Atossa Genetics, Inc. (NASDAQ:ATOS) Has Huge Plans to Reverse the Downtrend

[[tagnumber 0]][[tagnumber 1]]Atossa Genetics, Inc. (NASDAQ:ATOS) stock broke the trading range on Monday as the company‘ recent press release announcing a new license agreement caught the attention of traders. In the last quarter report ATOS claims to have huge growth potential, yet it is still not sure whether the recent product launches can actually reverse the downtrend that ATOS is following this year.[[tagnumber 2]][[tagnumber 3]] [[tagnumber 0]][[tagnumber 5]][[tagnumber 3]] [[tagnumber 0]][[tagnumber 1]]ATOS is climbing since the release of the first quarter report and yesterday‘s session closed with another 11% gain at $1.71. The share price is now above the 10– and 20–day moving averages and the close was just at the upper Bollinger band. Technically, the stock should be able to break even higher up this week, yet these bullish signals look only short–term.[[tagnumber 2]][[tagnumber 3]] [[tagnumber 0]] [[tagnumber 3]] [[tagnumber 0]][[tagnumber 1]]According to ATOS latest quarterly report, the company is still far away from making a profit from its core business. In March this year, it launched the two versions of its MASCT device, one of which has FDA clearance for sale on the US market, the other one is distributed in the EU only.[[tagnumber 2]][[tagnumber 3]] [[tagnumber 0]] [[tagnumber 3]] [[tagnumber 0]][[tagnumber 1]]Revenues surged in the first quarter, however, they come from diagnostic testing services and the huge increase from the same quarter of last year is due to the fact that ATOS had ceased performing these activities from October 2013 to October 2014 due to a product recall. Net loss is increasing as well and it is expected to grow even further as there will be additional selling and administrative expenses.[[tagnumber 2]][[tagnumber 3]] [[tagnumber 0]][[tagnumber 24]][[tagnumber 3]] [[tagnumber 0]][[tagnumber 1]][[tagnumber 28]]Dilution risk for ATOS is thus very large as it provides cash for operations from the sale of its own common stock, which is likely to continue until product sales grow enough to cover the expenses, if that happens at all. Current cash reserves most likely will not cover expenses by the end of this year.[[tagnumber 2]][[tagnumber 2]][[tagnumber 3]] [[tagnumber 0]] [[tagnumber 3]] [[tagnumber 0]][[tagnumber 1]][[tagnumber 28]]Last week, ATOS also filed a license agreement with [[tagnumber 37]]Besins Healthcare Luxembourg SARL allowing ATOS to develop and commercialize Besins’ patented Afimoxifene Gel for the potential treatment and prevention of hyperplasia of the breast.[[tagnumber 2]][[tagnumber 2]][[tagnumber 2]][[tagnumber 3]]