Harvard Apparatus Regenerative Technology, Inc. reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, focused on regenerative medicine for gastrointestinal disorders and other organ issues, experienced a notable increase in product revenue, driven primarily by its Consumer Health Products launched in the Great China Region. For the three months ended September 30, 2024, product revenue reached $59,000, up 48% from $40,000 in the same period of 2023. For the nine months, revenue surged to $172,000, a 330% increase from $40,000 in the prior year.

Despite the revenue growth, the company reported a net loss of $(1,860,000) for the third quarter of 2024, compared to $(1,615,000) in Q3 2023. For the nine-month period, the net loss improved to $(6,388,000) from $(7,119,000) in 2023, reflecting a decrease of 10%. The basic and diluted net loss per share for the nine months was $(0.44), an improvement from $(0.54) in the previous year.

Total operating expenses for the three months ended September 30, 2024, increased by 15% to $1,918,000, while for the nine months, expenses decreased by 9% to $6,533,000. The increase in quarterly expenses was attributed to higher research and development costs, which rose 64% to approximately $500,000 due to initial clinical trial activities. Conversely, general and administrative expenses saw a slight decrease.

As of September 30, 2024, the company reported total assets of $5,311,000, a significant increase from $2,614,000 at the end of 2023. Cash and cash equivalents also rose sharply to $3,593,000 from $432,000, providing a stronger liquidity position. However, the company continues to face an accumulated deficit of approximately $98.3 million and substantial doubt regarding its ability to continue operations without raising additional capital by Q1 2025.

Strategically, Harvard Apparatus entered into a securities purchase agreement in August 2024, raising approximately $5 million through the private placement of common stock. The company is actively seeking further financing through various channels, including public and private equity offerings, debt financing, and strategic collaborations. Additionally, in October 2024, it signed an exclusive distribution agreement with Health Regen, Inc. for its Consumer Health Products, effective from November 1, 2024, through December 31, 2030.