Harvard Bioscience, Inc. reported significant financial challenges in its 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a notable decline in revenues, with total revenues for the third quarter at $21.97 million, down 13.4% from $25.36 million in the same period of 2023. For the nine-month period, revenues decreased by 17.3% to $69.58 million from $84.10 million year-over-year. This decline in revenue was attributed to macroeconomic pressures, including inflation, interest rate fluctuations, and reduced demand from biotechnology and pharmaceutical customers.

Gross profit also fell, with Q3 2024 gross profit at $12.77 million, a decrease of 13.3% from $14.73 million in Q3 2023. The gross margin remained stable at 58.1%. However, the company reported an operating loss of $1.87 million for Q3 2024, compared to a smaller loss of $0.93 million in Q3 2023. For the nine-month period, the operating loss widened to $6.22 million from an operating income of $1.61 million in the previous year.

Net losses increased significantly, with a net loss of $4.80 million for Q3 2024, compared to $1.24 million in Q3 2023. For the nine months, the net loss reached $12.42 million, up from $1.60 million in the same period of 2023. The basic and diluted loss per share for Q3 2024 was $(0.11), compared to $(0.03) in Q3 2023.

The company’s financial condition showed a decrease in total current assets to $46.79 million as of September 30, 2024, down from $49.04 million at the end of 2023. Total liabilities increased slightly to $65.92 million from $64.29 million. Stockholders' equity also declined to $65.32 million from $73.07 million.

In terms of strategic developments, Harvard Bioscience undertook restructuring efforts, incurring $0.6 million in expenses primarily related to headcount reductions in North America and Europe. The company also settled a defined benefit plan, resulting in a non-cash charge of $1.2 million.

The company’s liquidity position remains under pressure, as it is unable to make additional borrowings under its revolving credit facility due to net leverage ratio requirements. Despite these challenges, Harvard Bioscience expects that its available cash and cash generated from operations will be sufficient to finance operations and capital expenditures for at least the next 12 months.