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Press Release

HTG Molecular Diagnostics Reports Fourth Quarter and Full Year 2017 Results


Posted on: 22 Mar 18

Revenue increased 442% and 188%, respectively, compared to the three and twelve month periods in the prior year driven by development efforts supporting Pharma clinical programs

TUCSON, Ariz., March 22, 2018 (GLOBE NEWSWIRE) -- HTG Molecular Diagnostics, Inc. (Nasdaq:HTGM) (HTG), a provider of instruments, reagents and services for molecular profiling applications, today reported its financial results for the fourth quarter and year ended December 31, 2017.

Recent Accomplishments & Highlights:

  • Achieved revenue of $7.9 million and $14.8 million for the three and twelve months ended December 31, 2017, respectively, which represents a 442% and 188% increase over the respective periods in 2016. Fourth quarter and full year 2017 revenue was driven primarily by the company’s collaborative development services programs.
     
  • Completed underwritten public offering of 13,915,000 shares of its common stock at a price to the public of $2.90 per share, including 1,815,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares, in January 2018. The aggregate net proceeds from the offering were approximately $37.7 million, after deducting the underwriting discounts and commissions and offering expenses.
     
  • Entered into a third statement of work for a new clinical assay development program under the company’s Master Assay Development, Commercialization and Manufacturing Agreement with QIAGEN Manchester Limited, (QML), a wholly owned subsidiary of QIAGEN, N.V. (NYSE:QGEN), in connection with a sponsor project agreement between QML and a pharmaceutical company, in January 2018.
     
  • Entered into a new master collaboration agreement for translational programs with Merck KGaA, Darmstadt, Germany, in December 2017. The master collaboration agreement complements the previously announced master companion diagnostic agreement with Merck KGaA, and includes a statement of work with EMD Serono, the biopharmaceutical business of Merck KGaA, in the United States and Canada.

“We entered 2017 with specific goals to accelerate customer adoption, expand our BioPharma pipeline, initiate commercialization of our CE/IVD products in Europe and strengthen our balance sheet.  2017 exceeded our performance expectations, and we move into 2018 looking forward to continuing our momentum,” said TJ Johnson, President and CEO of HTG Molecular Diagnostics.

Fourth Quarter 2017 Financial Results:

Revenue for the fourth quarter of 2017 was $7.9 million, compared to $1.5 million for the fourth quarter of 2016. Net loss from operations for the fourth quarter of 2017 was $1.7 million, compared to $5.2 million for the fourth quarter of 2016.

Net loss for the fourth quarter of 2017 was $1.9 million, compared to $5.7 million for the fourth quarter of 2016. Net loss per share was $(0.15) for the fourth quarter of 2017 compared to $(0.76) for the fourth quarter of 2016.

Full Year 2017 Financial Results:

Revenue for the year ended December 31, 2017 was $14.8 million, compared to $5.1 million for the year ended December 31, 2016. Net loss from operations for the year ended December 31, 2017 was $17.7 million, compared to $24.3 million for year ended December 31, 2016.

Net loss for the year ended December 31, 2017 was $19.0 million, compared to $26.0 million for the year ended December 31, 2016. Net loss per share for the year ended December 31, 2017 was $(1.79) compared to $(3.66) for the year ended December 31, 2016.

HTG ended 2017 with $10.0 million in cash and equivalents and current liabilities of approximately $13.3 million plus an additional $11.0 million in non-current liabilities. Net proceeds from the underwritten public offering completed on January 23, 2018 were approximately $37.7 million, after deducting for underwriting discounts and commissions and offering expenses.

Conference Call and Webcast:

HTG will host an investment community conference call today beginning at 4:30 p.m. Eastern Time. Conference call and webcast details follow:

Date: Thursday, March 22
Time: 4:30pm Eastern Time
Toll Free: (800) 239-9838
International: (323) 794-2551
Conference ID: 7843064
Webcast: http://public.viavid.com/index.php?id=128362 

About HTG:

HTG is focused on next generation sequencing (NGS) based molecular profiling. The company’s proprietary HTG EdgeSeq technology automates complex, highly multiplexed molecular profiling from solid and liquid samples, even when limited in amount. HTG’s customers use its technology to identify biomarkers important for precision medicine, to understand the clinical relevance of these discoveries, and ultimately to identify treatment options. Our mission is to empower precision medicine at the local level.

-Financial tables follow-

HTG Molecular Diagnostics, Inc. 
Statements of Operations 
                 
  Three Months Ended December 31,  Years Ended December 31, 
  2017  2016  2017  2016 
Revenue:                
Product and product-related services $2,374,951  $1,457,781  $6,797,255  $5,132,730 
Collaborative development services  5,529,207      7,962,312    
Total revenue  7,904,158   1,457,781   14,759,567   5,132,730 
Cost of revenue  1,350,613   1,234,429   4,971,806   4,135,884 
Gross margin  6,553,545   223,352   9,787,761   996,846 
                 
Operating expenses:                
Selling, general and administrative  4,603,491   4,083,832   17,513,742   17,427,777 
Research and development  3,632,256   1,384,503   9,996,627   7,900,311 
Total operating expenses  8,235,747   5,468,335   27,510,369   25,328,088 
Operating loss  (1,682,202)  (5,244,983)  (17,722,608)  (24,331,242)
Other expense, net  (237,895)  (422,239)  (1,234,488)  (1,698,190)
Net loss before income taxes  (1,920,097)  (5,667,222)  (18,957,096)  (26,029,432)
Provision for income taxes  1,898   5,859   2,921   10,118 
Net loss $(1,921,995) $(5,673,081) $(18,960,017) $(26,039,550)
                 
Net loss per share, basic and diluted $(0.15) $(0.76) $(1.79) $(3.66)
Shares used in computing net loss per share, basic and diluted  12,979,143   7,488,842   10,597,318   7,113,075 
                 


HTG Molecular Diagnostics, Inc. 
Balance Sheets 
         
  December 31, 
  2017  2016 
Assets        
Current assets:        
Cash and cash equivalents $9,968,600  $7,507,659 
Short-term investments available-for-sale, at fair value     4,304,901 
Accounts receivable  6,356,268   1,377,441 
Inventory, net  1,180,521   1,511,053 
Prepaid expenses and other  443,068   433,328 
Total current assets  17,948,457   15,134,382 
         
Deferred offering costs  2,953   49,630 
Property and equipment, net  3,304,890   3,270,197 
Total assets $21,256,300  $18,454,209 
         
         
Liabilities and stockholders' deficit        
Current liabilities:        
Accounts payable $2,438,798  $761,663 
Accrued liabilities  3,746,786   1,670,286 
Deferred revenue - current  665,882   335,659 
NuvoGen obligation - current  496,442   604,751 
Term loan payable - current, net of discount and debt issuance costs of $64,807 at December 31, 2017 and $0 at December 31, 2016  5,793,599   6,389,782 
Other current liabilities  200,460   258,850 
Total current liabilities  13,341,967   10,020,991 
Term loan payable - non-current, net of discount and debt issuance costs of $0 at December 31, 2017 and $263,378 at December 31, 2016     5,389,137 
NuvoGen obligation - non-current, net of discount  7,520,913   8,017,356 
Convertible note, related party - net of debt issuance costs  2,960,760     
Other non-current liabilities  492,197   619,587 
Total liabilities  24,315,837   24,047,071 
         
Commitments and Contingencies        
Total stockholders’ deficit  (3,059,537)  (5,592,862)
Total liabilities and stockholders' deficit $21,256,300  $18,454,209 
         

Contact:

Ashley Robinson
LifeSci Advisors, LLC
Phone: (617) 775-5956
Email: arr@lifesciadvisors.com 

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

 

GlobeNewswire
globenewswire.com

Last updated on: 23/03/2018

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