OpGen(US:OPGN)2025-08-21 21:27Revenue and Sales Performance - Total revenue for the year ended December 31, 2024, increased by $1.8 million or 52% to $5,196,149, primarily due to the recognition of listing sponsorship services revenues[138] - Product sales decreased to $169,373 in 2024 from $2,400,053 in 2023, while laboratory services revenue fell to $26,776 from $153,719[138] - Product sales decreased approximately 93% in 2024 compared to 2023, primarily due to the insolvency filings of Curetis and Ares Genetics[140] - Laboratory services revenue decreased approximately 83% in 2024 compared to 2023, attributed to the discontinuation of Ares Genetics' products and services[140] - The Company derived revenues from various sources, including listing sponsorship, consultancy services, and sales of Unyvero Application cartridges during the years ended December 31, 2024 and 2023[153] Operating Expenses - The company incurred total operating expenses of $4,871,432 in 2024, a significant reduction from $34,166,975 in 2023, largely due to scaling down legacy operations[139] - Total operating expenses decreased 86% from $34.2 million in 2023 to $4.9 million in 2024[141] - General and administrative expenses were reduced to $4,542,025 in 2024 from $8,081,664 in 2023, aligning with the company's restructuring efforts[139] - The cost of products sold dropped to $31,636 in 2024 from $3,084,075 in 2023, reflecting the company's shift in focus[139] - Cost of products sold decreased 99% in 2024 compared to 2023, aligning with the reduction in legacy product sales[142] Research and Development - Research and development expenses decreased to $48,820 in 2024 from $4,732,851 in 2023, indicating a strategic pivot away from previous projects[139] - Research and development expenses decreased approximately 99% in 2024 compared to 2023 due to the deconsolidation of Curetis and Ares Genetics[142] Financial Position and Cash Flow - Cash and cash equivalents increased slightly to $1.3 million as of December 31, 2024, compared to $1.2 million in 2023[143] - Net cash used in operating activities was $(4.9) million in 2024, an improvement from $(14.3) million in 2023[144] - Net cash provided by financing activities was $5.0 million in 2024, primarily from preferred stock issuance[148] - The company has no material contractual commitments as of December 31, 2024, following the insolvency filings[149] - The Company anticipates funding its operations primarily through financing arrangements with AEI Capital Ltd., its controlling shareholder[150] Insolvency and Restructuring - In November 2023, Curetis and Ares Genetics filed for insolvency, leading to the deconsolidation of these subsidiaries from the company's financial statements[128][129] - An impairment charge of $1,231,874 was recorded for property and equipment during the year ended December 31, 2023, due to the Company's financial condition[159] - The Company does not have any finite-lived or indefinite-lived intangible asset balances as of December 31, 2024, following the insolvency filings for Curetis and Ares Genetics in 2023[160] Shareholder and Stock Information - The company sold 3,000,000 shares of Series E Convertible Preferred Stock for gross proceeds of $3.0 million in March 2024[130] - AEI Capital Ltd. paid the company $2.45 million in August 2024 for the remaining shares of Series E Preferred Stock, which were subsequently converted into 7,200,000 shares of common stock[131] Accounting and Revenue Recognition - Share-based compensation expense is recognized based on the fair value of stock-based awards expected to vest during the period, with the fair value estimated using the Black-Scholes model[162] - The Company recognizes revenues upon the satisfaction of its performance obligation, reflecting the consideration expected in exchange for goods or services[155] - The Company recorded a change in accounting estimate for leasehold improvement property and equipment, adjusting the balance to $1,230,332 following the identification of a subtenant[159] - As of December 31, 2024 and 2023, the Company did not have any off-balance sheet arrangements[165] - The Company had no material incremental costs to obtain customer contracts in any period presented[156] Inventory and Reserves - As of December 31, 2024, the total inventory reserves were $1,225,975, down from $1,280,805 in 2023, resulting in a net carrying value of zero due to significant uncertainty in future demand[158]