SALT LAKE CITY, Nov. 13, 2014 /PRNewswire/ -- Great Basin Scientific, Inc. (NASDAQ: GBSN), a molecular diagnostics company focused on the hospital-acquired infection market, today reported financial results for the third quarter ended September 30, 2014. For the third quarter of 2014, revenue was $409,390, an increase of 83.2% compared to $223,470 for the third quarter of 2013.
Recent Business Highlights
- Priced its initial public offering (IPO), selling 1.15 million units, consisting of 1.15 million shares of common stock and 1.15 million Class A warrants at $7 per unit for gross proceeds of $8.05 million on Oct. 8, 2014
- Initiated a clinical trial for the Company’s Group B Strep assay in July 2014
- Strengthened the management team with the addition of Jeffrey Rona as Chief Financial Officer
- Hitachi Chemical made a strategic investment in the Company, purchasing $3.5 million of the Company’s Series D preferred stock in July 2014
- Signed a new group purchasing agreement with the Premier Healthcare Alliance to offer the Toxigenic C. difficile assay to its members at specially negotiated pricing on Oct. 1; Premier serves more than 2,500 U.S. hospitals and over 81,000 other healthcare sites, and this agreement allows Premier alliance facilities to implement the Company’s sample-to-result molecular test for C. difficile without individual negotiations
“Hospital laboratories are increasingly choosing the Great Basin system for molecular diagnostic testing, and we believe our strong growth in the first three quarters of the year is due to Great Basin’s unique business model,” said Ryan Ashton, President and Chief Executive Officer of Great Basin Scientific. “We offer our instrument, the analyzer, without upfront capital expense, and our C. diff assay is competitively priced. Therefore our system allows a wider range of hospitals to adopt molecular diagnostics. The ease-of-use of our system, combined with its ability to deliver both low-plex tests and multi-plex panels, gives us a real market advantage. We recently completed our IPO and expanded our management team. We are excited about Great Basin’s continuous growth and will continue to strive to bring value to both our customers and shareholders.”
Third Quarter 2014 Financial Results:
- Revenue during the three month period ended September 30, 2014, was $409,390 vs. $223,470 for the same period in 2013, which represented an increase of 83.2%
- The Company ended the quarter with 80 U.S. customers
- Operating expenses during the three month period ended September 30, 2014, were $2.5 million as compared to $1.9 million in the prior year period, an increase of 31.6%
- Loss from Operations was $3.0 million for the three months ended September 30, 2014 as compared to $2.3 million for the same period in 2013, an increase of 30.4%
- Net loss per common share for the three months ended September 30, 2014 was $117.59 per share as compared to $21.02 per share for the third quarter of 2013, an increase of 459.4%
- Excluding the non-cash derivative liability charge, adjusted net loss per common share for the three months ended September 30, 2014 was $22.83 per share as compared to $21.02 per share for the third quarter of 2013, an increase of 8.6%
Third Quarter 2014 Operating Results
Revenue
Revenue increased by $185,920, or 83.2% in the three months ended September 30, 2014 as compared to the three months ended September 30, 2013. This increase was attributable to the increase in the sales of our C. diff products following an increase in the number of our customers.
Cost of Sales
Cost of sales increased $281,639, or 42.6%, for the three months ended September 30, 2014 as compared to the three months ended September 30, 2013. The increase is attributable to the increased costs associated with manufacturing additional C. diff tests and the depreciation on additional analyzers needed to support the increase in customers.
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