Renalytix Reports Financial Results for Q3 FY2024
("Renalytix" or the "Company")
Renalytix Reports Financial Results for Third Quarter of Fiscal Year 2024
The Company made continued progress towards commercial adoption with inclusion of KidneyIntelX in clinical guidelines, issuance of a Medicare coverage draft, performance of new direct to physician sales force, April launch of
Highlights include:
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KidneyIntelX included as only biomarker test for prognostic risk assessment in landmark update of international clinical practice guidelines (https://kdigo.org/guidelines/)
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Medicare Local Coverage Determination draft issued for FDA-authorized kidneyintelX.dkd by Medicare contractor
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Formal launch of the FDA-authorized kidneyintelX.dkd in
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Customer experience improvements implemented including simplified physician order requisition, increased patient access to national blood draw network, revamped marketing and education materials
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New primary care sales force completed its first quarter of operations with a 33% quarter over quarter increase in independent primary care physician test order volume during the three months ended
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Appointed
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Formal strategic sale process initiated with multiple potential acquirers now in discussions
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Completed common stock equity financings raising aggregate gross proceeds of
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Continued operating expense reduction with 50% year-over-year reduction in head count and approximately 40% total lower operating costs
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With FDA and clinical guidelines achieved, process initiated for potential ex-
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Total volume of 806 tests during the quarter, of which 82% were billable
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Third Quarter 2024 Financial Results
During the three months ended
Operating expenses for the three months ended
Within operating expenses, research and development expenses were
General and administrative expenses were
Net loss was
Cash and cash equivalents totaled
The Company will host a corresponding conference call and live webcast today to discuss the financial results and key topics including business strategy, partnerships and regulatory and reimbursement processes, at
Conference Call Details:
To participate in the live conference call via telephone, please register here. Upon registering, a dial-in number and unique PIN will be provided in order for interested parties to join the conference call.
Webcast Registration link: https://edge.media-server.com/mmc/p/k57ufszy
For further information, please contact:
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Via Walbrook PR |
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Stifel (Nominated Adviser, Joint Broker) |
Tel: 020 7710 7600 |
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Tel: 020 7597 4000 |
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Tel: 020 7933 8780 or renalytix@walbrookpr.com |
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Mob: 07980 541 893 / 07407 804 654 |
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Tel: 415-389-6400 or investors@renalytix.com |
About Renalytix
Renalytix (NASDAQ: RNLX) (LSE: RENX) is an artificial intelligence enabled in-vitro diagnostics and laboratory services company that is the global founder and leader in the field of bioprognosis™ for kidney health. In late 2023, our kidneyintelX.dkd test was recognized as the first and only FDA-authorized prognostic test to enable early-stage CKD (stages 1-3b) risk assessment for progressive decline in kidney function in T2D patients. By understanding how disease will progress, patients and clinicians can take action earlier to improve outcomes and reduce overall health system costs. For more information, visit www.renalytix.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Examples of these forward-looking statements include statements concerning: the commercial prospects of KidneyIntelX, including whether KidneyIntelX will be successfully adopted by physicians and distributed and marketed, the rate of testing with KidneyIntelX in health care systems, expectations and timing of announcement of real-world testing evidence, the potential for KidneyIntelX to be approved for additional indications, the Company's expectations regarding the timing and outcome of regulatory and reimbursement decisions, the ability of KidneyIntelX to curtail costs of chronic and end-stage kidney disease, optimize care delivery and improve patient outcomes, the Company's expectations and guidance related to partnerships, testing volumes and revenue for future periods, the Company's expectations regarding the Company's ability to obtain and maintain intellectual property protection for its diagnostic products and the Company's ability to operate its business without infringing on the intellectual property rights of others, and the forecast of the Company's cash runway and the implementation and potential for additional financing activities and cost-saving initiatives. Words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," and similar expressions are intended to identify forward-looking statements. The Company may not actually achieve the plans and objectives disclosed in the forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. Any forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. These risks and uncertainties include, among others: that KidneyIntelX is based on novel artificial intelligence technologies that are rapidly evolving and potential acceptance, utility and clinical practice remains uncertain; the Company has only recently commercially launched KidneyIntelX; and risks relating to the impact on the Company's business of the COVID-19 pandemic or similar public health crises. These and other risks are described more fully in the Company's filings with the
Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
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For the Three Months Ended |
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For the Nine Months Ended |
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(in thousands, except share data) |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenue |
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$ |
535 |
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$ |
724 |
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$ |
1,703 |
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$ |
2,885 |
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Cost of revenue |
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601 |
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603 |
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1,583 |
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2,010 |
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Gross profit (loss) |
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(66 |
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121 |
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120 |
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875 |
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Operating expenses: |
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Research and development |
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2,216 |
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3,943 |
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8,228 |
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11,026 |
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General and administrative |
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3,854 |
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7,095 |
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15,252 |
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22,155 |
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Impairment loss on property, equipment and other long-lived assets |
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417 |
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- |
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723 |
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- |
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Performance of contract liability to affiliate |
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- |
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- |
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- |
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(19 |
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Total operating expenses |
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6,487 |
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11,038 |
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24,203 |
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33,162 |
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Loss from operations |
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(6,553 |
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(10,917 |
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(24,083 |
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(32,287 |
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Equity in net losses of affiliate |
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- |
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- |
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- |
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(9 |
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Foreign currency gain (loss), net |
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15 |
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(461 |
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215 |
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238 |
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Fair value adjustment to VericiDx investment |
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40 |
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129 |
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(205 |
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(1,070 |
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Fair value adjustment to convertible notes |
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(1,196 |
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(1,168 |
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(2,517 |
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(1,898 |
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Other (expense) income, net |
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(49 |
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310 |
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212 |
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521 |
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Net loss before income taxes |
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(7,743 |
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(12,107 |
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(26,378 |
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(34,505 |
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Income tax (expense) benefit |
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- |
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1 |
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(4 |
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2 |
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Net loss |
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$ |
(7,743 |
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$ |
(12,106 |
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$ |
(26,382 |
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$ |
(34,503 |
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Net loss per ordinary share-basic |
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$ |
(0.08 |
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$ |
(0.14 |
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$ |
(0.27 |
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$ |
(0.44 |
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Net loss per ordinary share-diluted |
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$ |
(0.08 |
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$ |
(0.14 |
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$ |
(0.27 |
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$ |
(0.44 |
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Weighted average ordinary shares-basic |
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97,654,961 |
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85,560,783 |
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98,184,650 |
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78,366,984 |
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Weighted average ordinary shares-diluted |
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97,654,961 |
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85,560,783 |
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98,184,650 |
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78,366,984 |
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Other comprehensive income (loss): |
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Changes in the fair value of the convertible notes |
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$ |
155 |
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$ |
593 |
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$ |
230 |
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$ |
70 |
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Foreign exchange translation adjustment |
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21 |
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505 |
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(338 |
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6 |
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Comprehensive loss |
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$ |
(7,567 |
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$ |
(11,008 |
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$ |
(26,490 |
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$ |
(34,427 |
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CONSOLIDATED BALANCE SHEETS (Unaudited)
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(in thousands, except share and per share data) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
4,704 |
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$ |
24,682 |
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Accounts receivable |
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554 |
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776 |
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Prepaid expenses and other current assets |
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1,082 |
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1,424 |
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Total current assets |
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6,340 |
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26,882 |
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Property and equipment, net |
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230 |
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1,027 |
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Right of Use Asset |
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- |
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159 |
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Investment in VericiDx |
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1,060 |
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1,460 |
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Other Assets |
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1,139 |
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1,101 |
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Total assets |
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$ |
8,769 |
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$ |
30,629 |
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Liabilities and Shareholders' Equity |
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Current liabilities: |
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Accounts payable |
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$ |
2,101 |
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$ |
1,485 |
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Accounts payable - related party |
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3,027 |
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|
1,451 |
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Accrued expenses and other current liabilities |
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4,273 |
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|
6,644 |
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Accrued expenses - related party |
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1,060 |
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1,963 |
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Current lease liability |
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78 |
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130 |
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Convertible notes-current |
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4,449 |
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4,463 |
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Total current liabilities |
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14,988 |
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16,136 |
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Convertible notes-noncurrent |
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4,892 |
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7,485 |
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Noncurrent lease liability |
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- |
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41 |
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Total liabilities |
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19,880 |
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23,662 |
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Commitments and contingencies (Note 10) |
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Shareholders' equity: |
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Ordinary shares, |
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368 |
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286 |
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Additional paid-in capital |
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194,786 |
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186,456 |
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Accumulated other comprehensive loss |
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(1,558 |
) |
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(1,450 |
) |
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Accumulated deficit |
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(204,707 |
) |
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(178,325 |
) |
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Total shareholders' (deficit) equity |
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(11,111 |
) |
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6,967 |
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Total liabilities and shareholders' (deficit) equity |
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$ |
8,769 |
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$ |
30,629 |
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
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For the Nine Months Ended |
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(in thousands) |
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2024 |
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2023 |
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Cash flows from operating activities: |
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Net loss |
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$ |
(26,382 |
) |
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$ |
(34,503 |
) |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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304 |
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|
388 |
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Impairment loss on property, equipment and other long-lived assets |
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|
723 |
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- |
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Stock-based compensation |
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|
1,291 |
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|
2,358 |
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Equity in losses of affiliate |
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- |
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9 |
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Reduction of Kantaro liability |
|
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- |
|
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(55 |
) |
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Fair value adjustment to VericiDx investment |
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|
205 |
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|
1,070 |
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Unrealized foreign exchange loss |
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- |
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|
327 |
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Realized loss on sale of ordinary shares in VericiDx |
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|
94 |
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|
- |
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Realized foreign exchange gain |
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(144 |
) |
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- |
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Fair value adjustment to convertible debt, net interest paid |
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|
2,255 |
|
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|
1,898 |
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Non cash lease expense |
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|
67 |
|
|
|
78 |
|
|
Changes in operating assets and liabilities: |
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Accounts receivable |
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|
222 |
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|
154 |
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Prepaid expenses and other current assets |
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|
310 |
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(77 |
) |
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Accounts payable |
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|
617 |
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|
358 |
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Accounts payable - related party |
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|
1,576 |
|
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|
370 |
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Accrued expenses and other current liabilities |
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(2,519 |
) |
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|
2,704 |
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Accrued expenses - related party |
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(904 |
) |
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(485 |
) |
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Deferred revenue |
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- |
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(46 |
) |
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Net cash used in operating activities |
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(22,285 |
) |
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(25,452 |
) |
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Cash flows from investing activities: |
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Purchase of equipment |
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(3 |
) |
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- |
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Payment for long term deferred expense |
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- |
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(59 |
) |
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Net cash used in investing activities |
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(3 |
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(59 |
) |
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Cash flows from financing activities: |
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Payment of convertible notes principal |
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(1,660 |
) |
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(3,262 |
) |
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Proceeds from issuance of ordinary shares in Private Placement |
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5,072 |
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|
20,296 |
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Payment of offering costs |
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(1,044 |
) |
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(666 |
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Proceeds from purchase of ordinary shares under employee share |
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|
93 |
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|
116 |
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Net cash provided by financing activities |
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2,461 |
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|
16,484 |
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Effect of exchange rate changes on cash |
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(151 |
) |
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|
721 |
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Net decrease in cash and cash equivalents |
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(19,978 |
) |
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(8,306 |
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Cash and cash equivalents, beginning of period |
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24,682 |
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|
41,333 |
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Cash and cash equivalents, end of period |
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$ |
4,704 |
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$ |
33,027 |
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Supplemental noncash investing and financing activities: |
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Cash paid for interest on convertible debt |
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$ |
249 |
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$ |
- |
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