Enzo Biochem(ENZ) - 2025 Q2 - Quarterly Report

Revenue Performance - Revenues decreased to $7.3 million in the 2025 period from $8.5 million in the 2024 period, a decline of approximately $1.2 million or 14% due to reduced market demand, particularly outside the U.S.[128] - Revenues decreased to $13.5 million in the 2025 period from $16.4 million in the 2024 period, a decline of approximately $2.8 million or 17% due to reduced market demand, particularly outside the U.S.[140] Cost and Expenses - Cost of revenues was $3.5 million in the 2025 period, down from $4.3 million in the 2024 period, a decrease of $0.8 million or 18%, resulting in a gross profit margin of approximately 52% in 2025 compared to 49% in 2024[129] - Total operating costs and expenses were $18.8 million in the 2025 period, down from $24.0 million in the 2024 period, reflecting a decrease of $5.2 million or 22%[141] - Research and development expenses decreased to $0.5 million in the 2025 period from $0.6 million in the 2024 period, a reduction of $0.1 million or 17%[130] - Research and development expenses were $1.0 million in the 2025 period, a decrease of $0.4 million or 27% compared to $1.4 million in the 2024 period[143] - Selling, general and administrative expenses were $4.6 million in the 2025 period, down from $5.1 million in the 2024 period, a decrease of $0.5 million or 10%[131] - Selling, general and administrative expenses decreased to $9.4 million in the 2025 period from $12.0 million in the 2024 period, a reduction of $2.6 million or 22%[144] - Legal and related expenses decreased significantly to $0.4 million in the 2025 period from $0.8 million in the 2024 period, a reduction of $0.4 million or 54%[132] - Legal and related expenses were $0.8 million in the 2025 period, down from $1.8 million in the 2024 period, a decrease of $1.0 million or 56%[145] Cash Flow and Financial Position - Net cash used in operating activities was $11.0 million in the 2025 period, compared to $22.3 million in the 2024 period, a favorable variance of $11.3 million[150] - Aggregate cash and cash equivalents decreased to $40.3 million as of January 31, 2025, from $52.3 million as of July 31, 2024, a decline of $12.0 million[149] - Net cash provided by investing activities was approximately $4.5 million in the 2025 period, primarily from the release of cash held in escrow from the Labcorp Asset Purchase Agreement[151] Foreign Exchange Impact - The foreign exchange loss in the 2025 period was $0.2 million compared to a gain of $0.7 million in the 2024 period, resulting in an unfavorable variance of $0.9 million[135] - The foreign exchange loss recognized in the 2025 period was $0.4 million, compared to $0.3 million in the 2024 period, an unfavorable variance of $0.1 million[148] Strategic Initiatives - The Company completed the sale of its Clinical Services business to Labcorp for an aggregate purchase price of $113.25 million in cash on July 24, 2023[119] - The Company is exploring strategic alternatives to maximize shareholder value, including potential acquisitions or joint ventures[118] - The Company received a notice from the NYSE regarding non-compliance with listing standards, with a market capitalization below $50 million and an average closing stock price below $1.00[122]