Applied DNA Sciences Inc. (NASDAQ:APDN) Q2 2020 Earnings Conference Call - Final Transcript
May 14, 2020 • 04:30 pm ET
candidates, nor do we see any barrier to continue development and manufacturing relating to our diagnostic kit programs.
Starting with the statement of operations, total revenues for the period decreased 29% to approximately $552,000 from approximately $778,000 in the second quarter of fiscal 2019. Product revenues were $198,000 as compared to $119,000 in the prior-year period. The increase in product revenues is attributable to increased biopharmaceutical revenues and, to a lesser extent, initial revenue from the marking of a nutraceutical supplement, offset by lower asset marking revenue.
Second quarter service revenues were $355,000 as compared to $659,000 in the prior-year period. The year-over-year decrease in service revenues is primarily attributable to revenues in the prior period related to a government contract award that was completed in May of 2019, as well as a decrease in the number of textile and cannabis feasibility projects, the latter due to our canceled contract with TheraCann, although we are actively developing leads in cannabis tagging.
Cost of revenue as a percentage of product revenue in our fiscal second quarter of 2020 decreased to 91% as compared to 112% for the year-ago period. The year-over-year improvement was due to the change in product sales mix, as well as an inventory adjustment during the second quarter of fiscal '19.
Total operating expenses decreased 7% or $223,000 to $3.1 million in the second fiscal quarter of 2020 compared with approximately $3.3 million for the same period in the prior fiscal year, reflecting lower selling, general and administrative costs due principally to lower professional fees and, to a lesser extent, from a decrease in travel as a result of COVID-19 travel restriction. Second quarter R&D expenses increased by $52,000 to $703,000 from $651,000 over the prior period. This increase reflects higher development costs for our biotherapeutic customers, as well as an increase in payroll, offset by lower development costs for the government contract that was completed in May of '19.
Net loss for the second quarter of fiscal 2020 widened by 10% on a year-over-year basis to $3 million from $2.7 million.
As a reminder, we implemented a 1-for-40 reverse stock split on November 1st, 2019. As a result, we reported earnings per share for the second quarters of fiscal 2020 and 2019 have been calculated using the post reverse stock split share count. Weighted average shares outstanding for second quarter of fiscal 2020 and 2019 are 3,758,512 and 834,990, respectively.
Net loss per share for the second quarter of 2020 improved to $0.79 compared to a net loss per share of $3.22 for the same period in fiscal 2019. Excluding non-cash expenses, adjusted EBITDA was negative $2.6 million for the second quarter of fiscal 2020 as compared to negative $2.3 million in the prior period.
Turning to our balance sheet. Cash and cash equivalents totaled approximately $8.7 million at March 31st. This figure includes approximately $2.8 million in net proceeds from the exercise of warrants issued as part of our November 15th, 2019, underwritten public offering. Total