REG - Renalytix PLC - Financial Results for Q1 of Fiscal Year 2025
20/11/2024 07:00
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RNS Number : 9436M Renalytix PLC 20 November 2024
Renalytix plc
("Renalytix" or the "Company")
Financial Results for First Quarter of Fiscal Year 2025
LONDON and NEW YORK, 20 November, 2024 - Renalytix plc (LSE: RENX) (OTCQB:
RNLXY), an artificial intelligence-enabled in vitro diagnostics company,
focused on optimizing clinical management of kidney disease to drive improved
patient outcomes and advance value-based care, reports its financial results
for the fiscal quarter of 2025 ended September 30, 2024.
First Quarter Fiscal 2025 and recent highlights
• Continued test ordering momentum at a large New York-based physician group
practice, after test ordering and processing commenced in September 2024
• Cash burn to be reduced to an approximate run rate of £560,000 (approximately
$725,000) or less per month by the end of fiscal year 2025
• Financing comprising £11.8m (approximately US$14.9 million after expenses) in
commitments completed subsequent to the end of the quarter
• Company believes that as of November 2024, it now has sufficient cash on the
balance sheet to fund current operations
• Issued first guidance on multi-year revenue generation: c. $3.2m in FY25,
$8.5m in FY26 and $17.5m in FY27
• Accomplished life sciences industry veteran Julian Baines MBE appointed as
Executive Chairman
James McCullough, CEO of Renalytix commented: "We are pleased to have
positioned Renalytix financially and commercially for what we believe will be
an exciting fiscal year that represents a breakout from our development phase
into a commercially focused business leveraging growth within the large and
unaddressed market we serve. Following our fundraise, for which we appreciate
our investors' support, we believe the wind is now behind our back and we are
excited to propel the Company's growth while supporting better patient
outcomes through adoption of our kidneyintelX.dkd test by physicians and
hospital systems."
First Quarter 2025 Financial Results
During the three months ended September 30, 2024, the Company recognized $0.52
million of revenue, compared to $0.46 million for the three months ended
September 30, 2023. Cost of revenue for the three months ended September 30,
2024 and 2023, was $0.42 million and $0.50 million, respectively.
Total operating expenses for the three months ended September 30, 2024 were
$4.2 million, and down over 50% from $8.8 million during the prior year
period.
Within operating expenses, research and development expenses were $0.9 million
for the three months ended September 30, 2024, decreasing by $1.9 million from
$2.8 million for the three months ended September 30, 2023. The decrease was
attributable to a decrease in external R&D projects and studies, lower
compensation and related benefits and a reduction in operating expenses.
General and administrative expenses were $3.3 million for the three months
ended September 30, 2024, decreasing by $2.8 million from $6.1 million for the
prior year period with the decrease driven by significant cost cutting
measures.
Net loss was $4.7 million for the three months ended September 30, 2024, down
over 50% from a net loss of $10.1 million for the prior year period.
Cash and cash equivalents totaled $0.9 million as of September 30, 2024.
Equity financing rounds, restructuring of liabilities and reduction in
expenses allow sufficient cash for at least next twelve months
During October and November 2024 the Company secured additional rounds of
equity financing comprising £11.8m (approximately US$14.9 million) in
commitments and concurrently restructured a number of liabilities on the
balance sheet. This additional equity funding, the reduction of cash expenses
related to the Company's liabilities, and an overall reduction in General and
Administrative Expenses have significantly changed the Company's financial
position relative to cash needs. As a result, the Company believes that as
of November 2024, it now has sufficient cash on the Balance Sheet to fund
current operations. While the possibility exists that the Company may seek
additional capital, it is not required to sustain current operations for the
next twelve months.
For further information, please contact:
Renalytix plc www.renalytix.com (http://www.renalytix.com)
James McCullough, CEO Via Walbrook PR
Stifel (Nominated Adviser and Joint Broker) Tel: 020 7710 7600
Nicholas Moore / Nick Harland / Ben Good
Oberon Capital (Joint Broker) Tel: 020 3179 5300
Mike Seabrook / Nick Lovering
Walbrook PR Limited Tel: 020 7933 8780 or renalytix@walbrookpr.com
(mailto:renalytix@walbrookpr.com)
Paul McManus / Alice Woodings Mob: 07980 541 893 / 07407 804 654
CapComm Partners
Peter DeNardo Tel: 415-389-6400 or investors@renalytix.com (mailto:investors@renalytix.com)
About Renalytix
Renalytix (LSE: RENX) (OTCQB: RNLXY) 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
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.
Forward-Looking Statements
This announcement (including any information incorporated by reference in this
announcement) and other information published by the Company contain
statements about the Company that are or may be deemed to be forward looking
statements. Without limitation, any statements preceded or followed by or that
include the words "targets", "plans", "believes", "expects", "aims",
"intends", "will", "may", "anticipates", "estimates", "projects" or words or
terms of similar substance or the negative thereof, may be forward looking
statements.
These forward-looking statements are not guarantees of future performance.
Such forward-looking statements involve known and unknown risks and
uncertainties that could significantly affect expected results and are based
on certain key assumptions. Many factors could cause actual results to differ
materially from those projected or implied in any forward-looking statements.
Due to such uncertainties and risks, readers should not rely on such
forward-looking statements, which speak only as of the date of this
announcement. The Company disclaims any obligation or responsibility to update
publicly or review any forward-looking or other statements contained in this
announcement, except as required by applicable law.
The distribution of this announcement in jurisdictions outside the United
Kingdom may be restricted by law and therefore persons into whose possession
this announcement comes should inform themselves about, and observe, such
restrictions. Any failure to comply with the restrictions may constitute a
violation of the securities law of any such jurisdiction.
RENALYTIX PLC
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
For the Three Months Ended September 30,
(in thousands, except share and per share data) 2024 2023
Revenue $ 522 $ 459
Cost of revenue 422 502
Gross profit (loss) 100 (43 )
Operating expenses:
Research and development 921 2,787
General and administrative 3,271 6,059
Total operating expenses 4,192 8,846
Loss from operations (4,093 ) (8,889 )
Foreign currency gain, net 37 289
Fair value adjustment to VericiDx investment 97 (447 )
Fair value adjustment to convertible notes (762 ) (1,207 )
Other (expense) income, net (5 ) 100
Net loss before income taxes (4,726 ) (10,154 )
Income tax expense (2 ) -
Net loss (4,728 ) (10,154 )
Net loss per ordinary share-basic $ (0.04 ) $ (0.11 )
Net loss per ordinary share-diluted $ (0.04 ) $ (0.11 )
Weighted average ordinary shares-basic 105,697,401 94,767,841
Weighted average ordinary shares-diluted 105,697,401 94,767,841
Other comprehensive income (loss):
Changes in the fair value of the convertible notes (125 ) 75
Foreign exchange translation adjustment (461 ) 42
Comprehensive loss $ (5,314 ) $ (10,037 )
RENALYTIX PLC
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except share and per share data) September 30, 2024 June 30, 2024
Assets
Current assets:
Cash and cash equivalents $ 909 $ 4,680
Accounts receivable, net 902 722
Prepaid expenses and other current assets 1,068 716
Total current assets 2,879 6,118
Property and equipment, net 202 216
Investment in VericiDx 776 698
Other assets, net 937 940
Total assets $ 4,794 $ 7,972
Liabilities and Shareholders' Deficit
Current liabilities:
Accounts payable $ 3,188 $ 1,590
Accounts payable - related party 2,408 1,018
Accrued expenses and other current liabilities 2,162 3,354
Accrued expenses - related party 102 1,329
Current lease liability 11 45
Convertible notes-current 4,142 4,159
Total current liabilities 12,013 11,495
Convertible notes-noncurrent 4,100 4,331
Total liabilities 16,113 15,826
Commitments and contingencies
Shareholders' deficit:
Ordinary shares, £0.0025 par value per share: 173,841,695 shares 515 478
authorized; 165,925,513 and 154,368,191 shares issued and
outstanding at September 30, 2024 and June 30, 2024, respectively
Additional paid-in capital 206,705 204,893
Accumulated other comprehensive loss (2,029 ) (1,443 )
Accumulated deficit (216,510 ) (211,782 )
Total shareholders' deficit (11,319 ) (7,854 )
Total liabilities and shareholders' deficit $ 4,794 $ 7,972
RENALYTIX PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
For the Three Months Ended September 30,
(in thousands) 2024 2023
Cash flows from operating activities:
Net loss $ (4,728 ) $ (10,154 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 60 127
Stock-based compensation 254 523
Fair value adjustment to VericiDx investment (97 ) 447
Realized loss on sale of ordinary shares in VericiDx 42 -
Realized foreign exchange gain (18 ) -
Fair value adjustment to convertible debt, net interest paid 762 945
Non cash lease expense - 28
Provision for credit losses (25 ) -
Changes in operating assets and liabilities:
Accounts receivable (154 ) (238 )
Prepaid expenses and other current assets (327 ) (153 )
Accounts payable 1,550 250
Accounts payable - related party 1,390 202
Accrued expenses and other current liabilities (1,312 ) (2,060 )
Accrued expenses - related party (1,233 ) 579
Net cash used in operating activities (3,836 ) (9,504 )
Cash flows from investing activities:
Sale of ordinary shares in VericiDx investment 23 -
Net cash provided by investing activities 23 -
Cash flows from financing activities:
Payment of convertible notes principal - (1,060 )
Payment of offering costs - (5 )
Net cash used by financing activities - (1,065 )
Effect of exchange rate changes on cash 42 (222 )
Net decrease in cash and cash equivalents (3,771 ) (10,791 )
Cash and cash equivalents, beginning of period 4,680 24,682
Cash and cash equivalents, end of period $ 909 $ 13,891
Supplemental noncash investing and financing activities:
Noncash lease liabilities arising from obtaining right-of-use assets $ - $ 4
Cash paid for interest on convertible debt $ - $ 249
Issuance of shares for debt repayment $ (1,588 ) $ (1,054 )
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