Part I. Financial Information [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) OraSure Technologies, Inc. presents unaudited consolidated financial statements for Q1 2025, showing decreased revenue, a **$16,040 thousand** net loss, and the impact of the Sherlock Biosciences acquisition [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$457,607** | **$479,659** | | Cash and cash equivalents | $247,569 | $267,763 | | Total current assets | $313,781 | $333,220 | | **Total Liabilities** | **$61,325** | **$69,321** | | Total current liabilities | $25,422 | $33,483 | | **Total Stockholders' Equity** | **$396,282** | **$410,338** | - Total assets decreased by **$22,052 thousand** from December 31, 2024, to March 31, 2025, primarily due to a **$20,194 thousand** decrease in cash and cash equivalents[16](index=16&type=chunk) [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Revenues** | **$29,931** | **$54,132** | | Gross Profit | $12,299 | $24,065 | | Operating Loss | $(17,750) | $(7,093) | | **Net Loss** | **$(16,040)** | **$(3,584)** | | Diluted Loss Per Share | $(0.21) | $(0.05) | - Net revenues decreased by **44.7%** year-over-year, primarily due to a sharp decline in COVID-19 product sales. The net loss widened significantly from **$3,584 thousand** in Q1 2024 to **$16,040 thousand** in Q1 2025[18](index=18&type=chunk)[54](index=54&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(19,733) | $6,739 | | Net cash provided by (used in) investing activities | $370 | $(46,528) | | Net cash used in financing activities | $(953) | $(1,298) | | **Net Decrease in Cash** | **$(20,194)** | **$(43,262)** | - The company experienced a significant shift in operating cash flow, from a **$6,739 thousand** inflow in Q1 2024 to a **$19,733 thousand** outflow in Q1 2025. This was primarily driven by the net loss and changes in working capital, including payment of year-end bonuses[23](index=23&type=chunk)[117](index=117&type=chunk) [Notes to the Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Key notes detail inventory valuation changes, the Sherlock Biosciences acquisition, a steep drop in COVID-19 sales, workforce reductions, and a new stock repurchase program - The company changed its inventory valuation method from FIFO to average cost in Q1 2025 for greater precision, with an immaterial effect[27](index=27&type=chunk) - In December 2024, the company acquired Sherlock Biosciences for **$5.0 million** cash and up to **$20.0 million** contingent consideration, expanding its rapid diagnostics portfolio[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) Net Revenues by Product Line (in thousands) | Product Line | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | HIV | $12,900 | $13,380 | | Sample Management Solutions | $9,110 | $10,822 | | HCV | $4,333 | $3,000 | | COVID-19 | $461 | $23,128 | - COVID-19 product revenue plummeted from **$23,128 thousand** in Q1 2024 to just **$461 thousand** in Q1 2025, with a single U.S. government customer accounting for **40%** of Q1 2024 net revenues[54](index=54&type=chunk)[100](index=100&type=chunk) - In March 2025, the Board authorized a new **$40.0 million** stock repurchase program over two years, with no shares repurchased under it in Q1 2025[64](index=64&type=chunk) [Management's Discussion and Analysis (MD&A)](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **45%** Q1 2025 revenue decrease to **$29,931 thousand** due to a **98%** drop in COVID-19 sales, leading to a wider operating loss and reduced cash position [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Net Revenues by Category (in thousands) | Category | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Diagnostics (Core) | $17,689 | $16,380 | 8% | | Sample Management Solutions | $9,110 | $10,822 | (16)% | | COVID-19 Diagnostics | $457 | $23,097 | (98)% | | **Total Net Revenues** | **$29,931** | **$54,132** | **(45)%** | - The **98%** decrease in COVID-19 Diagnostics revenue resulted from the fulfillment of U.S. government procurement contracts for InteliSwab® tests[100](index=100&type=chunk) - Consolidated gross profit margin fell to **41.1%** from **44.5%** due to a product mix shift away from high-margin InteliSwab® sales[103](index=103&type=chunk) - Operating expenses increased, with R&D up **24%** and G&A up **21%**, primarily due to Sherlock acquisition costs and higher legal fees[105](index=105&type=chunk)[107](index=107&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity Position (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $247,569 | $267,763 | | Working capital | $288,359 | $299,737 | - Cash and cash equivalents decreased by **$20,194 thousand** during the quarter, with net cash used in operating activities totaling **$19,733 thousand**, driven by net loss and a **$6,600 thousand** decrease in accrued expenses[115](index=115&type=chunk)[117](index=117&type=chunk) - The company expects existing cash to be sufficient for operations and capital expenditures over the next twelve months[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes occurred in the company's assessment of market risk sensitivity since its 2024 Annual Report on Form 10-K - There has been no material change in the company's assessment of its sensitivity to market risk since its 2024 Annual Report[123](index=123&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025[124](index=124&type=chunk) - No material changes occurred in the company's internal control over financial reporting during Q1 2025[125](index=125&type=chunk) Part II. Other Information [Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) Updates on two legal matters: patent litigation with Spectrum Solutions concluded, and a trade secret lawsuit against NowDiagnostics, Inc. is scheduled for trial - The Court of Appeals affirmed the District Court's judgment in favor of Spectrum Solutions in patent litigation on February 14, 2025[127](index=127&type=chunk) - The company filed a trade secret misappropriation complaint against NowDiagnostics, Inc., with a preliminary injunction entered and trial scheduled for March 9, 2026[128](index=128&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) New and supplemented risk factors include stock repurchase program impact, potential FDA disruptions, and increased geopolitical and economic risks from tariffs - A new risk factor highlights the **$40.0 million** stock repurchase program's potential to increase stock price volatility and reduce cash reserves[130](index=130&type=chunk)[131](index=131&type=chunk) - Potential disruptions at the FDA and other government agencies due to staffing or funding issues could delay product reviews and approvals[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - Geopolitical and economic risks were supplemented, noting increased tariffs and trade protectionism could make offerings more expensive or non-competitive[135](index=135&type=chunk)[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A new **$40.0 million** stock repurchase program was authorized in March 2025, replacing a prior one, with no shares repurchased under it in Q1, though shares were retired for tax obligations - A new **$40.0 million** stock repurchase program was authorized in March 2025 for two years, replacing the prior program[137](index=137&type=chunk) - During Q1 2025, **252,358** shares were retired to satisfy minimum tax withholdings on vested employee stock awards[137](index=137&type=chunk)[139](index=139&type=chunk)

OraSure Q1 2025 Performance Overview [Financial Highlights](index=1&type=section&id=Financial%20Highlights) OraSure's Q1 2025 total net revenues decreased 45% to $29.9 million, with a wider operating loss of $17.8 million Revenue by Category | Revenue Category | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Core Business | $29,470 | $30,131 | (2)% | | Molecular Services | $0 | $873 | (100)% | | COVID-19 | $461 | $23,128 | (98)% | | **Total Net Revenues** | **$29,931** | **$54,132** | **(45)%** | Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **GAAP Gross Margin** | 41.1% | 44.5% | | **Non-GAAP Gross Margin** | 41.7% | 45.2% | | **GAAP Operating Loss** | ($17.8 million) | ($7.1 million) | | **Non-GAAP Operating Loss** | ($15.3 million) | ($0.3 million) | | **GAAP Net Loss** | ($16.0 million) | ($3.6 million) | | **Diluted GAAP EPS** | ($0.21) | ($0.05) | | **Diluted Non-GAAP EPS** | ($0.18) | $0.04 | - Within the core business, Diagnostics revenues grew **8%** year-over-year to **$17.7 million**, while Sample Management Solutions revenues decreased **16%** to **$9.1 million**[7](index=7&type=chunk) - The company's cash and cash equivalents were **$248 million** as of March 31, 2025[7](index=7&type=chunk) [Business and Operational Highlights](index=2&type=section&id=Recent%20Business%20Developments) OraSure advances its innovation pipeline, secures partnerships, divests a product line, and authorizes a $40 million stock repurchase - The company is making progress on its innovation roadmap, with multiple new product milestones planned for 2025 to drive future growth[3](index=3&type=chunk) - Key operational updates include: - Supporting Color Health's at-home cervical cancer risk screening test with the Colli-Pee™ collection device - Renewing the customer agreement with Myriad Genetics for Oragene™ Dx saliva collection kits - Divesting assets related to the Risk Assessment testing product line, with an expected exit in Q2 - The Board of Directors authorized a **$40 million** stock repurchase program over two years[3](index=3&type=chunk)[6](index=6&type=chunk)[13](index=13&type=chunk) [Q2 2025 Financial Guidance](index=4&type=section&id=Financial%20Guidance) For Q2 2025, OraSure forecasts total revenues between $28.5 million and $32.5 million, primarily from Core revenues Q2 2025 Financial Guidance | Guidance for Q2 2025 | Amount (in millions) | | :--- | :--- | | Total Revenues | $28.5 - $32.5 | | Core Revenues | $28.0 - $32.0 | | COVID-19 & Risk Assessment Revenues | ~$0.5 | [Detailed Financial Statements](index=5&type=section&id=Financial%20Data%20%28Unaudited%29) Unaudited Q1 2025 financial statements are presented, covering results of operations, balance sheets, and cash flows [Consolidated Results of Operations](index=5&type=section&id=Results%20of%20Operations) In Q1 2025, OraSure reported $29.9 million total revenues, $12.3 million gross profit, and a $16.0 million net loss Consolidated Results of Operations | (in thousands) | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net revenues | $29,931 | $54,132 | | Gross profit | $12,299 | $24,065 | | Operating loss | ($17,750) | ($7,093) | | Net loss | ($16,040) | ($3,584) | | Diluted loss per share | ($0.21) | ($0.05) | Revenue by Segment | Revenue by Segment (in thousands) | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Diagnostics | $17,689 | $16,380 | 8% | | Sample Management Solutions | $9,110 | $10,822 | (16)% | | Risk Assessment Testing | $1,420 | $2,080 | (32)% | | COVID-19 Diagnostics | $457 | $23,097 | (98)% | [Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20%28Unaudited%29) As of March 31, 2025, OraSure's total assets were $457.6 million, with cash at $247.6 million, and equity at $396.3 million Consolidated Balance Sheet | (in thousands) | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $247,569 | $267,763 | | Total current assets | $272,262 | $295,420 | | Total assets | $457,607 | $479,659 | | **Liabilities & Equity** | | | | Total current liabilities | $25,422 | $33,483 | | Total liabilities | $61,325 | $69,321 | | Stockholders' equity | $396,282 | $410,338 | | Total liabilities and stockholders' equity | $457,607 | $479,659 | [Consolidated Statement of Cash Flows](index=7&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20%28Unaudited%29) In Q1 2025, OraSure used $19.7 million cash from operations, resulting in a net $20.2 million decrease in cash and equivalents Consolidated Statement of Cash Flows | (in thousands) | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($19,733) | $6,739 | | Net cash provided by (used in) investing activities | $370 | ($46,528) | | Net cash used in financing activities | ($953) | ($1,298) | | **Net decrease in cash and cash equivalents** | **($20,194)** | **($43,262)** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=Statement%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) OraSure reconciles Q1 2025 GAAP net loss of $16.0 million to a non-GAAP net loss of $13.1 million, with key adjustments Reconciliation of GAAP to Non-GAAP Measures | (in thousands) | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | **GAAP Operating Loss** | **($17,750)** | **($7,093)** | | Adjustments | $2,470 | $6,768 | | **Non-GAAP Operating Loss** | **($15,280)** | **($325)** | | **GAAP Net Loss** | **($16,040)** | **($3,584)** | | Adjustments | $2,901 | $6,670 | | **Non-GAAP Net (Loss) Income** | **($13,139)** | **$3,086** | - Major non-GAAP adjustments for Q1 2025 included stock compensation (**$2.7M**), gain on sale of assets (**$0.8M**), change in fair value of contingent consideration (**$0.5M**), and loss on equity investment (**$0.5M**)[24](index=24&type=chunk)

Core Insights - OraSure Technologies reported a 45% decrease in total net revenues for Q1 2025, amounting to $29.9 million compared to $54.1 million in Q1 2024, primarily due to a significant decline in COVID-19 related revenues [3][5][12] - The company is focused on expanding its product portfolio and enhancing customer relationships while navigating current market uncertainties [2][5] Financial Performance - Core business revenues, excluding COVID-19 and Molecular Services, decreased by 2% year-over-year to $29.5 million [5] - COVID-19 revenues plummeted by 98% to $0.5 million, down from $23.1 million in the previous year [3][12] - Gross profit for Q1 2025 was $12.3 million, a 49% decline from $24.1 million in Q1 2024, resulting in a gross margin of 41.1% compared to 44.5% [4][12] - The operating loss widened to $17.8 million in Q1 2025 from a loss of $7.1 million in Q1 2024, reflecting an operating margin of -59.3% [4][12] Business Developments - The company has authorized a $40 million stock repurchase program to enhance shareholder value [2][12] - Recent business activities include supporting Color Health with a cervical cancer risk screening test and renewing a customer agreement with Myriad Genetics [12] - OraSure has divested certain assets related to its Risk Assessment testing product line, with plans to exit this business in Q2 2025 [12] Financial Guidance - For Q2 2025, the company anticipates revenues between $28.5 million and $32.5 million, with core revenues expected to be between $28 million and $32 million [8]

I last wrote about OraSure Technologies (NASDAQ: OSUR ) in November of 2024. At the time, the company's shares were trading at roughly $4 a share. Since then, OSUR has dipped to below $3 per share (at the time of this writing). In this article, we will touchI am a value investor with a concentrated portfolio, focusing on rare and exceptional buying opportunities. As a keen reader of Value Investing literature, I am well versed in the teachings of 'super investors' such as Warren Buffett, Charlie Munger, Ben ...

BETHLEHEM, Pa., April 23, 2025 (GLOBE NEWSWIRE) -- OraSure Technologies, Inc. (NASDAQ: OSUR) has scheduled its regular earnings conference call covering first quarter 2025 financial results and certain business developments for 5 p.m. ET on May 7, 2025. A webcast of the conference call will be available on the investor relations page of OraSure’s website at https://orasure.gcs-web.com/events-and-presentations. Please click on the webcast link and follow the prompts for registration and access at least 10 mi ...

Core Viewpoint - OraSure Technologies, Inc. has authorized a stock repurchase program of up to $40 million over the next twenty-four months, to be funded from cash on hand [1][2]. Company Overview - OraSure Technologies, Inc. is a leader in point-of-need and home diagnostic tests and sample management solutions, aiming to improve access, quality, and value of healthcare through innovative testing and sample management [3]. - The company, along with its subsidiaries DNA Genotek Inc. and Sherlock Biosciences, Inc., develops, manufactures, and distributes rapid diagnostic tests and sample collection devices globally [3]. Stock Repurchase Program - The stock repurchase may be executed through various methods in compliance with applicable laws, with the timing and amount determined at the management's discretion [2]. - The repurchase program can be modified, suspended, or discontinued at any time without prior notice [2].

FORM 10-K __________________________________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________ | __________________________________________________________ Delaware | 36-4370966 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employ ...

Financial Data and Key Metrics Changes - Total revenue in Q4 was $37.4 million, with core revenue of $36.5 million, reflecting a 10% year-over-year increase [28][29] - GAAP gross margin for Q4 was 36.2%, while non-GAAP gross margin was 40.1%, slightly below expectations due to lower margins in the risk assessment business and higher scrap expenses [31][32] - The company ended Q4 with zero debt and total cash and cash equivalents of $268 million [33] Business Line Data and Key Metrics Changes - Diagnostics revenue grew 9% year-over-year, generating $18.8 million in Q4, driven by strong order trends in the international HIV business [29][13] - Sample management solutions revenue increased 14% year-over-year, totaling $14.8 million in Q4 [29][13] - COVID-19 products contributed $1 million in revenue, consistent with expectations, while the risk assessment testing business generated $2.1 million in Q4 [30] Market Data and Key Metrics Changes - The international diagnostics business generated $41 million in revenue for 2024, with approximately 80% associated with donor-funded programs [15][16] - The company noted elevated uncertainty in the market environment due to freezes on US funding for foreign aid, impacting HIV testing programs in developing countries [15][19] Company Strategy and Development Direction - The company is focused on three strategic pillars: strengthening the foundation, elevating core growth, and accelerating profitable growth [7] - The acquisition of Sherlock Biosciences aims to expand the innovation pipeline with a molecular diagnostic platform [8][24] - The company plans to invest in innovation and expand its product portfolio, particularly in rapid diagnostics and sample management solutions [23][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong positioning despite near-term uncertainties, emphasizing the importance of investments in science and innovation [21][41] - The company is closely monitoring the impact of external factors, including changes in funding for HIV testing programs and NIH research funding [15][19] - Management anticipates that the combination of operational efficiencies and increased volumes will drive gross margin improvements towards the target of 50% [36] Other Important Information - The company generated positive cash flow from operations for the core business in Q4, indicating progress in operating efficiency and cost-saving initiatives [11][12] - The company expects to spend between $20 million and $25 million on the Sherlock acquisition, primarily for clinical trial development [95] Q&A Session Summary Question: What are the key uncertainties in the global market? - Management identified PEPFAR and academic funding as the primary areas of uncertainty, with PEPFAR being closely monitored [44][46] Question: Any updates on the Safarose blood collection device? - The device is still in the regulatory process, with expectations for approval in 2025 [50][51] Question: Can you elaborate on the BARDA contract and its funding? - The $7.5 million from BARDA is expected to be back-end loaded, with potential access to an additional $11 million based on milestones [55][56] Question: What is the outlook for gross margins and scrap expenses? - Scrap expenses were attributed to expired materials and are considered a one-time issue, with expectations for gross margins to improve through operational efficiencies [59][60] Question: How does the company view the potential downside from international government-funded markets? - Management emphasized bipartisan support for life-saving programs and the importance of public health, framing the international business as primarily donor-funded [102][106]

Company Performance - OraSure Technologies reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.02, and a significant decline from earnings of $0.22 per share a year ago, representing an earnings surprise of -200% [1] - The company posted revenues of $37.45 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.27%, but down from $75.88 million in the same quarter last year [2] - Over the last four quarters, OraSure has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - OraSure shares have increased approximately 10.5% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $32.72 million, and for the current fiscal year, it is -$0.13 on revenues of $146.24 million [7] Industry Outlook - The Medical - Products industry, to which OraSure belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Revenue Performance - Q4 2024 total net revenues decreased 51% to $37.4 million from $75.9 million in Q4 2023, primarily due to a decline in COVID-19 revenues[6] - Core business revenues increased 10% year-over-year to $36.5 million in Q4 2024, with diagnostics revenues up 9% to $18.8 million and sample management solutions revenues up 14% to $14.8 million[6] - COVID-19 revenues fell 98% year-over-year to $1.0 million in Q4 2024, following the completion of a major government contract[6] - Revenue for Q4 2024 was $37.445 million, a decrease from $75.881 million in Q4 2023, representing a decline of 50.7%[24] - For Q1 2025, the company anticipates revenues between $27.5 million and $31.5 million, with core revenues expected to be $27 million to $31 million[8] Profitability and Loss - The company reported a GAAP operating loss of $12.4 million in Q4 2024, compared to an operating income of $3.9 million in Q4 2023[6] - Non-GAAP Net Income for the year 2024 was a loss of $4.230 million, compared to a profit of $66.311 million in 2023, reflecting a significant decline[24] - GAAP Net Income for the year 2024 was a loss of $19.500 million, compared to a profit of $53.655 million in 2023[24] - Non-GAAP Operating Loss for Q4 2024 was $6.745 million, compared to an operating income of $11.151 million in Q4 2023[24] - GAAP Earnings Per Share for Q4 2024 was $(0.14), down from $0.27 in Q4 2023[24] - Non-GAAP Earnings Per Share for Q4 2024 was $(0.06), compared to $0.18 in Q4 2023[24] - The company reported a GAAP Operating Loss of $12.418 million for Q4 2024, compared to an operating income of $3.898 million in Q4 2023[24] Margins - GAAP gross margin for Q4 2024 was 36.2%, down from 46.3% in Q4 2023, while non-GAAP gross margin was 40.1%, down from 46.5%[6] - GAAP Gross Margin for Q4 2024 was 36.2%, down from 46.3% in Q4 2023, indicating a decrease of 10.1 percentage points[24] Cash Flow and Assets - Cash and cash equivalents stood at $267.8 million as of December 31, 2024, with cash flow from operations at $0.1 million for Q4 2024[6] - Total assets decreased from $482,845 million in December 31, 2023 to $480,859 million in December 31, 2024, a decline of approximately 0.4%[14] - Cash and cash equivalents decreased from $290,407 million in December 31, 2023 to $267,763 million in December 31, 2024, a decrease of about 7.8%[16] - Cash provided by operating activities dropped from $141,583 million in 2023 to $27,374 million in 2024, a decrease of approximately 80.7%[16] Expenditures and Compensation - Capital expenditures decreased from $10,303 million in 2023 to $3,797 million in 2024, a reduction of about 63.2%[15] - Stock-based compensation increased from $10,729 million in 2023 to $11,920 million in 2024, an increase of approximately 11.1%[15] - Stock compensation expenses for the year 2024 amounted to $11.919 million, up from $10.729 million in 2023[24] - The company recognized a reduction in workforce severance costs of $1.366 million for the year 2024, compared to $369,000 in 2023[24] Inventory and Receivables - Accounts receivable decreased from $40,171 million in December 31, 2023 to $23,816 million in December 31, 2024, a decline of about 40.6%[14] - Inventories decreased from $47,614 million in December 31, 2023 to $34,197 million in December 31, 2024, a decrease of approximately 28.2%[14] Strategic Initiatives - The company acquired Sherlock Biosciences in December 2024 to enhance its innovation pipeline with a new molecular diagnostics platform[6] - The company plans to wind down its Risk Assessment testing business while continuing to support existing customers during the first half of 2025[12] - The company is focused on expanding its product portfolio and market presence, particularly in rapid diagnostic tests and sample management solutions[18] Impairments - The company reported a loss on impairments of $4,392 million in 2024, compared to $10,829 million in 2023, indicating a reduction in impairment losses[16]