Renalytix plc Reports 14% Revenue Growth, Reduced Losses in Q3 2024

Renalytix plc, an artificial intelligence-enabled in vitro diagnostics company focused on kidney disease management, reported its financial results for the three months ended September 30, 2024. The company generated revenue of $522,000, marking a 14% increase from $459,000 in the same period of 2023. This growth was primarily attributed to the continued deployment of its KidneyIntelX.dkd testing services, which received FDA approval and Medicare reimbursement.

Total operating expenses significantly decreased to $4,192,000 from $8,846,000 year-over-year, reflecting a reduction of 53%. This decline was driven by lower research and development expenses, which fell from $2.8 million to $900,000, and a decrease in general and administrative expenses from $6.0 million to $3.3 million. As a result, the loss from operations improved to $(4,093,000) compared to $(8,889,000) in the prior year, a positive change of 54%. The net loss before income taxes also decreased to $(4,726,000) from $(10,154,000), representing a 53% reduction.

Despite the improved financial performance, the company continues to face challenges, with an accumulated deficit of $216.5 million as of September 30, 2024. Cash and cash equivalents were reported at $909,000, down from $4.7 million at the end of June 2024. The total current liabilities increased to $12,013,000 from $11,495,000, contributing to a total shareholders’ deficit of $(11,319,000), up from $(7,854,000) in the previous quarter.

Strategically, Renalytix has made significant moves to enhance its financial position. The company closed an equity financing round of approximately $14.9 million post-period, which is expected to improve liquidity. Additionally, it restructured its convertible bonds, converting £2.97 million into equity and issuing new convertible notes with a maturity date of July 31, 2029. This restructuring is part of a broader effort to manage liabilities and improve cash flow.

The company has also focused on expanding its market presence, with a major new testing implementation in September 2024 at a large physician practice in New York. Management aims to increase testing volumes and expand reimbursement policies over the next 24 months to achieve profitability.

Overall, while Renalytix has shown improvements in revenue and reduced losses, it continues to navigate significant financial challenges and operational risks typical of early-stage diagnostics firms.