Applied UV, Inc., an infection control technology company that applies the power of narrow-range ultraviolet light for surface areas and catalytic bioconversion technology for air purification to destroy pathogens safely, thoroughly, and automatically, announced first quarter results for 2021.
MOUNT VERNON, NY / ACCESSWIRE / May 17, 2021 / Applied UV, Inc. (NASDAQ:AUVI) (“Applied UV” or the “Company”), an infection control technology company that applies the power of narrow-range ultraviolet light (“UVC”) for surface areas and catalytic bioconversion technology for air purification to destroy pathogens safely, thoroughly, and automatically, today announced first quarter results for 2021.
Q Saeed, Chief Executive Officer, commented, “Our business continues to show fundamental improvement that gives us confidence in our outlook for the remainder of 2021. We are pleased with elevated uptake for our infection prevention products as enhanced infection prevention protocols become standard practice. We continue to believe that we are in a strong position to capitalize on these trends while we leverage continued new business wins and customer penetration gains. The investments we made to further our product and service innovation, the integration of Airocide®, new digital technologies and successful sales and profit initiatives are also expected to contribute to improved results. We are confident that these critical efforts have expanded our global competitive advantage and uniquely position us to capture new business opportunities and drive accelerated growth for Applied UV.”
Financial Results
Net sales for the three months ended March 31, 2021 increased by 157.1% to $2,312,615 from $1,471,634 in the three months ended 2020. The net sales and financial results for the current period reflect the impact of the Akida Holdings LLC, (“Akida”) asset acquisition that closed on February 8, 2021. All net sales for previous periods presented were generated entirely from the Company’s MunnWorks subsidiary. During the first quarter, the Company saw an improvement in the hospitality industry as the economy rebounds from the COVID-19 pandemic, and as a result its Munn Works revenues are returning to normal operating levels.
Net loss for three months ended March 31, 2021 were $1,032,951, compared to a net loss of $78,377 in the three months ended March 31, 2020. The net loss in the first quarter of 2021 was due primarily to an increase in SG&A costs to improve future operations.
Liquidity remains strong with a cash balance of $8.9 million on March 31, 2021.
Recent Announcements & Additional Highlights
Strategic Inorganic Investment
During the first quarter, the Company completed the acquisition of substantially all of the assets of Akida, including all of the rights to manufacture and sell the Airocide® System of patented, air disinfection and purification technologies. The Airocide® bioconversion technology is based on patented technology developed by NASA to eliminate harmful, airborne particulates such as bacteria, mold and viruses. The FDA has issued guidance for Air Purifiers and Disinfectants that states that they may reduce the risk of viral exposure to SARS-CoV-2 by keeping aerosol concentration levels low.
Airocide® products have seen broad adoption across all major markets including resorts and hotels, hospitals and nursing homes, food distribution and wine making commercial buildings, and retail sectors. The Airocide® System directly supports the Company’s focus on innovation and revenue growth by enhancing its scale in the infection control markets and deepening its connections across a range of healthcare, hospitality, and commercial customers worldwide.
Strategic Partnership
The Company announced in March that it had partnered with the Boston Red Sox to install the Airocide® System at Fenway Park and JetBlue Park. Airoicide® is now “The Official Air Purification Provider of the Boston Red Sox.” The Airocide® Air Purifiers are being installed in all player areas, including weight rooms and both the home and visitors’ locker rooms. Additionally, the Airocide® Air Purifiers are being installed in all luxury suites as well as various points of contact in each facility where fans congregate indoors throughout the course of a game or event.
Expanding the Executive Leadership Team
Applied UV announced in early April that Mike Riccio, CPA, was appointed Chief Financial Officer. Mr. Riccio is a highly accomplished CFO who brings an extensive array of financial experience to Applied UV, including a background with global public companies in corporate finance, operations management systems, and corporate M&A planning and integration.
Building the Patent Portfolio
The European Union Patent Office notified the Company on January 25, 2021, that a patent has been allowed for the invention of its core pathogen destroying device. In early April, the Company announced that the Chinese Patent office had also issued a notice granting Applied UV’s patent application for its core pathogen destroying device.
SteriLumen owns eight issued patents in the United States; one issued patent in the European Union, one issued patent in China as well as several pending patent applications in the Gulf Cooperation Council (GCC), Japan, South Korea, Taiwan, and others. The issued patents and pending patent applications cover various aspects of the SteriLumen Disinfecting System.
Conference Call/Webcast Information
Applied UV’s management team will host an investor conference call and live webcast on May 17, 2021 at 8:30 am EDT.
Investors can access the webcast via a link on Applied UV’s web site at https://www.webcaster4.com/Webcast/Page/2626/41263. For those planning to participate on the call, please dial +1-888-506-0062 (for domestic calls), or +1-973-528-0011 (for international calls). The Conference ID # is 496693. A replay of the conference call will be available online on the Applied UV web site, and a dial-in replay will be available for one week following the call at +1-877-481-4010 (for domestic calls) or +1-919-882-2331 (for international calls), replay passcode # 41263.
About Applied UV
Applied UV is focused on the development and acquisition of technology that address infection control in the healthcare, hospitality, commercial and municipal markets. The Company has two wholly owned subsidiaries - SteriLumen, Inc. (“SteriLumen”) and Munn Works, LLC (“Munn Works”). SteriLumen’s connected platform for Data Driven Disinfection™ applies the power of ultraviolet light (UVC) to destroy pathogens safely, thoroughly, and automatically, addressing the challenge of healthcare-acquired infections (“HAIs”). Targeted for use in facilities that have high customer turnover such as hospitals, hotels, commercial facilities, and other public spaces, the SteriLumen platform uses UVC LEDs in several patented designs for infection control in and around high-traffic areas, including sinks and restrooms, killing bacteria, viruses, and other pathogens residing on hard surfaces within devices’ proximity. The Company’s patented in-drain disinfection device is the only product that addresses this critical pathogen intensive location. SteriLumen’s Airocide® products for air purification, developed by NASA and FDA Cleared as class II medical devices, utilize a proprietary photo-catalytic bioconversion technology that draws air into a reaction chamber that converts damaging molds, microorganisms, dangerous pathogens, destructive VOCs and biological gasses into harmless water vapor without producing ozone or other harmful byproducts. Airocide® applications include healthcare, hospitality, grocery chains, wine making facilities, commercial real estate, schools, dental offices, and homes.
For more information about Applied UV, Inc., and its subsidiaries, please visit the following websites: https://www.applieduvinc.com/; https://sterilumen.com/; and, https://munnworks.com/.
Contact Information:
Applied UV Investor Relations
Kevin McGrath
TraDigital IR
+1-646-418-7002
kevin@tradigitalir.com
Forward-Looking Statements
The information contained herein may contain “forward‐looking statements.” Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. Such statements include, but are not limited to, statements contained in this press release relating to the view of management of Applied UV concerning its business strategy, future operating results and liquidity and capital resources outlook. Forward‐looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward‐looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward‐looking statements. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward‐looking statements to conform these statements to actual results.
Financial Tables Q1 2021 Follow
Applied UV, Inc. and Subsidiaries
Condensed Interim Consolidated Statements of Operations
For the Three Months Ended March 31, 2021 and 2020 (Restated)
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 (Restated) | |||||||
| Net Sales | $ | 2,312,615 | $ | 1,471,634 | ||||
| Cost of Goods Sold | 1,388,349 | 1,161,813 | ||||||
| Gross Profit | 924,266 | 309,821 | ||||||
| Operating Expenses | ||||||||
| Research and development | 43,645 | - | ||||||
| Stock based compensation | 210,741 | - | ||||||
| Selling. General and Administrative Expenses | 1,390,776 | 388,198 | ||||||
| Total Operating Expenses | 1,645,162 | 388,198 | ||||||
| Operating (Loss) Income | (720,896 | ) | (78,377 | ) | ||||
| Other Expense | ||||||||
| Change in Fair Market Value of Warrant Liability | (311,400 | ) | - | |||||
| Other Expense | (655 | ) | - | |||||
| Total Other Expense | (312,055 | ) | - | |||||
| Loss Before Provision for Income Taxes | (1,032,951 | ) | (78,377 | ) | ||||
| Provision for Income Taxes | - | - | ||||||
| Net Loss | (1,032,951 | ) | (78,377 | ) | ||||
| Basic and Diluted Loss Per Common Share | $ | (0.11 | ) | $ | (0.02 | ) | ||
Applied UV, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of March 31, 2021 and December 31, 2020
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | $ | 8,909,592 | $ | 11,757,930 | ||||
| Vendor deposit | 6,733 | 40,800 | ||||||
| Accounts receivable, net of allowance for doubtful accounts | 875,888 | 232,986 | ||||||
| Inventory | 321,516 | 156,290 | ||||||
| Note receivable, related party | 500,000 | - | ||||||
| Prepaid expense and other current assets | 956,285 | 158,498 | ||||||
| Total Current Assets | 11,570,014 | 12,346,504 | ||||||
| Machinery and equipment, net of accumulated depreciation | 273,779 | 112,804 | ||||||
| Goodwill | 2,728,279 | - | ||||||
| Other intangible assets, net of accumulated amortization | 5,073,100 | - | ||||||
| Right of use asset | 500,486 | 481,425 | ||||||
| Patents, net of accumulated amortization | 190,059 | 178,088 | ||||||
| Total Assets | $ | 20,335,717 | $ | 13,118,821 | ||||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||||
| Current Liabilities | ||||||||
| Accounts payable and accrued expenses | $ | 1,650,265 | $ | 1,398,073 | ||||
| Income tax payable | 173,716 | 173,716 | ||||||
| Warrant liability | 446,525 | - | ||||||
| Capital lease obligations-current portion | 6,648 | 6,648 | ||||||
| Lease liability-current | 158,577 | 139,908 | ||||||
| Payroll protection program loan | 296,827 | 69,927 | ||||||
| Notes payable | 67,500 | 67,500 | ||||||
| Deferred revenue | 1,154,606 | 841,636 | ||||||
| Total Current Liabilities | 3,954,664 | 2,697,408 | ||||||
| Long-term Liabilities | ||||||||
| Capital lease obligations - less current portion | 6,646 | 8,240 | ||||||
| Note payable-less current portion | 90,000 | 90,000 | ||||||
| Lease liability-less current portion | 341,909 | 341,517 | ||||||
| Payroll protection program loan-less current portion | - | 226,900 | ||||||
| Total Long-Term Liabilities | 438,555 | 666,657 | ||||||
| Total Liabilities | 4,393,219 | 3,364,065 | ||||||
| Stockholders’ Equity | ||||||||
| Common stock $.0001 par value, 150,000,000 shares authorized; 9,402,669 shares issued and outstanding as of March 31, 2021, and 7,945,034 shares issued and outstanding as of December 31, 2020 | 940 | 795 | ||||||
| Preferred stock, $0.0001 par value, 990,000 shares authorized, no shares issued and outstanding | - | - | ||||||
| Preferred stock, Series A, $0.0001 par value, 10,000 shares authorized, 2,000 shares issued and outstanding | 1 | 1 | ||||||
| Additional paid-in capital | 19,193,599 | 11,973,051 | ||||||
| Retained earnings (Deficit) | (3,252,042 | ) | (2,219,091 | ) | ||||
| Total Stockholders’ Equity (Deficit) | 15,942,498 | 9,754,756 | ||||||
| Total Liabilities and Stockholders’ Equity (Deficit) | $ | 20,335,717 | $ | 13,118,821 | ||||
SOURCE: Applied UV, Inc.
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