Earnings analysis · 10-Q
SCNI earnings analysis
Filed May 15, 2023 · Our reading of the company's report
The latest report
BiondVax reported widening operating and net losses for the quarter ended March 31, 2023: operating loss rose to $3,186 (from $2,615) and net loss to $3,515 (from $2,475). Cash and cash equivalents declined to $10,799…
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BiondVax reported widening operating and net losses for the quarter ended March 31, 2023: operating loss rose to $3,186 (from $2,615) and net loss to $3,515 (from $2,475). Cash and cash equivalents declined to $10,799 (from $14,075) while non-current debt (loan from others) increased to $21,851 (from $20,082). Management says existing resources plus a cost-saving plan should be adequate for at least twelve months from the filing date.
Reported figures
- Earnings per share
- $-0.003
What stood out
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R&D investment increased
Research and development expense rose to $1,995 in Q1 2023 from $1,163 in Q1 2022 (increase of $832).
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Warrants liability declined materially
Warrants liability decreased to $2,664 as of March 31, 2023 from $5,329 at December 31, 2022 (decline of $2,665); warrants revaluation of $(2,568) was recorded in cash flow adjustments.
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Equity financing closed in prior quarter
The company completed an offering that produced gross proceeds of $8,000 and received net proceeds of $7,231 (closing December 20, 2022) providing balance sheet liquidity.
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Management expects 12-month liquidity runway
Management states its existing resources and operating plans, including a cost saving plan, 'will be adequate to satisfy its expected liquidity requirements for a period of at least twelve months from the end of the filing date.'
What to watch
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Widening net loss
Net loss increased to $3,515 for the three months ended March 31, 2023 from $2,475 for the same period in 2022 (increase of $1,040).
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Higher operating cash burn
Net cash used in operating activities increased to $3,059 in Q1 2023 from $1,105 in Q1 2022 (additional $1,954 of operating cash outflow).
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Cash balance declined
Cash and cash equivalents fell to $10,799 at March 31, 2023 from $14,075 at December 31, 2022 (decline of $3,276).
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Increased loan exposure and finance expense
Loan from others rose to $21,851 at March 31, 2023 from $20,082 at December 31, 2022 (increase of $1,769); the company recorded $1,769 of finance expenses in the quarter related to loan revaluation and paid $725 to EIB on February 16, 2023.
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Worsening shareholders' deficit
Total shareholders' deficit worsened to $(4,810) at March 31, 2023 from $(1,760) at December 31, 2022 (deterioration of $3,050).
Management's outlook
The 10-Q contains no explicit numeric forward revenue or EPS guidance. Management says it plans to finance operations from existing working capital and additional sources and that its operating plans and a board-approved cost saving plan (including headcount reductions and postponing/cancelling nonessential capex) 'will be adequate' for at least twelve months from the filing date. Loan terms: maturity extended to December 31, 2027; interest accrues at 7% starting January 1, 2022 and is deferred to maturity; 10% of any capital raises will be used to repay loan principal; 3% royalties apply if sales exceed approximately $5,332 (all items disclosed in the filing).
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.