Aspira Women's Health Reports Mixed Q3 Results, Net Loss Improvement, and Strategic Focus on Product Development

Aspira Women’s Health Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period. The company generated total revenue of $2,257,000 for the three months ended September 30, 2024, a slight increase of 2% from $2,217,000 in the same period of 2023. However, total revenue for the nine months decreased by 3% to $6,833,000 from $7,024,000 in the prior year. The decline in nine-month revenue was attributed to lower average unit prices and a slight decrease in the volume of OvaSuite tests performed.

Gross profit for the third quarter rose to $1,355,000, up 4% from $1,307,000 in 2023, while gross profit for the nine months fell to $3,990,000 from $4,043,000. The gross profit margin for the third quarter improved to 60.0%, compared to 59.0% in the prior year, driven by increased product revenue and reduced costs.

The company reported a loss from operations of $(3,744,000) for the third quarter, an improvement from $(4,116,000) in 2023. For the nine months, the loss from operations decreased to $(12,847,000) from $(14,717,000), reflecting a 13% reduction. The net loss for the third quarter was $(3,547,000), down from $(4,706,000) in the same quarter of 2023, while the nine-month net loss improved to $(11,706,000) from $(13,601,000).

Aspira's total assets decreased to $4,759,000 as of September 30, 2024, from $6,262,000 at the end of 2023, while total liabilities also fell to $7,279,000 from $8,627,000. The company’s accumulated deficit increased to $(530,009,000) from $(518,303,000) at the end of 2023. Cash and cash equivalents were reported at $2,133,000, down from $2,597,000 at the end of 2023.

Strategically, Aspira has focused on enhancing its product offerings, particularly in ovarian cancer and endometriosis diagnostics. The company has implemented a revised commercial strategy, resulting in a 21% increase in the average volume of OvaSuite tests per sales representative. Additionally, Aspira received a $10 million funding award from the Advanced Research Projects Agency for Health (ARPA-H) to develop a multi-marker blood test for endometriosis.

The company has faced challenges, including a deficiency letter from Nasdaq regarding its market value and bid price, with deadlines for compliance set for December 30, 2024, and April 15, 2025, respectively. Aspira anticipates continued net losses and negative cash flows for the remainder of 2024, with plans to raise capital through various means, including equity offerings and cost reductions.