Oncocyte(US:OCX)2025-05-12 20:12Revenue Growth - Total net revenue increased to $2.1 million for the three months ended March 31, 2025, compared to $176,000 in the same period in 2024, representing a 1115% increase [212]. - Pharma Services revenue increased by $2.0 million, with revenue from one existing customer amounting to approximately $2.1 million during Q1 2025 [214]. Expenses - Research and development expenses rose by $612,000, driven by costs associated with the development of GraftAssureCore, GraftAssureIQ, DetermaIO, and DetermaCNI [214]. - Sales and marketing expenses increased by $360,000, primarily due to ramped-up activities related to the transplant business and oncology commercialization efforts [214]. - General and administrative expenses increased by $442,000, mainly due to higher personnel-related expenses and professional fees [214]. - Research and development expenses increased by 26% to $2.9 million for the three months ended March 31, 2025, compared to $2.3 million in the same period of 2024 [219]. - Sales and marketing expenses rose by 43% to $1.2 million for the three months ended March 31, 2025, up from $846,000 in the prior year [221]. - General and administrative expenses increased by 17% to $3.1 million for the three months ended March 31, 2025, compared to $2.7 million in 2024 [222]. Net Loss and Financial Position - The net loss for the three months ended March 31, 2025, was $6.7 million, a reduction of $2.5 million compared to a net loss of $9.1 million in the prior year [214]. - The net loss for the period was $6.7 million, with net cash used in operating activities amounting to $5.9 million [240]. - The company had an accumulated deficit of $357.2 million as of March 31, 2025 [229]. - Cash and cash equivalents stood at $31.0 million as of March 31, 2025 [229]. Financing Activities - A private placement in February 2025 raised approximately $29.1 million in gross proceeds, with net proceeds of approximately $28.7 million after expenses [211]. - The gross proceeds from the February 2025 Offering were approximately $29.1 million, with net proceeds of approximately $28.7 million after expenses [231]. Strategic Developments - The company received a positive coverage decision from MolDx for GraftAssureCore (Kidney) in August 2023, with commercial availability starting in January 2024 [203]. - The company confirmed Medicare reimbursement for monitoring certain high-risk patients in December 2024 [203]. - The company is focusing on commercializing its oncology product line, including DetermaIO, over the next 12 months [207]. - A global strategic partnership with Bio-Rad was established to collaborate on the development and commercialization of transplant products [234]. Contingent Consideration and Impairments - As of March 31, 2025, total contingent consideration liabilities were $38.8 million, up from $37.9 million as of December 31, 2024 [251]. - Stock-based compensation for the three months ended March 31, 2025, was $473,000, compared to $418,000 for the same period in 2024 [257]. - A total impairment of $41.9 million was recorded for certain oncology-related IPR&D intangible assets as of December 31, 2024 [253]. - An impairment loss of $169,000 was recognized on held for sale assets during the three months ended March 31, 2024 [254]. - The company established an allowance for credit losses of $36,000 as of March 31, 2025, compared to $16,000 as of December 31, 2024 [256]. Cash Flow and Investment Activities - Net cash used in operating activities amounted to $3.8 million, excluding noncash items totaling $4.0 million [241]. - Cash used in investing activities for the three months ended March 31, 2024, was $24,000 [242].