GlobeNewswire Inc | Aug 12, 2021 04:05PM EDT

August 12, 2021

TUCSON, Ariz., Aug. 12, 2021 (GLOBE NEWSWIRE) -- HTG Molecular Diagnostics, Inc. (Nasdaq: HTGM) (HTG), a life science company whose mission is to advance precision medicine, today reported its financial results for the quarter ended June 30, 2021.

Recent Business Highlights

-- Total revenue increased by approximately 45% from the first quarter to the second quarter of 2021.

-- Commercially launched the HTG Transcriptome Panel for sale in the U.S. and Europe in kit form or as a service in HTGs VERI/O laboratory. The HTG Transcriptome Panel, designed to measure approximately 20,000 mRNA targets using the HTG EdgeSeq technology, is currently available for use with the Illumina sequencing platforms. Through its work with Early Adopter Program collaborators in the first half of 2021, the company received its first revenue-generating commercial orders for the HTG Transcriptome Panel in the second quarter of 2021.

-- Announced the release of HTG EdgeSeq Reveal version 4.0.0, adding additional features and software functionalities to support, among other things, data analysis for the HTG Transcriptome Panel.

-- Formed a new drug discovery business unit, HTG Therapeutics, in July 2021. This business unit is expected to leverage the companys existing capabilities and expand upon the utility of the HTGEdgeSeq platform technology in the discovery of early-stage drug candidates. By leveraging these profiling technologies earlier in the drug discovery process, HTG Therapeutics is expected to generate lead compounds faster, and with superior efficacy and toxicity profiles.

We believe our sequential growth this quarter over the first quarter of 2021 indicates our core business is recovering. Increased sample processing activity in our VERI/O laboratory and consumable product orders from existing and new customers were the driving factors in the growth of our product and product-related services revenue. I commend our commercial team, whose commitment with existing and new customers has never wavered despite the challenges we faced since 2020, said John Lubniewski, President and CEO of HTG. The focus of our research and development teams on development milestones and opportunities to improve upon our existing technology and expand into other RNA-related applications has resulted in significant progress this quarter. We again successfully completed our development milestones in the second quarter, which enabled us to commercially launch our HTG Transcriptome Panel on August 5th. In addition, our vision to further advance precision medicine into drug discovery is quickly coming into place, and we are excited to be building an even stronger technology platform foundation with which we can continue to grow.

Second Quarter 2021 Financial Highlights:

Total revenue for the quarter ended June 30, 2021 was $2.1 million, compared with $2.0 million for the same period in 2020.

Product and product-related services revenue for the quarter ended June 30, 2021 was $2.1 million, compared with $1.7 million for the same period in 2020 and $1.4 million for the first quarter ended March 31, 2021. This increase is due primarily to RUO sample processing services and the sale of RUO consumables products for which demand has begun to recover to pre-COVID-19 levels as customers have resumed development activities. Revenue for the quarter ended June 30, 2020 included $0.2 million of collaborative development services revenue for which the remaining contracted development tasks on our existing programs have been completed.

Net loss from operations for the quarter ended June 30, 2021 was $4.1 million, compared with $5.0 million for the same period in 2020. Net loss per share was $(0.39) for the quarter ended June 30, 2021 compared with $(1.30) for the second quarter of 2020.

Cash, cash equivalents and short-term available-for-sale securities totaled $29.8 million as of June 30, 2021, with current liabilities of approximately $7.1 million and non-current liabilities of $11.7 million.

Conference Call and Webcast:

HTG will host a conference call for the investment community today beginning at 4:30 p.m. Eastern Time. Conference call and webcast details are as follows:

Date: Thursday, August 12, 2021Time: 4:30 p.m. Eastern TimeToll Free: (877) 407-0789International: (201) 689-8562Conference ID: 13721188Webcast: http://public.viavid.com/index.php?id=145556

About HTG:

HTG is focused on NGS-based molecular profiling. The companys proprietary HTG EdgeSeq technology automates complex, highly multiplexed molecular profiling from solid and liquid samples, even when limited in amount. HTGs customers use its technology to identify biomarkers important for precision medicine, to understand the clinical relevance of these discoveries, and ultimately to identify treatment options. Its mission is to empower precision medicine. To learn more, visit www.htgmolecular.com.

Safe Harbor Statement:

Statements contained in this press release regarding matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the capabilities of the HTG Transcriptome Panel, the expected performance and benefits of HTG Therapeutics, trends in our core business, and our ability to grow our business. Words such as designed to, believes, anticipates, plans, expects, intends, will, goal, potential and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements necessarily contain these identifying words. These forward-looking statements are based upon managements current expectations, are subject to known and unknown risks, and involve assumptions that may never materialize or may prove to be incorrect. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, including, without limitation, risks associated with the impact of the COVID-19 pandemic on us and our customers; the risk that our transcriptome panel may not provide the benefits that we expect; risks associated with our ability to develop and commercialize our products, including our transcriptome panel; the risk that our products and services may not be adopted by biopharmaceutical companies or other customers as anticipated, or at all; our ability to manufacture our products to meet demand; competition in our industry; additional capital and credit availability; our ability to attract and retain qualified personnel; and product liability claims. These and other factors are described in greater detail in our filings with the Securities and Exchange Commission, including under the Risk Factors heading of our Annual Report on Form 10-K for the year ended December 31, 2020 and subsequently filed quarterly reports on Form 10-Q. All forward-looking statements contained in this press release speak only as of the date on which they were made, and we undertake no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Contact:

Ashley R. RobinsonLifeSci Advisors, LLCPhone: (617) 430-7577Email:arr@lifesciadvisors.com

-Financial tables follow-

HTG Molecular Diagnostics, Inc. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue: Product andproduct-related $ 2,074,204 $ 1,728,526 $ 3,509,350 $ 3,716,663 servicesCollaborativedevelopment ? 234,768 ? 472,105 servicesTotal revenue 2,074,204 1,963,294 3,509,350 4,188,768 Operating expenses:Cost of productandproduct-related 971,043 974,642 1,756,243 1,990,134 servicesrevenueSelling,general and 3,903,815 4,255,485 7,763,434 8,930,748 administrativeResearch and 1,281,361 1,732,776 2,653,401 3,659,051 developmentTotal operating 6,156,219 6,962,903 12,173,078 14,579,933 expensesOperating loss (4,082,015 ) (4,999,609 ) (8,663,728 ) (10,391,165 )Other income (252,469 ) (182,757 ) (516,614 ) (243,923 )(expense), netGain onforgiveness of 1,735,792 ? 1,735,792 ? PPP LoanLoss onextinguishment of MidCapCreditFacility andQNAH ? (522,394 ) ? (522,394 )ConvertibleNoteNet loss before (2,598,692 ) (5,704,760 ) (7,444,550 ) (11,157,482 )income taxesProvision for (16,260 ) (5,791 ) (18,709 ) (10,967 )income taxesNet loss $ (2,614,952 ) $ (5,710,551 ) $ (7,463,259 ) $ (11,168,449 ) Net loss pershare, basic $ (0.39 ) $ (1.30 ) $ (1.17 ) $ (2.57 )and dilutedShares used incomputing netloss per share, 6,687,330 4,383,831 6,365,827 4,344,180 basic anddiluted

HTG Molecular Diagnostics, Inc. Condensed Consolidated Balance Sheets June 30, December 31, 2021 2020 Assets (Unaudited) Current assets: Cash and cash equivalents $ 13,576,445 $ 22,397,812 Short-term investments available-for-sale, at 16,181,828 6,298,075 fair valueAccounts receivable 1,421,780 1,588,767 Inventory, net 2,318,130 1,492,126 Prepaid expenses and other 2,448,678 1,094,273 Total current assets 35,946,861 32,871,053 Operating lease right-of-use assets 246,321 1,009,097 Property and equipment, net 1,120,966 1,227,402 Other non-current assets 5,743 90,356 Total assets $ 37,319,891 $ 35,197,908 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 1,682,290 $ 1,348,762 Accrued liabilities 1,317,690 1,459,878 Contract liabilities - current 208,736 185,083 NuvoGen obligation - current 486,058 512,729 Current portion of long-term debt 3,164,413 3,022,139 Operating lease liabilities - current 263,731 685,220 Other current liabilities 18,953 22,563 Total current liabilities 7,141,871 7,236,374 NuvoGen obligation - non-current, net of 4,244,939 4,479,396 discountLong-term debt, net 7,443,275 8,568,308 Operating lease liabilities - non-current ? 368,682 Other non-current liabilities 48,992 60,488 Total liabilities 18,879,077 20,713,248 Commitments and Contingencies Total stockholders? equity 18,440,814 14,484,660 Total liabilities and stockholders' equity $ 37,319,891 $ 35,197,908