BNB Plus (BNBX) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was $797,519–$798K, down sharply year-over-year due to the end of major COVID-19 testing contracts and lower product/service revenues.

• Net income for the quarter was $1.85M–$1.88M, compared to a net loss of $3.1M–$3.11M in the prior year, driven by a $5.16M unrealized gain on warrant liabilities.

• Gross profit margin declined to 31% from 44% year-over-year, reflecting lower testing volumes.

• Cash and equivalents rose to $10.4M at June 30, 2024, bolstered by a $10.5M public offering.

• Strategic focus is on biotherapeutics, DNA tagging, and pharmacogenomics, with new commercial launches, regulatory approvals, and partnerships.

Financial highlights

• Total revenues for the quarter were $797,519–$798K, down from $2.9M year-over-year, mainly due to the loss of COVID-19 testing revenue.

• Gross profit was $245K (31% margin), down from $1.3M (44% margin) year-over-year.

• Operating loss increased to $3.3M–$3.35M from $2.86M–$2.9M year-over-year.

• Adjusted EBITDA was negative $3.2M, compared to negative $2.1M–$2.14M prior year.

• Net income per share was $0.47, compared to a loss of $4.80 per share in the prior year quarter.

Outlook and guidance

• Management anticipates revenue inflection and year-over-year growth in the first half of fiscal 2025, driven by biotherapeutics, DNA tagging, and pharmacogenomics.

• GMP facility for DNA IVT templates/LineaRx on track for completion by fiscal year-end, with initial commercial supply in early 2025.

• TR8 PGx testing service targets enterprise customer expansion in early CY25.

• Expects to approach profitability in pharmacogenomics segment over the next two quarters, even at low volumes.

• Management continues to seek additional capital and may effect a reverse stock split to maintain Nasdaq listing.