OpGen(US:OPGN)2024-06-03 20:59Financial Performance - Total revenue for the year ended December 31, 2023, increased by 31% to $3.4 million, compared to $2.6 million in 2022, primarily driven by a 27% increase in product sales [101]. - Product sales reached $2,400,053 in 2023, up from $1,893,862 in 2022, largely due to a one-time sale of 25 sets of Unyvero instruments in Q4 2023 [101]. - Collaboration revenue grew by approximately 60% in 2023, totaling $864,548, compared to $540,798 in 2022, attributed to extensions and expansions of the collaboration with FIND [103]. - The Company reported a net loss of $32.7 million for the year ended December 31, 2023, compared to a net loss of $37.3 million in 2022 [119]. - Net cash used in operating activities was $(14,319,542) in 2023, an improvement from $(20,449,698) in 2022 [118]. - The Company recorded an impairment charge of $849,243 for its Rockville, MD office lease asset and $1,231,874 for property and equipment during the year ended December 31, 2023 [137]. Operational Changes - The company reduced its U.S. operations headcount from 24 to 5 to conserve cash and focus on core functions [86]. - The company plans to identify a privately held company for a reverse merger or similar strategic transaction under new leadership [89]. - The Company anticipates that current cash will only be sufficient to fund operations into the third quarter of 2024, raising substantial doubt about its ability to continue as a going concern [116]. Funding and Financing - The company sold 3,000,000 shares of Series E Convertible Preferred Stock at $1.00 per share, generating gross proceeds of $3.0 million [89]. - The Company raised approximately $7.5 million in gross proceeds from a public offering on January 11, 2023, and $3.5 million from another offering on May 4, 2023 [109][110]. - The Company entered into a Preferred Stock Purchase Agreement on October 11, 2023, to issue 1,000 shares of Series D Preferred Stock for expected gross proceeds of $1.0 million [97]. - The Company plans to use proceeds from the March 2024 Purchase Agreement to settle outstanding debts, with an expected total of $3.0 million from the sale of Series E Preferred Stock [98]. Subsidiary Issues - Curetis and Ares Genetics filed for insolvency, leading to the loss of control over these subsidiaries [86]. - The Company experienced a loss on deconsolidation of subsidiaries amounting to $13.0 million due to insolvency filings of Curetis and Ares Genetics in November 2023 [108]. - The Company filed for insolvency for its subsidiaries, Curetis and Ares Genetics, which eliminated its authority to act on their behalf [114]. Expenses and Liabilities - Total operating expenses decreased by 8% to $34.2 million in 2023 from $37.2 million in 2022, mainly due to reductions in various expense categories [102]. - Research and development expenses fell by approximately 42% to $4,732,851 in 2023, down from $8,173,435 in 2022, due to the completion of clinical trials and understaffing [104]. - Interest expense decreased to $1,838,933 in 2023 from $3,256,410 in 2022, reflecting a reduction in outstanding debt [105]. - As of December 31, 2023, the Company had outstanding liabilities of approximately €9.66 million to the European Investment Bank under the Finance Contract [96]. - As of December 31, 2023, the outstanding borrowings under all tranches of the EIB loan facility were €9.8 million (approximately $10.9 million) [124]. Inventory and Impairments - Inventory reserves for obsolescence, expirations, and slow-moving inventory were $1,280,805 as of December 31, 2023 [136]. - The Company recorded a goodwill impairment charge of $6,940,549 for the year ended December 31, 2022, due to changes in market capitalization and stock price [140]. - An impairment charge of $5,407,699 was recorded for the IPR&D intangible asset in 2022, as projected future cash flows did not support the carrying amount [139]. Revenue Recognition - The Company recognizes revenues upon satisfaction of performance obligations, reflecting the consideration expected in exchange for goods or services [134]. - The Company had no material incremental costs to obtain customer contracts in any period presented [135].