Orgenesis (ORGS) Q2 2024 earnings summary

Executive summary

• Revenue increased 118% to $246K for Q2 2024 and 52% to $387K for H1 2024, mainly from hospital services by Koligo.

• Net loss for Q2 2024 was $9.4M, down from $31.2M in Q2 2023; H1 2024 net loss was $19.4M, down from $54.6M in H1 2023.

• Significant cost reductions in R&D and SG&A, driven by deconsolidation of OBI, cost savings, and reduced activities in certain subsidiaries.

• Octomera was reconsolidated in January 2024; OBI was deconsolidated in February 2024 after a court-appointed trustee took control.

• Substantial doubt exists about the company's ability to continue as a going concern; additional capital is needed.

Financial highlights

• Q2 2024 revenue: $246K (up 118% YoY); H1 2024 revenue: $387K (up 52% YoY).

• Q2 2024 net loss: $9.4M; H1 2024 net loss: $19.4M.

• Q2 2024 cost of revenues: $538K (down 83% YoY); H1 2024 cost of revenues: $1.0M (down 83% YoY).

• H1 2024 SG&A expenses: $8.1M (down 74% YoY); R&D expenses: $3.9M (down 43% YoY).

• Net cash used in operations for H1 2024: $10.3M; cash at June 30, 2024: $77K.

Outlook and guidance

• Company must raise additional capital to fund operations and repay loans; failure to regain Nasdaq compliance by October 14, 2024 may result in delisting.

• Management is exploring financing, cost reductions, and revenue growth avenues; going concern risk remains high.