FREMONT, Calif., Nov. 7, 2014 /PRNewswire/ -- WaferGen
Bio-systems, Inc. (NASDAQ: WGBS) announced today its financial
results for the third quarter ended September 30, 2014.
Key Highlights
- Revenue for the third quarter of 2014 was $1.3 million, up 221% versus the third quarter of
2013. Product sales for the third quarter 2014 increased to
$1.1 million, up 325% versus the
prior year period
- Net loss for the third quarter of 2014 was $2.8 million, compared to a net loss of
$10.8 million in the third quarter of
2013
- Appointment of Keith Warner as
Chief Operating Officer and Michael P.
Henighan as Chief Financial Officer, adding seasoned
executives to senior management team
- WaferGen completed a public offering consisting of common stock
and warrants that raised gross proceeds of $20.0 million
- Cash balance at September 30,
2014 of $17.3 million
Total revenue for the third quarter of 2014 was $1.3 million, up 221% from $389,000 in the third quarter of 2013. The
increase is primarily due to revenue from the Apollo
324TM library prep products acquired in early 2014,
which accounted for 46% of our product revenue in the third quarter
of 2014. Revenues increased significantly in the third
quarter 2014 year-over-year in sales of our Real-Time PCR Chip
panels, which represented 24% of this quarter's product
revenue. Sales also increased of our SmartChip Real-Time PCR
Systems and SmartChip Target Enrichment Systems (launched in
mid-2013), in the third quarter of 2014 versus the prior year
period, which represented 23% of our product revenue in the three
months.
Operating loss for the third quarter of 2014 was $3.1 million, compared to $3.2 million in the prior year period. The
increase in revenue of $0.9 million
resulted in an increase in gross profit of $0.7 million. This improvement was mostly
offset by a $0.6 million increase in
operating expenses.
Net loss for the third quarter of 2014 was $2.8 million, compared to a net loss of
$10.8 million in the third quarter of
2013. The lower net loss was primarily due to a reduction in
non-operating expenses of $7.9
million, mainly due to the absence of $7.5 million in non-cash charges related to
capital restructuring in 2013.
"I am optimistic about the future of WaferGen," said
Ivan Trifunovich, President and
Chief Executive Officer. "The completion of our common stock
offering in August provides the Company with the resources to grow
our existing business and to fund our critical innovations in
molecular diagnostics products for the future. Moreover, I am
excited about Keith Warner and
Michael Henighan joining WaferGen.
They are already making valuable contributions to the
Company. Their experience and proven track records
significantly increase the depth and breadth of our management team
as we continue to grow WaferGen's business in offering Next-Gen
Sequencing solutions in clinical research, testing and
diagnostics."
2014 Guidance
Our revenue guidance for the full year is in excess of
$6 million for 2014, unchanged from
our prior guidance.
Investor Conference Call
As previously announced, management will host a conference call
to discuss its financial results for the quarter ended September 30, 2014, today at 11:00 am ET, 8:00 am
PT. Interested parties may listen to the live
broadcast by calling (877) 407-3982 for domestic participants and
(201) 493-6780 for international participants.
A replay of the conference call will be available beginning at
2:00 p.m. ET on November 7, 2014 and ending at 11:59 p.m. ET on November
21, 2014 by dialing (877) 870-5176 (U.S.) or (858) 384-5517
(international), Conference ID Number: 13593721.
About WaferGen
WaferGen Bio-systems, Inc. is a life science company that offers
innovative genomic solutions for clinical testing and research. The
SmartChip MyDesignTM Real-Time PCR System is a
high-throughput genetic analysis platform for profiling and
validating molecular biomarkers via microRNA and mRNA gene
expression profiling, as well as single nucleotide polymorphism
(SNP) genotyping. The SmartChip TETM System is a novel
product offering for target enrichment geared towards clinical
Next-Gen sequencing (NGS). The Company also offers the Apollo
324TM product line used in library preparation for NGS.
These three complementary technologies offer a powerful set of
tools enabling more accurate, faster and cheaper genetic analysis
based on Next-Gen Sequencing and Real-Time PCR.
For additional information, please see
http://www.wafergen.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities and Exchange Act of
1934, as amended that are intended to be covered by the "safe
harbor" created by those sections. Forward-looking
statements, which are based on certain assumptions and describe our
future plans, strategies and expectations, can generally be
identified by the use of forward-looking terms such as "believe,"
"expect," "may," "will," "should," "could," "seek," "intend,"
"plan," "estimate," "anticipate" or other comparable terms.
Forward-looking statements may address the following subjects among
others: statements regarding the sufficiency of our capital
resources, expected operating losses, expected revenues, expected
expenses, expected cash usage and our expectations concerning our
competitive position and business strategy. Forward-looking
statements involve inherent risks and uncertainties which could
cause actual results to differ materially from those in the
forward-looking statements, as a result of various factors
including those risks and uncertainties described in the Risk
Factors and in Management's Discussion and Analysis of Financial
Condition and Results of Operations sections of our most recently
filed Annual Report on Form 10-K and our subsequently filed
Quarterly Reports on Form 10-Q. We urge you to consider those
risks and uncertainties in evaluating our forward-looking
statements. We caution readers not to place undue reliance
upon any such forward-looking statements, which speak only as of
the date made. Except as otherwise required by the federal
securities laws, we disclaim any obligation or undertaking to
publicly release any updates or revisions to any forward-looking
statement contained herein (or elsewhere) to reflect any change in
our expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
Investor Contacts:
ICR, Inc.
Bob Yedid
bob.yedid@icrinc.com
646-277-1250
WaferGen Bio-systems, Inc.
Ivan Trifunovich
Ivan.trifunovich@wafergen.com
(510) 651-4450
WAFERGEN
BIO-SYSTEMS, INC. AND SUBSIDIARIES
Condensed
Consolidated Statements of Operations
(Unaudited)
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
1,125,201
|
|
$
|
264,547
|
|
$
|
4,014,622
|
|
$
|
480,949
|
|
License and
royalty
|
|
|
125,000
|
|
|
125,000
|
|
|
375,000
|
|
|
333,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
1,250,201
|
|
|
389,547
|
|
|
4,389,622
|
|
|
814,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product
revenue
|
|
|
374,776
|
|
|
192,814
|
|
|
1,739,757
|
|
|
335,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
875,425
|
|
|
196,733
|
|
|
2,649,865
|
|
|
479,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
961,891
|
|
|
625,390
|
|
|
3,598,880
|
|
|
1,577,317
|
|
Research and
development
|
|
|
1,909,310
|
|
|
1,581,449
|
|
|
4,749,193
|
|
|
4,246,796
|
|
General and
administrative
|
|
|
1,132,418
|
|
|
1,217,899
|
|
|
3,233,461
|
|
|
2,443,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
4,003,619
|
|
|
3,424,738
|
|
|
11,581,534
|
|
|
8,267,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(3,128,194)
|
|
|
(3,228,005)
|
|
|
(8,931,669)
|
|
|
(7,788,330)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
19
|
|
|
830
|
|
|
46
|
|
|
2,917
|
|
Interest
expense
|
|
|
(107,464)
|
|
|
(848,464)
|
|
|
(319,946)
|
|
|
(2,821,093)
|
|
Gain on revaluation of
derivative liabilities, net
|
|
|
589,336
|
|
|
623,613
|
|
|
1,963,532
|
|
|
145,133
|
|
Loss on extinguishment
of debt
|
|
|
(128,546)
|
|
|
(4,970,410)
|
|
|
(128,546)
|
|
|
(4,970,410)
|
|
Issuance of warrants
due to organic change
|
|
|
—
|
|
|
(2,553,318)
|
|
|
—
|
|
|
(2,553,318)
|
|
Miscellaneous income
(expense)
|
|
|
(5,686)
|
|
|
167,952
|
|
|
(9,879)
|
|
|
235,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income and
(expenses)
|
|
|
347,659
|
|
|
(7,579,797)
|
|
|
1,505,207
|
|
|
(9,961,476)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before
provision for income taxes
|
|
|
(2,780,535)
|
|
|
(10,807,802)
|
|
|
(7,426,462)
|
|
|
(17,749,806)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
|
—
|
|
|
530
|
|
|
3,100
|
|
|
3,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(2,780,535)
|
|
|
(10,808,332)
|
|
|
(7,429,562)
|
|
|
(17,752,997)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion on
Series 1 Convertible Preferred Stock associated with
beneficial conversion feature
|
|
|
—
|
|
|
(898,623)
|
|
|
—
|
|
|
(898,623)
|
|
Accretion on
Series A and B convertible preference shares of subsidiary
associated with premium
|
|
|
—
|
|
|
(408,651)
|
|
|
—
|
|
|
(2,898,550)
|
|
Series A-1
preferred dividend
|
|
|
—
|
|
|
(131,219)
|
|
|
—
|
|
|
(547,171)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to common stockholders
|
|
$
|
(2,780,535)
|
|
$
|
(12,246,825)
|
|
$
|
(7,429,562)
|
|
$
|
(22,097,341)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share – basic and diluted
|
|
$
|
(1.02)
|
|
$
|
(43.51)
|
|
$
|
(4.87)
|
|
$
|
(180.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used to compute
net loss per share – basic and diluted
|
|
|
2,727,810
|
|
|
281,466
|
|
|
1,526,963
|
|
|
122,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAFERGEN
BIO-SYSTEMS, INC. AND SUBSIDIARIES
Condensed
Consolidated Balance Sheets
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
|
Assets
|
|
|
(Unaudited)
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
17,328,471
|
|
$
|
10,708,646
|
|
Accounts
receivable
|
|
|
1,754,437
|
|
|
367,266
|
|
Inventories
|
|
|
953,336
|
|
|
292,650
|
|
Prepaid expenses and
other current assets
|
|
|
528,991
|
|
|
350,540
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
20,565,235
|
|
|
11,719,102
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
387,984
|
|
|
269,618
|
|
Goodwill
|
|
|
990,000
|
|
|
—
|
|
Intangible assets,
net
|
|
|
1,486,600
|
|
|
—
|
|
Other
assets
|
|
|
79,898
|
|
|
42,209
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
23,509,717
|
|
$
|
12,030,929
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity (Deficit)
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,897,688
|
|
$
|
980,887
|
|
Accrued payroll and
related costs
|
|
|
939,112
|
|
|
289,053
|
|
Other current
liabilities
|
|
|
747,703
|
|
|
1,143,335
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
3,584,503
|
|
|
2,413,275
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
of discount
|
|
|
1,913,256
|
|
|
1,683,942
|
|
Derivative
liabilities
|
|
|
362,836
|
|
|
9,147,507
|
|
Other
liabilities
|
|
|
564,379
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
6,424,974
|
|
|
13,244,724
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit):
|
|
|
|
|
|
|
|
Preferred
Stock
|
|
|
—
|
|
|
13,595,662
|
|
Common
Stock
|
|
|
105,352,474
|
|
|
66,028,712
|
|
Accumulated
deficit
|
|
|
(88,267,731)
|
|
|
(80,838,169)
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity (deficit)
|
|
|
17,084,743
|
|
|
(1,213,795)
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
|
$
|
23,509,717
|
|
$
|
12,030,929
|
|
SOURCE WaferGen Bio-systems, Inc.