USBC (USBC) Q3 2024 earnings summary

Executive summary

• Achieved significant milestones in hardware, clinical testing, algorithm development, and intellectual property, including the launch of KnowU, a wearable, non-invasive continuous glucose monitoring device and app, and expansion of the advisory board and patent portfolio to 336 issued and pending patents.

• Focused on developing non-invasive medical diagnostics using proprietary radio frequency spectroscopy and AI/ML algorithms, with Generation 2 prototype launched and ongoing internal/external testing; FDA clearance required before commercialization.

• Recent financing activities include a $4.8M convertible note, a $3.45M public offering, and a new public offering post-quarter end raising up to $3.96M gross.

Financial highlights

• Reported Q3 2024 net loss of $4.1M, up 13.9% year-over-year; EPS loss improved to $0.05 from $0.07; net loss for nine months ended June 30, 2024 was $12.95M.

• Operating expenses for Q3 2024 were $3.84M, up 18% year-over-year; R&D expenses decreased 28% to $1.35M, while SG&A expenses increased 83% to $2.49M.

• Cash and equivalents at June 30, 2024, were $2.13M, down from $8.02M at September 30, 2023; accumulated deficit reached $135.05M.

• Shareholder equity turned negative at $(4.60)M as of June 30, 2024.

Outlook and guidance

• Management expects continued operating losses and believes current cash and recent financing support operations through at least December 31, 2024, though there is substantial doubt about the ability to continue as a going concern without further funding.

• Initiatives underway to reduce fixed expenses and monthly burn rate; plans to seek additional funding under S-3 shelf registration.