BNB Plus (BNBX) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues were $798,000, down sharply year-over-year due to the end of major COVID-19 testing contracts.

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

• Gross profit margin declined to 31% from 44% year-over-year, reflecting lower COVID-19 testing volumes.

• Adjusted EBITDA was negative $3.2 million, compared to negative $2.1 million in the prior year.

• Cash and cash equivalents rose to $10.4 million at quarter-end, bolstered by a $10.5 million public offering.

Financial highlights

• Total revenues for the quarter were $797,519, down from $2.9 million year-over-year, mainly due to the end of COVID-19 testing contracts.

• Gross profit was $245,000 (31% margin), down from $1.3 million (44% margin) year-over-year.

• Operating loss increased to $3.3 million from $2.9 million in the prior year period.

• Net income benefited from a $5.16 million unrealized gain on change in fair value of warrants.

• Cash and cash equivalents at June 30, 2024, were $10.4 million, up from $7.2 million at September 30, 2023.

Outlook and guidance

• Management anticipates a revenue inflection point in the first half of fiscal 2025, driven by biotherapeutic, DNA tagging, and PGx testing segments.

• GMP facility for DNA IVT templates on track for completion by fiscal year-end, with initial capacity to support up to 15 million mRNA vaccine doses.

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

• No formal financial guidance was issued; expectations are based on future commercial activities.

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