Telesis Bio Inc. reported significant financial challenges in its latest 10-Q filing for the third quarter of 2024, reflecting a continued decline in revenue and increased net losses compared to the previous fiscal period. For the three months ended September 30, 2024, total revenue was $1.566 million, down from $4.098 million in Q3 2023, marking a decrease of $2.532 million. Product revenue also fell sharply to $930,000 from $2.435 million year-over-year. For the nine months ended September 30, 2024, total revenue was $5.305 million, a substantial drop from $15.780 million in the same period of 2023.

The company's gross profit for Q3 2024 was $1.009 million, down from $2.536 million in Q3 2023, with a gross margin of 64%, slightly up from 62% a year earlier. However, total operating expenses decreased to $6.486 million from $11.915 million in Q3 2023, primarily due to personnel reductions and cost-cutting measures. Despite these reductions, Telesis Bio reported a net loss of $6.642 million for Q3 2024, an improvement from the $10.631 million loss in Q3 2023. For the nine-month period, the net loss was $27.864 million, compared to $30.037 million in the prior year.

The company’s financial position has deteriorated, with total assets dropping to $24.737 million as of September 30, 2024, from $70.411 million at the end of 2023. Current assets also fell significantly, from $30.351 million to $8.120 million over the same period. Telesis Bio's accumulated deficit increased to $189.3 million as of September 30, 2024.

Strategically, Telesis Bio completed the sale of its EtonBio subsidiary on August 26, 2024, which is now classified as a discontinued operation. This divestiture is part of the company's efforts to streamline operations and focus on its core business of synthetic biology solutions. The company has also faced challenges in maintaining compliance with its debt covenants, leading to a repayment of $15 million under its 2022 Term Loan Agreement in November 2023.

The company’s stock was suspended from trading on Nasdaq on September 30, 2024, due to noncompliance with minimum stockholders’ equity requirements and is now trading on the OTC Pink market. Telesis Bio has expressed substantial doubt about its ability to continue as a going concern, citing insufficient financial resources to fund operations for at least the next twelve months. The company is actively seeking additional financing but faces challenges in raising capital on acceptable terms.