Exagen(US:XGN)2023-05-15 21:16Revenue Performance - Revenue from the AVISE CTD product comprised 87% of total revenue for Q1 2023, down from 84% in Q1 2022[99] - Revenue for the three months ended March 31, 2023, increased by $0.8 million, or 8.0%, to $11.23 million compared to $10.39 million in the same period of 2022, driven by an increase in test volume[121] - The number of AVISE CTD tests delivered rose to 37,312 in Q1 2023, accounting for 87% of revenue, compared to 30,903 tests delivered in Q1 2022, which accounted for 84% of revenue[121] Financial Losses and Cash Position - The company incurred net losses of $7.7 million for Q1 2023, compared to $10.3 million for Q1 2022, and expects to continue incurring operating losses in the near term[101] - As of March 31, 2023, the company had $52.2 million in cash and cash equivalents and an accumulated deficit of $263.2 million[101] - Net loss for the three months ended March 31, 2023, was $7.69 million, a reduction of $2.58 million from a net loss of $10.27 million in Q1 2022[120] - Net cash used in operating activities for Q1 2023 was $9.75 million, compared to $8.57 million in Q1 2022[139] Operating Expenses - Total operating expenses decreased by $1.14 million, or 5.7%, to $18.94 million in Q1 2023 from $20.07 million in Q1 2022[120] - Selling, general and administrative expenses decreased by $0.3 million, or 2.2%, to $11.88 million in Q1 2023 from $12.15 million in Q1 2022[123] - Research and development expenses decreased by $1.0 million, or 46.5%, to $1.13 million in Q1 2023 compared to $2.10 million in Q1 2022[124] - The company expects selling, general and administrative expenses to decrease year-over-year due to cost-saving initiatives initiated in Q4 2022[115] - Research and development expenses are anticipated to decrease year-over-year as a result of cost-saving initiatives and the discontinuation of the AVISE RADR program[117] Market Conditions and Strategic Plans - The current inflationary environment has led to increased costs impacting revenue generation and operational expenses[107] - The company plans to continue investing in research and development to develop additional testing products, which is crucial for business growth[105] - The pricing for the AVISE Lupus test was finalized at $840.65 per test effective January 1, 2023, following a new PLA code recognition[111] Company Status and Future Outlook - The company will remain an emerging growth company until 2024, unless certain conditions are met, such as annual gross revenues exceeding $1.235 billion[148] - If the company issues more than $1.0 billion of non-convertible debt in any three-year period, it will cease to be an emerging growth company prior to the five-year anniversary[148] - The company has not yet sold any shares under the $50 million sales agreement established with Cowen and Company as of March 31, 2023[103] Interest Income and Gross Margin - Interest income increased by $0.65 million, reaching $0.66 million in Q1 2023, primarily due to rising interest rates on invested cash[127] - Gross margin as a percentage of revenue increased to 47.2% in Q1 2023 from 44.0% in Q1 2022[122]