OraSure Technologies(US:OSUR)2025-05-07 20:19Part I. Financial Information Financial Statements OraSure Technologies, Inc. presents unaudited consolidated financial statements for Q1 2025, showing decreased revenue, a $16,040 thousand net loss, and the impact of the Sherlock Biosciences acquisition Consolidated Balance Sheets | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $457,607 | $479,659 | | Cash and cash equivalents | $247,569 | $267,763 | | Total current assets | $313,781 | $333,220 | | Total Liabilities | $61,325 | $69,321 | | Total current liabilities | $25,422 | $33,483 | | Total Stockholders' Equity | $396,282 | $410,338 | - Total assets decreased by $22,052 thousand from December 31, 2024, to March 31, 2025, primarily due to a $20,194 thousand decrease in cash and cash equivalents16 Consolidated Statements of Operations | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Revenues | $29,931 | $54,132 | | Gross Profit | $12,299 | $24,065 | | Operating Loss | $(17,750) | $(7,093) | | Net Loss | $(16,040) | $(3,584) | | Diluted Loss Per Share | $(0.21) | $(0.05) | - Net revenues decreased by 44.7% year-over-year, primarily due to a sharp decline in COVID-19 product sales. The net loss widened significantly from $3,584 thousand in Q1 2024 to $16,040 thousand in Q1 20251854 Consolidated Statements of Cash Flows | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(19,733) | $6,739 | | Net cash provided by (used in) investing activities | $370 | $(46,528) | | Net cash used in financing activities | $(953) | $(1,298) | | Net Decrease in Cash | $(20,194) | $(43,262) | - The company experienced a significant shift in operating cash flow, from a $6,739 thousand inflow in Q1 2024 to a $19,733 thousand outflow in Q1 2025. This was primarily driven by the net loss and changes in working capital, including payment of year-end bonuses23117 Notes to the Consolidated Financial Statements Key notes detail inventory valuation changes, the Sherlock Biosciences acquisition, a steep drop in COVID-19 sales, workforce reductions, and a new stock repurchase program - The company changed its inventory valuation method from FIFO to average cost in Q1 2025 for greater precision, with an immaterial effect27 - In December 2024, the company acquired Sherlock Biosciences for $5.0 million cash and up to $20.0 million contingent consideration, expanding its rapid diagnostics portfolio737475 Net Revenues by Product Line (in thousands) | Product Line | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | HIV | $12,900 | $13,380 | | Sample Management Solutions | $9,110 | $10,822 | | HCV | $4,333 | $3,000 | | COVID-19 | $461 | $23,128 | - COVID-19 product revenue plummeted from $23,128 thousand in Q1 2024 to just $461 thousand in Q1 2025, with a single U.S. government customer accounting for 40% of Q1 2024 net revenues54100 - In March 2025, the Board authorized a new $40.0 million stock repurchase program over two years, with no shares repurchased under it in Q1 202564 Management's Discussion and Analysis (MD&A) Management discusses a 45% Q1 2025 revenue decrease to $29,931 thousand due to a 98% drop in COVID-19 sales, leading to a wider operating loss and reduced cash position Results of Operations Net Revenues by Category (in thousands) | Category | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Diagnostics (Core) | $17,689 | $16,380 | 8% | | Sample Management Solutions | $9,110 | $10,822 | (16)% | | COVID-19 Diagnostics | $457 | $23,097 | (98)% | | Total Net Revenues | $29,931 | $54,132 | (45)% | - The 98% decrease in COVID-19 Diagnostics revenue resulted from the fulfillment of U.S. government procurement contracts for InteliSwab® tests100 - Consolidated gross profit margin fell to 41.1% from 44.5% due to a product mix shift away from high-margin InteliSwab® sales103 - Operating expenses increased, with R&D up 24% and G&A up 21%, primarily due to Sherlock acquisition costs and higher legal fees105107 Liquidity and Capital Resources Liquidity Position (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $247,569 | $267,763 | | Working capital | $288,359 | $299,737 | - Cash and cash equivalents decreased by $20,194 thousand during the quarter, with net cash used in operating activities totaling $19,733 thousand, driven by net loss and a $6,600 thousand decrease in accrued expenses115117 - The company expects existing cash to be sufficient for operations and capital expenditures over the next twelve months120 Quantitative and Qualitative Disclosures About Market Risk No material changes occurred in the company's assessment of market risk sensitivity since its 2024 Annual Report on Form 10-K - There has been no material change in the company's assessment of its sensitivity to market risk since its 2024 Annual Report123 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025124 - No material changes occurred in the company's internal control over financial reporting during Q1 2025125 Part II. Other Information Legal Proceedings Updates on two legal matters: patent litigation with Spectrum Solutions concluded, and a trade secret lawsuit against NowDiagnostics, Inc. is scheduled for trial - The Court of Appeals affirmed the District Court's judgment in favor of Spectrum Solutions in patent litigation on February 14, 2025127 - The company filed a trade secret misappropriation complaint against NowDiagnostics, Inc., with a preliminary injunction entered and trial scheduled for March 9, 2026128 Risk Factors New and supplemented risk factors include stock repurchase program impact, potential FDA disruptions, and increased geopolitical and economic risks from tariffs - A new risk factor highlights the $40.0 million stock repurchase program's potential to increase stock price volatility and reduce cash reserves130131 - Potential disruptions at the FDA and other government agencies due to staffing or funding issues could delay product reviews and approvals132133134 - Geopolitical and economic risks were supplemented, noting increased tariffs and trade protectionism could make offerings more expensive or non-competitive135136 Unregistered Sales of Equity Securities and Use of Proceeds A new $40.0 million stock repurchase program was authorized in March 2025, replacing a prior one, with no shares repurchased under it in Q1, though shares were retired for tax obligations - A new $40.0 million stock repurchase program was authorized in March 2025 for two years, replacing the prior program137 - During Q1 2025, 252,358 shares were retired to satisfy minimum tax withholdings on vested employee stock awards137139