A pretty disappointing qtr in terms of sales (the research partnerships, etc well flagged to investors already), obviously not entirely unexpected if you have been following this stock and its present sales geographic, as explained by:
Sales on a trailing yearly total (the last four quarters) had been recently growing at around 45%. Personally I feel the EMEA transition explanation is a bit weak given Apr 2023 MDR certification, and more likely the imposition of Doctor strikes in many parts of Europe during the period (they do point out later too). It could have done with more specific and quantifiable clarification nonetheless. Otherwise it might have reported a yearly revenue well over $3 million vs the $2.8 million accrued reported (cash sales are actually $634K for the quarter and $2.54M for the year), as might have been more reasonably expected from recent sales growth trends and I'd be asking myself how, despite the financial status of the company, it trades at less than 1.3 Price to Sales on an accrued basis? It still only trades on a 1.4 P/S basis on reported accrued revenues, obviously because of investors financing concerns and lingering sentiment on poor past performance.
The operational cash burn still fell, but it might have been more like $0.5M than the $0.7M shown, without the interruptions to sales.
Leong obviously remains an over awarded and under performing Chairman, as is obvious to all but him and the Board it seems (oh and those shareholders who can't be bothered to vote against them). Clearly, despite the $20 convertible note deal the market still needs to see more immediate inflows of cash from operations or commercial partnership deals, before (or if) the valuation (share price) of this company recovers. The deal obviously vastly reduces the possibility of a capital raise in the near term, but investors needed to see inroads to cash flow neutrality and that cash burn lower still - the Korea/EU Doctors strikes/resignation interruption to sales a costly impediment to this one escaping the black hole of investor bankruptcy fears. Hopefully the trailing yearly accrued revenue sales improves back to those recent roughly 45% growth rates seen in the preceding three quarters to this (+27%).
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