from patient specimen

“We are pleased to report our financial results and business progress for the third quarter,” said Ryan Ashton, President and Chief Executive Officer. “Great Basin continues to execute on our strategic initiatives, as evidenced by the 510(k) submissions for our Staph ID/R Blood Culture panel and Shiga Toxin Direct test and our 24% increase in customer acquisition during the third quarter.”

Great Basin Scientific’s Third Quarter 2015 Results

Total revenues for the third quarter of 2015 were $545,934, compared to $409,390 for the same period in 2014, representing an increase of 33.4%. Continued growth in Great Basin’s customer base as well as adoption of its Group B Strep assay drove the year-over-year increase.

Great Basin ended the third quarter with 143 U.S. customers and 64 evaluations either in-progress or scheduled, compared to 115 customers and 46 evaluations during the second quarter ending June 30, 2015, representing an increase of 24% and 39%, respectively.

Operating expenses were $6.2 million in the third quarter of 2015, as compared to $2.5 million in the third quarter of 2014. Research and development expenses increased by $1.5 million over the third quarter of 2014 to $2.9 million in the third quarter of 2015, primarily due to increased clinical and regulatory activities related to their Staph ID/R Blood Culture and Shiga Toxin Direct tests and ongoing pipeline development. Selling and marketing expenses increased by $1.0 million over the third quarter of 2014 to $1.5 million in the third quarter of 2015, reflecting increases in sales commissions and other costs. General and administrative costs increased by $1.2 million over the third quarter of 2014 to $1.8 million in the third quarter of 2015, due to increased business activities and costs of operating as a public company.

Loss from operations was $6.7 million for the third quarter, compared to $3.0 million for the same period of 2014. Net income was $13.1 million for the third quarter of 2015, compared to a net loss of $17.2 million for the same period in 2014. In the third quarter of 2015, there was a non-cash gain on the change in fair value of the derivative liability in the amount of $20.0 million as compared to a loss on the change in the fair value of the derivative liability in the amount of $13.9 million in the third quarter of 2014. Excluding the non-cash derivative liability other income, adjusted net loss for the third quarter 2015 was $7.0 million. Excluding the non-cash derivative liability other expense, adjusted net loss for the third quarter 2014 was $3.3 million.

Basic net income per share was $0.35 for the third quarter of 2015, compared to basic net loss per share of $117.59 for the same period in 2014. Diluted net income per share was $0.26 for the third quarter of 2015, compared to diluted net loss per share of $117.59 for the same period in 2014.

Warrant Exercises & Preferred Conversion

During the third quarter of 2015, the company received 10,650 Series A warrant exercises for proceeds of $23,430. The company also received cashless warrant exercises for 8,595,444 Series C warrants issuing 173,103,797 shares of common stock. Also, during the third quarter of 2015, 2,574,114 shares of Series E Convertible Preferred Stock were converted into 10,296,456 shares of common stock at a conversion ratio of 1 to 4.

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 comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles (GAAP). For reconciliation of this non-GAAP financial measure to...


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