15 Nov 2013 14:37
15 November 2013
Akers Biosciences, Inc.
("ABI" or the "Company")
Unaudited results for the nine months ended 30 September 2013
Change to applicable accounting standard
Akers Biosciences, Inc. (AIM:AKR), a leading designer and manufacturer of rapid diagnostic screening and testing products, announces the Company's unaudited results for the nine months ended 30 September 2013. The results are included in the Company's Form S-1, which may be viewed on the US Securities and Exchange Commission ("SEC") website at www.sec.gov.
Change to applicable accounting standard
As previously announced, the Company is proposing to list on the NASDAQ Capital Market ("NASDAQ"). The nine month results ended 30 September 2013 and those for the comparable period in 2012 are therefore both stated in US GAAP. It is intended that following the NASDAQ listing, the Company's final results for the year ending 31 December 2013 will be reported in US GAAP. These results will include a comparison table to show the effects of the change from IFRS to US GAAP.
AKERS BIOSCIENCES, INC. AND SUBSIDIARIES |
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Condensed Consolidated Balance Sheets |
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September 30, 2013 and December 31, 2012 |
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2013 | 2012 |
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(unaudited) | (audited) |
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ASSETS |
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Current Assets |
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Cash and Cash Equivalents | $ 681,237 | $ 633,022 |
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Trade Receivables (net) | 73,333 | 101,213 |
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Trade Receivables - Related Party | 1,041,388 | 10,013 |
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Other Receivables | 26,413 | 4,497 |
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Notes Receivable - Related Party | - | 225,000 |
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License Fee Receivable - Related Party | - | 450,000 |
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Inventories (net) | 1,085,032 | 987,853 |
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Other Assets | 113,176 | 67,898 |
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Total Current Assets | 3,020,579 | 2,479,496 |
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Non-Current Assets |
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Property, plant and equipment, net | 267,871 | 240,014 |
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Intangible assets, net | 2,499,279 | 2,693,209 |
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Other Assets | 4,282 | 4,572 |
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Total Non-Current Assets | 2,771,432 | 2,937,795 |
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Total Assets | $ 5,792,011 | $ 5,417,291 |
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LIABILITIES |
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Current Liabilities |
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Trade and Other Payables | $ 861,673 | $ 1,082,504 |
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Other Payables - Related Parties | 49,308 | 58,542 |
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Deferred Revenue - Related Party | 722,222 | 972,222 |
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Total Current Liabilities | 1,633,203 | 2,113,268 |
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Total Liabilities | 1,633,203 | 2,113,268 |
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EQUITY |
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Convertible Preferred Stock, No par value, |
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50,000,000 shares authorized, 10,000,000 shares |
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issued and outstanding as of September 30, 2013 |
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and December 31, 2012. | 225,000 | 225,000 |
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Common Stock, No par value, 500,000,000 shares |
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authorized, 1,791,436 and 1,278,616 issued |
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and outstanding as of September 30, 2013 and |
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December 31, 2012 | 84,873,376 | 83,273,376 |
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Accumulated Deficit | (80,939,568) | (80,194,353) |
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Total Equity | 4,158,808 | 3,304,023 |
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Total Equity and Liabilities | $ 5,792,011 | $ 5,417,291 |
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Condensed Consolidated Statements of Operations |
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(unaudited) |
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Nine Months Ended |
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September 30 |
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2013 | 2012 |
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Revenues: |
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Product Revenue | $ 972,880 | $ 1,155,330 |
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Product Revenue - Related party | 1,551,340 | 2,660 |
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License Revenue | 200,000 | - |
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License Revenue - Related party | 250,000 | - |
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Total Revenue | 2,974,220 | 1,157,990 |
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Cost of Sales: |
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Product Cost of Sales | (1,503,303) | (691,628) |
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Gross Profit | 1,470,917 | 466,362 |
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Administrative Expenses | 752,126 | 633,157 |
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Administrative Expenses - Related parties | 294,300 | 400,153 |
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Sales and Marketing Expenses | 536,631 | 498,531 |
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Research and Development Expenses | 755,981 | 689,481 |
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Amortization of Non-Current Assets | 193,929 | 181,652 |
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Loss from Operations | (1,062,050) | (1,936,612) |
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Other Income/Expenses |
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Gain on sale of equity investment - Related party | (99,710) | - |
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Foreign Currency Transaction (Income)/Expense | (723) | (7,345) |
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Gain from demutualization of insurance carrier | (91,286) | - |
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Other Income | (125,116) | (32,223) |
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Total Other Income | (316,835) | (39,568) |
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Loss Before Income Taxes | (745,215) | (1,897,044) |
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Income Tax Benefit/(Expense) | - | - |
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Net Loss | $ (745,215) | $ (1,897,044) |
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Basic & diluted loss per common share | $ (0.50) | $ (1.73) |
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Weighted average basic & diluted common |
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shares outstanding | 1,481,490 | 1,097,098 |
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Condensed Consolidated Statement of Changes in Stockholder's Equity |
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Nine months ended September 30, 2013 |
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Convertible |
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Preferred | Common | Accumulated | Total |
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Stock | Stock | Deficit | Equity |
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Balance at December 31, 2012 (audited) | $ 225,000 | $ 83,273,376 | $ (80,194,353) | $ 3,304,023 |
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Net loss for the period | - | - | (745,215) | (745,215) |
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Issuance of shares | - | 1,600,000 | - | 1,600,000 |
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Balance at September 30, 2013 (unaudited) | $ 225,000 | $ 84,873,376 | $ (80,939,568) | $ 4,158,808 |
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Condensed Consolidated Cash Flow Statements | |||||||||||||
Nine months ended September 30, 2013 and 2012 | |||||||||||||
(unaudited) | |||||||||||||
2013 | 2012 | ||||||||||||
Cash flows from operating activities | |||||||||||||
Net loss for the period | $ (745,215) | $ (1,897,044) | |||||||||||
Adjustments to reconcile net loss to net cash used by | |||||||||||||
operating activities | |||||||||||||
Provisions for bad debts | - | (241) | |||||||||||
Write-off of note receivable | - | 148,900 | |||||||||||
Reversal of old trade payables | (91,905) | - | |||||||||||
Gain on sale of equity investment | (99,710) | - | |||||||||||
Gain from demutualization of insurer | (91,286) | - | |||||||||||
Depreciation and amortization of non-current assets | 265,799 | 266,481 | |||||||||||
Changes in assets and liabilities | |||||||||||||
Decrease in trade receivables | 27,880 | 106,290 | |||||||||||
Increase in trade receivables - related party | (1,031,375) | (2,660) | |||||||||||
(Increase)/decrease in other receivables | (21,916) | 260,936 | |||||||||||
Decrease in license fees receivable - related party | 450,000 | - | |||||||||||
(Increase)/decrease in inventories | (97,179) | (260,120) | |||||||||||
(Increase)/decrease in other assets | (45,278) | 26,176 | |||||||||||
Increase/(decrease) in trade and other payables | (22,002) | 227,562 | |||||||||||
Decrease in other payables - related party | (9,234) | - | |||||||||||
Increase/(decrease) in legal settlement liabilities | (106,924) | 55,867 | |||||||||||
Decrease in deferred revenue - related party | (250,000) | - | |||||||||||
Net cash used in operating activities | (1,868,345) | (1,067,853) | |||||||||||
Cash flows from investing activities | |||||||||||||
Purchases of property, plant and equipment | (99,726) | (7,325) | |||||||||||
Proceeds from sale of equity investment | 100,000 | - | |||||||||||
Proceeds from demutualization of insurance carrier | 91,286 | - | |||||||||||
Net cash provided from/(used in) investing activities | 91,560 | (7,325) | |||||||||||
Cash flows from financing activities | |||||||||||||
Proceeds from note receivable - related party for Series A Convertible | |||||||||||||
Preferred Stock | 225,000 | - | |||||||||||
Proceeds from issuance of common shares | 1,600,000 | 211,068 | |||||||||||
Net cash provided from financing activities | 1,825,000 | 211,068 | |||||||||||
Net increase/(decrease) in cash and cash equivalents | 48,215 | (864,110) | |||||||||||
Cash and cash equivalents at beginning of year | 633,022 | 1,192,805 | |||||||||||
Cash and cash equivalents at end of period | $681,237 | $ 328,695 | |||||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||||
Non-cash financing activities | |||||||||||||
Issuance of common shares for short-term receivable - related party | |||||||||||||
$ | $ 240,000 | ||||||||||||
Issuance of convertible preferred stock for note receivable - related party | |||||||||||||
$ | $ 225,000 | ||||||||||||
Enquiries:
Thomas A. Nicolette
President and CEO
Tel. +1 856 848 8698
Antony Legge or James Thomas
Daniel Stewart & Company plc (Nomad and Broker)
Tel. +44 (0)20 7776 6550
Ben Simons
Vigo Communications
Tel. +44 (0)20 7016 9574
About Akers Biosciences, Inc.
Akers Biosciences develops, manufactures, and supplies rapid, point‐of‐care screening and testing products designed to bring health status information, both rapidly and directly, to the consumer or healthcare provider. The Company has advanced the science of diagnostics while responding to major shifts in healthcare through the development of several proprietary platform technologies. The Company's state‐of‐the‐art rapid diagnostic assays can be performed virtually anywhere, in minutes, since time is always of essence. ABI is aligned with high volume medical product distributors to help facilitate the Company's growth into a major, worldwide competitor in the field of rapid diagnostics. Additional information on the Company and its products can be found at www.akersbiosciences.com.