Oncocyte Reports Second Quarter 2023 Financial Results
Conference Call on Thursday, August 10, 2023, at 5:00 a.m. PT / 8:00 a.m. ET
IRVINE, CA / ACCESSWIRE / August 10, 2023 / Oncocyte Corporation (NASDAQ:OCX), a precision diagnostics company, today reported financial results for the second quarter of 2023, ended June 30, 2023.
Second Quarter and Recent Highlights
- Transplant product launch on pace for Q4 early access. Manufacturing transfer process for 48-target universal assay began in June
- Expanding clinical utility for VitaGraft Kidney, a recent peer-reviewed publication in Kidney International Reports showed ability to identify ABMR and differentiate it from IgA Nephropathy
- Landmark randomized triple negative breast cancer study of DetermaIO in patients treated with Keytruda in the adjuvant setting continues to progress
- Cash, cash equivalents, and marketable securities totaled
$17.9 million at June 30, 2023, with average cash burn projected to drop below$5 million a quarter in 2 H HH 2023
"In the second quarter, we made significant progress towards the development and manufacturing of our Transplant product for institutions conducting research on the use of cfDNA monitoring post-transplantation," said Josh Riggs, CEO of Oncocyte. "We look forward to serving the global transplant community with our patented technology and expect to meet our target of early access launch by the end of this year. On the clinical front, our transplant and oncology laboratory tests continue their review process with MolDX as they are evaluated for potential coverage. Amongst the potential coverage decisions, ongoing clinical studies and operational improvements, we believe that Oncocyte is positioned for success with several value creating milestones achievable in the second half of this year."
Second Quarter 2023 Financial Results
Consolidated revenues for the second quarter of 2023 were approximately
Net consolidated operating loss for the three months ended June 30, 2023, was
Consolidated research and development expense for the second quarter decreased
Consolidated general and administrative expense for the second quarter decreased
Consolidated sales and marketing expense for the second quarter decreased
For Oncocyte's complete financial results for the second quarter ended June 30, 2023, see the Company's Quarterly Form 10-Q to be filed with the Securities and Exchange Commission on Aug 10, 2023.
Webcast and Conference Call Information
Oncocyte will host a conference call to discuss the first quarter 2023 financial results prior to market open on Thursday, August 10, 2023 at 5:00 a.m. Pacific Time / 8:00 a.m. Eastern Time. The conference call may be accessed live via telephone by dialing (877) 317-6789 for domestic callers or (412) 317-6789 for international callers. Once dialed in, ask to be joined to the Oncocyte Corporation call. The live webinar of the call may be accessed by visiting the "Events & Presentation" section of the Company's website at https://investors.oncocyte.com.
About Oncocyte
Oncocyte is a precision diagnostics company. The Company's tests are designed to help provide clarity and confidence to physicians and their patients. DetermaIO™ is a gene expression test that assesses the tumor microenvironment in order to predict response to immunotherapies. VitaGraft™ is a blood-based solid organ transplantation monitoring test, and pipeline test DetermaCNI™ is a blood-based monitoring tool for monitoring therapeutic efficacy. For more information, visit www.oncocyte.com
DetermaIO™, DetermaCNI™, and VitaGraft™ are trademarks of Oncocyte Corporation.
Forward-Looking Statements
Any statements that are not historical fact (including, but not limited to statements that contain words such as "will," "believes," "plans," "anticipates," "expects," "estimates," "may," and similar expressions) are forward-looking statements. These statements include those pertaining to, among other things, the expectation that the Company's transplant product launch is on pace for Q4 2023 early access, the projection that average cash burn will drop below
CONTACT:
Stephanie Prince
PCG Advisory
(646) 863-6341
sprince@pcgadvisory.com
ONCOCYTE CORPORATION | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(In thousands) | |||||
June 30, | December 31, | ||||
2023 | 2022 | ||||
(unaudited) | |||||
ASSETS | |||||
CURRENT ASSETS | |||||
Cash and cash equivalents | $ | 17,368 | $ | 19,993 | |
Accounts receivable, net of allowance of | 1,716 | 2,012 | |||
Marketable equity securities | 530 | 433 | |||
Prepaid expenses and other current assets | 1,179 | 977 | |||
Assets held for sale | 191 | - | |||
Current assets of discontinuing operations | - | 2,121 | |||
Total current assets | 20,984 | 25,536 | |||
NONCURRENT ASSETS | |||||
Right-of-use and financing lease assets, net | 1,891 | 2,088 | |||
Machinery and equipment, net, and construction in progress | 5,997 | 8,763 | |||
Intangible assets, net | 56,639 | 61,633 | |||
Restricted cash | 1,700 | 1,700 | |||
Other noncurrent assets | 329 | 371 | |||
TOTAL ASSETS | $ | 87,540 | $ | 100,091 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
CURRENT LIABILITIES | |||||
Accounts payable | $ | 875 | $ | 1,253 | |
Accrued compensation | 1,301 | 1,771 | |||
Accrued expenses and other current liabilities | 2,196 | 3,839 | |||
Accrued severance from acquisition | 2,314 | 2,314 | |||
Accrued liabilities from acquisition | 109 | 109 | |||
Right-of-use and financing lease liabilities, current | 737 | 815 | |||
Current liabilities of discontinuing operations | 135 | 2,005 | |||
Total current liabilities | 7,667 | 12,106 | |||
NONCURRENT LIABILITIES | |||||
Right-of-use and financing lease liabilities, noncurrent | 2,398 | 2,729 | |||
Contingent consideration liabilities | 29,150 | 45,662 | |||
TOTAL LIABILITIES | 39,215 | 60,497 | |||
Commitments and contingencies | |||||
Series A Redeemable Convertible Preferred Stock, no par value; stated value | 4,725 | 5,302 | |||
SHAREHOLDERS' EQUITY | |||||
Preferred stock, no par value, 5,000 shares authorized; no shares issued and outstanding | - | - | |||
Common stock, no par value, 230,000 shares authorized; 8,241 and 5,932 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively | 309,535 | 294,929 | |||
Accumulated other comprehensive income | 41 | 39 | |||
Accumulated deficit | (265,976) | (260,676) | |||
Total shareholders' equity | 43,600 | 34,292 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 87,540 | $ | 100,091 |
ONCOCYTE CORPORATION UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
NET REVENUE | $ | 463 | $ | 237 | $ | 760 | $ | 617 | |||
Cost of revenues | 169 | 183 | 434 | 288 | |||||||
Cost of revenues - amortization of acquired intangibles | 22 | 23 | 44 | 51 | |||||||
Gross profit | 272 | 31 | 282 | 278 | |||||||
OPERATING EXPENSES | |||||||||||
Research and development | 2,435 | 2,444 | 4,562 | 4,451 | |||||||
Sales and marketing | 805 | 127 | 1,500 | 393 | |||||||
General and administrative | 3,531 | 5,445 | 6,943 | 11,092 | |||||||
Change in fair value of contingent consideration | 1,795 | (6,359) | (16,512) | (11,015) | |||||||
Impairment loss from intangible assets | - | - | 4,950 | - | |||||||
Loss on disposal and held for sale assets | - | - | 1,283 | - | |||||||
Total operating expenses | 8,566 | 1,657 | 2,726 | 4,921 | |||||||
Loss from operations | (8,294) | (1,626) | (2,444) | (4,643) | |||||||
OTHER INCOME (EXPENSES), NET | |||||||||||
Interest income (expenses), net | 1 | (21) | (9) | (51) | |||||||
Unrealized gain (loss) on marketable equity securities | (24) | 5 | 97 | (325) | |||||||
Other income (expenses), net | (16) | 278 | (18) | 242 | |||||||
Total other income (expenses), net | (39) | 262 | 70 | (134) | |||||||
LOSS BEFORE INCOME TAXES | (8,333) | (1,364) | (2,374) | (4,777) | |||||||
Loss from continuing operations | (8,333) | (1,364) | (2,374) | (4,777) | |||||||
Loss from discontinuing operations | - | (6,936) | (2,926) | (13,814) | |||||||
NET LOSS | $ | (8,333) | $ | (8,300) | $ | (5,300) | $ | (18,591) | |||
LESS: DIVIDENDS AND ACCRETION OF SERIES A REDEEMABLE CONVERTIBLE PREFERRED STOCK | (311) | (72) | (541) | (72) | |||||||
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS: BASIC AND DILUTED | $ | (8,644) | $ | (8,372) | $ | (5,841) | $ | (18,663) | |||
Net loss from continuing operations per share: basic and diluted | $ | (1.03) | $ | (0.24) | $ | (0.34) | $ | (0.93) | |||
Net loss from discontinuing operations per share: basic and diluted | $ | - | $ | (1.23) | $ | (0.42) | $ | (2.69) | |||
Net loss per share: basic and diluted | $ | (1.07) | $ | (1.48) | $ | (0.83) | $ | (3.63) | |||
Weighted average shares outstanding: basic and diluted | 8,090 | 5,652 | 7,030 | 5,135 |
ONCOCYTE CORPORATION Reconciliation of Non-GAAP Financial Measure Consolidated Adjusted Loss from Operations (In thousands) | ||||||||
For the Three Months Ended | ||||||||
June 30, | March 31, | June 30, | ||||||
2023 | 2023 | 2022 | ||||||
(unaudited) | (unaudited) | (unaudited) | ||||||
Consolidated GAAP loss from operations | $ | (8,294) | $ | 2,924 | $ | (8,562) | ||
Stock-based compensation expense | 834 | 834 | 2,232 | |||||
Change in fair value of contingent consideration | 1,795 | (18,307 | (6,359) | |||||
Severance charge | 604 | 14 | 143 | |||||
Depreciation and amortization expense | 457 | 472 | 1,360 | |||||
Loss on disposal and held for sale assets | - | 1,335 | - | |||||
Impairment loss | - | 4,950 | - | |||||
Consolidated Non-GAAP loss from operations, as adjusted | $ | (4,604) | $ | (7,778) | $ | (11,186) |
SOURCE: Oncocyte Corporation
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