Interpace Biosciences, Inc. reported significant financial improvements in its third quarter and year-to-date results for 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated revenue of $12.3 million, a 35% increase from $9.1 million in the prior year. For the nine months ended September 30, 2024, revenue reached $34.6 million, up 16% from $29.9 million in 2023. Gross profit for the third quarter was $7.5 million, reflecting a gross profit margin increase to 61% from 54.6% in the same quarter of 2023.

Operating income from continuing operations for the third quarter of 2024 was $1.9 million, a notable recovery from a loss of $16,000 in the same quarter of 2023. Year-to-date operating income also improved significantly to $5.0 million from $1.5 million in the previous year. The net income for the third quarter of 2024 was $1.3 million, compared to a net loss of $614,000 in the same period of 2023. For the nine months ended September 30, 2024, net income totaled $3.8 million, a substantial turnaround from a net loss of $88,000 in 2023.

The company’s total assets increased to $14.0 million as of September 30, 2024, up from $13.0 million at the end of 2023. Total liabilities decreased to $25.2 million from $28.2 million, contributing to a reduction in the total stockholders’ deficit to $57.7 million from $61.7 million. Cash and cash equivalents decreased to $2.1 million from $3.5 million at the end of 2023, with a net cash decrease of $1.4 million for the nine months ended September 30, 2024.

Strategically, Interpace terminated a $7.5 million revolving credit facility with Comerica Bank in February 2024 and entered into an $8.0 million term loan with BroadOak Fund V, L.P. The company made a one-time payment of $2.5 million on this loan in October 2023, and the interest rate was reduced from 9% to 8% effective November 1, 2023. Additionally, on October 10, 2024, the company exchanged 47,000 shares of Series B Preferred Stock for Series C Preferred Stock, a move aimed at facilitating an uplisting to Nasdaq.

The company also faced potential risks related to the coverage of its PancraGEN® test, which could impact liquidity if Medicare coverage is restricted. However, a proposed local coverage determination affecting this test was recently extended, allowing continued offering of PancraGEN® and related tests.

Overall, Interpace Biosciences has shown a positive trajectory in revenue and profitability, alongside strategic financial maneuvers to enhance its capital structure and operational efficiency.