Financial Performance - Revenues decreased by $2.7 million, or 11.2%, to $21.8 million for the three months ended March 31, 2025, compared to $24.5 million for the same period in 2024[80]. - Gross profit decreased by $2.6 million, or 17.5%, to $12.2 million, with a gross margin of 56.0% for the three months ended March 31, 2025, down from 60.3% in 2024[81]. - Cash provided by operating activities increased to $3.0 million for the three months ended March 31, 2025, compared to $1.4 million in the same period of 2024, reflecting a growth of approximately 113%[96]. - Cash used in investing activities rose to $0.7 million in Q1 2025 from $0.2 million in Q1 2024, primarily due to capital expenditures for manufacturing and software development[97]. - Cash used in financing activities was $1.2 million for the three months ended March 31, 2025, compared to $1.1 million in the same period of 2024, with $1.0 million allocated to debt repayments[98]. Expenses - Sales and marketing expenses decreased by $0.9 million, or 15.8%, to $5.0 million for the three months ended March 31, 2025[82]. - General and administrative expenses decreased by $0.8 million, or 13.0%, to $5.2 million for the three months ended March 31, 2025[83]. - Research and development expenses decreased by $0.6 million, or 19.5%, to $2.3 million for the three months ended March 31, 2025[84]. Cash and Liquidity - Cash and cash equivalents increased to $5.5 million as of March 31, 2025, compared to $4.1 million as of December 31, 2024[91]. - Cash and cash equivalents increased by $1.4 million in Q1 2025, contrasting with a decrease of $28,000 in Q1 2024[96]. - The company experienced cash inflows from accounts receivable of $0.7 million and inventories of $1.3 million in Q1 2025, contributing to the positive cash flow from operations[96]. - Borrowings outstanding were $36.4 million as of March 31, 2025, down from $37.4 million as of December 31, 2024[91]. - There is substantial doubt about the company's ability to continue as a going concern unless alternative sources of capital are accessed or repayment dates under the Credit Agreement are extended[95]. Impairments and Losses - A non-cash goodwill impairment charge of $48.0 million was recorded during the three months ended March 31, 2025[86]. - Losses associated with the translation of foreign equity into U.S. dollars were $1.3 million for Q1 2025, compared to $0.8 million in Q1 2024, indicating an increase of 62.5%[100]. - Currency exchange rate fluctuations contributed to a loss of $0.2 million in Q1 2025, while such fluctuations were not significant in Q1 2024[100]. Foreign Currency Impact - The effect of foreign currency exchange rates resulted in a $0.1 million unfavorable impact on revenues and a $0.1 million favorable impact on expenses during Q1 2025[100]. - Recent accounting pronouncements impacting the business are detailed in the financial statements[102]. Accounting Policies - There have been no material changes to the critical accounting policies underlying the financial statements[101].
Harvard Bioscience(HBIO) - 2025 Q1 - Quarterly Report