Singular Genomics Systems, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a continued trend of net losses and declining revenues. For the three months ended September 30, 2024, the company generated revenue of $406,000, a decrease of 12% from $462,000 in the same period of 2023. For the nine months, revenue totaled $1.586 million, down 13% from $1.830 million year-over-year. The decline in revenue is attributed to lower sales from its G4 instrument and consumables, with the company recognizing $0.5 million from G4 instruments and $1.1 million from consumables and services during the nine-month period.

The cost of revenue for the third quarter increased to $707,000 from $527,000 in the prior year, while for the nine months, it rose to $2.483 million from $1.931 million. This led to a gross margin loss of $301,000 for the third quarter, compared to a loss of $65,000 in 2023, and a nine-month gross margin loss of $897,000, worsening from a loss of $101,000 in the previous year.

Operating expenses decreased significantly, with total operating expenses for the third quarter at $17.770 million, down 27% from $24.474 million in 2023. For the nine months, operating expenses were $66.826 million, a 14% reduction from $77.419 million. The company reported a loss from operations of $18.071 million for the third quarter, an improvement from a loss of $24.539 million in the same period last year, and a nine-month loss from operations of $67.723 million, better than the $77.520 million loss in 2023.

Net losses for the third quarter were $16.795 million, down from $22.360 million in 2023, while the nine-month net loss was $63.073 million, an improvement from $71.571 million in the prior year. The basic and diluted net loss per share for the third quarter was $(6.72), compared to $(9.25) in 2023.

As of September 30, 2024, the company reported cash and cash equivalents of $52.620 million, a significant increase from $16.233 million at the end of 2023. However, total current assets decreased to $129.810 million from $192.228 million, and total assets fell to $186.551 million from $265.467 million. The accumulated deficit increased to $400.668 million from $337.595 million at the end of 2023.

In terms of strategic developments, Singular Genomics implemented a workforce reduction plan affecting approximately 20% of its headcount in March 2024, incurring $1.6 million in related expenses. The company is also focused on the development of its G4X Spatial Sequencer and spatial biology service offerings, with ongoing investments in product development and commercialization efforts. Despite these efforts, the company anticipates continued significant losses and challenges in achieving profitability in the near future.