Tivic Health Systems (TIVC) Q2 2024 earnings summary

Executive summary

• Announced successful completion of Phase I trial for non-invasive vagus nerve stimulation (VNS) with strong clinical results and ongoing partnership with the Feinstein Institutes for Medical Research.

• Launched ClearUP 2.0 with improved features and began decommissioning older versions.

• Completed a $4 million public offering in May 2024, netting $3.3 million, and transitioned to lower-cost logistics and office space.

• Focus shifting from ClearUP product line to high-value medical targets in bioelectronic medicine, with increased R&D investment in VNS.

• Received Nasdaq notification for non-compliance with $1 minimum bid price, with a 180-day window to regain compliance.

Financial highlights

• Q2 2024 revenue was $140,000, down 12–13% year-over-year; first half revenue was $474,000, down 12% year-over-year, due to a 27% decrease in unit sales, partially offset by a 20% increase in average sale price.

• Gross profit for Q2 2024 was $30,000; first half gross profit was $197,000, with gross margin improving to 42% from 32% year-over-year.

• Operating expenses for Q2 2024 were $1.2 million, down from $2.2 million in 2023; first half operating expenses were $2.9 million, down from $4.4 million, reflecting $1.5 million in cost reductions.

• Net loss for Q2 2024 was $1.3 million (vs. $2.1 million in 2023); first half net loss was $2.7 million, $1.5 million lower year-over-year.

• Cash and cash equivalents at June 30, 2024, were $3.7 million, up from $3.4 million at year-end 2023.

Outlook and guidance

• No forward guidance provided; management expects increased expenses as VNS program advances, with potential offset from grants or collaborations.

• Company anticipates the need to raise additional capital within the next twelve months to fund operations and R&D.

• Focus remains on optimizing ClearUP economics, reducing operating expenses, and exploring alternative monetization strategies, including licensing and international distribution.