Guided Therapeutics, Inc. (formerly SpectRx, Inc.) reported significant financial developments in its latest 10-Q filing for the period ending September 30, 2024. The company, which focuses on the commercialization of its LuViva non-invasive cervical cancer detection device, continues to face challenges, including ongoing net losses and a substantial accumulated deficit.

For the nine months ended September 30, 2024, Guided Therapeutics recorded a net loss of approximately $1.9 million, a decrease from a net loss of $3.3 million during the same period in 2023. This improvement is attributed to a reduction in general and administrative expenses, which fell by 63.2% to $974,406, compared to $2.6 million in the prior year. However, research and development expenses surged by 171.3% to $386,417, reflecting increased costs associated with U.S. clinical trials.

Revenue for the nine-month period was reported at $5,720, a significant decline from $66,287 in 2023. The cost of goods sold also decreased to $1,879 from $45,570, indicating reduced sales activity. The company’s deferred revenue balance increased to $747,780, expected to be recognized upon receiving NMPA approval for LuViva in China.

As of September 30, 2024, the company reported a total stockholders' deficit of approximately $4.9 million, up from $3.7 million a year earlier. The accumulated deficit reached $153 million, reflecting the company's ongoing operational losses since inception. The company also reported negative working capital of about $5 million.

Guided Therapeutics has been actively raising capital to fund its operations, having raised $387,000 from notes payable and $300,000 from common stock issuance during the nine months ended September 30, 2024. The company’s 10% Senior Secured Convertible Debentures of $1.13 million went into default after their maturity date in May 2024, resulting in an increased interest rate of 18%.

Strategically, the company has entered into a new agreement with SMI, which includes a commitment for minimum sales of single-use Cervical Guide Chips and a requirement for commercialization in China by April 30, 2025. This agreement is expected to generate approximately $2.05 million in revenue.

Overall, Guided Therapeutics continues to navigate a challenging financial landscape while pursuing regulatory approvals and market opportunities for its innovative cancer detection technology.