Exhibit 99.1
Renalytix plc
(“Renalytix” or the “Company”)
Renalytix Reports Financial Results for Third Quarter of Fiscal Year 2024
LONDON and NEW YORK, May 15, 2024 – Renalytix plc (NASDAQ: RNLX) (LSE: RENX), an artificial intelligence-enabled in vitro diagnostics company, focused on optimizing clinical management of kidney disease to drive improved patient outcomes and advance value-based care, today reported financial results for the fiscal third quarter ended March 31, 2024.
The Company made continued progress towards commercial adoption with inclusion of KidneyIntelX in clinical guidelines, issuance of a Medicare coverage draft, performance of new direct to physician sales force, April launch of U.S. Food and Drug Administration (“FDA”) De Novo authorized kidneyintelX.dkd, and release of new real-world outcomes evidence. Optimization of shareholder value continues with year over year significant expense reductions, completion of equity financing, and the initiation of a strategic sale process.
Highlights include:
Third Quarter 2024 Financial Results
During the three months ended March 31, 2024, the Company recognized $0.5 million of revenue, compared to $0.7 million for the three months ended March 31, 2023. Cost of revenue for the three months ended March 31, 2024 and 2023, was $0.6 million.
Operating expenses for the three months ended March 31, 2024 were $6.5 million, compared to $11.0 million during the prior year period. Operating cash burn in the fiscal third quarter was $4.9 million, nearly 40% lower than the fiscal second quarter and a 50% reduction from the year ago period.
Within operating expenses, research and development expenses were $2.2 million for the three months ended March 31, 2024, decreasing by $1.7 million from $3.9 million for the three months ended March 31, 2023. The decrease was attributable to a $1.3 million decrease related to external R&D projects and studies with Mount Sinai, Wake Forest and Joslin, a decrease of $0.3 million in compensation and related benefits, and a $0.1 million decrease in other operating expenses.
General and administrative expenses were $3.9 million for the three months ended March 31, 2024, decreasing by $3.2 million from $7.1 million for the three months ended March 31, 2023. The decrease was driven by even further cost cutting measures, which resulted in a $2.6 million decrease in compensation and related benefits, a $0.3 million decrease in other operating expenses, and a $0.3 million decrease in insurance costs.
Net loss was $7.7 million for the three months ended March 31, 2024, compared with $12.1 million for the prior year period.
Cash and cash equivalents totaled $4.7 million as of March 31, 2024.
The Company will host a corresponding conference call and live webcast today to discuss the financial results and key topics including business strategy, partnerships and regulatory and reimbursement processes, at 8:30 a.m. EDT / 1:30 p.m. BST.
Conference Call Details:
To participate in the live conference call via telephone, please register here. Upon registering, a dial-in number and unique PIN will be provided in order for interested parties to join the conference call.
Webcast Registration link: https://edge.media-server.com/mmc/p/k57ufszy
For further information, please contact:
Renalytix plc | www.renalytix.com |
James McCullough, CEO | Via Walbrook PR |
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Stifel (Nominated Adviser, Joint Broker) | Tel: 020 7710 7600 |
Alex Price / Nicholas Moore / Nick Harland / Samira Essebiyea |
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Investec Bank plc (Joint Broker) | Tel: 020 7597 4000 |
Gary Clarence / Shalin Bhamra |
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Walbrook PR Limited | Tel: 020 7933 8780 or renalytix@walbrookpr.com |
Paul McManus / Alice Woodings | Mob: 07980 541 893 / 07407 804 654 |
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CapComm Partners |
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Peter DeNardo
| Tel: 415-389-6400 or investors@renalytix.com |
About Renalytix
Renalytix (NASDAQ: RNLX) (LSE: RENX) is an artificial intelligence enabled in-vitro diagnostics and laboratory services company that is the global founder and leader in the field of bioprognosis™ for kidney health. In late 2023, our kidneyintelX.dkd test was recognized as the first and only FDA-authorized prognostic test to enable early-stage CKD (stages 1-3b) risk assessment for progressive decline in kidney function in T2D patients. By understanding how disease will progress, patients and clinicians can take action earlier to improve outcomes and reduce overall health system costs. For more information, visit www.renalytix.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Examples of these forward-looking statements include statements concerning: the commercial prospects of KidneyIntelX, including whether KidneyIntelX will be successfully adopted by physicians and distributed and marketed, the rate of testing with KidneyIntelX in health care systems, expectations and timing of announcement of real-world testing evidence, the potential for KidneyIntelX to be approved for additional indications, the Company’s expectations regarding the timing and outcome of regulatory and reimbursement decisions, the ability of KidneyIntelX to curtail costs of chronic and end-stage kidney disease, optimize care delivery and improve patient outcomes, the Company’s expectations and guidance related to partnerships, testing volumes and revenue for future periods, the Company’s expectations regarding the Company’s ability to obtain and maintain intellectual property protection for its diagnostic products and the Company’s ability to operate its business without infringing on the intellectual property rights of others, and the forecast of the Company’s cash runway and the implementation and potential for additional financing activities and cost-saving initiatives. Words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “seeks,” and similar expressions are intended to identify forward-looking statements. The Company may not actually achieve the plans and objectives disclosed in the forward-looking statements, and you should not place undue reliance on the Company’s forward-looking statements. Any forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. These risks and uncertainties include, among others: that KidneyIntelX is based on novel artificial intelligence technologies that are rapidly evolving and potential acceptance, utility and clinical practice remains uncertain; the Company has only recently commercially launched KidneyIntelX; and risks relating to the impact on the Company’s business of the COVID-19 pandemic or similar public health crises. These and other risks are described more fully in the Company’s filings with the Securities and Exchange Commission (SEC), including the “Risk Factors” section of its annual report on Form 10-K filed with the SEC on September 28, 2023, the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 filed with the SEC on November 14, 2023, the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 filed with the SEC on February 14, 2024 and other filings the Company makes with the SEC from time to time. All information in this press release is as of the date of the release, and the Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
RENALYTIX PLC
Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
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| For the Three Months Ended March 31, |
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| For the Nine Months Ended March 31, |
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(in thousands, except share data) |
| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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Revenue |
| $ | 535 |
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| $ | 724 |
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| $ | 1,703 |
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| $ | 2,885 |
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Cost of revenue |
|
| 601 |
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| 603 |
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|
| 1,583 |
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| 2,010 |
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Gross profit (loss) |
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| (66 | ) |
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| 121 |
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|
| 120 |
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| 875 |
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Operating expenses: |
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Research and development |
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| 2,216 |
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| 3,943 |
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| 8,228 |
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| 11,026 |
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General and administrative |
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| 3,854 |
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| 7,095 |
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| 15,252 |
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| 22,155 |
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Impairment loss on property, equipment and other long-lived assets |
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| 417 |
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|
| — |
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| 723 |
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|
| — |
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Performance of contract liability to affiliate |
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| — |
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| — |
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|
| — |
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|
| (19 | ) |
Total operating expenses |
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| 6,487 |
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| 11,038 |
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| 24,203 |
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| 33,162 |
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Loss from operations |
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| (6,553 | ) |
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| (10,917 | ) |
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| (24,083 | ) |
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| (32,287 | ) |
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Equity in net losses of affiliate |
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| — |
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| — |
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|
| — |
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| (9 | ) |
Foreign currency gain (loss), net |
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| 15 |
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| (461 | ) |
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| 215 |
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| 238 |
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Fair value adjustment to VericiDx investment |
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| 40 |
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| 129 |
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|
| (205 | ) |
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| (1,070 | ) |
Fair value adjustment to convertible notes |
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| (1,196 | ) |
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| (1,168 | ) |
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| (2,517 | ) |
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| (1,898 | ) |
Other (expense) income, net |
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| (49 | ) |
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| 310 |
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| 212 |
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| 521 |
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Net loss before income taxes |
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| (7,743 | ) |
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| (12,107 | ) |
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| (26,378 | ) |
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| (34,505 | ) |
Income tax (expense) benefit |
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| — |
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|
| 1 |
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| (4 | ) |
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| 2 |
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Net loss |
| $ | (7,743 | ) |
| $ | (12,106 | ) |
| $ | (26,382 | ) |
| $ | (34,503 | ) |
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Net loss per ordinary share—basic |
| $ | (0.08 | ) |
| $ | (0.14 | ) |
| $ | (0.27 | ) |
| $ | (0.44 | ) |
Net loss per ordinary share—diluted |
| $ | (0.08 | ) |
| $ | (0.14 | ) |
| $ | (0.27 | ) |
| $ | (0.44 | ) |
Weighted average ordinary shares—basic |
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| 97,654,961 |
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| 85,560,783 |
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| 98,184,650 |
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| 78,366,984 |
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Weighted average ordinary shares—diluted |
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| 97,654,961 |
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| 85,560,783 |
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| 98,184,650 |
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| 78,366,984 |
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Other comprehensive income (loss): |
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Changes in the fair value of the convertible notes |
| $ | 155 |
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| $ | 593 |
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| $ | 230 |
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| $ | 70 |
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Foreign exchange translation adjustment |
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| 21 |
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| 505 |
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| (338 | ) |
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| 6 |
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Comprehensive loss |
| $ | (7,567 | ) |
| $ | (11,008 | ) |
| $ | (26,490 | ) |
| $ | (34,427 | ) |
RENALYTIX PLC
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except share and per share data) |
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| March 31, 2024 |
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| June 30, 2023 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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| $ | 4,704 |
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| $ | 24,682 |
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Accounts receivable |
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| 554 |
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| 776 |
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Prepaid expenses and other current assets |
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| 1,082 |
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| 1,424 |
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Total current assets |
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| 6,340 |
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| 26,882 |
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Property and equipment, net |
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| 230 |
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| 1,027 |
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Right of Use Asset |
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| — |
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| 159 |
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Investment in VericiDx |
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| 1,060 |
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| 1,460 |
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Other Assets |
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| 1,139 |
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| 1,101 |
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Total assets |
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| $ | 8,769 |
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| $ | 30,629 |
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accounts payable |
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| $ | 2,101 |
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| $ | 1,485 |
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Accounts payable – related party |
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| 3,027 |
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| 1,451 |
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Accrued expenses and other current liabilities |
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| 4,273 |
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| 6,644 |
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Accrued expenses – related party |
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| 1,060 |
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| 1,963 |
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Current lease liability |
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| 78 |
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| 130 |
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Convertible notes-current |
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| 4,449 |
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| 4,463 |
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Total current liabilities |
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| 14,988 |
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| 16,136 |
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Convertible notes-noncurrent |
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| 4,892 |
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| 7,485 |
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Noncurrent lease liability |
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|
|
| — |
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| 41 |
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Total liabilities |
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| 19,880 |
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| 23,662 |
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Commitments and contingencies (Note 10) |
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Shareholders’ equity: |
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Ordinary shares, £0.0025 par value per share: 128,042,743 shares |
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| 368 |
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| 286 |
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Additional paid-in capital |
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| 194,786 |
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| 186,456 |
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Accumulated other comprehensive loss |
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| (1,558 | ) |
|
| (1,450 | ) |
Accumulated deficit |
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| (204,707 | ) |
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| (178,325 | ) |
Total shareholders’ (deficit) equity |
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| (11,111 | ) |
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| 6,967 |
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Total liabilities and shareholders’ (deficit) equity |
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| $ | 8,769 |
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| $ | 30,629 |
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RENALYTIX PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
| For the Nine Months Ended March 31, |
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(in thousands) |
| 2024 |
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| 2023 |
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Cash flows from operating activities: |
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Net loss |
| $ | (26,382 | ) |
| $ | (34,503 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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| 304 |
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| 388 |
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Impairment loss on property, equipment and other long-lived assets |
|
| 723 |
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|
| — |
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Stock-based compensation |
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| 1,291 |
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| 2,358 |
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Equity in losses of affiliate |
|
| — |
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| 9 |
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Reduction of Kantaro liability |
|
| — |
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|
| (55 | ) |
Fair value adjustment to VericiDx investment |
|
| 205 |
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|
| 1,070 |
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Unrealized foreign exchange loss |
|
| — |
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|
| 327 |
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Realized loss on sale of ordinary shares in VericiDx |
|
| 94 |
|
|
| — |
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Realized foreign exchange gain |
|
| (144 | ) |
|
| — |
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Fair value adjustment to convertible debt, net interest paid |
|
| 2,255 |
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|
| 1,898 |
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Non cash lease expense |
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| 67 |
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|
| 78 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
|
| 222 |
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|
| 154 |
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Prepaid expenses and other current assets |
|
| 310 |
|
|
| (77 | ) |
Accounts payable |
|
| 617 |
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|
| 358 |
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Accounts payable – related party |
|
| 1,576 |
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|
| 370 |
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Accrued expenses and other current liabilities |
|
| (2,519 | ) |
|
| 2,704 |
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Accrued expenses – related party |
|
| (904 | ) |
|
| (485 | ) |
Deferred revenue |
|
| — |
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|
| (46 | ) |
Net cash used in operating activities |
|
| (22,285 | ) |
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| (25,452 | ) |
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Cash flows from investing activities: |
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Purchase of equipment |
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| (3 | ) |
|
| — |
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Payment for long term deferred expense |
|
| — |
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|
| (59 | ) |
Net cash used in investing activities |
|
| (3 | ) |
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| (59 | ) |
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Cash flows from financing activities: |
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Payment of convertible notes principal |
|
| (1,660 | ) |
|
| (3,262 | ) |
Proceeds from issuance of ordinary shares in Private Placement |
|
| 5,072 |
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|
| 20,296 |
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Payment of offering costs |
|
| (1,044 | ) |
|
| (666 | ) |
Proceeds from purchase of ordinary shares under employee share |
|
| 93 |
|
|
| 116 |
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Net cash provided by financing activities |
|
| 2,461 |
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|
| 16,484 |
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Effect of exchange rate changes on cash |
|
| (151 | ) |
|
| 721 |
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Net decrease in cash and cash equivalents |
|
| (19,978 | ) |
|
| (8,306 | ) |
Cash and cash equivalents, beginning of period |
|
| 24,682 |
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| 41,333 |
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Cash and cash equivalents, end of period |
| $ | 4,704 |
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| $ | 33,027 |
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Supplemental noncash investing and financing activities: |
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Cash paid for interest on convertible debt |
| $ | 249 |
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| $ | — |
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