Atossa Genetics Announces First Quarter 2017 Financial Results And Provides Company Update

SEATTLE, WA--(Marketwired - May 11, 2017) -

Steve Quay, President and CEO, commented, "We are encouraged by our positive progress in advancing the endoxifen program with our ongoing Phase 1 endoxifen study and pleased that our fulvestrant microcatheter study is proceeding at Montefiore Medical Center. We look forward to completing our endoxifen Phase 1 study in the next quarter and commencing a Phase 2 study in the second half of 2017."

Recent Corporate Developments

Atossa's important recent developments include the following:

• May 2017 - Atossa received second positive safety decision in Phase 1 topical endoxifen study.
• May 2017 - Institutional Review Board approved continuation of fulvestrant microcatheter Phase 2 study at Montefiore Medical Center.
• April 2017 - Atossa received positive interim review from independent safety committee in Phase 1 topical endoxifen study.
• April 2017 - Atossa enrolled first cohort of eight subjects in endoxifen study.
• March 2017 - Atossa raised approximately $4.4 million in gross proceeds in a public offering.
• March 2017 - Atossa opened its endoxifen Phase 1 clinical study.
• Atossa plans to commence a Phase 2 clinical study of endoxifen in the second half of 2017.
  
  

Q1 2017 Financial Results

We are in the research and development phase and do not generate revenue.

Operating expenses: Total operating expenses were approximately $1.7 million for the three months ended March 31, 2017, consisting of general and administrative (G&A) expenses of approximately $1.1 million and R&D expenses of approximately $544,000. Operating expenses for the three months ended March 31, 2017 decreased approximately $641,000, or 27.5%, from approximately $2.3 million for the three months ended March 31, 2016, which consisted of G&A expenses of approximately $2.2 million, and R&D expenses of approximately $150,000.

The Company recorded a net loss of $1.7 million, for the three months ended March 31, 2017, as compared to a net loss of $2.3 million for the three months ended March 31, 2016.

About Atossa Genetics

Atossa Genetics, Inc., is a clinical-stage pharmaceutical company developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions. For more information, please visit www.atossagenetics.com.

Forward-Looking Statements

Forward-looking statements in this press release, which Atossa undertakes no obligation to update, 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 and inactions by the FDA, the outcome or timing of regulatory approvals needed by Atossa, lower than anticipated rate of patient enrollment, results of clinical studies, the safety and efficacy of Atossa's products and services, performance of clinical research organizations and investigators, obstacles resulting from proprietary rights held by others, such as patent rights, 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 GENETICS, INC.                            
             CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)              
                                                                            
                                                                            
                                                   March 31,   December 31, 
                                                     2017          2016     
                                                 ------------  ------------ 
                      Assets                                                
Current assets                                                              
  Cash and cash equivalents                      $  1,167,011  $  3,027,962 
  Restricted cash                                      55,000        55,000 
  Prepaid expense                                     294,831       171,601 
                                                 ------------  ------------ 
  Total current assets                              1,516,842     3,254,563 
                                                                            
  Furniture and equipment, net                         27,761        55,119 
  Intangible assets, net                              610,013       640,440 
  Other assets                                        148,566       194,250 
                                                 ------------  ------------ 
  Total assets                                   $  2,303,182  $  4,144,372 
                                                 ============  ============ 
                                                                            
  Liabilities and Stockholders' Equity                                      
                                                                            
  Current liabilities                                                       
  Accounts payable                               $    386,877  $    254,320 
  Accrued expenses                                     34,610        16,964 
  Payroll liabilities                                 330,889       769,899 
  Other current liabilities                            22,401         6,083 
                                                 ------------  ------------ 
  Total current liabilities                           774,777     1,047,266 
                                                 ------------  ------------ 
                                                                            
Commitments and contingencies                                               
                                                                            
  Stockholders' equity                                                      
  Preferred stock - $.001 par value; 10,000,000                             
   shares authorized, 0 shares issued and                                   
   outstanding                                              -             - 
  Common stock - $.015 par value; 75,000,000                                
   shares authorized, 3,786,913 shares issued and                           
   outstanding                                         56,804        56,804 
  Additional paid-in capital                       60,478,903    60,344,050 
  Accumulated deficit                             (59,007,302)  (57,303,748)
                                                 ------------  ------------ 
  Total stockholders' equity                        1,528,405     3,097,106 
                                                 ------------  ------------ 
                                                                            
Total liabilities and stockholders' equity       $  2,303,182  $  4,144,372 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                           ATOSSA GENETICS, INC.                            
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (UNAUDITED)                                 
                                                                            
                                                 For the Three Months Ended 
                                                          March 31,         
                                                 -------------------------- 
                                                     2017          2016     
                                                 ------------  ------------ 
Operating expenses:                                                         
  Research and development                       $    544,302  $    149,971 
  General and administrative                        1,142,544     2,177,569 
                                                 ------------  ------------ 
    Total operating expenses                        1,686,846     2,327,540 
                                                 ------------  ------------ 
Operating loss                                     (1,686,846)   (2,327,540)
Other expense, net                                    (16,708)            - 
                                                 ------------  ------------ 
Loss before income taxes                           (1,703,554)   (2,327,540)
Income taxes                                                -             - 
                                                 ------------  ------------ 
  Loss from operations                             (1,703,554)   (2,327,540)
                                                 ------------  ------------ 
Net loss                                         $ (1,703,554) $ (2,327,540)
                                                 ============  ============ 
Loss per common share - basic and diluted        $      (0.45) $      (0.98)
                                                 ============  ============ 
Weighted average shares outstanding, basic and                              
 diluted                                            3,786,913     2,382,757 
                                                 ============  ============