Cardio Diagnostics (US:CDIO)2024-11-13 21:21Financial Performance - Cardio reported revenue of $6,580 for the three months ended September 30, 2024, down from $10,030 in the same period of 2023, representing a decrease of 34.5%[129] - For the nine months ended September 30, 2024, revenue increased to $30,378 from $11,755 in 2023, marking a significant growth of 158.5%[130] - Cardio's net loss for the three months ended September 30, 2024, was $1,412,566, a reduction of 26.9% from a net loss of $1,932,382 in the same period of 2023[130] - The company had a net loss of $6,864,145 for the nine months ended September 30, 2024, with an accumulated deficit of $21,232,525[156] Expenses - Sales and marketing expenses for the three months ended September 30, 2024, were $52,059, an increase of 52.8% compared to $34,067 in the same period of 2023[132] - Research and development expenses decreased to $5,247 for the three months ended September 30, 2024, from $38,708 in 2023, a decline of 86.5%[134] - General and administrative expenses remained relatively stable at $1,353,439 for the three months ended September 30, 2024, compared to $1,376,644 in 2023, a slight decrease of 1.7%[136] - General and administrative expenses for the nine months ended September 30, 2024, increased by $1,252,937 to $6,697,857 compared to $5,444,920 for the same period in 2023[137] - Total other expenses for the nine months ended September 30, 2024, significantly decreased to $(14,670) from $(1,287,444) in the prior year[140] Cash Flow - Cash at September 30, 2024, totaled $1,982,590, an increase of $699,067 from $1,283,523 at December 31, 2023[151] - Cash used in operating activities for the nine months ended September 30, 2024, was $3,600,809, a decrease from $3,986,498 in the same period of 2023[152] - Cash provided by financing activities for the nine months ended September 30, 2024, was $4,649,453, compared to $3,725,968 for the same period in 2023[155] - Cash used in investing activities for the nine months ended September 30, 2024, was $349,577, compared to $227,343 in the prior year[154] Business Strategy and Development - The company expects ongoing long sales and partnership cycles, with a strategy to develop additional products for stroke, heart failure, and diabetes[124] - Cardio launched its second product, PrecisionCHD™, in March 2023, and a cardiovascular risk intelligence platform, HeartRisk™, in February 2024[121] - The company received preliminary Medicare pricing for its tests, Epi+Gen CHD™ and PrecisionCHD™, which may enhance market access[123] - Cardio aims to expand its business operations and revenue generation through strategic partnerships and acquisitions of synergistic companies[124] Financing and Legal Matters - 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 $6,774,902 raised as of November 13, 2024[142] - The company anticipates ongoing cash needs for operations, working capital, and growth strategies, with reliance on equity financing and ATM offerings[144] - The company has no lines of credit or bank financing arrangements and expects to raise additional funds through equity or convertible debt securities[148] - Legacy Cardio has disputed Boustead Securities' claim for success fees following the termination of the Placement Agent Agreement, asserting that no transactions have been consummated with any parties introduced by Boustead[161] - The Company completed a business combination with Mana on October 25, 2022, and assumed the engagement with The Benchmark Company, LLC, which claims it is owed damages for not being offered the right to act as lead placement agent for a transaction[162] - The SEC declared the S-4 Registration Statement effective on October 6, 2022, after the Company filed multiple amendments in response to comments, and it believes the claims in the demand letter are without merit[163] - The Company received a notice from Nasdaq on June 3, 2024, indicating that its common stock bid price had closed below the minimum requirement of $1.00 per share for continued listing, with a compliance period until December 2, 2024[166] - The Company is evaluating claims related to a fee of approximately $150,000 from Northland Securities, which it does not believe it owes[164] Internal Controls and Compliance - The Company has not experienced any material changes in its internal control over financial reporting during the three and nine months ended September 30, 2024[176] - The Company maintains insurance coverage for claims against its directors and officers as part of its contractual obligations[166] - No legal proceedings have been instigated by either party regarding the disputes with Boustead Securities or Benchmark, and the Company believes the outcomes will not materially impact its financial condition[161][162] - The Company’s financial statements are prepared in accordance with GAAP, requiring estimates and judgments that may differ from actual results under different conditions[167] - The Company’s disclosure controls and procedures have been evaluated as not effective, necessitating additional analysis to ensure compliance with U.S. GAAP[173]