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 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].

Financial Data and Key Metrics Changes - Revenue in Q4 2024 was $24.6 million, which is 13% lower than Q4 2023 but up 12% sequentially from Q3 2024 [7][10] - Gross margin for Q4 was 57%, down from 58% in Q4 2023, with adjusted EBITDA at $3 million, a sequential improvement from $1.3 million in Q3 [17][19] - Full year 2024 adjusted EPS was $0.03 compared to $0.14 in 2023, reflecting lower gross margins offset partially by reduced operating expenses [24] Business Line Data and Key Metrics Changes - In The Americas, Q4 revenue grew 3% sequentially but was down 11% year-over-year, with preclinical sales rebounding [11] - European revenue in Q4 grew 28% sequentially but was down 7% year-over-year, driven by new product introductions [12] - APAC revenue was up 8% sequentially but down 24% year-over-year, with preclinical sales showing sequential growth but lower year-over-year due to destocking [14][15] Market Data and Key Metrics Changes - The company noted a stabilization in global revenue trends, with sequential improvements across regions [10] - The academic research segment, which constitutes about half of the business, faced headwinds due to uncertainties in NIH funding [70][72] Company Strategy and Development Direction - The company is focusing on expanding into high-growth areas such as electroporation and bioproduction, alongside new product introductions [31][32] - The implementation of a new ERP system is expected to enhance operational efficiencies and inventory management [19][80] - The company is working to extend distribution agreements in North America to increase product reach [29][96] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the visibility of NIH funding impacting academic research revenue, leading to cautious revenue guidance for Q1 2025 [44][72] - Despite challenges, management remains optimistic about maintaining positive EBITDA and cash flow to support operations and debt servicing [45][75] Other Important Information - The company has entered into an amendment with lenders to waive Q4 non-compliance with net leverage ratio covenants, requiring refinancing by June 30 [26][27] - Cash flow from operations was $1.7 million in Q4, showing sequential improvement compared to Q3 [22] Q&A Session Summary Question: What metric was breached regarding debt financing? - The net leverage ratio was impacted by three quarters of reduced revenue, affecting compliance with the covenant [49][50] Question: What was the previous debt rate and what is expected for the new transaction? - The previous rate was SOFR plus 3.75%, expected to increase by 2 to 4 percentage points in the new transaction [52][54] Question: How are new product introductions performing? - New products like MeshMEA and BTX are gaining traction, with significant sales growth in Europe [57][58] Question: Are current projects fully funded and stable? - Current academic projects are predominantly funded, with ongoing demand from pharma companies [87][90]

Core Viewpoint - Harvard Bioscience, Inc. reported a decline in revenues for both the fourth quarter and the full year of 2024, attributed to a challenging market environment and reduced spending by key customers, while also highlighting strong interest in new product offerings [2][5][6]. Fourth Quarter 2024 Results - The company reported revenues of $24.6 million for Q4 2024, down from $28.2 million in Q4 2023, reflecting a year-over-year decrease [3][4]. - Gross margin for Q4 2024 was 57.1%, slightly down from 58.0% in the previous year, primarily due to lower absorption of fixed manufacturing costs and foreign exchange impacts [3]. - Net income for Q4 2024 was $18 thousand, a significant improvement from a net loss of $(1.8) million in Q4 2023 [4]. - Adjusted EBITDA for Q4 2024 was $3.0 million, compared to $3.6 million in the same quarter of the prior year [4]. Year Ended December 31, 2024 - Total revenues for the year were $94.1 million, down from $112.3 million in 2023, driven by a challenging global market and reduced spending by contract research organizations and academic institutions [5][6]. - The gross margin for the year was 58.2%, a slight decrease from 58.9% in 2023 [5]. - The net loss for the year was $(12.4) million, compared to a net loss of $(3.4) million in 2023, largely due to lower revenues [6]. - Adjusted EBITDA for the year was $7.2 million, down from $14.6 million in 2023 [6]. Q1 2025 Guidance - The company anticipates Q1 2025 revenues to be between $19 million and $21 million, with a gross margin expected in the range of 56% to 58% [8]. Financial Position - As of December 31, 2024, total assets were $126.6 million, down from $137.4 million in 2023 [20]. - Current liabilities increased significantly to $54.96 million from $26.54 million in the previous year, primarily due to a rise in the current portion of long-term debt [20]. - Cash and cash equivalents at the end of 2024 were $4.1 million, slightly down from $4.3 million at the end of 2023 [21].

Revenue Performance - Fourth quarter 2024 revenues were $24.6 million, down 12.4% from $28.2 million in Q4 2023[3] - For the full year 2024, revenues totaled $94.1 million, down 16.2% from $112.3 million in 2023[5] - The company expects Q1 2025 revenues to be between $19 million and $21 million, with a gross margin of 56% to 58%[8] Profitability - Net income for Q4 2024 was $18 thousand, compared to a net loss of $(1.8) million in Q4 2023[4] - The net loss for 2024 was $(12.4) million, compared to a net loss of $(3.4) million in 2023[6] - Adjusted operating income for the year ended December 31, 2024, was $5,294, down from $13,075 in 2023, reflecting a decrease of 59.5%[26] - Adjusted net income for the three months ended December 31, 2024, was $2,686, compared to $1,731 in the same period of 2023[26] Margins - Gross margin for Q4 2024 was 57.1%, a slight decrease from 58.0% in Q4 2023[3] - Adjusted EBITDA for Q4 2024 was $3.0 million, down from $3.6 million in Q4 2023[4] - Adjusted EBITDA for the three months ended December 31, 2024, was $2,991, representing a margin of 12.2%[26] - The company reported an operating margin of 0.0% for the three months ended December 31, 2024, down from 1.0% in 2023[26] Cash Flow - Cash provided by operations in Q4 2024 was $1.7 million, compared to $4.3 million in Q4 2023[4] - Net cash provided by operating activities for the three months ended December 31, 2024, was $1,725, compared to $4,303 in the same period of 2023[24] - Cash and cash equivalents at the end of the period were $4,108, a decrease from $4,283 at the end of the previous year[24] Debt and Financing - Total debt, including unamortized deferred financing costs, was $33,242 as of December 31, 2024, compared to $32,840 in 2023[27] - The company incurred $1,000 in repayment of term debt during the three months ended December 31, 2024[24] Cost Management and Product Development - The company is focusing on cost management to improve operating and financial performance amid market uncertainties[3] - New products, including SoHo™ telemetry systems and MeshMEA™ organoid systems, have received strong market interest[3] - Stock-based compensation for the year ended December 31, 2024, was $4,340, down from $5,000 in 2023[26]

Core Insights - Harvard Bioscience, Inc. will showcase its latest product innovations at the Society of Toxicology conference from March 17-20, 2025, in Orlando, focusing on enhancing productivity in preclinical research and organoid-based therapeutic development [1][7]. Product Innovations - The SoHo telemetry platform allows researchers to collect and analyze data from multiple small animal models, enhancing the efficiency of neurotoxicity and cardiovascular studies [2][3]. - The VivaMARS™ Activity Monitoring System, powered by Ponemah, offers a GLP-compliant platform for real-time behavioral analysis, catering to the needs of CROs and pharmaceutical companies [4][5]. - The Mesh MEA™ Organoid Platform provides detailed electrophysiological readings from living organoids, supporting research in safety pharmacology and toxicology [6][7]. Market Positioning - The company aims to lower costs and reduce time to market for new biopharma drugs and therapies through its technological advancements [7]. - Harvard Bioscience serves a diverse customer base, including academic institutions, government laboratories, and leading pharmaceutical and biotechnology firms globally [10]. Event Participation - The company will exhibit its solutions at booth 1411 during the Society of Toxicology conference, with representatives available from March 17 to March 19, 2025 [8].