Sonendo, Inc., a commercial-stage medical technology company, reported revenue of $31.7 million for the fiscal year ended December 31, 2024, representing an 8% decrease compared to the $34.6 million in revenue generated during the prior year. The company incurred a net loss of $28.0 million from continuing operations in 2024, a significant improvement from the $62.5 million net loss reported in 2023. This improvement was primarily due to a 34% decrease in cost of sales, driven by lower manufacturing costs for procedure instruments and reduced excess and obsolete inventory charges. The company's gross margin increased substantially to 37% in 2024 from 13% in 2023.
Significant changes during the year included the divestiture of the Software segment in March 2024, resulting in a $5.7 million gain recorded in income from discontinued operations. The company also terminated a Biolase Asset Purchase Agreement after failing to win a bankruptcy auction, receiving a $1.0 million break-up fee and expense reimbursement. Further, Sonendo's common stock was delisted from the New York Stock Exchange in April 2024 and subsequently moved to the OTC Pink market in February 2025 after failing to meet OTCQX listing requirements. The company also voluntarily suspended its SEC reporting obligations in February 2025, filing this 10-K to fulfill remaining reporting requirements.
Operational developments included over 1.6 million patients treated with the GentleWave System as of December 31, 2024. The company's sales and customer support team consisted of approximately 35 employees as of December 31, 2024. Sonendo's commercial strategy focuses on increasing the installed base of GentleWave consoles and maximizing recurring revenue from single-use procedure instruments. The company also highlighted an American Dental Association code update that may improve insurance reimbursement coverage for the GentleWave procedure.
As of December 31, 2024, Sonendo had $11.6 million in cash and cash equivalents and short-term investments, an accumulated deficit of $458.0 million, and $15.1 million in outstanding principal under its term loan facility. The company amended its credit agreement in February 2025, deferring and waiving certain amortization payments contingent upon future equity financings. Sonendo expects to continue incurring net losses for the foreseeable future due to ongoing investments in sales, marketing, research and development, and regulatory affairs. The company acknowledges material uncertainty regarding its ability to continue as a going concern, dependent on securing additional financing and achieving profitable operations.
Sonendo's outlook indicates a continued focus on commercializing its GentleWave System, increasing system utilization, and improving gross margins through cost reduction strategies. The company plans to expand its international marketing programs and explore additional financing options to fund its operations and planned growth. The company's future success is contingent upon several factors, including market acceptance of its products, successful execution of its commercial strategy, and securing adequate financing.
About Sonendo, Inc.
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