Skip to main content
Premium Trial:

Request an Annual Quote

Atossa Genetics Reports Loss of $482,436 as It Prepares for IPO

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Atossa Genetics, which recently filed for an initial public offering, disclosed that its net loss for the most recently completed quarter rose five-fold.

For the three months ended Sept. 30, the Seattle-based molecular diagnostics firm reported a loss of $482,436, compared to $92,581 for the year-ago period, Atossa said in a document recently filed with the US Securities and Exchange Commission. Contributing to the loss is $237,249 in legal and professional expenses, up from $70, 804 in the year-ago period as Atossa prepared to file for its IPO. Compensation expenses also shot up to $140,545 during the quarter, compared to none a year ago.

The company reported no revenues for the quarter, unchanged from a year ago.

For the nine months ended Sept. 30, Atossa said it had a net loss of $744,231, or $0.13 per share. From April 2009, when the company was founded, through December 2009, it had a net loss of $122,857, or $0.03 per share.

R&D costs for the nine months ended Sept. 30, totaled $1,306, which Atossa expects to increase as it finalizes the product design for the first generation of its FDA-cleared Mammary Aspirate Specimen Cytology Test System and develops a second-generation system and related technologies.

SG&A costs for the nine months were $738,251, primarily consisting of $331,863 in legal and professional services related to the filing of its IPO.

Atossa said it had cash and cash equivalents of $29,531 as of Sept. 30.

Atossa announced its IPO in October and anticipates raising $17.6 million. Net proceeds are anticipated to be about $16 million, or approximately $18.3 million if its underwriters exercise their options in full.

It plans to use the proceeds to create a cytology and molecular diagnostics laboratory focused on breast cancer, and to manufacture and launch its MASCT System in the Northwestern US, the Seattle-based company said.

In its original filing, Atossa said that it expected to select a "large volume contract medical device manufacturer" to begin manufacturing its MASCT System for commercialization in the fourth quarter of 2010 at an estimated cost of $1.5 million. The company has now pushed back the selection period to the first quarter of 2011 and plans to begin developing a sales and marketing team by the second quarter of 2011, according to the SEC filing.

If Atossa is successful in launching the system regionally, it would proceed with a national introduction in the first quarter of 2012.

Proceeds also will be used to develop a second-generation MASCT System and to develop additional laboratory biomarker-based tests.

The Scan

And Back

The New York Times reports that missing SARS-CoV-2 genome sequences are back in a different database.

Lacks Family Hires Attorney

A lawyer for the family of Henrietta Lacks plans to seek compensation from pharmaceutical companies that have used her cancer cells in product development, the Baltimore Sun reports.

For the Unknown

The Associated Press reports that family members are calling on the US military to use new DNA analysis techniques to identify unknown sailors and Marines who were on the USS Arizona.

PLOS Papers on Congenital Heart Disease, COVID-19 Infection Host MicroRNAs, Multiple Malformation Mutations

In PLOS this week: new genes linked to congenital heart disease, microRNAs with altered expression in COVID-19, and more.