Enzo Biochem(ENZ) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenues for the three months ended April 30, 2025, were $6.4 million, a decrease of approximately $1.6 million or 20% compared to $8.0 million in the same period of 2024[127]. - Revenues decreased to $19.9 million in the 2025 period from $24.4 million in the 2024 period, a decline of approximately $4.4 million or 18% due to headwinds in the life sciences tools space[141]. Cost and Expenses - The cost of revenues was $3.8 million in the 2025 period, down $0.5 million or 12% from $4.3 million in 2024, resulting in a gross profit margin of approximately 39%[128]. - Cost of revenues was $11.0 million in the 2025 period, down $2.0 million or 15% from $13.0 million in the 2024 period, resulting in a gross profit margin of approximately 43%[142]. - Research and development expenses decreased by $0.1 million or 17% to $0.5 million in the 2025 period from $0.6 million in 2024[130]. - Research and development expenses decreased by $0.5 million or 24% to $1.5 million in the 2025 period compared to $2.0 million in the 2024 period[144]. - Selling, general and administrative expenses increased by $0.4 million or 10% to $4.9 million in the 2025 period compared to $4.5 million in 2024[131]. - Selling, general and administrative expenses were $14.3 million in the 2025 period, a decrease of $2.2 million or 13% from $16.6 million in the 2024 period[145]. - Legal and related expenses decreased by $0.2 million or 33% to $0.5 million in the 2025 period from $0.7 million in 2024[132]. - Legal and related expenses dropped by $1.3 million or 50% to $1.3 million in the 2025 period from $2.5 million in the 2024 period[146]. - Interest income, net decreased by $0.3 million or 47% to $0.4 million in the 2025 period compared to $0.7 million in 2024[133]. - Interest income, net decreased by $1.1 million or 44% to $1.5 million in the 2025 period compared to $2.6 million in the 2024 period[147]. Foreign Exchange and Other Income - The foreign exchange gain recognized in the 2025 period was $0.5 million, a favorable variance of $1.0 million compared to a loss of $0.5 million in 2024[136]. - The foreign exchange gain was $0.1 million in the 2025 period, a favorable variance of $0.9 million compared to a loss of $0.8 million in the 2024 period[150]. Cash Flow and Financial Position - Cash and cash equivalents decreased by $15.7 million to $36.7 million as of April 30, 2025, primarily due to net loss and dividend payments[151]. - Net cash used in operating activities was $14.2 million in the 2025 period, a favorable variance of $11.0 million compared to $25.2 million in the 2024 period[152]. - Net cash provided by investing activities was approximately $4.1 million in the 2025 period, primarily from the release of cash held in escrow[153]. Strategic Developments - 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 undergoing a strategic review process to evaluate potential transactions to maximize shareholder value, including a full sale of the Company[118]. - The Company experienced a ransomware attack in April 2023, affecting approximately 2.5 million individuals' clinical test information[120].