Oncocyte Corporation reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial decline in revenue, with net revenue for the three months amounting to $115,000, down from $429,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $395,000, a decrease from $1.2 million in the prior year. This decline was attributed primarily to reduced contracts in its Pharma Services segment.

The company's gross profit also fell sharply, with a gross profit of $50,000 for the third quarter of 2024 compared to $248,000 in 2023. Total operating expenses surged to $13.6 million for the quarter, up from $6.8 million a year earlier, leading to a loss from operations of $13.5 million, more than double the loss of $6.5 million reported in the same quarter of 2023. The net loss for the three months ended September 30, 2024, was $13.5 million, compared to $6.5 million in the previous year, reflecting a 108% increase in losses.

For the nine-month period, the net loss reached $27.2 million, significantly higher than the $11.8 million loss recorded in the same period of 2023. The increase in losses was driven by higher research and development expenses, which rose to $7.6 million from $6.7 million, and increased sales and marketing expenses, which totaled $2.7 million, up from $2.2 million.

Oncocyte's financial position has also deteriorated, with total current assets decreasing to $4.8 million as of September 30, 2024, from $10.7 million at the end of 2023. Cash and cash equivalents fell sharply to $3.4 million from $9.4 million. Total liabilities increased to $60.5 million, up from $49.3 million at the end of 2023, while total shareholders' equity plummeted to $9.7 million from $20.5 million.

Strategically, Oncocyte has made several moves to address its financial situation, including a private placement that raised approximately $9.9 million in April 2024 and an additional $10.2 million in October 2024. The company has also entered into a collaboration agreement with Bio-Rad Laboratories to develop and commercialize transplant products, which may provide future revenue opportunities. However, Oncocyte has raised concerns about its ability to continue as a going concern due to ongoing operating losses and negative cash flows, necessitating further funding and potential reductions in operating expenses.