GlucoTrack (GCTK) Q2 2024 earnings summary

Executive summary

• Focused on developing an implantable continuous glucose monitor (CBGM) for Type 1 and insulin-dependent Type 2 diabetes, with recent progress in animal studies and regulatory submissions for first-in-human trials expected to begin in Q3 2024.

• Shifted strategy away from noninvasive earlobe device to prioritize implantable CGM technology, withdrawing CE Mark for the prior product.

• Management team expanded with experienced executives and advisors from leading diabetes and medical device companies.

Financial highlights

• Net loss for Q2 2024 was $4.5 million, up from $1.2 million in Q2 2023; net loss for the six months ended June 30, 2024 was $7.4 million, compared to $2.5 million for the same period in 2023.

• Research and development expenses rose to $3.6 million in Q2 2024 from $627,000 in Q2 2023, and to $5.7 million for the six months, up from $1.3 million year-over-year.

• Cash and cash equivalents as of June 30, 2024 were $159,000, with an accumulated deficit of $117.3 million.

• Net cash used in operating activities was $4.8 million for the six months ended June 30, 2024, compared to $2.3 million in the prior year period.

Outlook and guidance

• Expects continued significant losses and negative cash flows as development and clinical trials progress; does not anticipate positive cash flows from operations in the foreseeable future.

• Management plans to finance operations through additional equity or debt offerings, but there is substantial doubt about the ability to continue as a going concern without new funding.