Financial Performance - The company generated research and development revenue of $5,065,000 for the three months ended June 30, 2025, compared to $7,478,000 for the same period in 2024, representing a decrease of approximately 32%[101] - Gross profit for the three months ended June 30, 2025, was $2,290,000, with a gross margin of 45.2%, compared to a gross profit of $3,314,000 and a gross margin of 44.3% for the same period in 2024[101] - The company reported a net loss of $7,968,000 for the three months ended June 30, 2025, compared to a net loss of $2,864,000 for the same period in 2024, indicating a significant increase in losses[115] - The company’s operating loss for the three months ended June 30, 2025, was $2,123,000, compared to an operating loss of $2,442,000 for the same period in 2024[115] - The company’s adjusted EBITDA for the three months ended June 30, 2025, was $(1,712,000), compared to $(2,038,000) for the same period in 2024[101] - Adjusted EBITDA for the three months ended June 30, 2025, was $(1.7) million, compared to $(2.0) million in 2024, and $(2.4) million for six months, down from $(3.9) million[127] Revenue Sources - The company anticipates two revenue streams from the DeepView System: a software as a medical device (SaMD) model and an imaging device component, with pricing to be strategically set per country[98] - BARDA revenue for the three months ended June 30, 2025, was $4.6 million, a decrease of 34.2% year-over-year, and $11.0 million for six months, down 16.2%[117] - Research and development revenue decreased to $5.1 million for the three months ended June 30, 2025, a decline of 32.3% compared to 2024, and $11.8 million for six months, down 14.7%[116] - One customer, a U.S. government agency, represents the majority of the Company's research and development revenue and accounts receivable[155] Funding and Grants - The company has received a new contract with BARDA, providing up to $150 million in funding, including an initial award of approximately $54.9 million for clinical validation studies[96] - The company received a $4.9 million grant award from MTEC in August 2024, intended to support military battlefield burn evaluation through a handheld DeepView System device[97] - The new PBS BARDA Contract has a total value of up to approximately $150.0 million, with a base phase valued at $54.9 million[129] - The Company raised an additional $2.7 million by selling 2,076,923 shares of Common Stock at an offering price of $1.30 per share[133] Cash Flow and Debt - As of June 30, 2025, the company had approximately $10.5 million in cash and an accumulated deficit of approximately $53.3 million[128] - Net cash used in operating activities increased by approximately $3.2 million to $(4,867) thousand for the six months ended June 30, 2025, compared to $(8,042) thousand for the same period in 2024[135][136] - Net cash provided by financing activities increased to approximately $10.2 million for the six months ended June 30, 2025, compared to $10.1 million for the same period in 2024, primarily due to proceeds from Avenue Financing[137] - The Company has the ability to borrow up to $15.0 million under a Loan and Security Agreement, with an initial drawdown of $8.5 million[130] - The loans under the Loan and Security Agreement mature on March 1, 2028, with an interest-only payment period of no less than 15 months[131] - The interest rates on current borrowings are Prime plus 5%, which could materially impact the Company's results of operations[152] Operational Developments - The company completed enrollment of a pivotal clinical study with 267 patients, including 42 pediatric patients, across 22 sites in the U.S. by the end of 2024[94] - The Company formed a wholly-owned subsidiary, Spectral IP, to acquire artificial intelligence intellectual property, receiving a $1.0 million investment for its development[141] - The Company expects to incur additional costs as a result of operating as a U.S. public company, impacting future capital requirements[134] - General and administrative expenses were $4.4 million for the three months ended June 30, 2025, a decrease of 23.3%, and $8.5 million for six months, down 21.8%[120]
ROSECLIFF ACQU(RCLF) - 2025 Q2 - Quarterly Report