Financial Performance - Revenues decreased by $2.7 million, or 11.2%, to $21.8 million for the three months ended March 31, 2025, compared to $24.5 million for the same period in 2024[80]. - Gross profit decreased by $2.6 million, or 17.5%, to $12.2 million, with a gross margin of 56.0% for the three months ended March 31, 2025, down from 60.3% in 2024[81]. - Cash provided by operating activities increased to $3.0 million for the three months ended March 31, 2025, compared to $1.4 million in the same period of 2024, reflecting a growth of approximately 113%[96]. - Cash used in investing activities rose to $0.7 million in Q1 2025 from $0.2 million in Q1 2024, primarily due to capital expenditures for manufacturing and software development[97]. - Cash used in financing activities was $1.2 million for the three months ended March 31, 2025, compared to $1.1 million in the same period of 2024, with $1.0 million allocated to debt repayments[98]. Expenses - Sales and marketing expenses decreased by $0.9 million, or 15.8%, to $5.0 million for the three months ended March 31, 2025[82]. - General and administrative expenses decreased by $0.8 million, or 13.0%, to $5.2 million for the three months ended March 31, 2025[83]. - Research and development expenses decreased by $0.6 million, or 19.5%, to $2.3 million for the three months ended March 31, 2025[84]. Cash and Liquidity - Cash and cash equivalents increased to $5.5 million as of March 31, 2025, compared to $4.1 million as of December 31, 2024[91]. - Cash and cash equivalents increased by $1.4 million in Q1 2025, contrasting with a decrease of $28,000 in Q1 2024[96]. - The company experienced cash inflows from accounts receivable of $0.7 million and inventories of $1.3 million in Q1 2025, contributing to the positive cash flow from operations[96]. - Borrowings outstanding were $36.4 million as of March 31, 2025, down from $37.4 million as of December 31, 2024[91]. - There is substantial doubt about the company's ability to continue as a going concern unless alternative sources of capital are accessed or repayment dates under the Credit Agreement are extended[95]. Impairments and Losses - A non-cash goodwill impairment charge of $48.0 million was recorded during the three months ended March 31, 2025[86]. - Losses associated with the translation of foreign equity into U.S. dollars were $1.3 million for Q1 2025, compared to $0.8 million in Q1 2024, indicating an increase of 62.5%[100]. - Currency exchange rate fluctuations contributed to a loss of $0.2 million in Q1 2025, while such fluctuations were not significant in Q1 2024[100]. Foreign Currency Impact - The effect of foreign currency exchange rates resulted in a $0.1 million unfavorable impact on revenues and a $0.1 million favorable impact on expenses during Q1 2025[100]. - Recent accounting pronouncements impacting the business are detailed in the financial statements[102]. Accounting Policies - There have been no material changes to the critical accounting policies underlying the financial statements[101].

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $21.8 million, down from $24.5 million in the prior year, aligning with the higher end of guidance [7][11] - Gross margin decreased to 56% from 60.3% in Q1 2024 [8][15] - Operating loss was $49.7 million compared to a loss of $2.3 million in Q1 2024, primarily due to a goodwill impairment charge [9][10] - Adjusted EBITDA was $800,000, down from $1.6 million in the previous year [10][16] - Cash flow from operations improved to $3 million from $1.4 million in Q1 2024 [17] Business Line Data and Key Metrics Changes - Revenue in The Americas declined 5.4% sequentially and 9.4% year-over-year [12] - European revenue decreased 29% sequentially and 9% year-over-year [13] - APAC revenue increased 6.6% sequentially but was down 17% compared to the prior year [14] Market Data and Key Metrics Changes - The Americas faced slow sales due to budget clarity issues in academic and NIH funding [12] - Europe experienced a decline in cellular and molecular sales, although growth was noted in cell-based testing [13] - APAC market showed signs of improvement but anticipated challenges due to tariff announcements [14] Company Strategy and Development Direction - The company is focusing on expanding adoption of new products while continuing to lower costs, with an expected reduction in operating expenses by an additional $1 million per quarter starting Q2 2025 [26] - New product introductions are categorized into base business, electroporation and bioproduction systems, and MEA/organoid systems, with a strong pipeline of industrial and academic customers [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about NIH funding and the impact of tariffs on revenue, particularly in China, which constitutes about 10% of total revenue [54] - The company expects Q2 revenue to be in the range of $18 million to $20 million, with gross margin projected between 55% and 57% [26] Other Important Information - A non-cash goodwill impairment charge of $48 million was recorded due to a decrease in market capitalization [10][30] - The company is in the process of refinancing its debt facility, with indications of interest from multiple providers [18][46] Q&A Session Summary Question: Can you elaborate on the impairment charge? - Management explained that the impairment was due to a drop in market capitalization, necessitating a reassessment of goodwill using a DCF approach, leading to a $48 million non-cash charge [30] Question: What about the bioproduction business and CAR T therapy? - Management confirmed that the BTX system is being used by a domestic customer for CAR T therapy development, indicating strong traction in the bioproduction space [31][32] Question: How is the MEA product line performing amid NIH funding uncertainties? - Management noted strong interest in the MEA product line, particularly from academic researchers, despite a slowdown in purchasing processes due to NIH budget cuts [34][35] Question: Will BTX technology compete with MaxSight? - Management indicated that while they could potentially compete, their strategy focuses on early adopters and a razor-razor blade model rather than high-volume applications [40][41] Question: Will animal testing slow down? - Management affirmed that animal testing will continue to be necessary for safety and efficacy verification, although organoids may reduce the need for large animal populations in early testing [43][45] Question: What are the refinancing terms? - Management stated that the refinancing will be more expensive than commercial debt, with a term likely around four to five years [46][49]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $21.8 million, down from $24.5 million in Q1 2024, aligning with the higher end of guidance [7][10] - Gross margin decreased to 56% from 60.3% in the previous year [8][14] - Operating loss was $49.7 million compared to a loss of $2.3 million in Q1 2024, primarily due to a goodwill impairment charge of $48 million [8][10] - Adjusted EBITDA was $800,000, down from $1.6 million in Q1 2024 [15] - Cash flow from operations improved to $3 million from $1.4 million in the prior year [16] Business Line Data and Key Metrics Changes - Revenue in The Americas declined 9.4% year-over-year and 5.4% sequentially [11] - European revenue decreased 29% sequentially and 9% year-over-year [12] - APAC revenue increased 6.6% sequentially but was down 17% compared to the prior year [13] Market Data and Key Metrics Changes - The Americas faced a slowdown attributed to budget clarity issues for academic and NIH funding [11] - European sales were impacted by a lack of seasonal bump and lower CRO sales [12] - APAC market showed slight sequential growth but anticipated challenges due to tariff announcements [13] Company Strategy and Development Direction - Focus on expanding adoption of new products while reducing costs, with an expected reduction in operating expenses by an additional $1 million per quarter starting Q2 2025 [25] - New product introductions include the SOHO telemetry devices and VivaMARS system, targeting both academic and industrial customers [19][20] - Emphasis on bioproduction applications and exploring partnerships for CAR T therapy production [21][31] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over NIH funding and the impact of tariffs on revenue, particularly in China [25][53] - Positive outlook on the adoption of organoid systems due to government policy changes encouraging alternative testing methods [24][34] - Anticipated Q2 revenue guidance is between $18 million to $20 million, with gross margin expected to be in the 55% to 57% range [25] Other Important Information - Goodwill impairment charge of $48 million was recorded due to a decrease in market capitalization [10][29] - Net debt decreased to $30.8 million, reflecting improved cash flow management [16] Q&A Session Summary Question: Can you elaborate on the impairment charge? - Management explained that the impairment was due to a drop in market cap, necessitating a reassessment of goodwill, leading to a non-cash charge of $48 million [29] Question: What about the bioproduction business and CAR T therapy? - Management confirmed that the BTX system is being adopted by a domestic biotech for CAR T therapy production, indicating strong traction in the market [31] Question: How is the MEA product line performing amid NIH funding uncertainties? - Management noted strong interest in the MEA product line, particularly from academic researchers, despite a slowdown in purchasing processes due to NIH staffing changes [34][45] Question: What are the refinancing plans? - Management indicated that refinancing will be more expensive than commercial rates, with terms likely spanning four to five years [46][48]

Financial Performance - Revenue for Q1 2025 was $21.8 million, a decrease compared to $24.5 million in Q1 2024[6] - Gross margin for Q1 2025 was $12.2 million, representing 56.0% of revenue, compared to $14.8 million or 60.3% of revenue in Q1 2024[6] - The company reported an operating loss of $49.7 million in Q1 2025, which includes a goodwill impairment of $48.0 million, compared to an operating loss of $2.3 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $0.8 million, or 3.7% of revenue, compared to $1.6 million or 6.6% of revenue in Q1 2024[6] Product Revenue by Region - In the Americas, CMT product revenue for Q1 2025 was $9.58 million, while Pre-Clinical revenue was $12.32 million[7] - Total revenue in Q1 2025 was $21.77 million, including a negative currency adjustment of $0.13 million[7] Outlook - The company expects Q2 revenues to range from $18 million to $20 million[17] - The company expects Q2 gross margin to range from 55% to 57%[17] Strategic Initiatives - The company is focused on expanding the adoption of new products while managing costs, with cost reduction actions expected to result in operating cost reductions of approximately $1 million per quarter beginning in Q2[16]

Financial Performance - First quarter 2025 revenues were $21.8 million, down 11% from $24.5 million in Q1 2024[2] - Gross margin for Q1 2025 was 56.0%, compared to 60.3% in Q1 2024[2] - Net loss for Q1 2025 was $(50.3) million, including a goodwill impairment of $(48.0) million, compared to a net loss of $(4.7) million in Q1 2024[3] - Adjusted EBITDA for Q1 2025 was $0.8 million, down from $1.6 million in Q1 2024[3] - The company reported an adjusted net loss of $(0.6) million for Q1 2025, compared to an adjusted net income of $0.7 million in Q1 2024[22] Future Projections - The company expects Q2 2025 revenues to be between $18 million and $20 million, with a gross margin of 55% to 57%[4] - The company anticipates operating cost reductions of approximately $1 million per quarter starting in Q2 2025[1] Cash Flow and Operations - Cash provided by operations in Q1 2025 was $3.0 million, compared to $1.4 million in the same period in 2024[3] Balance Sheet - Total assets decreased from $126.6 million at the end of 2024 to $79.8 million by March 31, 2025[18] - Stockholders' equity fell from $63.3 million at the end of 2024 to $14.8 million by March 31, 2025[18] Taxation - Adjusted income taxes reflect the tax effect of reconciling items using local jurisdiction tax rates[23]

Core Insights - The company reported first quarter revenues of $21.8 million, a decrease from $24.5 million in the same quarter of 2024, reflecting typical seasonal trends and uncertainties related to NIH funding and tariffs, particularly concerning sales to China [2][3] - The company experienced a significant net loss of $(50.3) million in Q1 2025, which included a goodwill impairment of $(48.0) million, compared to a net loss of $(4.7) million in Q1 2024 [3][21] - Adjusted EBITDA for the first quarter of 2025 was $0.8 million, down from $1.6 million in the prior year, while cash provided by operations increased to $3.0 million from $1.4 million [3][20] Financial Performance - Revenues for Q1 2025 were $21.8 million, down 11% from $24.5 million in Q1 2024 [2] - Gross margin decreased to 56.0% in Q1 2025 from 60.3% in Q1 2024 [2] - The company expects Q2 2025 revenues to be between $18 million and $20 million, with a gross margin in the range of 55% to 57% [4] Operational Highlights - The company is encouraged by the adoption of its MeshMEA™ organoid systems and the market reception of its SoHo™ telemetry systems [1] - Cost reduction actions are anticipated to yield operating cost reductions of approximately $1 million per quarter starting in Q2 2025 [1] Cash Flow and Balance Sheet - Cash and cash equivalents increased to $5.5 million as of March 31, 2025, compared to $4.1 million at the end of 2024 [18][20] - The company reported total assets of $79.8 million and total liabilities of $65.0 million as of March 31, 2025 [18][19]

Core Viewpoint - Harvard Bioscience, Inc. will announce its financial results for Q1 2025 on May 12, 2025, before market opens, followed by a conference call at 8:00 a.m. Eastern Time [1] Company Overview - Harvard Bioscience, Inc. is a leading developer, manufacturer, and seller of technologies, products, and services that facilitate advances in life science applications, including research, pharmaceutical and therapy discovery, bio-production, and preclinical testing [3] - The company serves a diverse customer base, including academic institutions, government laboratories, and leading pharmaceutical, biotechnology, and contract research organizations globally [3] - Operations are conducted in the United States, Europe, and China, utilizing both direct and distribution channels for sales [3]

Core Viewpoint - Harvard Bioscience, Inc. announced the resignation of Chief Financial Officer Jennifer Cote, effective upon the filing of the Quarterly Report on Form 10-Q, expected by May 12, 2025. Mark Frost has been appointed as the Interim CFO and Treasurer following her departure [1]. Group 1: Management Changes - Jennifer Cote's resignation will take effect upon the filing of the Company's Quarterly Report on Form 10-Q, anticipated by May 12, 2025 [1]. - Mark Frost has been appointed as the Interim Chief Financial Officer and Treasurer effective upon Ms. Cote's resignation [1]. - Mark Frost brings over 30 years of financial and executive-level management experience, having served as CFO for multiple public healthcare companies and as a consultant to Harvard Bioscience since January 2025 [2]. Group 2: Leadership Statements - Jim Green, Chairman and CEO, expressed confidence in Mark Frost's financial and business acumen, highlighting his extensive experience in corporate finance and as a public company CFO [3]. - Green acknowledged Jennifer Cote's contributions to the company, particularly in leading the finance team and driving initiatives such as the ERP system consolidation project [3]. Group 3: Company Overview - Harvard Bioscience, Inc. is a leading developer, manufacturer, and seller of technologies and services that support advances in life science applications, including research and drug discovery [4]. - The company serves a diverse customer base, including academic institutions, government laboratories, and leading pharmaceutical and biotechnology organizations globally [4].

Revenue and Sales - Harvard Bioscience, Inc. generated approximately 49% of its global revenues from the Cellular and Molecular Technologies (CMT) product family and 51% from the Preclinical product family for the years ended December 31, 2024 and 2023[23][24]. - Revenues from direct sales to end-users represented approximately 63% of total revenues, while sales through distributors accounted for approximately 37% for the year ended December 31, 2024[27]. - No single customer accounted for more than 10% of revenues in 2024, demonstrating a broad customer base across various sectors[26]. - A significant portion of the company's revenues is derived from pharmaceutical and biotechnology companies, which are subject to various risks including government regulation and funding uncertainties[52]. - The company anticipates that revenues from international operations will continue to increase due to efforts to expand its business abroad[56]. - Revenues decreased by $18.2 million, or 16.1%, to $94.1 million for the year ended December 31, 2024, compared to $112.3 million for the year ended December 31, 2023[113]. Financial Performance - Gross profit decreased by $11.3 million, or 17.1%, to $54.8 million for the year ended December 31, 2024, with a gross margin of 58.2%[114]. - The net loss for the year ended December 31, 2024, was $12.405 million, compared to a net loss of $3.415 million in 2023, representing an increase in loss of 263.5%[200]. - Operating (loss) income for the year ended December 31, 2024, was $(6.211) million, compared to an operating income of $1.894 million in 2023[200]. - Cash provided by operating activities decreased significantly to $1.4 million in 2024 from $14.0 million in 2023, impacted by a larger net loss and changes in operating assets and liabilities[129]. - The company reported total operating expenses of $60.977 million for 2024, a decrease of 5.5% from $64.177 million in 2023[200]. Expenses and Cost Management - Research and development expenses were approximately $10.4 million and $11.8 million for the years ended December 31, 2024 and 2023, respectively[29]. - Sales and marketing expenses decreased by $1.9 million, or 7.7%, to $22.2 million for the year ended December 31, 2024[115]. - General and administrative expenses decreased by $1.3 million, or 5.6%, to $21.5 million for the year ended December 31, 2024[116]. - Interest expense decreased by $0.4 million, or 10.6%, to $3.2 million for the year ended December 31, 2024[120]. - The company incurred $0.8 million in restructuring expenses during the year ended December 31, 2024, primarily related to headcount reductions[110]. Debt and Financing - As of December 31, 2024, the company had an outstanding indebtedness of $37.4 million under its term loan and senior revolving credit facility[46]. - The company was not in compliance with the consolidated net leverage ratio covenant as of December 31, 2024, but received a waiver from lenders on March 10, 2025[46]. - The company is exploring alternative sources of capital to refinance its outstanding indebtedness by June 30, 2025, to avoid default under the Credit Agreement[47]. - The company maintains a Credit Agreement with a term loan of $40.0 million and a $25.0 million revolving credit facility, both maturing on December 22, 2025[125]. - The March 2025 Amendment caps the lender's commitment under the revolving credit facility at the amount outstanding, preventing additional borrowings[62]. Operational Efficiency and Strategy - The company plans to pursue a balanced development portfolio strategy, focusing on both internal research and potential acquisitions to expand its product offerings[29]. - The company has consolidated its enterprise resource planning (ERP) system in the United States in 2024 to improve operational efficiency[16][30]. - Harvard Bioscience has taken steps to rationalize its product portfolio, including discontinuing non-strategic products and reducing headcount in Europe and North America[16]. - The recently introduced VivaMars™ behavioral monitoring system targets high throughput testing needs for industrial customers, including CROs and pharmaceutical companies[27]. - The company is currently implementing a plan to remediate the identified material weaknesses, but there is no assurance of timely remediation[69]. Risks and Challenges - The company faces competition from established companies with greater financial and operational resources, which may impact its market position[49]. - The life sciences industry is subject to rapid technological change, requiring the company to continually enhance and develop new products[50]. - The company is subject to risks associated with international sales, including fluctuations in foreign currency exchange rates and local economic conditions[57]. - Changes in government regulations may adversely impact the company's revenues and increase its expenses[54]. - The company faces risks associated with the development and deployment of artificial intelligence technologies, which could result in reputational harm and regulatory liabilities[73]. Internal Controls and Compliance - The company identified material weaknesses in internal controls over financial reporting as of December 31, 2024, which could adversely affect the accuracy of financial statements[68]. - The independent auditor, Grant Thornton LLP, expressed an adverse opinion on the effectiveness of internal control over financial reporting as of December 31, 2024[190]. - Material weaknesses included ineffective manual controls over revenue transactions and an inadequate cycle count program for inventory verification[165]. - Management's evaluation concluded that there is a reasonable possibility of material misstatements in financial statements due to these weaknesses[164]. - The effectiveness of internal controls is subject to inherent limitations, including the possibility of human error and changes in conditions[160]. Workforce and Human Resources - The company employed a total of 355 employees as of December 31, 2024, including 330 full-time employees[42]. - Retaining key personnel is essential; competition for qualified employees is intense, particularly in key geographic areas[84]. - The company may face significant dilution of ownership interest if additional funds are raised through equity or convertible debt[88]. Market Conditions and Economic Factors - Geopolitical instability and economic uncertainty may materially affect the company's financial condition and results of operations[89]. - Rising commodity prices could adversely impact profit margins if costs cannot be passed on to customers[94]. - Foreign currency exchange rate fluctuations may negatively impact reported earnings, as a significant portion of revenues is derived from international operations[72].

Core Viewpoint - Harvard Bioscience, Inc. is actively engaging with investors through participation in two upcoming conferences in March 2025, highlighting its commitment to investor relations and transparency [1][2]. Company Overview - Harvard Bioscience, Inc. is a prominent developer, manufacturer, and seller of technologies and services that facilitate advancements in life sciences, including research, pharmaceutical discovery, bio-production, and preclinical testing [1]. - The company's customer base includes prestigious academic institutions, government laboratories, and leading pharmaceutical and biotechnology firms, indicating a strong market presence [1]. Upcoming Events - The 37th Annual Roth Conference will take place from March 16-18, 2025, where management will conduct one-on-one meetings and participate in a Fireside Chat on March 17 at 10 a.m. PT [2]. - A virtual event, the KeyBanc Capital Markets Healthcare Forum, is scheduled for March 19, 2025, featuring one-on-one meetings and a Fireside Chat with Paul Knight at 3:45 p.m. ET [2].