OpGen Reports Third Quarter 2023 Financial Results and Provides Business Update
- Total revenue for the first nine months of 2023 was approximately
$2.35 millioncompared to approximately $1.89 millionin the first nine months of 2022
- Implemented certain cash management initiatives, including restructuring
U.S.operations by reducing headcount during the third quarter of 2023
- Signed preferred stock purchase agreement with a potential strategic investor in
- Entered into a warrant inducement agreement with an institutional investor in
Curetis GmbHin Germanyand Ares Genetics GmbHin Austriafiled for insolvency under German and Austrian laws, respectively, in November 2023
Third Quarter 2023 Financial Results of
- Total revenue for the third quarter of 2023 was approximately
$0.70 millioncompared to the Company’s revenue of approximately $0.45 millionin the third quarter of 2022. Total revenue for the nine months ended September 30, 2023was approximately $2.35 millioncompared to the Company’s revenue of approximately $1.89 millionin the nine months ended September 30, 2022.
- Total operating expenses decreased in the third quarter of 2023 to approximately
$4.26 millioncompared to approximately $13.96 millionfor the third quarter of 2022 primarily due to the Company’s goodwill impairment charge of $6.98 millionrecorded in the third quarter of 2022. Total operating expenses decreased by approximately 39% in the nine months ended September 30, 2023to approximately $16.14 millioncompared to approximately $26.52 millionfor the same period in 2022.
- Cash and cash equivalents were approximately
$0.29 millionas of September 30, 2023, compared with approximately $7.44 millionas of December 31, 2022.
The Company entered into two agreements in
In the reporting quarter and year to date, the Company has seen the following key developments:
OpGenimplemented certain cash management initiatives, including restructuring its U.S.operations by reducing headcount from 23 to 6 and scaling down operations at OpGen’s U.S.headquarters to the core functions of a U.S.Nasdaq listed company with only minimal marketing and sales support, allowing the Company to conserve cash and focus on the functions needed to pursue potential strategic alternatives.
October 2023, OpGenamended its non-exclusive distribution agreement with Fisher Healthcareto allow Fisher Healthcareto sell to existing U.S.Unyvero customers of the Company, which had previously been maintained by the Company’s sales force.
October 2023, OpGendiscontinued its FDA cleared Acuitas AMR Gene Paneldiagnostic test.
October 2023, OpGen’s German subsidiary Curetis GmbHresponded to all of the FDA’s additional requests with regard to Curetis' De Novo request for the Unyvero UTI urinary tract infection test in order to continue the FDA review.
October 2023, OpGenentered into a preferred stock purchase agreement with a potential strategic investor for gross proceeds of $1.0 millionin exchange for 1,000 shares of the Company’s Series D Preferred Stock. In connection with the ongoing discussions for a transaction with such potential strategic investor, the parties anticipate closing the transaction under the preferred stock purchase agreement as soon as practical.
November 6, 2023, following OpGen’s unsuccessful efforts to sell the businesses or assets of its wholly owned subsidiaries Curetis GmbHand Ares Genetics GmbHor to access additional capital to continue their operations, Curetis GmbHand Ares Genetics GmbHfiled for insolvency under the applicable German and Austrian laws, respectively.
About OpGen, Inc.
For more information, please visit www.opgen.com
This press release includes statements regarding the third quarter of 2023 and the current business of OpGen. These statements and other statements regarding OpGen’s future plans and goals constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control, and which may cause results to differ materially from expectations. Factors that could cause our results to differ materially from those described include, but are not limited to, the risks and uncertainties relating to the insolvency proceedings of
President and CEO
OpGen Investor & Press Contact:
Condensed Consolidated Balance Sheets
|Cash and cash equivalents||$||292,642||$||7,440,030|
|Accounts receivable, net||422,725||514,372|
|Prepaid expenses and other current assets||1,541,074||1,355,949|
|Total current assets||3,454,700||10,655,488|
|Property and equipment, net||3,820,829||3,457,531|
|Finance lease right-of-use assets, net||986||3,500|
|Operating lease right-of-use assets||1,915,049||1,459,413|
|Intangible assets, net||6,842,406||7,440,974|
|Other noncurrent assets||492,022||495,629|
|Liabilities and Stockholders’ Equity|
|Current maturities of long-term debt||$||9,199,764||$||7,023,901|
|Accrued compensation and benefits||381,807||1,097,654|
|Short-term finance lease liabilities||1,121||3,364|
|Short-term operating lease liabilities||521,424||377,626|
|Total current liabilities||12,472,085||10,591,631|
|Long-term debt, net||—||4,850,686|
|Long-term finance lease liabilities||—||280|
|Long-term operating lease liabilities||2,830,282||2,566,138|
|Other long-term liabilities||121,428||129,368|
|Additional paid-in capital||291,705,905||281,167,161|
|Accumulated other comprehensive loss||(677,662||)||(795,840||)|
|Total stockholders’ equity||2,676,723||7,575,548|
|Total liabilities and stockholders’ equity||$||18,134,882||$||25,813,149|
Condensed Consolidated Statements of Operations and Comprehensive Loss
|Three months ended
||Nine months ended
|Cost of products sold||618,796||1,886,191||1,925,566||2,824,577|
|Cost of services||73,174||17,239||405,582||63,450|
|Research and development||1,201,865||2,031,113||4,403,488||6,621,310|
|General and administrative||2,034,628||2,020,452||6,883,588||6,779,773|
|Sales and marketing||336,184||1,031,496||2,522,471||3,252,277|
|Total operating expenses||4,264,647||13,962,011||16,140,695||26,516,907|
|Other (expense) income|
|Interest and other income||24,977||11,174||86,301||28,147|
|Foreign currency transaction (losses) gains||(135,930||)||(51,547||)||(288,326||)||419,160|
|Change in fair value of derivative financial instruments||10,389||18,995||65,800||54,623|
|Total other expense||(497,332||)||(590,684||)||(1,834,789||)||(2,116,869||)|
|Loss before income taxes||(4,062,957||)||(14,103,982||)||(15,626,883||)||(26,748,113||)|
|Provision for income taxes||—||—||—||—|
|Net loss available to common stockholders||$||(4,062,957||)||$||(14,103,982||)||$||(15,626,883||)||$||(26,748,113||)|
|Net loss per common share – basic and diluted||$||(0.46||)||$||(5.92||)||$||(2.38||)||$||(11.40||)|
|Weighted average shares outstanding – basic and diluted||8,778,152||2,382,848||6,565,853||2,345,794|
|Other comprehensive income (loss) – foreign currency translation||78,815||(536,758||)||118,178||(2,247,749||)|
Source: OpGen, Inc.