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].

Core Viewpoint - Harvard Bioscience, Inc. will announce its financial results for Q4 2024 on March 12, 2025, before market opening, followed by a conference call at 8:00 a.m. Eastern Time [1] Company Overview - Harvard Bioscience, Inc. is a prominent developer, manufacturer, and seller of technologies and products that facilitate advancements in life sciences, including research, pharmaceutical discovery, bio-production, and preclinical testing [3] - The company serves a diverse customer base, including prestigious academic institutions, government laboratories, and leading pharmaceutical and biotechnology firms, with operations in the United States, Europe, and China [3]

Company Announcement - Harvard Bioscience, Inc. will participate in the Sidoti Micro Cap Virtual Conference on January 22nd, 2025, with a presentation scheduled for 10:00 am ET [1] - The presentation will be available via live webcast on the company's investor relations website, with a replay accessible shortly after the event [2] Company Overview - Harvard Bioscience, Inc. is a prominent developer, manufacturer, and seller of technologies and products that facilitate advancements in life sciences, including research, pharmaceutical and therapy discovery, bio-production, and preclinical testing [3] - The company's customer base includes prestigious academic institutions, government laboratories, and leading pharmaceutical, biotechnology, and contract research organizations globally [3] - Harvard Bioscience operates in North America, Europe, and China, utilizing both direct and distribution channels to reach customers worldwide [3]

Company Announcement - Harvard Bioscience, Inc. will participate in the Sidoti Micro Cap Virtual Conference on January 22, 2025, with a presentation scheduled for 10:00 am ET [1] - The presentation will be available via live webcast on the company's investor relations website, with a replay accessible shortly after the event [2] Company Overview - Harvard Bioscience, Inc. is a prominent developer, manufacturer, and seller of technologies and products that facilitate advancements in life sciences, including research, pharmaceutical and therapy discovery, bio-production, and preclinical testing [2] - The company's customer base includes prestigious academic institutions, government laboratories, and leading pharmaceutical, biotechnology, and contract research organizations globally [2] - Harvard Bioscience operates in North America, Europe, and China, utilizing both direct and distribution channels for sales [2]

Financial Data and Key Metrics - Revenue in Q3 2024 was $22 million, down 13% YoY and 5% sequentially, primarily due to weakness in China and Asia Pacific [7] - Gross margin was $12.8 million or 58.1%, close to the 60% target despite a low revenue quarter [9] - GAAP operating loss was $1.9 million, while adjusted operating income was $800,000 or 3.8% of revenue [9] - Adjusted EBITDA was $1.3 million or 6% of revenue [9] - Cash flow used in operations was $0.8 million in Q3 2024, compared to $4.4 million provided in the same period last year [24] Business Line Performance - Americas revenue was down 12% YoY but stabilized sequentially, with preclinical sales declining 26% YoY due to COVID-related respiratory products and telemetry system software [13] - Cellular and Molecular (CMT) revenue grew 15% YoY in the Americas, showing modest sequential growth [14] - Europe revenue was down 12% YoY but stabilized sequentially, with preclinical sales down 21% YoY and CMT sales down 7% YoY [15] - APAC revenue was down 20% YoY and 20% sequentially, with preclinical sales down 32% YoY and CMT sales down 5% YoY [16] Market Performance - Americas and Europe markets are stabilizing, with flat sequential revenue for the last three quarters [8] - China and APAC markets saw further weakness in Q3, but are expected to stabilize or improve modestly going forward [8] - Global trailing 3-month order profile shows an inflection point to growth since June, with booking trends increasing for four months [17] Company Strategy and Industry Competition - The company successfully transitioned all U.S. operations to a modern ERP system, improving inventory and supply chain management [10] - Cost reduction actions in Q3 and early Q4 are expected to reduce operating expenses by $1 million per quarter starting in Q4 [11] - New product introductions, including the SoHo telemetry devices and VivaMARS neurobehavioral monitoring system, are expected to drive incremental growth [31][32] - The company is focusing on high-growth areas like electroporation, bioproduction, and Mesh MEA organoid platforms, with strong interest from biopharma and CRO customers [34][37] Management Commentary on Operating Environment and Future Outlook - Management expects Q4 revenue to range between $23 million and $26 million, with gross margins in the 59% to 60% range [41] - Adjusted EBITDA margins are expected to be in the mid-teens for Q4, with full-year EBITDA margins in the high single-digits [42] - The company is optimistic about 2025, with new products expected to drive high single-digit to double-digit growth [50][57] Other Important Information - The company settled a defined benefit plan in the U.K., removing future annuity payments and resulting in a noncash realized loss of $1.2 million [22] - Net debt at the end of Q3 2024 was slightly above the net debt at the end of the year, with minimal net borrowings against the revolver [25] - The company amended its credit agreement in Q3, limiting additional borrowings until annual financials are reported in March 2025 [26] Q&A Session Summary Question: CRO Dynamics and Revenue Contribution - CROs contribute about 25% of the company's global revenue, with mixed performance due to tightening budgets in biotech and pharma [44][45] - The company expects CRO demand to stabilize, with a return to normalized run rates in safety and assessment [45][52] Question: New Product Growth Potential - Electroporation and bioproduction segments are expected to grow at 20% or better, contributing 10% of current revenue [57] - Mesh MEA organoid platforms are expected to grow at a 50% to 100% CAGR, potentially adding 4-5 points of total compound growth to the business [58][59] Question: China Market Stability - The company sees signs of stabilization in China, particularly in academic research, but CRO and pharma spending remains weak [51][63] - The company expects China to stabilize and grow modestly, focusing on high-value, IP-protected products [63][66] Question: Mesh MEA Order and Shipment Lag - The company is ramping up production of Mesh MEA systems, with plans to increase biochip production tenfold by Q2 2025 [69][71] - Early adopters are showing strong interest, with potential for $1 million to $2 million in quarterly growth from these systems [68][71]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2024 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-33957 HARVARD BIOSCIENCE, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 04-3306140 (State or other jurisdiction of In ...

Exhibit 99.1 Harvard Bioscience Announces Third Quarter 2024 Financial Results HOLLISTON, Mass., November 7, 2024 (GLOBE NEWSWIRE) -- Harvard Bioscience, Inc. (Nasdaq: HBIO) (the "Company") today announced financial results for the third quarter ended September 30, 2024. Jim Green, Chairman and CEO, said, "Our third quarter revenues continued to reflect the effects of the challenging market environment. Our migration to a single US enterprise resource planning system, completed in the third quarter, support ...