Cardio Diagnostics (US:CDIO)2025-03-20 20:30Financial Performance - Cardio's revenue for the year ended December 31, 2024, was $34,890, an increase of 104.8% compared to $17,065 for the year ended December 31, 2023[399]. - Cardio's net loss for the year ended December 31, 2024, was $8,383,453, a slight increase from $8,376,834 in 2023, primarily due to rising general and administrative expenses[398]. - The company incurred a net loss of $8,383,453 for the year ended December 31, 2024, adjusted for non-cash operating items[421]. Expenses - General and administrative expenses increased to $8,169,458 for the year ended December 31, 2024, up by 17.7% from $6,936,646 in 2023, primarily due to increased stock compensation expenses[403]. - Research and development expenses decreased significantly to $29,125 in 2024, down 80% from $145,182 in 2023, attributed to fewer laboratory runs on new product offerings[402]. Cash Flow - Cash at December 31, 2024, totaled $7,827,487, an increase of $6,543,964 compared to $1,283,523 at December 31, 2023[420]. - Cash used in operating activities for the year ended December 31, 2024, was $4,993,104, a decrease from $5,672,175 for the year ended December 31, 2023[421]. - Cash provided by financing activities for the year ended December 31, 2024, was $11,941,258, compared to $3,632,468 for the year ended December 31, 2023[424]. Product Development and Market Strategy - Cardio launched its second product, PrecisionCHD™, in March 2023, following the initial launch of Epi+Gen CHD™ in 2021, expanding its product portfolio for cardiovascular disease[390]. - The company expects to develop additional products for stroke, congestive heart failure, and diabetes, aiming to expand its clinical test offerings[394]. - Cardio's new go-to-market strategy aims to increase the adoption of its products across key channels, including health systems and self-insured employers[394]. Partnerships and Market Reach - The company entered into partnerships with seven new provider organizations across various states, enhancing its market reach and distribution channels[391]. - The company has generated revenue from provider organizations in 2024, indicating progress in its sales and partnership pipeline despite long sales cycles[390]. Financing and Stock Information - The company has entered a Sales Agreement allowing it to sell up to $17 million in common stock, with proceeds of $14,681,556 generated as of March 20, 2025[393]. - As of March 20, 2025, the company sold 30,959,434 shares of Common Stock under the Sales Agreement, resulting in proceeds of $14,681,556, net of offering costs[409]. - The company expects to rely primarily on the ongoing ATM Offering for the remainder of 2025, contingent on favorable market conditions[412]. - The company has no lines of credit or other bank financing arrangements and anticipates needing to raise additional funds through equity and/or debt issuance[416]. - The exercise prices of currently outstanding warrants range from $1.78 to $11.50 per share, with the last reported sales price of Common Stock at $0.4630 on March 17, 2025[418]. Compliance and Regulatory Matters - The Company received a letter from Nasdaq indicating non-compliance with the minimum bid price requirement of $1.00 per share, with an initial compliance period until December 2, 2024, and a potential extension until June 2, 2025[436]. - The Company has not regained compliance with the minimum bid price requirement as of the report date[436]. - If compliance is not achieved within the cure period, Nasdaq could delist the Company's securities[437]. - The Company is required to maintain insurance coverage for claims against its directors and officers as part of its contractual obligations[435]. Accounting Policies - The SEC has requested that registrants list their most critical accounting policies, which are important for portraying financial condition and require complex judgments[439]. - The Company accounts for stock-based compensation using the Black-Scholes option pricing model, which involves subjective assumptions that can materially affect fair value estimates[440]. - As of December 31, 2024, the Company was not subject to any market or interest rate risk[442].