Arrayit Corp (OTCMKTS:ARYC) posted gross revenue of $787,038 in 1Q2015 lower than gross revenue of $1.09 million in 1Q2014. The number of TissueMax Tissue Microarrayer shipped in 1Q2015 stands at 1 whereas count of shipped microarray scanners is 15. The other shipments include five SpotBot Microarray Printers.
Arrayit reported that cost of sales in 1Q2015 declined to $402,915 from $708,832 in 1Q2014, resulting in gross profit of $384,123 in 1Q2015. The gross margin was 48.8% in 1Q2015 versus 35% in the prior-year period. The company improved on gross margin due to increased sales of substrates products and microarray scanners.
Arrayit reported that cash flow utilized in operations came at $138,371 in 1Q2015 compared to $491 cash flows generated by operations in the same period. As of March 31, 2014, the company recorded working capital deficit of $7.30 million and total deficit of $29 million. The working capital deficit can be attributed to judgment interest, accrued legal expenses and deferred compensation. During that time, the company had no understanding, arrangements or commitments for additional working capital.
The company stated that it may require nearly $2 million over the one year to meet expenses and expand ongoing operations to fulfill customer demands for Arrayit services and products. There may be requirement of more funds in next eighteen months to help in achieving business objectives and for continuing R&D activities. Arrayit has been successful in funding and paying its operating costs from operations supported by short term borrowings from third parties and officers.
In last trading session, the stock price of Arrayit Corp (OTCMKTS:ARYC) declined more than 11% to close the trading session at $0.00470. The decline came at a share volume of 35.48 million compared to average share volume of 41.77 million. The market cap stands at 302,540.