Precipio(US:PRPO)2025-11-14 21:29Financial Performance - Net sales for the three months ended September 30, 2025, were approximately $6.8 million, an increase of $1.5 million or 30% compared to the same period in 2024[149] - Net sales for the nine months ended September 30, 2025, were approximately $17.4 million, an increase of $4.3 million or 33% compared to the same period in 2024[154] - Gross profit for the three months ended September 30, 2025, was approximately $3.0 million, an increase of $0.7 million or 41% compared to the prior year period[151] - Gross profit for the nine months ended September 30, 2025, was approximately $7.6 million, representing a 73% increase from $4.9 million in 2024, with a gross margin of 44% compared to 38% in 2024[156] Revenue Sources - Patient diagnostic service revenue increased by $1.5 million due to a 19% increase in cases processed, totaling 4,258 cases in Q3 2025 compared to 3,584 cases in Q3 2024[149] - Patient diagnostic service revenue increased by $4.2 million, driven by a 25% increase in processed cases, totaling 10,971 cases in 2025 compared to 8,745 cases in 2024[154] Operating Expenses - Operating expenses increased by $0.2 million for the three months ended September 30, 2025, primarily due to increased personnel costs and recruiting expenses[152] - Operating expenses increased by $0.5 million for the nine months ended September 30, 2025, with general and administrative expenses rising by $0.3 million primarily due to personnel costs[157][158] Loss and Deficit - The company incurred an operating loss of $1.7 million for the nine months ended September 30, 2025, with an accumulated deficit of $103.3 million[146] Other Income and Funding - The company recorded approximately $0.9 million of other income due to non-recurring items, including a $0.8 million Employee Retention Credit refund[145] - The company received approximately $1.1 million from Change Healthcare through a Temporary Funding Assistance Program following a cybersecurity breach[139] - The company recorded net other income of $0.9 million for the nine months ended September 30, 2025, compared to a net other expense of $45,000 in 2024[159] Cash Flow and Working Capital - Working capital improved to $1.2 million as of September 30, 2025, an increase of $2.0 million from a negative working capital of $820,000 at the end of 2024[160] - Cash flows provided by operating activities were $0.3 million for the nine months ended September 30, 2025, compared to cash used in operating activities of $0.1 million in 2024[161] - Cash flows used in investing activities were approximately $0.3 million for the nine months ended September 30, 2025, resulting from purchases of property and equipment[162] - Cash flows provided by financing activities totaled $0.8 million for the nine months ended September 30, 2025, including $1.3 million from the exercise of warrants[163] Commitments and Assessments - The company has 31,944 outstanding warrants as of September 30, 2025, with proceeds of approximately $1.3 million received from the exercise of 100,000 warrants during the three months ended September 30, 2025[147] - The company is assessing the impact of the One Big Beautiful Bill Act of 2025 on its business and financial statements[148] - The company had off-balance sheet purchase commitments of approximately $1.9 million as of September 30, 2025, primarily for laboratory reagents[167]