Cardio Diagnostics (US:CDIO)2024-08-12 20:30Revenue Performance - Cardio reported revenue of $7,870 for the three months ended June 30, 2024, compared to $1,725 for the same period in 2023, representing a significant increase [106]. - For the six months ended June 30, 2024, Cardio's revenue was $23,798, up from $1,725 in the same period in 2023 [107]. Net Loss - The net loss for the three months ended June 30, 2024, was $1,287,995, a decrease of $2,734,910 from a net loss of $4,022,905 in the same period in 2023 [106]. - Cardio's net loss for the six months ended June 30, 2024, was $5,451,579, an increase of $396,056 compared to a net loss of $5,055,523 in the same period in 2023 [106]. Expenses - Sales and marketing expenses for the three months ended June 30, 2024, were $57,779, an increase of $26,171 from $31,608 in the same period in 2023 [107]. - Research and development expenses for the three months ended June 30, 2024, were $7,280, down from $12,317 in the same period in 2023, reflecting a decrease in laboratory runs [108]. - General and administrative expenses for Q2 2024 decreased to $1,220,477 from $2,506,148 in Q2 2023, a reduction of 51.2% [110]. - For the six months ended June 30, 2024, general and administrative expenses increased to $5,344,418 from $4,068,276 in the same period of 2023, an increase of 31.3% [110]. - Total other expenses for Q2 2024 were $(5,535), significantly lower than $(1,469,764) in Q2 2023, marking a decrease of 99.6% [112]. Cash Flow - Cash used in operating activities for the six months ended June 30, 2024 was $2,443,450, down from $2,941,899 in the same period of 2023, a decrease of 17.0% [128]. - Cash provided by financing activities for the six months ended June 30, 2024 was $2,741,056, compared to $4,008,979 in the same period of 2023, a decrease of 31.6% [132]. - Cash at June 30, 2024 totaled $1,310,119, an increase of 2.1% from $1,283,523 at December 31, 2023 [127]. Financing and Capital - The company has entered into an At-the-Market Sales Agreement allowing for the sale of up to $17.0 million in common stock, with $2,504,862 raised as of August 12, 2024 [117]. - The company expects to continue raising additional capital to fund operations and growth, primarily through equity or convertible debt securities [119]. - The company has no lines of credit or other bank financing arrangements, indicating reliance on equity financing for liquidity [123]. - As of June 30, 2024, the company has no ongoing contractual obligations negatively impacting liquidity and cash flows [136]. Legal and Compliance - The company disputes claims from Boustead Securities regarding compensation for transactions post-termination of the Placement Agent Agreement, asserting no transactions have been consummated with any parties introduced by Boustead [139]. - The company received a notice from Nasdaq on June 3, 2024, indicating that its common stock bid price had closed below the minimum $1.00 per share requirement for continued listing, with a compliance period until December 2, 2024 [145]. - The company has not initiated any legal proceedings related to the claims from Boustead Securities or the demand letter from a plaintiffs' securities law firm, believing these claims to be without merit [141]. - The company is evaluating a claim from Northland Securities for approximately $150,000 related to a previous financing agreement, but does not believe it owes any sum [143]. Insurance and Internal Controls - The company has maintained insurance coverage for claims against its directors and officers as part of its contractual obligations [145]. - The company has not experienced any changes in internal control over financial reporting that materially affect its financial reporting [153]. - The company believes its financial statements present fairly its financial position and results of operations, despite ineffective disclosure controls and procedures [150]. Accounting and Regulatory Matters - The company has filed multiple amendments to its S-4 Registration Statement in response to SEC comments, which were declared effective on October 6, 2022 [141]. - The company continues to evaluate its accounting policies and estimates, which are critical to the preparation of its consolidated financial statements [147]. Product Development and Strategy - Cardio launched its second product, PrecisionCHD™, in March 2023, following the initial launch of Epi+Gen CHD™ in 2021 [97]. - The company plans to develop additional products targeting stroke, congestive heart failure, and diabetes as part of its growth strategy [99]. - Cardio aims to expand its product adoption across key channels, including health systems and self-insured employers, particularly for its new SaaS product, HeartRisk [99]. - Cardio's new go-to-market strategy includes leveraging newly-awarded CPT PLA codes to enhance product accessibility and revenue generation [98].