Aspira Women’s Health (AWH) - 2025 Q2 - Quarterly Results

Executive Summary & Business Update Second Quarter 2025 Highlights Aspira reported stable total product revenue of $2.404 million in Q2 2025, with 12% year-over-year AUP growth for its commercial portfolio despite significant business model changes and a reduced sales team Second Quarter 2025 Key Metrics: | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------------------- | :---------- | :---------- | :--------- | | Total Product Revenue (Millions) | $2.404 | $2.423 | -0.78% | | Commercial Product Portfolio AUP Growth | - | - | 12% | | Ova1Plus AUP Growth | - | - | 11% | | OvaWatch AUP Growth | - | - | 16% | - Aspira underwent a significant reset of its business model and market strategies, focusing heavily on relationships with leading large-scale healthcare systems and Integrated Delivery Networks (IDNs) to improve efficiency and profitability[4] - The specialist field sales team delivered Q2 results with a team of 7, a substantial reduction from 19 in the same period of 2024, indicating improved sales efficiency[4] First Half 2025 Financial & Operational Performance Aspira's H1 2025 revenue grew 2.3% to $4.683 million, driven by 10.3% AUP increase; gross profit rose 17.4% to $3.1 million with 66.1% margin, while operating expenses decreased 31% and cash burn reduced 41% First Half 2025 Key Financial & Operational Highlights: | Metric | H1 2025 | H1 2024 | YoY Change | | :-------------------------------- | :---------- | :---------- | :--------- | | Total Revenue (Millions) | $4.683 | $4.576 | 2.3% | | Gross Profit (Millions) | $3.1 | $2.6 | 17.4% | | Gross Margin | 66.1% | 57.6% | +8.5 pts | | Total Operating Expenses (Millions) | $8.1 | $11.7 | -31% | | Cash Used in Operations (Millions) | $4.8 | $8.2 | -41% | | Current Liabilities (as of period end, Millions) | $4.1 (Jun 30, 2025) | $5.5 (Dec 31, 2024) | -25.1% | - Sales per full-time equivalent salesperson (FTE) increased by 156% in Q2 2025 compared to Q2 2024, reflecting improved sales productivity due to marketing strategy changes and emphasis on large healthcare systems[5] - The increase in gross profit and improved margins were primarily due to an adjustment to prior quarter revenue from collections exceeding previous estimates and improved profitability of the OvaWatch product line[7] - Operating expense reductions were driven by decreases in selling expenses ($2.3 million), general and administrative expenses ($1.1 million), and research and development expenses ($0.2 million), largely due to headcount reductions and cost containment[7] Management and Board Commentary CEO Mike Buhle highlighted improved sales productivity and gross profit margins, emphasizing efforts to reduce operating expenses and strengthen financial position, while reiterating commitment to ENDOInform™ R&D timeline with updates expected by end of 2025 - CEO Mike Buhle's top priorities include driving commercial team efficiencies, reducing operating expenses and liabilities, and strengthening Aspira's financial position[6] - Aspira remains committed to completing R&D milestones for ENDOInform™ and expects to provide material updates by the end of 2025[6] - The Board of Directors is optimistic about the new strategy and operating initiatives, believing the company is making unprecedented advancements in ovarian cancer and endometriosis diagnostic tools[8] Summary Financial Metrics (Q2 & H1 2025 vs. 2024) This section presents key financial metrics for Q2 and H1 2025 versus 2024, including total revenue, gross margin, OvaSuite volume, and Average Unit Price Key Financial Metrics (Amounts in Thousands, Except Percentages): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Total Revenue | $2,404 | $2,423 | $4,683 | $4,576 | | Gross Margin | 63.8% | 58.6% | 66.1% | 57.6% | | Total OvaSuite Volume | 5,728 | 6,471 | 11,407 | 12,300 | | Total AUP | $420 | $374 | $411 | $372 | Company Overview About Aspira Women's Health Inc. Aspira Women's Health Inc. is an AI-enhanced bio-analytics company developing noninvasive diagnostic tests for gynecologic diseases like ovarian cancer and endometriosis - Aspira Women's Health Inc. focuses on noninvasive, AI-powered tests for diagnosing gynecologic diseases[11] Product Portfolio and Pipeline Aspira's commercial portfolio, OvaSuite, offers blood tests for ovarian cancer risk assessment, while its pipeline focuses on enhanced ovarian cancer tests and the first non-invasive tests for endometriosis - Current commercial products (OvaSuite) include OvaWatch (99% negative predictive value for indeterminate/benign masses) and Ova1Plus (a reflex process of FDA-cleared tests Ova1® and Overa® for ovarian malignancy risk)[11][12] - The in-development pipeline includes enhanced ovarian cancer tests combining microRNA and protein biomarkers with patient data, and the first-ever non-invasive test for endometriosis, initially targeting endometriomas and later all endometriosis types[13] Forward-Looking Statements This section outlines forward-looking statements, emphasizing inherent risks and uncertainties that may cause actual results to differ materially, with no obligation to update except as legally required - Forward-looking statements involve risks and uncertainties, and actual results could differ materially from those discussed[14] - Aspira expressly disclaims any obligation to update these forward-looking statements, except as required by law[14] Financial Statements Condensed Consolidated Balance Sheets (Unaudited) As of June 30, 2025, Aspira's total assets decreased to $4.934 million, total liabilities decreased to $7.619 million, and stockholders' deficit slightly increased to $(2.685) million Condensed Consolidated Balance Sheets (Amounts in Thousands): | Asset/Liability | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Assets | | | | Cash and cash equivalents | $1,545 | $1,769 | | Accounts receivable, net | $1,278 | $990 | | Prepaid expenses and other current assets | $590 | $1,098 | | Inventories | $273 | $326 | | Total current assets | $3,686 | $4,183 | | Property and equipment, net | $44 | $69 | | Right-of-use assets | $1,077 | $1,194 | | Other assets | $127 | $45 | | Total assets | $4,934 | $5,491 | | Liabilities and Stockholders' Deficit | | | | Accounts payable | $1,743 | $2,173 | | Accrued liabilities | $1,829 | $2,445 | | Current portion of long-term debt | $232 | $229 | | Short-term debt | $154 | $614 | | Current maturities of lease liabilities | $140 | $7 | | Total current liabilities | $4,098 | $5,468 | | Long-term debt | $1,160 | $1,278 | | Non-current maturities of lease liabilities | $1,121 | $1,248 | | Warrant liabilities | $1,240 | $60 | | Total liabilities | $7,619 | $8,054 | | Stockholders' deficit | $(2,685) | $(2,563) | | Total liabilities and stockholders' deficit | $4,934 | $5,491 | Condensed Consolidated Statements of Operations (Unaudited) For H1 2025, Aspira reported $4.683 million in revenue, with net loss significantly improving to $(4.519) million from $(8.159) million year-over-year, and loss from operations narrowing to $(5.050) million Condensed Consolidated Statements of Operations (Amounts in Thousands, Except Per Share Data): | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Product Revenue | $2,404 | $2,423 | $4,683 | $4,576 | | Total Revenue | $2,404 | $2,423 | $4,683 | $4,576 | | Cost of Revenue | $870 | $1,002 | $1,589 | $1,941 | | Gross Profit | $1,534 | $1,421 | $3,094 | $2,635 | | Research and development | $704 | $952 | $1,677 | $1,858 | | Sales and marketing | $679 | $2,137 | $1,765 | $4,026 | | General and administrative | $1,961 | $2,725 | $4,702 | $5,854 | | Total operating expenses | $3,344 | $5,814 | $8,144 | $11,738 | | Loss from operations | $(1,810) | $(4,393) | $(5,050) | $(9,103) | | Change in fair value of warrant liabilities | $(624) | $889 | $297 | $1,140 | | Change in fair value of convertible notes | - | - | $170 | - | | Loss upon issuance of Convertible Notes | - | - | $(1,198) | - | | Interest expense, net | $(13) | $(10) | $(27) | $(15) | | Other (expense) income, net | $(219) | $(16) | $1,289 | $(181) | | Total other (expense) income, net | $(856) | $863 | $531 | $944 | | Net loss | $(2,666) | $(3,530) | $(4,519) | $(8,159) | | Net loss per share - basic and diluted | $(0.07) | $(0.28) | $(0.16) | $(0.67) | | Weighted average common shares | 35,564,032 | 12,518,725 | 28,579,132 | 12,181,481 |