Core Viewpoint - Enzo Biochem, Inc. reported a decline in revenue and gross margin for the fiscal third quarter ended April 30, 2025, while also announcing strategic reviews and a class-wide settlement related to a cyber incident [1][6][3]. Financial Highlights - The company's third-quarter revenue was $6.4 million, a decrease of $1.6 million or 20% compared to the same period last year [6]. - Gross margin percentage for the third quarter was 39%, down from 47% in the previous year, primarily due to reduced revenues not covering fixed manufacturing costs [6]. - The net loss per basic and fully diluted share was ($0.05) for the three months ended April 30, 2025, compared to ($0.06) for the same period in 2024 [6]. Recent Events - A class-wide settlement agreement related to an April 2023 cyber incident was approved, with $0.8 million paid in March 2025 and a remaining balance of $6.7 million due by July 10, 2025 [3]. - The Board of Directors initiated a review of strategic alternatives, forming a special committee to explore options including potential transactions or returning excess capital to shareholders [4]. - The company voluntarily delisted its common stock from NYSE, with trading on OTCQX commencing on April 21, 2025 [5]. Company Overview - Enzo Biochem has been operating for over 45 years, focusing on life sciences through its Enzo Life Sciences division, which offers a wide range of products for research and drug development [5]. - The company launched approximately 100 new products in the third quarter of fiscal year 2025, aiming to drive new revenues [6]. Balance Sheet Data - As of April 30, 2025, the company had cash and cash equivalents of $36.7 million and working capital of $31.3 million [12]. - Stockholders' equity decreased to $43.4 million from $56.1 million as of July 31, 2024 [12].

Revenue Performance - Revenues for the three months ended April 30, 2025, were $6.4 million, a decrease of approximately $1.6 million or 20% compared to $8.0 million in the same period of 2024[127]. - Revenues decreased to $19.9 million in the 2025 period from $24.4 million in the 2024 period, a decline of approximately $4.4 million or 18% due to headwinds in the life sciences tools space[141]. Cost and Expenses - The cost of revenues was $3.8 million in the 2025 period, down $0.5 million or 12% from $4.3 million in 2024, resulting in a gross profit margin of approximately 39%[128]. - Cost of revenues was $11.0 million in the 2025 period, down $2.0 million or 15% from $13.0 million in the 2024 period, resulting in a gross profit margin of approximately 43%[142]. - Research and development expenses decreased by $0.1 million or 17% to $0.5 million in the 2025 period from $0.6 million in 2024[130]. - Research and development expenses decreased by $0.5 million or 24% to $1.5 million in the 2025 period compared to $2.0 million in the 2024 period[144]. - Selling, general and administrative expenses increased by $0.4 million or 10% to $4.9 million in the 2025 period compared to $4.5 million in 2024[131]. - Selling, general and administrative expenses were $14.3 million in the 2025 period, a decrease of $2.2 million or 13% from $16.6 million in the 2024 period[145]. - Legal and related expenses decreased by $0.2 million or 33% to $0.5 million in the 2025 period from $0.7 million in 2024[132]. - Legal and related expenses dropped by $1.3 million or 50% to $1.3 million in the 2025 period from $2.5 million in the 2024 period[146]. - Interest income, net decreased by $0.3 million or 47% to $0.4 million in the 2025 period compared to $0.7 million in 2024[133]. - Interest income, net decreased by $1.1 million or 44% to $1.5 million in the 2025 period compared to $2.6 million in the 2024 period[147]. Foreign Exchange and Other Income - The foreign exchange gain recognized in the 2025 period was $0.5 million, a favorable variance of $1.0 million compared to a loss of $0.5 million in 2024[136]. - The foreign exchange gain was $0.1 million in the 2025 period, a favorable variance of $0.9 million compared to a loss of $0.8 million in the 2024 period[150]. Cash Flow and Financial Position - Cash and cash equivalents decreased by $15.7 million to $36.7 million as of April 30, 2025, primarily due to net loss and dividend payments[151]. - Net cash used in operating activities was $14.2 million in the 2025 period, a favorable variance of $11.0 million compared to $25.2 million in the 2024 period[152]. - Net cash provided by investing activities was approximately $4.1 million in the 2025 period, primarily from the release of cash held in escrow[153]. Strategic Developments - The Company completed the sale of its Clinical Services business to Labcorp for an aggregate purchase price of $113.25 million in cash on July 24, 2023[119]. - The Company is undergoing a strategic review process to evaluate potential transactions to maximize shareholder value, including a full sale of the Company[118]. - The Company experienced a ransomware attack in April 2023, affecting approximately 2.5 million individuals' clinical test information[120].

Core Viewpoint - Enzo Biochem, Inc. has initiated a strategic review process to explore options for maximizing shareholder value, including potential transactions and capital returns [1][2][3] Group 1: Strategic Review Process - The Board of Directors has formed a special committee of independent directors, named the Strategic Committee, to evaluate various strategic alternatives [1][2] - The Strategic Committee has engaged BroadOak Capital Partners as financial advisor and BakerHostetler LLP as legal counsel to assist in the evaluation process [2] - There is no set timetable for the review process, and the Board has no biases towards any potential strategic alternatives at this time [3] Group 2: Company Operations and Market Position - Enzo Biochem has over 45 years of experience in the life sciences sector, primarily through its Life Sciences division, which offers a wide range of products including antibodies, genomic probes, and assays [4] - The company’s proprietary products and technologies are integral to translational research and drug development, covering areas such as cell biology and genomics [4] - Enzo Biochem has recently transferred its stock listing from NYSE to OTC, continuing to trade under the ticker symbol "OTCQX: ENZB" [5]

Core Viewpoint - Enzo Biochem, Inc. intends to voluntarily delist its common stock from the NYSE and transition to the OTCQX Best Market due to non-compliance with NYSE listing standards [1][3]. Delisting Announcement - The company provided notice of the voluntary delisting to the NYSE on March 28, 2025, with the delisting expected to be effective around April 17, 2025, and trading on OTCQX to begin on or about April 18, 2025 [2][4]. - The decision follows a notice from the NYSE regarding non-compliance with market capitalization, stockholder's equity, and average closing stock price requirements [3]. Compliance and Reporting - Enzo Biochem has applied for quotation on the OTCQX and expects to be quoted the next trading day after NYSE trading ceases, pending OTCQX approval [4]. - The company will continue to adhere to the periodic reporting requirements of the Securities Exchange Act of 1934 after the delisting [5]. Company Overview - Enzo Biochem has been a life sciences company for over 45 years, primarily operating through its Life Sciences division, focusing on labeling and detection technologies [6]. - The company offers a comprehensive portfolio of products, including antibodies, genomic probes, assays, biochemicals, and proteins, which are essential in translational research and drug development [6].

Financial Performance - The Company's second-quarter revenue of $7.3 million increased sequentially by $1.1 million, representing an 18% improvement from Q1 FY25[4]. - The gross margin percentage for Q2 FY25 was 52%, up from 37% in Q1 FY25 and 49% in Q2 FY24[4]. - The Enzo Life Sciences Products segment achieved a $0.5 million operating profit in Q2 FY25, a $2 million sequential improvement from a $1.5 million operating loss in Q1 FY25[4]. - Year-over-year revenue declined by 14% primarily due to the timing of large order fulfillment and a market slowdown in the US[4]. - Adjusted net loss for Q2 FY25 was $0.974 million, with a basic and diluted net loss per share of $0.02[15]. Cost Management - Cost of revenues decreased by 14%, while SG&A and R&D expenses were reduced by 22% and 27%, respectively[4]. Cash Position - The Company ended Q2 FY25 with cash and cash equivalents of $40.3 million, down from $52.4 million at the end of Q4 FY24[12]. Product Development - The Company doubled the count of new product launches in the first half of FY25 compared to the prior full year[4]. Legal and Compliance - A class-wide settlement agreement related to a cyber incident was reached, with a settlement value of $7.5 million accrued in prior financial statements[4]. - The Company submitted a plan to cure deficiencies in market capitalization and stockholder's equity to comply with NYSE listing standards[4].

Core Viewpoint - Enzo Biochem, Inc. reported financial results for the fiscal second quarter ended January 31, 2025, showing improvements in revenue, gross margin, and operating profit/loss compared to the previous quarter [1]. Financial Highlights - The second-quarter revenue reached $7.3 million, an increase of $1.1 million (18%) from $6.2 million in Q1 FY25, although it represented a 14% decline year-over-year due to timing of large order fulfillment and market slowdown in the US [5]. - Gross margin percentage improved to 52%, up from 37% in Q1 FY25 and 49% in the same quarter of the previous year [5]. - The Enzo Life Sciences Products segment achieved an operating profit of $0.5 million in Q2 FY25, a $2 million improvement from a $1.5 million operating loss in Q1 FY25 [5]. - Cost of revenues was reduced by 14%, while SG&A and R&D expenses decreased by 22% and 27%, respectively [5]. - The company ended the second quarter with cash and cash equivalents of $40.3 million [5]. Recent Events - Enzo Biochem reached a class-wide settlement agreement related to an April 2023 cyber incident, with a settlement value of $7.5 million, which had been accrued in prior financial statements [5]. - The company submitted a plan to the NYSE to address deficiencies in market capitalization, stockholder's equity, and average closing stock price, which is currently under review [5]. - Enzo has increased product launches, doubling the count of new products compared to the previous full year, to bolster its base business [5].

Revenue Performance - Revenues decreased to $7.3 million in the 2025 period from $8.5 million in the 2024 period, a decline of approximately $1.2 million or 14% due to reduced market demand, particularly outside the U.S.[128] - Revenues decreased to $13.5 million in the 2025 period from $16.4 million in the 2024 period, a decline of approximately $2.8 million or 17% due to reduced market demand, particularly outside the U.S.[140] Cost and Expenses - Cost of revenues was $3.5 million in the 2025 period, down from $4.3 million in the 2024 period, a decrease of $0.8 million or 18%, resulting in a gross profit margin of approximately 52% in 2025 compared to 49% in 2024[129] - Total operating costs and expenses were $18.8 million in the 2025 period, down from $24.0 million in the 2024 period, reflecting a decrease of $5.2 million or 22%[141] - Research and development expenses decreased to $0.5 million in the 2025 period from $0.6 million in the 2024 period, a reduction of $0.1 million or 17%[130] - Research and development expenses were $1.0 million in the 2025 period, a decrease of $0.4 million or 27% compared to $1.4 million in the 2024 period[143] - Selling, general and administrative expenses were $4.6 million in the 2025 period, down from $5.1 million in the 2024 period, a decrease of $0.5 million or 10%[131] - Selling, general and administrative expenses decreased to $9.4 million in the 2025 period from $12.0 million in the 2024 period, a reduction of $2.6 million or 22%[144] - Legal and related expenses decreased significantly to $0.4 million in the 2025 period from $0.8 million in the 2024 period, a reduction of $0.4 million or 54%[132] - Legal and related expenses were $0.8 million in the 2025 period, down from $1.8 million in the 2024 period, a decrease of $1.0 million or 56%[145] Cash Flow and Financial Position - Net cash used in operating activities was $11.0 million in the 2025 period, compared to $22.3 million in the 2024 period, a favorable variance of $11.3 million[150] - Aggregate cash and cash equivalents decreased to $40.3 million as of January 31, 2025, from $52.3 million as of July 31, 2024, a decline of $12.0 million[149] - Net cash provided by investing activities was approximately $4.5 million in the 2025 period, primarily from the release of cash held in escrow from the Labcorp Asset Purchase Agreement[151] Foreign Exchange Impact - The foreign exchange loss in the 2025 period was $0.2 million compared to a gain of $0.7 million in the 2024 period, resulting in an unfavorable variance of $0.9 million[135] - The foreign exchange loss recognized in the 2025 period was $0.4 million, compared to $0.3 million in the 2024 period, an unfavorable variance of $0.1 million[148] Strategic Initiatives - The Company completed the sale of its Clinical Services business to Labcorp for an aggregate purchase price of $113.25 million in cash on July 24, 2023[119] - The Company is exploring strategic alternatives to maximize shareholder value, including potential acquisitions or joint ventures[118] - The Company received a notice from the NYSE regarding non-compliance with listing standards, with a market capitalization below $50 million and an average closing stock price below $1.00[122]

Core Points - Enzo Biochem, Inc. has been notified by the NYSE of non-compliance with listing standards due to market capitalization and stockholder's equity being below $50 million, and average closing stock price being below $1.00 [1][3] - The company has 18 months to address market capitalization and stockholder's equity deficiencies, and 6 months to address the average closing stock price deficiency [1][2] - Enzo Biochem plans to submit a compliance plan to the NYSE by February 21, 2025, to rectify the identified deficiencies [3] Company Overview - Enzo Biochem has been operating as a life sciences company for over 45 years, primarily through its Life Sciences division, Enzo Life Sciences [5] - The company focuses on labeling and detection technologies, offering a comprehensive portfolio of products including antibodies, genomic probes, assays, biochemicals, and proteins [5] - Enzo Biochem monetizes its technology through global distribution and licensing [5]

Core Viewpoint - Enzo Biochem, Inc. has experienced a significant decline in stock price and revenue, attributed to challenging market conditions and reduced orders from key customers [1][9]. Revenue and Earnings Performance - The company reported revenues of $6.2 million for the first quarter of fiscal 2025, a decrease of 20.4% from $7.8 million in the same quarter last year [2]. - The net loss from continuing operations narrowed to $3.1 million, or $0.07 per share, compared to a loss of $5.7 million, or $0.11 per share, in the prior year [2]. Operating Costs and Margins - Total operating costs decreased by 25.9% year over year to $9.8 million, driven by reductions in R&D, SG&A, and legal expenses [3]. - Gross margins declined to 41% from 44% due to inventory disposals related to a portfolio optimization initiative [3]. Key Business Metrics - R&D spending fell by 33.8% year over year to $0.6 million, reflecting a strategic shift towards manufacturing [5]. - SG&A expenses decreased by 30.3% year over year to $4.9 million, attributed to lower severance costs and reduced share-based compensation [5]. - Legal expenses dropped by 57.4% year over year to $0.5 million as the company moved past litigation related to ransomware attacks [5]. Foreign Exchange and Interest Income - The company recorded foreign exchange losses of $0.2 million, an improvement from the $1 million loss in the prior year [6]. - Interest income decreased by 36.5% to $0.6 million from $0.9 million, due to a lower cash balance and declining interest rates [6]. Geographic Revenue Performance - Revenues from the United States fell by 18.8% to $3.8 million, while revenues from Europe plunged by 22.2% to $1.7 million [7]. - Revenues from Asia Pacific decreased by 24% to $0.8 million, attributed to weakened market demand across all customer bases [8]. Management Commentary - Management noted a challenging demand environment in the life sciences tools sector, impacting revenues across all regions [9]. - Cost containment measures have been implemented, and a $5 million release from an escrow account related to a previous asset sale improved liquidity [9]. Guidance and Outlook - While specific guidance was not provided, management expressed confidence in meeting operational requirements for at least the next 12 months based on available working capital of $36.3 million [10]. Other Developments - No significant acquisitions or restructuring activities were reported, but the company settled multiple legal disputes stemming from a ransomware attack [11].

Core Insights - Enzo Biochem, Inc. reported a revenue decline of 20% year-over-year for the fiscal first quarter, totaling $6.2 million, attributed to decreased market demand in the life sciences tools sector [2][11] - The company ended the quarter with cash and cash equivalents of $47.7 million, a decrease from $52.4 million at the end of the previous fiscal year [2][12] - A special cash dividend of $0.10 per share was declared and paid to shareholders on December 2, 2024 [3] Financial Performance - The gross profit for the first quarter was $2.3 million, representing a gross profit margin of 37%, down from 44% in the same quarter of the previous year [11] - The operating loss for the quarter was $3.6 million, an improvement from a loss of $5.5 million in the prior year [11] - The net loss from continuing operations was $3.1 million, compared to a loss of $5.7 million in the same period last year [11] Balance Sheet Highlights - As of October 31, 2024, total assets were reported at $75.3 million, down from $85.8 million at the end of the previous fiscal year [12] - Stockholders' equity decreased to $47.7 million from $56.1 million [12] - Working capital was reported at $36.3 million, down from $45.2 million [12] Recent Developments - Jon Couchman was appointed as a director and member of several committees, bringing significant public company experience [4] - The company continues to focus on its Life Sciences division, which includes a wide range of products for translational research and drug development [5]