LENSAR, Inc. reported significant financial developments in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company achieved total revenue of $13.5 million for Q3 2024, marking a 38% increase from $9.8 million in Q3 2023. This growth was primarily driven by a 48% rise in product revenue, which reached $10.6 million, up from $7.2 million in the prior year. For the nine-month period, total revenue increased by 22% to $36.8 million, compared to $30.1 million in the same period of 2023.

Despite the revenue growth, LENSAR reported a net loss of $1.5 million for Q3 2024, a stark contrast to a net income of $2.6 million in Q3 2023. The nine-month net loss also widened to $12.7 million from $10.5 million in the previous year. The losses were attributed to increased costs, including a $3.9 million impairment charge on intangible assets, and rising operational expenses.

Total costs of revenue for Q3 2024 were $7.3 million, up from $4.9 million in Q3 2023, reflecting a 48% increase. The cost of product revenue also rose significantly, indicating higher expenses associated with increased sales volume. Selling, general, and administrative expenses for Q3 2024 increased by 19% to $6.2 million, influenced by prior year reductions due to an Employee Retention Credit.

As of September 30, 2024, LENSAR's total assets decreased to $62.0 million from $69.6 million at the end of 2023, with cash and cash equivalents dropping to $10.4 million from $20.6 million. The company’s total stockholders’ equity also fell to $22.7 million from $33.4 million at the end of 2023.

Strategically, LENSAR continues to focus on the ALLY Robotic Cataract Laser System, which has received regulatory approvals in multiple regions, including the U.S. and EU. The company is actively pursuing additional certifications in South Korea and China. However, it faces challenges from global supply chain disruptions and inflation, which have impacted its ability to manufacture products and meet demand.

Looking ahead, LENSAR anticipates continued losses and cash outflows as it invests in expanding its sales efforts and developing the next generation of its ALLY System. The company may need to raise additional capital through equity or debt financing in the future, which could affect existing shareholders.