Great Basin Scientific Inc (GBSN) saw its loss narrow to $6.17 million, or $14 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $18.94 million, or $51.17 a share. On the other hand, adjusted net loss for the quarter narrowed to $8.04 million, or $18.25 a share from a loss of $8.60 million or $4,470.83 a share, a year ago. Revenue during the quarter surged 39.23 percent to $0.85 million from $0.61 million in the previous year period.
Operating loss for the quarter was $8.82 million, compared with an operating loss of $6.94 million in the previous year period.
“The fourth quarter of 2016 was a period of significant progress and change for Great Basin,” said Ryan Ashton, co-founder and chief executive officer of Great Basin. “During the third quarter, research and development spending and gross margin inefficiency peaked as we invested in significant menu expansion, which included concurrently running two clinical trials and preparing for the commercial launch of two products that the U.S. Food and Drug Administration (FDA) cleared in early 2016. With those efforts either behind us or winding down, we turned our focus to improving operational efficiencies and implementing cost management programs in preparation for 2017. These efforts resulted in a reduction in sequential quarterly operating expenses and our strongest gross margins of the fiscal year. Furthermore, we expect that the changes we made in the fourth quarter��"along with the January completion of the clinical trial for our Bordetella Direct Test and the restructuring and reduction plan we announced in early February��"will result in further improvements to our operating expenses, burn rate and gross margins in the first half of 2017.”
Operating cash flow remains negative
Great Basin Scientific Inc has spent $31.65 million cash to meet operating activities during the year as against cash outgo of $20.67 million in the last year. The company has spent $4.37 million cash to meet investing activities during the year as against cash outgo of $4.79 million in the last year.
Cash flow from financing activities was $32.25 million for the year, up 14.24 percent or $4.02 million, when compared with the last year.
Cash and cash equivalents stood at $1.01 million as on Dec. 31, 2016, down 78.82 percent or $3.77 million from $4.79 million on Dec. 31, 2015.
Working capital turns negative
Working capital of Great Basin Scientific Inc has turned negative to $20.56 million on Dec. 31, 2016 from positive $13.50 million on Dec. 31, 2015. Current ratio was at 0.71 as on Dec. 31, 2016, down from 2.88 on Dec. 31, 2015.
Debt increases substantially
Great Basin Scientific Inc has witnessed an increase in total debt over the last one year. It stood at $75.92 million as on Dec. 31, 2016, up 262.99 percent or $55.01 million from $20.92 million on Dec. 31, 2015. Total debt was 103.44 percent of total assets as on Dec. 31, 2016, compared with 73.24 percent on Dec. 31, 2015. D
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