Renalytix plc(US:RNLX)2023-03-30 11:01Financial Performance - Total revenue for the three months ended December 31, 2022, was $1,192,000, representing a 41% increase from $845,000 in the same period of 2021[91]. - Gross profit for the six months ended December 31, 2022, was $754,000, compared to $608,000 for the same period in 2021, indicating a 24% increase[91]. - The net loss for the three months ended December 31, 2022, was $10,444,000, compared to a net loss of $15,322,000 for the same period in 2021, showing a 32% improvement[91]. - The company reported a net loss of $22.4 million for the six months ended December 31, 2022, compared to a net loss of $25.4 million for the same period in 2021, representing a 12% improvement[97]. - The company reported a loss from operations of $9,648,000 for the three months ended December 31, 2022, compared to a loss of $13,782,000 for the same period in 2021[91]. Cash and Liquidity - Cash and cash equivalents decreased to $23,816,000 as of December 31, 2022, from $41,333,000 as of June 30, 2022[88]. - Cash used in operating activities decreased to $15.4 million for the six months ended December 31, 2022, from $24.7 million in the prior year, indicating a 38% reduction[97]. - The accumulated deficit reached $155.1 million as of December 31, 2022, reflecting ongoing financial challenges[102]. Expenses and Liabilities - Total operating expenses for the three months ended December 31, 2022, were $10,129,000, down from $14,135,000 in the same period of 2021, reflecting a 29% decrease[91]. - Total current liabilities increased to $14,287,000 as of December 31, 2022, from $11,776,000 as of June 30, 2022, marking a 21% rise[88]. - Shareholders' equity decreased to $8,885,000 as of December 31, 2022, from $30,607,000 as of June 30, 2022, indicating a decline of 71%[88]. Revenue Sources - For the three and six months ended December 31, 2022, the Company recognized $1.0 million and $2.0 million, respectively, in testing services revenue from the KidneyIntelX platform, compared to $0.7 million and $1.1 million for the same periods in 2021[142]. - The Company recognized $0.2 million in pharmaceutical services revenue for both the three and six months ended December 31, 2022, consistent with the same periods in 2021[144]. - The Company has not recognized any professional services revenue during the three and six months ended December 31, 2022, or during the same periods in 2021[146]. Investments and Collaborations - The company plans to pursue collaborations with pharmaceutical companies, aiming to make 'Pharmaceutical Services Revenue' a core part of its business strategy[98]. - The company incurred a fair value adjustment of $1.2 million related to its investment in VericiDx during the reporting period[97]. - The Company evaluates its investments for other-than-temporary impairment on a quarterly basis, considering various factors including the financial condition and creditworthiness of the issuer[125]. Share-Based Compensation - Share-based compensation expense for the three months ended December 31, 2022, was $815,000, a decrease from $913,000 in the same period in 2021[188]. - The weighted average fair value of options granted during the six months ended December 31, 2022, was $1.16 per share, compared to $7.10 per share in 2021[189]. - As of December 31, 2022, there were 4,977,699 options outstanding under the share option plan, with a weighted average exercise price of $3.56[190]. Debt and Financing - The company issued $21.2 million in amortizing senior convertible bonds in April 2022, with total net proceeds of $18.0 million[159]. - The principal amount outstanding for the convertible bonds as of December 31, 2022, was $20.1 million[160]. - The Company announced a $20.3 million private placement of Ordinary Shares and American Depository Shares in February 2023, aimed at funding sales, marketing, and clinical product development[205]. Operational Plans - The company is focused on expanding its commercial activities and developing additional diagnostic products, which will require substantial additional capital[103]. - The company has identified various operating cost reduction options that may be implemented if revenue targets are not met[102]. Employee Compensation and Benefits - The company has a defined contribution 401(k) retirement plan, contributing $0.1 million for both the three and six months ended December 31, 2022[176]. - The Company’s Employee Share Purchase Plan (ESPP) allows eligible employees to purchase shares at 85% of the lower fair market value on the offering or purchase date, with a maximum purchase limit of $25,000 per calendar year[192]. - During the six months ended December 31, 2022, 131,412 shares were purchased under the ESPP, and the Company recognized share-based compensation expenses of $0.05 million for the same period[192][193].