Enzo Biochem(ENZ) - 2025 Q1 - Quarterly Report

PART I - FINANCIAL INFORMATION Presents unaudited consolidated financial statements and management's discussion for the period ended October 31, 2024 Item 1. Financial Statements This section presents the unaudited consolidated financial statements for Enzo Biochem, Inc. for the period ended October 31, 2024, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, and specific financial items Consolidated Balance Sheets Presents assets, liabilities, and equity, reflecting the company's financial position as of October 31, 2024 | Metric | October 31, 2024 (in thousands, unaudited) | July 31, 2024 (in thousands) | | :-------------------------- | :----------------------------------------- | :--------------------------- | | Total Assets | $75,291 | $85,764 | | Total Liabilities | $27,633 | $29,652 | | Total Stockholders' Equity | $47,658 | $56,112 | - Total assets decreased by $10,473 thousand from July 31, 2024, to October 31, 2024, primarily driven by a decrease in cash and cash equivalents and cash in escrow[15] - Total stockholders' equity decreased by $8,454 thousand, mainly due to the net loss for the period and a declared cash dividend[15][25] Consolidated Statements of Operations Details revenues, expenses, and net loss from continuing and discontinued operations for Q1 2025 and Q1 2024 | Metric | Three Months Ended Oct 31, 2024 (in thousands) | Three Months Ended Oct 31, 2023 (in thousands) | Change ($ in thousands) | Change (%) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :---------------------- | :--------- | | Revenues | $6,213 | $7,806 | $(1,593) | (20)% | | Total Operating Costs & Expenses | $9,835 | $13,282 | $(3,447) | (26)% | | Operating Loss | $(3,622) | $(5,476) | $1,854 | 34% | | Net Loss from Continuing Ops | $(3,071) | $(5,675) | $2,604 | 46% | | Net Loss from Discontinued Ops | $(305) | $(941) | $636 | 68% | | Total Net Loss | $(3,376) | $(6,616) | $3,240 | 49% | | Net Loss per Share (Basic/Diluted) | $(0.07) | $(0.13) | $0.06 | 46% | - Revenues decreased by 20% year-over-year, primarily due to reduced orders from large clinical market customers and a non-recurring large industrial order in the prior year[129] - Operating loss improved by 34% and total net loss decreased by 49% year-over-year, driven by significant reductions in operating costs and expenses, particularly selling, general, and administrative, and legal expenses[19][135][136] Consolidated Statements of Comprehensive Loss Outlines net loss and other comprehensive income/loss components, including foreign currency adjustments | Metric | Three Months Ended Oct 31, 2024 (in thousands) | Three Months Ended Oct 31, 2023 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Loss | $(3,376) | $(6,616) | | Foreign Currency Translation Adj. | $75 | $868 | | Comprehensive Loss | $(3,301) | $(5,748) | - The comprehensive loss significantly decreased from $(5,748) thousand in 2023 to $(3,301) thousand in 2024, primarily due to a lower net loss and reduced foreign currency translation adjustments[22] Consolidated Statements of Stockholders' Equity Reports changes in stockholders' equity, including net loss, dividends, and share-based compensation for Q1 2025 | Metric | July 31, 2024 (in thousands) | October 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :------------------------------ | | Total Stockholders' Equity | $56,112 | $47,658 | | Net Loss | — | $(3,376) | | Cash Dividend Declared | — | $(5,324) | | Share-based Compensation Charges | — | $171 | | Foreign Currency Translation Adj. | — | $75 | - Total stockholders' equity decreased by $8,454 thousand from July 31, 2024, to October 31, 2024, primarily due to the net loss of $3,376 thousand and a cash dividend declaration of $5,324 thousand[25] Consolidated Statements of Cash Flows Summarizes cash flows from operating, investing, and financing activities for Q1 2025 and Q1 2024 | Metric | Three Months Ended Oct 31, 2024 (in thousands) | Three Months Ended Oct 31, 2023 (in thousands) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net Cash Used in Operating Activities | $(8,990) | $(13,374) | | Net Cash Provided by (Used in) Investing Activities | $4,552 | $(254) | | Net Cash Used in Financing Activities | $(200) | $(518) | | Decrease in Cash & Cash Equivalents | $(4,636) | $(14,166) | | Cash & Cash Equivalents - End of Period | $47,735 | $69,207 | - Net cash used in operating activities decreased by $4,384 thousand, primarily due to a smaller net loss from continuing operations[28][141] - Net cash provided by investing activities significantly improved to $4,552 thousand in 2024, mainly due to the release of $5,000 thousand from escrow related to the Labcorp Asset Purchase Agreement[28][143][146] Notes to the Consolidated Financial Statements Explains accounting policies, significant transactions, and financial statement line items in detail Note 1 – Basis of Presentation Describes operations, reportable segments, and the impact of new accounting pronouncements - Enzo Biochem, Inc. operates primarily through its Enzo Life Sciences division, focusing on labeling and detection technologies for translational research and drug development[30] - The company has one reportable segment: Products. The clinical services business (Enzo Clinical Labs) was sold in July 2023 and is classified as discontinued operations[31][32] - New accounting pronouncements, ASU 2023-09 (Income Taxes) and ASU 2023-07 (Segment Reporting), will be effective for fiscal years beginning August 1, 2025, and July 31, 2026, respectively, with the company evaluating their impact[47][48] Note 2 – Discontinued operations Details the sale of the clinical services business and its financial impact on discontinued operations - Effective July 24, 2023, the company completed the sale of its Enzo Clinical Labs assets to Labcorp for $113.25 million in cash, ceasing clinical services operations[51] | Metric | Three Months Ended Oct 31, 2024 (in thousands) | Three Months Ended Oct 31, 2023 (in thousands) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Loss from Discontinued Operations | $(305) | $(941) | - Cash used in operating activities of discontinued operations was $6,842 thousand in Q1 2024, primarily for reductions of trade payables and accrued liabilities[53] Note 3 – Net loss per share Explains basic and diluted net loss per common share calculation and anti-dilutive securities exclusion - Basic and diluted net loss per common share were both $(0.07) for the three months ended October 31, 2024, and $(0.13) for the same period in 2023