Scorpius Holdings Reports $34.3 Million Net Loss and Revenue Decline for Fiscal Year 2024

Scorpius Holdings, Inc. reported a net loss of approximately $34.3 million for the fiscal year ending December 31, 2024, a decrease from the $46.8 million loss recorded in the previous year. The company generated total revenues of $6.2 million, primarily from contract development and manufacturing organization (CDMO) services, which reflects a decline from $7.0 million in 2023. The decrease in revenue is attributed to the loss of a significant customer that transitioned to a larger CDMO for their manufacturing needs. As of December 31, 2024, Scorpius had an accumulated deficit of $287.2 million and cash reserves of approximately $1.2 million, which are expected to sustain operations only through April 2025.

In terms of operational changes, Scorpius has shifted its focus towards enhancing its biomanufacturing capabilities, moving away from research and biodefense efforts. The company divested its clinical-stage oncology assets, including HS-110 and PTX-35, and has engaged Alliance Global Partners to explore strategic alternatives to maximize shareholder value. Additionally, Scorpius has appointed Tan Sze Thuan to its Board of Directors to support international financing and expansion opportunities. The company also executed a reverse stock split in July 2024 to address low stock prices and maintain compliance with NYSE American listing requirements.

Scorpius's operational metrics indicate a significant reliance on a limited customer base, with two customers accounting for 53% of total revenue in 2024. The company reported a backlog of approximately $1.1 million as of December 31, 2024, a substantial decrease from $10.4 million the previous year. This decline raises concerns about future revenue generation, as the backlog is subject to customer cancellations and delays. The company currently employs 90 individuals, with a majority engaged in CDMO operations, and is actively seeking to expand its workforce to support growth.

The company faces several risks, including the need for additional capital to fund operations and the potential delisting of its common stock from the NYSE American due to non-compliance with listing standards. Scorpius has not generated significant revenue from its CDMO services and anticipates continued operating losses in the near future. The management has identified material weaknesses in internal controls over financial reporting, which could impact the company's ability to maintain compliance with regulatory requirements. The outlook remains uncertain, with management emphasizing the need for strategic partnerships and additional financing to sustain operations and achieve profitability.