Interpace Diagnostics Group, Inc.(IDXG) - 2025 Q3 - Quarterly Report

Revenue Performance - Net revenue for the three months ended September 30, 2025 decreased by $3.5 million, or 29%, to $8.8 million compared to $12.3 million for the same period in 2024, primarily due to the loss of reimbursement for the PancraGEN test[109] - Net revenue for the nine months ended September 30, 2025 decreased by $5.0 million, or 15%, to $29.5 million compared to $34.5 million for the same period in 2024[120] Cost and Profitability - Cost of revenue for the three months ended September 30, 2025 was $3.3 million, with an increase to 38% of revenue compared to approximately 36% in the prior year period[110] - Gross profit for the three months ended September 30, 2025 was approximately $5.4 million, down from $7.9 million in the same period in 2024[111] - Gross profit for the nine months ended September 30, 2025 was approximately $18.1 million, with a gross profit percentage of 61%, down from $22.0 million and 64% in 2024[122] - Operating income from continuing operations for the three months ended September 30, 2025 was $1.1 million, a decrease from $2.3 million in the same period in 2024, primarily due to reduced revenue[115] - Operating income from continuing operations was $2.5 million for the nine months ended September 30, 2025, a decrease from $6.0 million in the same period of 2024[126] - Total operating expenses for the nine months ended September 30, 2025 were $15.6 million, representing 52.8% of revenue, compared to $16.0 million or 46.3% of revenue in 2024[126] Expenses - Sales and marketing expense for the three months ended September 30, 2025 was approximately $2.1 million, down from $2.9 million in the same period in 2024, reflecting a reduction in salesforce size[112] - General and administrative expense for the three months ended September 30, 2025 was approximately $2.1 million, compared to $2.5 million in the same period in 2024, primarily due to decreased professional services costs[114] - The company incurred restructuring and related costs of approximately $0.5 million in the second quarter of 2025 and approximately $0.7 million for the nine months ended September 30, 2025 due to the loss of PancraGEN[100] - The Company incurred approximately $0.7 million in severance and related costs due to the restructuring plan[145] Strategic Decisions - The company announced that it would stop offering the PancraGEN test and would not accept specimens for testing after February 7, 2025, following the non-coverage decision by CMS[99] - The Company announced the establishment of non-coverage for the PancraGEN test, leading to its discontinuation and a restructuring plan to reduce operating costs[145] - The Company is exploring various strategic alternatives for additional liquidity, including equity and debt financings, following the delisting from Nasdaq in February 2021[142] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025 were $1.4 million, with total current assets of $9.1 million and current liabilities of $5.9 million[137] - Net cash provided by operating activities for the nine months ended September 30, 2025 was $3.7 million, compared to $3.5 million in 2024[138] - Cash used in financing activities for the nine months ended September 30, 2025 was $3.4 million, down from $4.1 million in 2024, primarily for Term Loan payments[140] - The Term Loan balance outstanding at September 30, 2025 was $1.0 million, with a reduced interest rate of 8% effective November 1, 2023[136] - Current cash and cash equivalents, along with forecasted cash receipts, are expected to be sufficient to meet cash requirements for the next twelve months[146] Operational Challenges - The Company experienced a loss from discontinued operations of approximately $0.3 million for both the nine months ended September 30, 2025 and 2024[129] - Inflation and supply chain disruptions may impact operations in the near term, although no significant impact was noted on results of operations for the periods presented[147] Accounting Policies - There have been no material changes to critical accounting policies, which include revenue recognition, leases, income taxes, and stock-based compensation expense[148]