Telesis Bio (DNAY) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024 was $5.3 million, down from $15.8 million year-over-year, with a net loss of $27.9 million compared to $30.0 million in 2023.

• The company completed the sale of its EtonBio subsidiary in August 2024, which is now reflected as a discontinued operation.

• Telesis Bio's common stock was delisted from Nasdaq in September 2024 and now trades on the OTC Pink market.

• As of September 30, 2024, cash, cash equivalents, restricted cash, and short-term investments totaled $4.6 million, insufficient to fund operations for the next twelve months.

• Management has identified a material weakness in internal controls, which remains unremediated as of September 30, 2024.

Financial highlights

• Product revenue for the nine months ended September 30, 2024 was $3.0 million, down from $8.1 million year-over-year.

• Gross margin declined to 25% from 65% year-over-year, mainly due to lower collaboration revenue and increased inventory reserves.

• Operating expenses decreased to $26.1 million from $37.6 million year-over-year, driven by headcount reductions and cost controls.

• Net loss per share for the nine months was $(17.20), compared to $(18.58) in the prior year.

• Cash used in operating activities was $15.5 million for the nine months ended September 30, 2024.

Outlook and guidance

• Management expects current cash and investments will not be sufficient to fund operations for at least twelve months from the financial statement issuance date.

• The company plans to seek additional financing through equity, debt, or strategic transactions but faces uncertainty regarding availability and terms.

• Ongoing cost reduction efforts are expected to continue, with a focus on sales and marketing of developed products.