Record Quarterly Revenue Increases 108 Percent Over Fiscal Q1 2014; Webcast to Be Held Today at 9:00 AM EST
STONY BROOK, NY--(Marketwired - February 10, 2015) - Applied DNA Sciences, Inc. (
Karol Kain Gray, Chief Financial Officer, stated: "This was a milestone quarter for the Company in many different aspects, including achieving our highest quarterly revenues to date."
Financial Highlights for the First Quarter:
Dr. James A. Hayward, President and Chief Executive Officer, stated: "I am proud of the traction we have gained this quarter. We remain focused on building revenue while controlling costs. The power of our portfolio continues to unlock growth, as we keep a laser focus on our biggest opportunities. The breadth and depth of that portfolio has helped us deliver stronger results, execute against our strategic priorities and extend our leadership in the anti-counterfeiting and product authentication fields. We are taking bold steps forward across our business to deliver new opportunities to our customers."
Recent Highlights:
Dr. Hayward concluded: "We continue to refine our approach to operational and executional deliverables that we expect will drive meaningful growth for the business and ultimately maximize shareholder value."
Webcast Information:
The Company will be hosting a webinar today, February 10, 2015 at 9:00 AM EST. To participate in the webinar, please follow the instructions below:
Reserve your webinar seat now at: https://attendee.gotowebinar.com/register/5821523006886945281
Please email questions prior to the call to investor@adnas.com. While every attempt will be made to answer your questions, due to the large number of expected participants, not all questions may be answered on the call. For those of you unable to participate, the webinar will be posted by end of business on February 10, 2015, and available under the "Investors" tab of the Company's website.
Information about Non-GAAP Financial Measures
As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America. To supplement our condensed consolidated financial statements prepared and presented in accordance with GAAP, this earnings release includes Adjusted EBITDA, which is a non-GAAP financial measure as defined in Rule 101 of Regulation G promulgated by the Securities and Exchange Commission. Generally, a non-GAAP financial measure is a numerical measure of a company's historical or future performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared in presented in accordance with GAAP.
We use this non-GAAP financial measure for internal financial and operational decision making purposes and as a means to evaluate period-to-period comparisons of the performance and results of operations of our core business. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the performance of our business by excluding non-cash expenses that may not be indicative of our recurring operating results. We believe this non-GAAP financial measure is useful to investors as they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.
"EBITDA" - is defined as earnings (loss) before interest expense, income tax expense and depreciation and amortization expense.
"Adjusted EBITDA" - is defined as EBITDA adjusted to exclude (i) change in fair value of warrant liability, (ii) the loss on conversion of promissory notes, (iii) stock-based compensation and (iv) other non-cash expenses.
The accompanying table below provides a reconciliation of the non-GAAP financial measure presented to the most directly comparable financial measure prepared in accordance with GAAP.
About Applied DNA Sciences
We make life real and safe by providing botanical-DNA based security and authentication solutions and services that can help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature® DNA describes the platform ingredient that is at the heart of all of our security and authentication solutions. SigNature DNA is at the core of a family of uncopyable products such as DNAnet®, our anti-theft product, SigNature® T, targeted toward textiles, and digitalDNA®, providing powerful track and trace. All provide a forensic chain of evidence and can be used to prosecute perpetrators.
Applied DNA Sciences' common stock is listed on NASDAQ under the symbol APDN, and its warrants are listed under the symbol APDNW.
Forward Looking Statement
The statements made by APDN in this press release may be "forward-looking" in nature within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K filed on December 15, 2014, and our subsequent quarterly report on Form 10-Q which are available at www.sec.gov. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events, unless otherwise required by law.
Financial Tables Follow
APPLIED DNA SCIENCES, INC. | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
December 31, 2014 |
September 30, 2014 |
|||||
(unaudited) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 2,871,570 | $ | 1,393,132 | ||
Accounts receivable, net of allowance of $11,257 and $9,634 at December 31, 2014 and September 30, 2014, respectively | 1,114,541 | 834,818 | ||||
Prepaid expenses | 149,117 | 135,365 | ||||
Total current assets | 4,135,228 | 2,363,315 | ||||
Property, plant and equipment, net | 520,682 | 576,128 | ||||
Other assets: | ||||||
Deposits | 61,988 | 57,638 | ||||
Deferred offering costs | - | 181,104 | ||||
Intangible assets: | ||||||
Intellectual property, net of accumulated amortization and impairment of $279,664 and $256,208 at December 31, 2014 and September 30, 2014, respectively | 304,416 | 327,872 | ||||
Total Assets | $ | 5,022,314 | $ | 3,506,057 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities, including related party accrued interest of $-- and $6,597 at December 31, 2014 and September 30, 2014, respectively | $ | 1,197,012 | $ | 1,494,759 | ||||
Promissory notes payable, including $1,000,000 with a related party | - | 1,800,000 | ||||||
Deferred revenue | 524,361 | 583,362 | ||||||
Total current liabilities | 1,721,373 | 3,878,121 | ||||||
Warrant liability | - | 1,096,412 | ||||||
Total liabilities | 1,721,373 | 4,974,533 | ||||||
Commitments and contingencies | ||||||||
Stockholders' Equity (Deficit) | ||||||||
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of December 31, 2014 and September 30, 2014 | - | - | ||||||
Series A Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2014 and September 30, 2014 | - | - | ||||||
Series B Preferred stock, par value $0.001 per share, 10,000,000 shares authorized; -0- issued and outstanding as of December 31, 2014 and September 30, 2014 | - | - | ||||||
Common stock, par value $0.001 per share; 500,000,000 and 1,350,000,000 shares authorized; 17,361,702 and 13,935,954 shares issued and outstanding as of December 31, 2014 and September 30, 2014, respectively | 17,362 | 13,937 | ||||||
Additional paid in capital | 210,872,495 | 198,277,859 | ||||||
Accumulated deficit | (207,588,916 | ) | (199,760,272 | ) | ||||
Total stockholders' equity (deficit) | 3,300,941 | (1,468,476 | ) | |||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 5,022,314 | $ | 3,506,057 | ||||
APPLIED DNA SCIENCES, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
Three Months Ended December 31, | ||||||||
2014 | 2013 | |||||||
Revenues | $ | 1,241,802 | $ | 597,354 | ||||
Operating expenses: | ||||||||
Selling, general and administrative | 4,671,490 | 3,845,578 | ||||||
Research and development | 278,288 | 459,304 | ||||||
Depreciation and amortization | 109,726 | 105,215 | ||||||
Total operating expenses | 5,059,504 | 4,410,097 | ||||||
LOSS FROM OPERATIONS | (3,817,702 | ) | (3,812,743 | ) | ||||
Other income (expense): | ||||||||
Interest income (expense), net | (31,875 | ) | 434 | |||||
Other income (expense), net | (3,685 | ) | 155,417 | |||||
Loss on conversion of promissory notes | (980,842 | ) | - | |||||
Loss on change in fair value of warrant liability | (2,994,540 | ) | (2,634,758 | |||||
Net loss before provision for income taxes | (7,828,644 | ) | (6,291,650 | ) | ||||
Provision for income taxes | - | - | ||||||
NET LOSS | $ | (7,828,644 | ) | $ | (6,291,650 | ) | ||
Net loss per share-basic and diluted | $ | (0.51 | ) | $ | (0.48 | ) | ||
Weighted average shares outstanding- | ||||||||
Basic and diluted | 15,456,566 | 13,164,914 | ||||||
APPLIED DNA SCIENCES, INC. | |||||||||
CALCULATION AND RECONCILIATION OF ADJUSTED EBITDA | |||||||||
(Unaudited) | |||||||||
Three Months Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Net Loss | $ | (7,828,644 | ) | $ | (6,291,650 | ) | |||
Interest expense (income), net | 3,685 | (155,417 | ) | ||||||
Depreciation and amortization | 109,726 | 105,215 | |||||||
Stock based compensation expense | 1,998,524 | 765,546 | |||||||
Change in fair value of warrant liability | 2,994,540 | 2,634,758 | |||||||
Loss on conversion of promissory notes | 980,842 | - | |||||||
Common stock issued for consulting services | - | 337,500 | |||||||
Bad debt expense | 2,779 | 15,000 | |||||||
Adjusted EBITDA (loss) | $ | (1,738,548 | ) | $ | (2,589,048 | ) | |||
Contact Information:
investor contact:
Debbie Bailey
631-240-8817
debbie.bailey@adnas.com
media contact:
Enrique Briz
Dian Griesel Int'l.
212- 825-3210
ebriz@dgicomm.com
web:www.adnas.com
twitter: @APDN, @APDNInvestor