Insight Molecular Diagnostics | 10-Q: FY2024 Q3 Revenue Misses Estimate at USD 115 K

Revenue: As of FY2024 Q3, the actual value is USD 115 K, missing the estimate of USD 168.33 K.

EPS: As of FY2024 Q3, the actual value is USD -0.98, missing the estimate of USD -0.4367.

Segment Revenue

• Pharma Services: Revenue decreased to $115,000 for the three months ended September 30, 2024, compared to $429,000 in the prior period, and to $395,000 for the nine months ended September 30, 2024, compared to $1.2 million in the prior period.

Operational Metrics

• Net Loss: The net loss for the three months ended September 30, 2024 was $13.5 million, compared to $6.5 million in the prior period. For the nine months ended September 30, 2024, the net loss was $27.2 million, compared to $11.8 million in the prior period.
• Research and Development Expenses: Increased by $632,000 to $2.8 million for the three months ended September 30, 2024, and by $835,000 to $7.6 million for the nine months ended September 30, 2024.
• Sales and Marketing Expenses: Increased by $330,000 to $1.0 million for the three months ended September 30, 2024, and by $529,000 to $2.7 million for the nine months ended September 30, 2024.
• General and Administrative Expenses: Increased by $78,000 to $2.6 million for the three months ended September 30, 2024, but decreased by $1.8 million to $7.6 million for the nine months ended September 30, 2024.

Cash Flow

• Net Cash Used in Operating Activities: $15.4 million for the nine months ended September 30, 2024, compared to $18.9 million in the prior period.
• Net Cash Used in Investing Activities: $302,000 for the nine months ended September 30, 2024, compared to $1.0 million in the prior period.
• Net Cash Provided by Financing Activities: $9.6 million for the nine months ended September 30, 2024, compared to $12.2 million in the prior period.

Unique Metrics

• Change in Fair Value of Contingent Consideration: Loss of $7.1 million for the three months ended September 30, 2024, and $9.4 million for the nine months ended September 30, 2024, compared to gains in the prior periods.

Future Outlook and Strategy

• Core Business Focus: The company is focusing on commercializing its transplant kitted tests and deploying sales personnel toward signing new hospital research laboratory customers.
• Non-Core Business: The company completed the Razor Sale Transaction, reflecting Razor’s operations as discontinued operations.
• Priority: The company is working with regulatory bodies to attain IVD approval for its tests, supporting future distribution and higher sales for clinical use.