Impact BioMedical, Inc. reported significant financial developments for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company experienced a net income of $4,241,000 for the third quarter of 2024, a substantial turnaround from a net loss of $(1,177,000) in the prior year. For the nine-month period, net income was $2,363,000, compared to a net loss of $(3,146,000) in 2023. This improvement is attributed to cost-cutting measures in professional and research and development expenses, alongside a notable change in the fair value of embedded derivatives.

Total costs and expenses for the third quarter of 2024 were $1,127,000, reflecting a 5% increase from $1,078,000 in 2023. However, for the nine months ended September 30, 2024, total costs decreased by 13% to $2,522,000 from $2,889,000 in the previous year. Operating losses remained consistent, with $(1,127,000) for the third quarter of 2024 compared to $(1,078,000) in 2023, while the nine-month operating loss improved to $(2,522,000) from $(2,889,000).

The company’s income from operations before income taxes for the third quarter of 2024 was $4,241,000, a significant increase from a loss of $(1,177,000) in the same quarter of 2023. For the nine-month period, income from operations before income taxes was $2,363,000, compared to a loss of $(3,146,000) in 2023.

Impact BioMedical's cash position improved markedly, with cash and cash equivalents at $2,668,000 as of September 30, 2024, compared to $201,000 at the same time in 2023. The company completed an initial public offering on September 16, 2024, raising approximately $3,726,000 net of issuance costs, which contributed to the increase in cash.

Research and development costs saw a significant reduction, dropping to $386,000 for the nine months ended September 30, 2024, from $1,055,000 in 2023, primarily due to the cessation of a research contract. Conversely, sales and marketing costs surged to $461,000 for the third quarter of 2024, a 2,612% increase from $17,000 in 2023, attributed to heightened marketing efforts.

The company also reported a decrease in professional fees by 62% for the third quarter and 58% for the nine months, reflecting reduced consulting and legal services in anticipation of the IPO. Despite these improvements, the company continues to face challenges, including material weaknesses in internal controls, which management is actively addressing.