Biodesix(US:BDSX)2022-05-11 10:16Financial Performance - Total revenue for Q1 2022 was $6.5 million, a decrease of 77% compared to Q1 2021, primarily due to a decline in COVID-19 testing revenue[103]. - Core lung diagnostic revenue increased by 17% to $4.6 million, driven by growth in Nodify lung nodule management tests[103]. - COVID-19 testing revenue fell by 96% to $1.0 million, reflecting the shift towards at-home testing as the pandemic recedes[103]. - Total revenue decreased by $22.3 million or 77% for the three months ended March 31, 2022, compared to the same period in 2021, primarily due to a $21.6 million decrease in diagnostic test revenue[120]. - Net loss for Q1 2022 was $15.6 million, an increase of 124% compared to the same quarter in the previous year[105]. - Net loss for the three months ended March 31, 2022, was $15.6 million, compared to a net loss of $6.96 million for the same period in 2021, representing an increase of $8.63 million or 124%[118]. - The company experienced a decline in COVID-19 testing revenue due to expiring contracts and increased vaccination rates, impacting overall revenue[126]. - The company began to see recovery in lung diagnostic testing during the latter half of the first quarter 2022, with tests delivered in March reaching an all-time high[126]. Cash and Funding - As of March 31, 2022, Biodesix had cash and cash equivalents of $16.4 million, down from $32.7 million as of December 31, 2021[97]. - The company raised approximately $11.7 million in net equity proceeds through a private placement and closed a $25 million debt facility, with the first tranche providing $15 million[97]. - The Company raised approximately $16.3 million in gross proceeds from the sale of 3,756,994 common shares at a public offering price of $4.35 per share[128]. - The Company raised approximately $2.7 million in gross proceeds from the sale of 1,349,139 common shares at a weighted average price per share of $2.04 in April 2022[130]. - The Company raised approximately $1.6 million in gross proceeds from the sale of 708,752 common shares at a weighted average price per share of $2.26 during the three months ended March 31, 2022[128]. - The Company has yet to generate positive cash flows from operations and has funded operations primarily through the sale of common stock and incurrence of indebtedness[126]. - Cash and cash equivalents stood at $16.4 million as of March 31, 2022, after a reduction of $4.625 million for a scheduled milestone payment[105]. - The Company incurred significant losses since inception and funded operations primarily through the sale of common stock and convertible preferred stock[128]. Expenses and Investments - Operating expenses increased by 10% to $17.8 million, primarily due to growth in sales and marketing for the GeneStrat NGS commercial launch[105]. - Research and development expenses are expected to increase as the company continues to innovate and develop additional products[111]. - Sales and marketing expenses are anticipated to rise as the company expands its sales force and marketing activities to drive awareness and adoption of its tests[112]. - Sales, marketing, general and administrative expenses increased by $2.6 million or 21% for the three months ended March 31, 2022, compared to the same period in 2021[122]. - Total operating expenses decreased by $13.4 million or 39% for the three months ended March 31, 2022, compared to the same period in 2021[118]. - Research and development expenses decreased by $0.1 million or 3% for the three months ended March 31, 2022, compared to the same period in 2021[121]. - Interest expense increased by $0.5 million or 75% for the three months ended March 31, 2022, compared to the same period in 2021[125]. Operational Highlights - Biodesix commercialized eight diagnostic tests, including Nodify XL2 and Nodify CDT, which assess lung cancer risk and have reduced turnaround times from 72 hours to less than 36 hours[95]. - The company has performed over 500,000 tests since inception and has a biobank with over 150,000 samples for research and development[97]. - The average turnaround time for GeneStrat targeted tumor profiling and VeriStrat immune profiling tests has improved to less than 36 hours, enhancing treatment decision timelines[95]. - Biodesix aims to leverage its multi-omic data for revenue-generating opportunities in novel target identification and companion diagnostic development[99]. - The company has invested heavily in clinical studies, resulting in approximately 90 peer-reviewed publications, to support the clinical utility of its tests[99]. - Biodesix plans to increase sales and marketing expenses to attract new biopharmaceutical customers and expand relationships with existing ones[99]. - The company has partnered with Bio-Rad to commercialize COVID-19 testing programs, including two FDA EUA authorized tests[97]. Financial Obligations - As of March 31, 2022, total contractual obligations and commitments amount to $49.546 million, with $20.535 million due within one year[133]. - The company has $10 million outstanding on the 2021 Term Loan, subject to a floating interest rate of either 2.00% above the prime rate or 5.25%[146]. - The company achieved a gross margin target related to the purchase transaction of Indi, resulting in contingent obligations of $37.0 million payable through six quarterly installments starting January 2022[133]. - Operating lease obligations total $2.546 million, with $1.310 million due within one year[133]. - The company has not entered into any off-balance sheet arrangements as of March 31, 2022[135]. - The company adopted ASC 842 on January 1, 2022, recording operating lease right-of-use assets of $1.3 million[141]. - A hypothetical 100 basis point increase in interest rates would not materially impact the company's financial position or results of operations[146]. Regulatory and Reporting - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from public company reporting requirements[144]. - The company has not reported any significant changes to future contractual obligations since its Annual Report for the year ended December 31, 2021[133]. - The company recognizes diagnostic test revenues upon delivery of test results, which is considered the completion of its performance obligation[138].