ENDRA Life Sciences Reports Improved Financial Results, Reduced Operating Expenses, and Enhanced Cash Reserves

ENDRA Life Sciences Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in operating expenses and net losses compared to the previous fiscal period.

For the three months ended September 30, 2024, total operating expenses decreased to $1,509,014 from $3,129,062 in the same period in 2023. This trend continued over the nine-month period, with total operating expenses falling to $6,520,408 from $9,062,955 year-over-year. The reduction in expenses was primarily driven by lower research and development costs, which decreased by 51% to $794,444 for the quarter and by 42% to $2,552,336 for the nine months. General and administrative expenses also saw a decline, dropping 49% to $631,413 for the quarter and 12% to $3,483,303 for the nine months.

Despite these reductions, the company reported a net loss of $(2,354,090) for the three months ended September 30, 2024, an improvement from a net loss of $(3,100,836) in the prior year. For the nine-month period, the net loss was $(7,358,943), compared to $(8,600,714) in 2023. The decrease in net loss reflects the company's efforts to manage costs more effectively.

Cash used in operating activities also improved, with $(5,884,842) reported for the nine months ended September 30, 2024, compared to $(7,374,197) in the same period in 2023. The company ended the period with cash reserves of $4,745,187, up from $3,334,536 a year earlier.

In terms of financing, ENDRA raised $1,148,470 from common stock issuances during the nine months ended September 30, 2024, a significant decrease from $5,826,582 in the previous year. However, net cash provided by financing activities increased to $7,808,917 from $5,846,635, indicating a shift in funding strategies.

Strategically, the company continues to focus on its Thermo Acoustic Enhanced Ultrasound (TAEUS) technology, specifically the TAEUS FLIP system, which has yet to generate revenue. The company anticipates completing necessary clinical studies by late 2024 or early 2025, with plans to submit a new de novo request to the FDA in the first half of 2025.

Additionally, ENDRA appointed Alexander Tokman as acting CEO and Chairman of the Board in August 2024, and Richard Jacroux as Chief Financial Officer. The company is also addressing material weaknesses in its internal controls and plans to enhance its accounting personnel contingent upon securing additional funding.