Elutia Inc. Reports Mixed Q3 Results, Net Income Turnaround Amid Ongoing Challenges

Elutia Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, net sales totaled $5.9 million, a decrease of 3.3% from $6.1 million in the same period of 2023. The decline was primarily attributed to a 12.2% drop in Device Protection revenue, which fell to $2.3 million as customers delayed purchases in anticipation of the new EluPro product, recently approved by the FDA. In contrast, Women's Health sales increased by 18.6% to $3.1 million. Gross profit for the quarter was $2.7 million, down from $2.8 million in 2023, reflecting a gross margin of 46.3%.

Elutia's operating loss for the third quarter widened to $10.2 million, compared to a loss of $7.4 million in the prior year. However, the company reported a net income from continuing operations of $1.3 million, a significant turnaround from a loss of $8.5 million in the same quarter of 2023. This improvement was driven by a gain of $12.7 million from fair value adjustments of warrant liabilities.

For the nine months ended September 30, 2024, net sales were $18.9 million, slightly up from $18.9 million in 2023. Gross profit for this period decreased to $8.4 million, down from $8.9 million, resulting in a gross margin of 44.3%. The company reported a net loss of $44.9 million for the nine-month period, compared to a loss of $28.3 million in the same period last year, indicating increased operational challenges.

Elutia's total assets increased to $48.4 million as of September 30, 2024, from $43.4 million at the end of 2023, while total current liabilities decreased to $39.7 million from $43.0 million. The accumulated deficit grew to $220.5 million, up from $175.6 million at the end of 2023.

Strategically, Elutia completed the sale of its Orthobiologics segment in November 2023 for approximately $14.6 million, with potential additional earn-out payments. This divestiture was part of a broader strategy to streamline operations and focus on core product lines. The company also raised approximately $13.3 million through a registered direct offering in June 2024 and $10.5 million from a private offering in September 2023, aimed at bolstering its financial position amid ongoing losses.

Elutia continues to face significant challenges, including increased litigation costs and the need for further capital to support its operations and product development initiatives. The company is actively exploring options to raise additional funds to address liquidity concerns and sustain its growth trajectory.