Company To Hold Conference Call and Webcast Today, Tuesday, December 6, 2016 at 4:30 PM EST
STONY BROOK, NY--(Marketwired - December 06, 2016) - Applied DNA Sciences, Inc. (
Commenting on Applied DNA's performance for the fiscal year, Dr. James A. Hayward, president and chief executive officer, stated, "Fiscal 2016 stands out for the growing maturation of three key verticals - textiles, government/defense and pharmaceuticals - reflecting our efforts to build demand combined with favorable industry developments. Our financial results for the year, however, do not yet reflect these efforts. Revenues were negatively impacted by excess 2015 customer inventory cotton taggant that curtailed orders in fiscal 2016 despite an expected multiple in total usage of marked cotton tagged in the 2015 and 2016 ginning seasons, and by the completion of two non-recurring government contracts. Our pharmaceutical efforts significantly increased at the end of Q3, too soon to see results in fiscal 2016."
Fiscal Fourth Quarter Results:
Fiscal 2016 Financial Results:
Dr. Hayward added, "In textiles, major brands and retailers are responding to the value proposition of our technology to secure and purify the global cotton supply chain, and demand for DNA-tagged cotton is now coming from a broader set of supply chain participants. We believe recent reports of mislabeled Egyptian cotton goods will further catalyze demand given that similar mislabeling occurs in goods manufactured from premium US Pima cotton. In our government/military vertical, the completion of the RIF and SBIR development contracts has yielded a marking platform that can mark at high volumes at the point of manufacture of multiple commodities. This platform gives us entrée into commercial OEMs for the marking of commodities applicable to defense, industrial and consumer markets. Our go-to-market strategy includes channel partners, such as Action-Pak, a contract packaging services provider with a broad base of military, industrial and commercial suppliers, to further our penetration of these markets and educate OEMs on our validation and authentication solutions to meet their supply chain security needs."
Operational Highlights:
Concluded Dr. Hayward, "As we look ahead to fiscal 2017, growing market adoption by participants in our textile, government/defense and pharmaceutical verticals are expected to give us a foundation for revenue growth with opportunities in diagnostics and asset-marking, among others, contributing incremental revenue. We remain focused on tight control of operating expenses and have the financial resources to pursue our growth initiatives."
Fiscal Fourth Quarter 2016 Conference Call Information
The Company will hold a conference call and webcast to discuss its fiscal fourth quarter and year-end 2016 results on Tuesday, December 6, 2016 at 4:30 PM ET. To participate on the conference call, please follow the instructions below. While every attempt will be made to answer investors' questions on the Q&A portion of the call, due to the large number of expected participants, not all questions may be answered.
To Participate:
Live webcast: https://services.choruscall.com/links/apdn161206.html
Replay (available 1 hour following the conclusion of the live call):
For those investors unable to attend the live call, a copy of the presentation is expected to be posted by end of business on December 6, 2016 and available under the 'Presentations' section of the company's Investor Relations web site: http://adnas.com/adnas_home/investors/.
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 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.
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. Our patented DNA-based solutions can be used to identify, tag, track, and trace products, to help assure authenticity, traceability and quality of products. SigNature® DNA describes the platform ingredient that is at the heart of a family of uncopyable, security and authentication solutions such as SigNature® T and fiberTyping®, targeted toward textiles and apparel, DNAnet®, for anti-theft and loss prevention, and digitalDNA®, providing powerful track and trace. All provide a forensic chain of evidence, and can be used to prosecute perpetrators. We are also engaged in the large-scale production of specific DNA sequences using the polymerase chain reaction.
Go to adnas.com for more information, events and to learn more about how Applied DNA Sciences makes life real and safe. Common stock listed on NASDAQ under the symbol APDN, and warrants are listed under the symbol APDNW.
Forward-Looking Statements
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 6, 2016, which is 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. CONSOLIDATED BALANCE SHEETS | ||||
September 30, | ||||
2016 | 2015 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 4,479,274 | $ | 7,312,184 |
Accounts receivable, net of allowance of $32,965 and $7,140 at September 30, 2016 and 2015, respectively | 6,374,895 | 3,929,517 | ||
Inventories | 297,759 | - | ||
Prepaid expenses and other current assets | 200,006 | 293,351 | ||
Total current assets | 11,351,934 | 11,535,052 | ||
Property, plant and equipment-net of accumulated depreciation of $1,263,200 and $852,867 at September 30, 2016 and 2015, respectively | 792,499 | 572,107 | ||
Other assets: | ||||
Long term accounts receivables | 1,535,000 | 1,500,000 | ||
Deposits | 61,126 | 62,988 | ||
Deferred offering costs | 13,986 | - | ||
Goodwill | 285,386 | 285,386 | ||
Intangible assets, net of accumulated amortization of $423,649 and $238,368, as of September 30, 2016 and 2015, respectively | 1,525,900 | 1,598,779 | ||
Total Assets | $ | 15,565,831 | $ | 15,554,312 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable and accrued liabilities | $ | 2,247,341 | $ | 2,385,006 |
Deferred revenue | 1,837,588 | 282,050 | ||
Total current liabilities | 4,084,929 | 2,667,056 | ||
Long term accounts payable | 215,500 | 320,400 | ||
Long term deferred revenue | 900,000 | - | ||
Total liabilities | 5,200,429 | 2,987,456 | ||
Commitments and contingencies | ||||
Stockholders' Equity | ||||
Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- shares issued and outstanding as of September 30, 2016 and 2015 | - | - | ||
Series A Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of September 30, 2016 and 2015 | - | - | ||
Series B Preferred stock, par value $0.001 per share; 10,000,000 shares authorized; -0- issued and outstanding as of September 30, 2016 and 2015 | - | - | ||
Common stock, par value $0.001 per share; 500,000,000 shares authorized; 24,078,756 and 21,504,578 shares issued and outstanding as of September 30, 2016 and 2015, respectively | 24,079 | 21,505 | ||
Additional paid in capital | 234,158,711 | 224,186,760 | ||
Accumulated deficit | (223,817,388) | (211,641,409) | ||
Total stockholders' equity | 10,365,402 | 12,566,856 | ||
Total Liabilities and Stockholders' Equity | $ | 15,565,831 | $ | 15,554,312 |
APPLIED DNA SCIENCES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Three Months Ended September 30, |
Twelve Months Ended September 30, |
|||||||
2016 | 2015 | 2016 | 2015 | |||||
Revenues: | ||||||||
Product revenues | $ | 1,381,168 | $ | 3,018,690 | $ | 2,538,202 | $ | 5,435,776 |
Service revenues | 254,927 | 961,575 | 1,648,225 | 3,572,723 | ||||
Total revenues | 1,636,095 | 3,980,265 | 4,186,427 | 9,008,499 | ||||
Cost of revenues | 441,971 | 255,254 | 746,582 | 384,269 | ||||
Operating expenses: | ||||||||
Selling, general and administrative | 2,623,151 | 3,086,448 | 11,239,397 | 13,410,256 | ||||
Research and development | 832,227 | 989,981 | 3,693,810 | 2,577,307 | ||||
Depreciation and amortization | 148,528 | 136,496 | 706,496 | 490,641 | ||||
Total operating expenses | 3,603,906 | 4,212,925 | 15,639,703 | 16,478,204 | ||||
LOSS FROM OPERATIONS | (2,409,782) | (487,914) | (12,199,858) | (7,853,974) | ||||
Other income (expense): | ||||||||
Interest income (expense), net | 1,437 | 3,340 | 11,004 | (23,468) | ||||
Other (expense) income, net | (6,731) | (11,460) | 12,875 | (28,313) | ||||
Loss on conversion of promissory notes | - | - | - | (980,842) | ||||
Loss on change in fair value of warrant liability | - | - | - | (2,994,540) | ||||
Net loss before provision for income taxes | (2,415,076) | (496,034) | (12,175,979) | (11,881,137) | ||||
Provision for income taxes | - | - | - | - | ||||
NET LOSS | $ | (2,415,076) | $ | (496,034) | $ | (12,175,979) | $ | (11,881,137) |
Net loss per share-basic and diluted | $ | (0.10) | $ | (0.02) | $ | (0.51) | $ | (0.63) |
Weighted average shares outstanding- Basic and diluted | 24,078,657 | 21,483,946 | 23,693,096 | 18,938,283 | ||||
APPLIED DNA SCIENCES, INC. CALCULATION AND RECONCILIATION OF ADJUSTED EBITDA | ||||||||
Three Months Ended September 30, |
Twelve Months Ended September 30, |
|||||||
2016 | 2015 | 2016 | 2015 | |||||
Net Loss | $ | (2,415,076) | $ | (496,034) | $ | (12,175,979) | $ | (11,881,137) |
Interest (income) expense, net | (1,437) | (3,340) | (11,004) | 23,468 | ||||
Depreciation and amortization | 148,528 | 136,496 | 706,496 | 490,641 | ||||
Loss on change in fair value of warrant liability | -- | -- | -- | 2,994,540 | ||||
Stock based compensation expense | 594,656 | 562,933 | 2,116,960 | 4,158,564 | ||||
Loss on conversion of promissory notes | -- | -- | -- | 980,842 | ||||
Bad debt expense | 10,577 | 13,246 | 116,824 | 34,996 | ||||
Total non-cash items | 752,324 | 709,335 | 2,929,276 | 8,683,051 | ||||
Consolidated Adjusted EBITDA (loss) | (1,662,752) | 213,301 | (9,246,703) | (3,198,086) | ||||
Contact Information:
Investor contact:
Debbie Bailey
631-240-8817
debbie.bailey@adnas.com
Sanjay M. Hurry
212-838-3777
LHA
shurry@lhai.com
Media contact:
Susan Forman
Dian Griesel Int'l.
212-825-3210
sforman@dgicomm.com
Web: www.adnas.com
Twitter: @APDN