Applied UV Reports Second Quarter 2021 Results
- Accelerated global commercial strategy for infection control products via partnerships and distribution
- Airocide® air purifications installations in hospitals, museums, wineries, and school systems
- Independent lab results confirmed SteriLumen’s Lumicide™Ribbon kills SARS-CoV-2 (COVID-19 Virus)
- Hotel & hospitality demand for MunnWorks subsidiary recovering
- Continued focus on inorganic growth strategy via synergistic acquisitions
- Strengthened balance sheet with non-convertible Series A Cumulative Perpetual Preferred Stock offering raising gross proceeds of $13.8 million
MOUNT VERNON, NY / ACCESSWIRE / August 17, 2021 / Applied UV, Inc. (NasdaqCM:AUVI) (“Applied UV” or the “Company”), an infection control technology company that applies the power of narrow-range ultraviolet light (“UVC”) for surface areas and catalytic bioconversion technology for air purification to destroy pathogens safely, thoroughly, and automatically, today announced its financial results for the second quarter of 2021.
Q Saeed, Chief Executive Officer, stated, “Our second-quarter performance closes out a solid start to the first half of the fiscal year. We did experience some customer shipment delays during the quarter due to supply chain and logistics constraints; however, we believe this to be a temporary situation. Based on our pipeline of existing opportunities for our infection control products, the expansion of distribution globally and the improvement in demand for our MunnWorks subsidiary, we remain optimistic about our growth prospects in the second half of the year. In support of our growth strategy, testing of our SteriLumen portfolio of products against the most impactful pathogens in bio-safety level two and three laboratories both in North America and abroad remains a priority. The testing has validated the efficacy of our products and supports our sales teams worldwide. In addition, the Company has expanded safety testing of all products with Underwriters Laboratories (UL) and Electrical Testing Laboratories (ETL) across all the relevant standards and adding or maintaining all relevant regulatory certifications form entities such as the FDA and EPA.”
Saeed continued, “We made significant investments during the quarter, strengthening our organic growth trajectory while continuing to evaluate inorganic opportunities that could enhance our commercial portfolio. With a focus on investing for future growth, we are confident that the underlying fundamentals of our business are strong and that we are well positioned.”
Second quarter net sales increased by 11.1% to $1,884,319 from $1,695,364 in the second quarter of 2020. The net sales and financial results for the current period reflect the impact of the Akida Holdings LLC, asset acquisition that closed on February 8, 2021. All net sales for previous periods presented were generated entirely from the Company’s MunnWorks subsidiary. During the second quarter, the Company experienced an improvement in demand from the hospitality industry as the economy rebounds from the COVID-19 pandemic, and as a result its MunnWorks revenues are returning to normal operating levels. Additionally, the Company experienced some delays in fulfilling orders for one of its SteriLumen product lines due to the current constraints in the supply chain/logistics environment. The Company expects these orders will be fulfilled in the second half of 2021.
Net loss for the second quarter of 2021 was ($2,138,232), or ($0.23) per share, compared to a net loss of ($6,192), or $0.00 per share in the second quarter of 2020. The net loss in the second quarter of 2021 was due primarily to an increase in SG&A costs to improve future operations and expand the disinfection segment of our business
Liquidity remains strong with a cash balance of $7,017,558 million on June 30, 2021.
On July 16, 2021, the Company announced the closing of its underwritten registered public offering of 480,000 shares of 10.5% Series A Cumulative Perpetual Preferred Stock, with liquidation preference of $25.00 per share (the “Series A Preferred Stock”), at an initial public offering price of $25.00 per share, raising gross proceeds of $12.0 million before deducting underwriting discounts and other offering expenses. On July 29, 2021, the Company announced the that the underwriters of its Series A Preferred Stock exercised in full their over-allotment option to purchase an additional 72,000 shares of Series A Preferred Stock from Applied UV at a price to the public of $25.00 per share for gross proceeds of $1.8 million, prior to deducting underwriting discounts and commissions. After giving effect to the exercise of the over-allotment option, a total of 552,000 shares were sold in the offering, resulting in gross proceeds to Applied UV of $13.8 million.
Shares of Series A Preferred Stock began trading on Nasdaq under the symbol “AUVIP” on July 14, 2021.
The Company has funded a segregated dividend account in an amount equal to the first 12 monthly dividend payments and expects to use the remaining net proceeds for general corporate purposes, including new investments and acquisitions.
Recent Announcements & Additional Highlights
US and OUS Strategic Partnerships
In Q2, the Company signed several exclusive distribution agreements for the SteriLumen portfolio of air and surface disinfection devices.
US: Signed a Master Distributor agreement for the United States with FSG, one of the of the nation’s largest lighting distributors and electrical contractors. As a Master Distributor, FSG is partnering with Applied UV in areas including distribution, logistics, support, and other high-value services such as installation and technical support for SteriLumen’s Lumicide™ platform for infection control on hard surfaces and its Airocide® products for air purification.
Africa: 3Sixty Biopharmaceuticals (Pty) Ltd. signed on to an upfront binding purchase commitment of a minimum of $3.5 million of Airocide® systems over the initial one-year term of the agreement for the distribution within the continent of Africa.
Vietnam: Viet My Instrument and Technology Joint Stock Company agreed to a purchase commitment of a minimum of 100 Consumer and 45 Commercial Airocide® systems over the initial one-year term of the agreement.
Successful Global Deployments of Airocide® Across Multiple Verticals
During Q2, Airocide® products continued to experience broad adoption across all major markets including, hospitals, museums, food distribution, wineries, and school systems as enhanced infection prevention protocols become standard practice.
Continued Testing of Pathogens Provides Added Clinical Validation of Viral Inactivation
Applied UV continued to support its clinical claims for its SteriLumen product portfolio with the announcement of independent laboratory tests confirming SteriLumen’s Lumicide™ Ribbon kills the SARS-CoV-2 (COVID-19 Virus). The study was designed to determine the SteriLumen Lumicide™ Ribbon’s effectiveness against the SARS-CoV-2 on hard surfaces. CUBRC, Inc. (CUBRC), an independent scientific not-for-profit testing laboratory, performed a laboratory experiment to evaluate the ability of the Lumicide™ Ribbon to inactivate SARS-CoV-2 on two (2) surface substrate materials (stainless-steel and ceramic) at a single distance and two timepoints (5 minutes and 20 minutes). CUBRC performed the tests within its CDC-permitted Biosafety Level 3 facility.
Building the Patent Portfolio
The Chinese Patent office issued a notice granting Applied UV’s patent application for its core pathogen destroying device.SteriLumen owns eight issued patents in the United States; one issued patent in the European Union, one issued patent in China as well as several pending patent applications in the Gulf Cooperation Council (GCC), Japan, South Korea, Taiwan, and others. The issued patents and pending patent applications cover various aspects of the SteriLumen Disinfecting System.
Conference Call/Webcast Information
Applied UV’s management team will host an investor conference call and live webcast on May 17, 2021 at 8:30 am EDT. Investors can access the live webcast via a link on Applied UV’s web site at https://www.webcaster4.com/Webcast/Page/2626/42444. For those planning to participate on the call, please dial +1-844-407-9500 (for domestic calls), or +1-862-298-0850 (for international calls). A replay of the conference call will be available online on the Applied UV web site, and a dial-in replay will be available for one week following the call at +1-877-481-4010 (for domestic calls) or +1- 919-882-2331 (for international calls), replay passcode # 42444.
About Applied UV
Applied UV is focused on the development and acquisition of technology that address infection control in the healthcare, hospitality, commercial and municipal markets. The Company has two wholly owned subsidiaries - SteriLumen, Inc. (“SteriLumen”) and Munn Works, LLC (“Munn Works”). SteriLumen’s connected platform for Data Driven Disinfection™ applies the power of ultraviolet light (UVC) to destroy pathogens safely, thoroughly, and automatically, addressing the challenge of healthcare-acquired infections (“HAIs”). Targeted for use in facilities that have high customer turnover such as hospitals, hotels, commercial facilities, and other public spaces, the SteriLumen platform uses UVC LEDs in several patented designs for infection control in and around high-traffic areas, including sinks and restrooms, killing bacteria, viruses, and other pathogens residing on hard surfaces within devices’ proximity. The Company’s patented in-drain disinfection device is the only product that addresses this critical pathogen intensive location. SteriLumen’s Airocide® products for air purification, developed by NASA and FDA Cleared as class II medical devices, utilize a proprietary photo-catalytic bioconversion technology that draws air into a reaction chamber that converts damaging molds, microorganisms, dangerous pathogens, destructive VOCs and biological gasses into harmless water vapor without producing ozone or other harmful byproducts. Airocide® applications include healthcare, hospitality, grocery chains, wine making facilities, commercial real estate, schools, dental offices, and homes.
Applied UV Investor Relations
The information contained herein may contain “forward‐looking statements.” Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. Such statements include, but are not limited to, statements contained in this press release relating to the view of management of Applied UV concerning its business strategy, future operating results and liquidity and capital resources outlook. Forward‐looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward‐looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward‐looking statements. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward‐looking statements to conform these statements to actual results.
Applied UV Financial Tables Q2 and Six-Months 2021 Follow
Applied UV, Inc. and Subsidiaries
Unaudited Condensed Interim Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2021 and 2020 (Restated)
|Three Months Ended June 30,||Six Months Ended June 30,|
|2021||2020 (Restated - Note 13)||2021||2020 (Restated - Note 13)|
Cost of Goods Sold
Research and development
Stock based compensation
Selling. General and Administrative Expenses
Total Operating Expenses
Other Income Loss
Change in Fair Market Value of Warrant Liability
Total Other Income Loss
(Loss) Before Provision for Income Taxes
Provision for Income Taxes
Weighted average earnings per share:
Basic and Diluted (Loss) Per Common Share
Average shares outstanding- basic and diluted
See accompanying notes to the unaudited condensed consolidated financial statements.
Applied UV, Inc. and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of June 30, 2021 and December 31, 2020
Accounts receivable, net of allowance for doubtful accounts
Note receivable, related party
Prepaid expense and other current assets
Total Current Assets
Machinery and equipment, net of accumulated depreciation
Other intangible assets, net of accumulated amortization
Right of use asset
Patents, net of accumulated amortization
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses
Income tax payable
Capital lease obligations
Payroll protection program loan
Total Current Liabilities
Capital lease obligations - less current portion
Loan payable-less current portion
Lease liability-less current portion
Payroll protection program loan-less current portion
Total Long-Term Liabilities
Preferred stock, $0.0001 par value, 990,000 shares authorized, no shares issued and outstanding Series X Super Voting Preferred Stock, $0.0001 par value, 10,000 shares authorized, 2,000 shares issued and outstanding at both June 30, 2021 and December 31, 2020
Common stock $.0001 par value, 150,000,000 shares authorized; 9,415,386 shares issued and outstanding as of June 30, 2021, and 7,945,034 shares issued and outstanding as of December 31, 2020
Additional paid-in capital
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
See accompanying notes to the unaudited condensed consolidated financial statements.
SOURCE: Applied UV, Inc.
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