Flexpoint Sensor Systems, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, operating costs, and net losses compared to the previous fiscal period.

For the third quarter of 2024, the company generated revenue of $51.9 million, a substantial increase from $21.6 million in Q3 2023. For the nine months ending September 30, 2024, total revenue reached $123.1 million, up from $71.4 million in the same period last year. This growth is attributed primarily to increased sales from the company's Bend Sensor® technology, which has garnered heightened interest from automotive manufacturers.

Operating costs and expenses for Q3 2024 totaled $135.6 million, a decrease from $195.6 million in Q3 2023. For the nine-month period, operating costs fell to $417.9 million from $618.6 million in the prior year. The reduction in expenses is largely due to a significant decrease in professional marketing fees, which dropped by approximately $182.4 million.

Despite the revenue growth and reduced operating costs, Flexpoint reported a net loss of $126.2 million for Q3 2024, an improvement from a net loss of $205.0 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $418.7 million, compared to $624.0 million for the same period in 2023. The company’s accumulated deficit increased to $32.1 million as of September 30, 2024, from $31.7 million at the end of 2023.

The company’s total liabilities rose to $5.3 million as of September 30, 2024, compared to $5.0 million at the end of 2023, primarily due to an increase in on-demand notes and accrued interest. The total stockholders' equity turned negative, dropping to $(164,232) from $254,482 at the end of the previous fiscal year.

Flexpoint continues to face challenges in securing long-term revenue-generating contracts, which are critical for achieving commercially sustainable operations. The company has indicated a need for additional operating capital to support ongoing operations and expansion efforts. As of September 30, 2024, the company had an overdrawn cash position of $13,459, compared to an overdraft of $11,315 at the end of 2023.

The company has not reported any legal proceedings or unregistered sales of equity securities, but it noted material weaknesses in its disclosure controls and procedures, which it is actively working to address.