Accelerate Diagnostics, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a decline in net sales and ongoing operational losses. For the three months ended September 30, 2024, net sales totaled $2.975 million, a decrease of 10% from $3.299 million in the same period of 2023. For the nine months, net sales were $8.882 million, down 2% from $9.032 million year-over-year. The decline in sales was primarily attributed to lower sales of the Accelerate PhenoTest instruments.

Despite the decrease in sales, the company achieved a significant increase in gross profit, reporting $856,000 for the third quarter of 2024 compared to $107,000 in the same quarter of 2023, marking a 700% increase. For the nine-month period, gross profit rose to $2.255 million from $1.917 million, an 18% increase. The overall gross margin improved to 29% for the third quarter and 25% for the nine months, up from 3% and 21%, respectively, in the prior year.

Total costs and expenses for the third quarter decreased to $9.474 million from $14.757 million in 2023, contributing to a reduced loss from operations of $(8.618) million, compared to $(14.650) million in the same quarter of the previous year. For the nine months, the loss from operations was $(27.378) million, down from $(43.298) million in 2023. The company reported a net loss of $(14.639) million for the third quarter, compared to a net income of $910,000 in the same period of 2023, while the nine-month net loss improved to $(40.456) million from $(48.620) million.

As of September 30, 2024, Accelerate Diagnostics had cash and cash equivalents of $19.691 million, an increase from $12.138 million at the end of 2023. The company’s total liabilities surged to $80.796 million from $51.254 million at year-end 2023, largely due to the issuance of new debt, including $15 million in 16.00% Super-Priority Senior Secured PIK Notes in August 2024.

Strategically, the company has been active in restructuring its capital structure, having entered a forbearance agreement in March 2023 and completing restructuring transactions in June 2023. In January 2024, it raised $11 million through a public offering, followed by additional funding from the Schuler Trust. The company is currently exploring further funding options to sustain operations, as management expressed substantial doubt about its ability to continue as a going concern without additional financing.