Harvard Bioscience(US:HBIO)2025-11-06 21:31Financial Performance - Revenues decreased by $1.4 million, or 6.3%, to $20.6 million for the three months ended September 30, 2025, compared to $22.0 million for the same period in 2024[86] - Gross profit decreased by $0.8 million, or 5.8%, to $12.0 million for the three months ended September 30, 2025, with a gross margin of 58.4%[87] - Revenues decreased by $6.8 million, or 9.7%, to $62.8 million for the nine months ended September 30, 2025, compared to $69.6 million for the same period in 2024[97] - Gross profit decreased by $5.1 million, or 12.3%, to $35.7 million for the nine months ended September 30, 2025, with a gross margin of 56.9%[98] Expenses - Sales and marketing expenses decreased by $0.9 million, or 16.4%, to $4.6 million for the three months ended September 30, 2025[88] - General and administrative expenses decreased by $0.8 million, or 17.2%, to $4.2 million for the three months ended September 30, 2025[89] - Research and development expenses decreased by $0.5 million, or 16.9%, to $2.1 million for the three months ended September 30, 2025[90] - Interest expense increased by $0.2 million, or 8.6%, to $2.6 million for the nine months ended September 30, 2025[105] Taxation - The effective tax rate for the three months ended September 30, 2025, was (8.6)%, compared to (6.9)% for the same period in 2024, primarily due to changes in income mix by jurisdiction[95] - The income tax benefit for the nine months ended September 30, 2025 was $(0.3) million, with an effective tax rate of 0.6%, compared to a benefit of $0.2 million and an effective tax rate of (1.4)% for the same period in 2024[107] Cash Flow and Liquidity - Cash and cash equivalents increased to $6.8 million as of September 30, 2025, up from $4.1 million as of December 31, 2024[108] - Net cash provided by operating activities was $6.8 million for the nine months ended September 30, 2025, compared to $(0.3) million for the same period in 2024, driven by a reduction in accounts receivable of $2.8 million and inventories of $1.6 million[115] - Net cash used in investing activities was $1.3 million for the nine months ended September 30, 2025, primarily for capital expenditures, compared to $0.9 million in 2024[116] - The company made $3.0 million in debt repayments on its term loan during the nine months ended September 30, 2025, resulting in net cash used in financing activities of $(3.7) million[117] - The company received ERTC refunds totaling $5.4 million as of September 30, 2025, contributing positively to cash flow[109] Compliance and Going Concern - The company was not in compliance with Refinancing Milestones and financial covenants as of June 30, 2025, leading to an amendment agreement with lenders to waive certain defaults[111] - The company continues to explore alternative sources of capital to refinance its outstanding indebtedness, but access to such capital remains uncertain[112] - There is substantial doubt about the company's ability to continue as a going concern unless it can access other sources of capital or extend repayment dates under the Credit Agreement[113] Other Financial Impacts - Goodwill impairment increased by $48.0 million for the nine months ended September 30, 2025, due to a sustained decrease in stock price and other factors[103] - The company recorded a loss on equity securities of $1.6 million from the sale of Harvard Apparatus Regenerative Technology Inc. stock, which was sold for $1.9 million during the nine months ended September 30, 2024[106]