Marizyme Reports No Revenue and Significant Net Loss in Latest Quarter

Marizyme, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company recorded no revenue for the three months ended September 30, 2024, a stark decline from $181,535 in the same period last year. For the nine months ending September 30, 2024, revenue was $32,855, down from $495,248 in the prior year. The absence of revenue is attributed to a halt in inventory production due to financial constraints. The company’s net loss for the quarter was approximately $1.96 million, a substantial improvement compared to a net loss of $26.5 million in the same quarter of 2023. For the nine-month period, the net loss was $14.8 million, significantly lower than the $65.2 million loss reported in the previous year.

The financial performance reflects a broader trend of reduced operating expenses, which totaled $1.36 million for the three months ended September 30, 2024, compared to $4.99 million in the same period last year. This decrease was driven by significant reductions in professional fees, research and development costs, and other general administrative expenses. The company has also seen a decrease in interest and accretion expenses related to its convertible notes, which fell to $1.1 million from $1.5 million year-over-year. Despite these reductions, the company continues to face challenges, including an accumulated deficit of $170.3 million and negative working capital of approximately $29.1 million.

Strategically, Marizyme has focused on the commercialization of its DuraGraft product, which received FDA authorization for marketing in October 2023. The company plans to employ a small direct sales force to target hospital integrated networks in the U.S. and has resumed marketing efforts in Europe and Asia. However, the company has significantly reduced development efforts for other pipeline technologies, including Krillase, and terminated its Sponsored Research Agreement for the MATLOC device. The company’s operational focus is now primarily on DuraGraft and the development of MAR-FG-001, a fat grafting technology.

Operationally, Marizyme has faced challenges in maintaining adequate cash flow, ending the quarter with only $63,732 in cash. The company has relied on financing activities, raising approximately $2.4 million through the issuance of promissory notes and other agreements. However, the company’s ability to continue operations is in question, as it has indicated the need for additional financing to support ongoing operations and product development. The management has expressed concerns about the company’s ability to continue as a going concern without securing further funding.

Looking ahead, Marizyme's management remains focused on generating revenue from DuraGraft and expanding its market presence. However, the company acknowledges the need for significant capital to support its operations and product development efforts. The outlook remains uncertain, with management indicating that the ability to raise additional funds will be critical to the company's future viability. The company’s financial health and operational strategies will be closely monitored as it navigates these challenges in the coming months.