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GeneNews 2015 Revenues Collapse Amid Restructuring

NEW YORK (GenomeWeb) – GeneNews reported Friday after the close of the market that its full-year 2015 revenues fell 86 percent compared to 2014.

For the fiscal year ended Dec. 31, 2015, GeneNews' reported total revenues of approximately $300,000, compared to $2.2 million in 2014.

"2015 was a challenging year, including restructuring of the company's operations," GeneNews CEO James Howard-Tripp said in a statement.

The firm attributed the decrease in revenue to the restructuring, including financial difficulties with its CLIA-certified Innovative Diagnostics Laboratory, originally a joint venture with Cobalt Healthcare Consultants but now fully owned by GeneNews.

"As IDL has been unable to pay GeneNews for our royalty revenue, management has only recognized revenues for those amounts which were paid to GeneNews in 2015," the firm said in the statement.

GeneNews also noted that its 2015 results are presented in US dollars and not Canadian dollars, as it began reporting in US dollars as of July 1, 2015.

The company's 2015 net loss narrowed to $6 million, or $.11 per common share, compared to a net loss of $7.0 million, or $.16 per common share a year ago.

GeneNews reported no R&D expenses, but said it spent $1.3 million on SG&A during the year.

The firm ended the year with cash and cash equivalents of approximately $500,000.

The firm also said it has been granted a Management Cease Trade Order by the Ontario Securities Commission, due to the expected late filing of financial statements. And on May 19, the Toronto Stock Exchange further extended its review of the company's compliance with listing requirements for another 30 days.

"With the restructuring now essentially behind us, the completion of financing agreements to secure adequate working capital, and the signing of the collaboration agreement with JTS Health Partners to reposition and expand usage of our menu of early cancer diagnostics, we are looking forward to re-establish GeneNews' role as a leader in advanced cancer diagnostics and personalized medicine," Howard-Tripp added.

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