NEW YORK (GenomeWeb News) – Atossa Genetics reported on Tuesday that revenues in its third quarter dropped 27 percent year over year.
It also said it inked a new deal with Aspire Capital for the sale of up to $25 million in common stock during the next 30 months.
For the three months ended Sept. 30, Atossa posted $76,597 in revenues, down from $105,576 a year ago. Diagnostic testing service revenues slipped to $72,187 from $104,011, while product sales increased to $4,400 from $1,565.
The Seattle-based firm attributed the overall reduction to new programs that included increasing the number of complementary kits and test services in order to increase early adoption of its tests. It also discounted test services.
Atossa had a net loss of $3.5 million, or $.22 per share, in the quarter, compared to a net loss of $1.1 million, or $.10 per share, a year ago.
Its R&D costs were sliced 41 percent year over year to $321,111 from $548,108, while its SG&A costs ballooned to $3.2 million from $678,063.
The firm said that selling expenses increased as a result of the hiring of additional sales and marketing personnel, but it did not provide a reason for a sharp increase in G&A spending.
In September, Atossa voluntarily recalled its ForeCYTE Breast Health Test and the Mammary Aspiration Specimen Cytology Test device from the market in the wake of concerns raised by the US Food and Drug Administration. On Tuesday, Atossa Chairman, President, and CEO Stephen Quay said that the company is "addressing the FDA's regulatory requirements so that we can resume the national roll out of the ForeCYTE test."
Atossa is scheduled to meet with the FDA on Thursday to discuss its pre-510(k) submission of the test.
The company ended the third quarter with $7.7 million in cash and cash equivalents.
It also announced a new stock purchase agreement with Aspire, replacing a previous $30 million stock purchase agreement between the companies. Atossa raised $11.3 million in equity funding under the old agreement.
The two parties terminated the old deal by mutual agreement, Atossa said.