Trinity Biotech(TRIB) - 2024 Q2 - Quarterly Report

Financial Performance - Revenues for the six-month period ended June 30, 2024, were $30,547,000, an increase of 6.4% compared to $28,727,000 for the same period in 2023[8] - Gross profit for the same period was $11,256,000, up from $10,603,000, reflecting a gross margin improvement[8] - Operating loss decreased significantly to $7,093,000 from $18,771,000 year-over-year, indicating improved operational efficiency[8] - Loss for the period from continuing operations was $10,074,000, compared to $24,651,000 in the prior year, showing a reduction of 59%[8] - Basic loss per ADS for continuing operations improved to (109.9) cents from (322.5) cents year-over-year[8] - The total comprehensive loss for the period was US$10,069,000, slightly improved from US$11,650,000 in the previous year[27] - For the six-month period ended June 30, 2024, the company reported a loss of US$10,074,000, compared to a loss of US$11,797,000 for the same period in 2023, indicating an improvement of approximately 14.6%[27] Cash and Cash Equivalents - Cash and cash equivalents at the end of the period were $5,317,000, down from $14,228,000 at the end of June 2023[11] - The company’s cash and cash equivalents rose to US$5,317,000 from US$3,691,000, representing an increase of approximately 43.9%[25] - Net cash used in operating activities was $3,919,000, a significant improvement from $7,135,000 in the same period last year[11] Assets and Liabilities - The total assets increased to US$94,355,000 as of June 30, 2024, up from US$59,435,000 at December 31, 2023, reflecting a growth of approximately 58.8%[25] - Current liabilities increased to US$25,770,000 as of June 30, 2024, compared to US$15,035,000 at December 31, 2023, marking a rise of approximately 71.5%[25] - The total assets reported as of June 30, 2024, were $94,355,000, with total liabilities of $123,755,000[63] Research and Development - The company incurred research and development expenses of $2,080,000, slightly down from $2,093,000 in the previous year[8] - Gross intangible assets increased by US$26,280,000 during the six-month period ended June 30, 2024, primarily due to the acquisition of Waveform assets and development costs for a next-generation CGM system[69] Acquisitions and Investments - The company acquired continuous glucose monitoring assets from Waveform Technologies, issuing 36 million 'A' Ordinary shares in January 2024[50] - The company acquired Waveform Technologies' CGM assets for US$12.5 million in cash and 36 million 'A' Ordinary shares, with contingent consideration of up to US$20 million[89] - The Company acquired Metabolomic Diagnostics for an enterprise value of approximately US$1.3 million, consisting of over 270,000 ADS and cash[144] Financial Management - Financial expenses decreased to $3,100,000 from $6,374,000, reflecting better management of financial costs[8] - The carrying value of the convertible note's debt component was US$15 million, with accretion interest of US$0.4 million recognized as a financial expense[81] - The balance of borrowings at the end of the six-month period was US$65,809,000, an increase from US$40,109,000 at the start of the period[104] Corporate Developments - Louise Tallon has been appointed as the new Chief Financial Officer, effective August 2024, succeeding Des Fitzgerald[122] - The Company is undergoing a comprehensive transformation plan, including ceasing manufacturing operations at the Kansas City plant by the end of 2024[62] - The Company received a deficiency letter from Nasdaq regarding the market value of publicly held shares falling below the US$15 million threshold[143] Shareholder Actions - The Company granted 12,100,000 options at an exercise price of $0.14 per 'A' Ordinary share during the six-month period ended June 30, 2024[54] - The Company issued 1,200,000 warrants to a consultant for the CGM business, with an exercise price of US$0.11 per share, exercisable until January 2029[103] - The Company issued 36,000,000 'A' Ordinary shares (1,800,000 ADSs) as partial consideration for the acquisition of Waveform assets[112] Legal and Compliance - The Company has not recorded any liability for a possible obligation related to the breach of warranty claim from Biosynth as of June 30, 2024[123] - The Company expects the majority of legal provisions to be utilized within one to three years, but the timing of settlement remains uncertain[129]