Tivic Health Systems, Inc. reported significant financial changes in its latest 10-Q filing for the third quarter of 2024. The company generated revenue of $126,000 for Q3 2024, a decrease of 56% from $282,000 in Q3 2023. For the nine months ended September 30, 2024, total revenue was $600,000, down 27% from $819,000 in the same period last year. Gross profit also declined, with Q3 2024 gross profit at $44,000 compared to $108,000 in Q3 2023, and nine-month gross profit at $241,000, down from $282,000.

Despite the revenue decline, Tivic Health managed to reduce its operating expenses significantly. Total operating expenses for Q3 2024 were $1,475,000, a 21% decrease from $1,868,000 in Q3 2023. For the nine-month period, operating expenses fell by 31% to $4,359,000 from $6,283,000. This reduction in expenses contributed to an improved net loss of $(1,431,000) for Q3 2024, compared to $(1,760,000) in Q3 2023. The nine-month net loss also improved to $(4,178,000) from $(6,001,000) in the previous year.

As of September 30, 2024, Tivic Health reported cash and cash equivalents of $2,189,000, down from $3,395,000 at the end of 2023. Total current assets decreased to $3,163,000 from $4,652,000, while total assets fell to $3,394,000 from $5,157,000. The company’s total stockholders’ equity also declined to $2,834,000 from $3,580,000.

Strategically, Tivic Health has made several operational adjustments, including the termination of its Fulfillment Services Agreement with ALOM Technologies to reduce costs associated with product manufacturing and distribution. The company transitioned to third-party logistics and in-house assembly without service disruptions. Additionally, Tivic entered into an Equity Distribution Agreement with Maxim Group LLC to facilitate future capital raises, although it has only raised $18,000 to date under this agreement.

The company continues to focus on its ClearUP Sinus Pain Relief product, which is FDA-approved, and is advancing its vagus nerve stimulation technology through ongoing clinical evaluations. However, Tivic Health faces challenges, including global supply chain issues and geopolitical tensions that could impact costs and market conditions. The company has expressed substantial doubt about its ability to continue as a going concern within the next year, emphasizing the need for additional capital to support its operations and development efforts.