Atossa Genetics Announces First Quarter 2015 Financial Results and Provides Company Update

SEATTLE, WA--(Marketwired - May 13, 2015) - Atossa Genetics Inc. (NASDAQ: ATOS) today announced first quarter 2015 financial results and provided an update on recent company developments.

Steve Quay, President and CEO, commented, "We have made tremendous progress towards achieving our 2015 objectives by launching the ForeCYTE Breast Aspirator in the European Union and the FullCYTE Breast Aspirator in the United States. We engaged key national distributors in the United States and are seeing very strong growth with our pharmacogenomics tests. We look forward to continued progress towards our other key 2015 objectives, which are to begin clinical studies in a therapeutic using our devices and growing our revenue with our products and services."

Recent Corporate Developments 

Important recent corporate developments include the following:

• Launched the ForeCYTE Breast Aspirator in the European Union
  
  
• Launched the FullCYTE Breast Aspirator in the United States
  
  
• Engaged two leading national distributors in the United States
  
  
• Hired biopharmaceutical industry veteran Cindy Atha as Vice President of Sales and Marketing
  
  
• Secured in-network contract with Meridian Health Plan of Michigan
  
  
• The College of American Pathologists certified our laboratory, The National Reference Laboratory for Breast Health Inc.
  
  

First Quarter 2015 Financial Results  

Revenue for the three months ended March 31, 2015 totaled $1,873,268, consisting of mainly pharmacogenomics testing, compared to $24,124 in revenue in the same period in 2014 from additional cash collections on NAF cytology tests. Total cost of revenue for the three months ended March 31, 2015 was $1,207,954 and consisted of costs relating to pharmacogenomics testing services, compared to $0 for the same period in 2014.

Gross profit for the three months ended March 31, 2015 was $665,314, attributable to pharmacogenomics testing, compared to $24,124 gross profit in the same period in 2014.

Total operating expenses were $3,949,190 for the three months ended March 31, 2015, consisting of general and administrative (G&A) expenses of $2,605,111, R&D expenses of $797,225, and selling expenses of $546,854 representing an increase of $1,514,141, or 62%, from $2,435,049 for the three months ended March 31, 2014, which consisted of G&A expenses of $1,774,708, R&D expenses of $422,503, and selling expenses of $237,838.

Conference Call Information

Management will host a conference call today, Wednesday, May 13, 2015 at 4:30 pm Eastern time to review financial results and corporate highlights. Following management's formal remarks, there will be a question and answer session. To listen to the call by phone, interested parties within the U.S. should call 1-866-652-5200 and international callers should call 1-412-317-6060. All callers should ask for the Atossa Genetics conference call. The conference call will also be available through a live webcast at www.atossagenetics.com. Details for the webcast may be found on the Company's IR events page at http://ir.atossagenetics.com/ir-calendar.

A replay of the call will be available approximately one hour after the end of the call through June 14, 2015. The replay can be accessed via Atossa's website or by dialing 877-344-7529 (domestic) or 412-317-0088 (international) or Canada toll free at 855-669-9658. The replay conference ID number is 10065375.

About Atossa Genetics

Atossa Genetics Inc. is focused on improving breast health through the development of laboratory services, medical devices and therapeutics. The laboratory services are being developed by its subsidiary, The National Reference Laboratory for Breast Health Inc. The laboratory services and the Company's medical devices are being developed so they can be used as companions to therapeutics to treat various breast health conditions. For more information, please visit www.atossagenetics.com.

Forward-Looking Statements

Forward-looking statements in this press release are subject to risks and uncertainties that may cause actual results to differ materially from the anticipated or estimated future results, including the risks and uncertainties associated with actions by the FDA, the outcome or timing of regulatory approvals needed by Atossa to sell its products, responses to regulatory matters, Atossa's ability to achieve its objectives, continue to manufacture and sell its products, recalls of products, the safety and efficacy of Atossa's products and services, performance of distributors, whether Atossa can launch and commercialize in the United States and foreign markets the additional tests, devices and therapeutics in its pipeline in a timely and cost effective manner, and other risks detailed from time to time in Atossa's filings with the Securities and Exchange Commission, including without limitation its periodic reports on Form 10-K and 10-Q, each as amended and supplemented from time to time. Atossa does not undertake any obligation to update any forward-looking statement.

ATOSSA GENETICS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
				March 31,				December 31,
				2015				2014
				(Unaudited)
Assets
Current assets
	Cash and cash equivalents			$	9,728,369			$	8,500,718
	Accounts receivable, net				1,280,209				297,958
	Prepaid expense				263,763				247,207
	Inventory, net				94,628				39,788
		Total current assets			11,366,969				9,085,671
	Furniture and equipment, net				381,590				357,532
	Intangible assets, net				1,877,755				1,920,645
	Deferred financing costs				-				351,961
	Other assets				176,551				48,193
		Total assets		$	13,802,865			$	11,764,002
Liabilities and Stockholders' Equity
Current liabilities
	Accounts payable			$	966,208			$	594,357
	Accrued expenses				1,117,932				444,861
	Payroll liabilities				1,279,528				1,056,705
	Short-term lease obligations				79,974				76,025
	Other current liabilities				42,914				42,228
		Total current liabilities			3,486,556				2,214,176
	Deferred rent, net of current portion				7,227				2,483
	Long-term lease obligations				25,230				49,216
		Total liabilities			3,519,013				2,265,875
Commitments and contingencies
Stockholders' equity
	Preferred stock - $.001 par value; 10,000,000 shares authorized, 0 shares issued and outstanding				-				-
	Common stock - $.001 par value; 75,000,000 shares authorized, 27,217,257 and 24,564,058 shares issued and outstanding				27,217				24,564
	Additional paid-in capital				48,766,466				44,648,103
	Accumulated deficit				(38,509,831	)			(35,174,540	)
		Total stockholders' equity			10,283,852				9,498,127
	Total liabilities and stockholders' equity			$	13,802,865			$	11,764,002

ATOSSA GENETICS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
				For the Three Months Ended March 31,
				2015				2014
Revenue
	Diagnostic testing services			$	1,872,798			$	24,124
	Product sales				470				-
		Total revenue			1,873,268				24,124
Cost of revenue
	Diagnostic testing services				1,206,312				-
	Product sales				1,642				-
		Total cost of revenue			1,207,954				-
Gross profit					665,314				24,124
Selling expenses					546,854				237,838
Research and development expenses					797,225				422,503
General and administrative expenses					2,605,111				1,774,708
		Total operating expenses			3,949,190				2,435,049
Operating loss					(3,283,876	)			(2,410,925	)
Interest income					279				143
Interest expense					1,784				749
Other losses					49,910				-
Loss before income taxes					(3,335,291	)			(2,411,531	)
Income taxes					-				-
Net loss				$	(3,335,291	)		$	(2,411,531	)
Loss per common share - basic and diluted				$	(0.13	)		$	(0.10	)
Weighted average shares outstanding, basic and diluted					24,916,867				24,419,060