OpGen(US:OPGN)2022-11-11 04:29Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $0.4 million, down from $1.2 million in Q3 2021, primarily due to the absence of a comparable project from the New York State Department of Health and lower international revenue from univariable systems [11][12] - Operating expenses increased to $14 million in Q3 2022 from $6.3 million in Q3 2021, largely due to a $7 million goodwill impairment charge [12] - Net loss available to common stockholders was $14.1 million or $0.30 per share in Q3 2022, compared to $6.1 million or $0.16 per share in Q3 2021 [12] Business Line Data and Key Metrics Changes - The company signed its first two commercial contracts for the Acuitas AMR gene panel in Q2 and Q3 2022, with expectations for increased revenue from these contracts in the future [14] - The RS genetics subsidiary launched isolate sequencing services in the US, with potential revenue generation expected but not yet recognized [20][21] Market Data and Key Metrics Changes - The company anticipates revenue from products and services globally for 2022 to be in the range of $2.5 to $3 million, lower than expected but with significant revenue growth potential in 2023 [14] - The company is exploring additional strategic and tactical equity and debt financing opportunities to strengthen its cash position [13] Company Strategy and Development Direction - The company is focused on expanding its commercial pipeline, particularly with the Acuitas AMR gene panel and the universal UTI product, with several ongoing discussions with hospitals [14] - The company plans to continue its progress in both commercial and R&D fronts, with key milestones expected in 2023 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, particularly in product sales and collaborations, despite current challenges [13] - The company is confident in regaining compliance with NASDAQ's minimum bid price requirement by February 2023 [14] Other Important Information - The company has a commercial contract worth potentially up to $180 million over eight years pending approval from China's National Medical Products Administration [15] - A special meeting of stockholders is scheduled for November 30, 2022, to vote on a proposal for a reverse stock split [14] Q&A Session Summary Question: Clarification on Acuitas AMR gene panel installations and obligations - Management confirmed that contracts have defined minimum purchase obligations and that installations must be completed before revenue recognition can begin [19] Question: Revenue generation from RS genetics isolate sequencing services - Management indicated that while revenue recognition is not expected immediately, the sales funnel for these services is growing [20][21] Question: Revenue expectations from collaboration agreements with BNR and bio versus - Management expects revenue recognition to begin with the bio versus clinical trial in early 2023, while the BNR collaboration is an R&D effort without immediate revenue generation [22][23]