Sign in

You're signed outSign in or to get full access.

AI

Aditxt, Inc. (ADTX)·Q3 2020 Earnings Summary

Executive Summary

  • Pre-revenue; net loss widened to $2.74M in Q3 2020 on higher public-company and commercialization costs, vs $1.08M in Q3 2019 . Operating expenses rose to $2.74M vs $1.08M YoY, and vs $0.40M in Q2 2020 .
  • Balance sheet strengthened: cash and equivalents reached $13.72M at 9/30/20, supported by IPO ($11.0M gross) and September follow-on ($9.6M gross); management expects funding for at least the next 12 months .
  • CEO highlighted commercialization readiness for AditxtScore for COVID-19 and cash position of $13.7M; EUA filed in late August, with CLIA certification secured post-quarter to enable lab-developed test launch targeted for January 2021 .
  • No formal financial guidance or earnings call transcript was provided; catalysts center on regulatory milestones (EUA/510(k)) and AditxtScore commercialization .

What Went Well and What Went Wrong

  • What Went Well

    • Strengthened liquidity and runway: cash increased to $13.72M at quarter end; IPO and follow-on raised ~$20.6M gross; management stated funds sufficient for at least 12 months .
    • Commercialization progress: submitted EUA for AditxtScore for COVID-19 in late August; post-quarter, secured CLIA certification enabling LDT launch targeted for January 2021 .
    • Management tone: “It’s been an exciting quarter … with cash of $13.7 million at September 30th … we are well positioned to achieve our goals for growth.” — Amro Albanna, CEO .

  • What Went Wrong

    • Operating expense step-up: Total operating expenses of $2.74M (Q3 2020) vs $1.08M (Q3 2019), reflecting costs of being public and executing the business plan .
    • Losses widened: Net loss of $2.74M vs $1.08M YoY; per-share loss $(0.37) vs $(0.28) YoY .
    • Pre-revenue status persists; company reiterated it has not generated revenues to date, increasing reliance on external financing and execution of commercialization plans .

Financial Results

MetricQ3 2019Q2 2020Q3 2020
Revenue ($USD)$0 $0 $0
Net Loss ($USD)$(1,080,403) $(534,317) $(2,744,422)
Diluted EPS ($USD)$(0.28) $(0.14) $(0.37)
Total Operating Expenses ($USD)$1,079,949 $398,480 $2,744,538
Operating DetailQ3 2019Q2 2020Q3 2020
G&A Expense ($USD)$1,060,346 $367,338 $2,453,725
Stock-based Comp (G&A) ($USD)$720,649 $160,329 $874,363
R&D Expense ($USD)$19,603 $28,294 $285,813
R&D – Licensing Fees ($USD)$2,890 $625 $131,965
R&D – Product Development ($USD)$13,500 $13,500 $30,000
R&D – Other ($USD)$3,213 $14,169 $152,178
Balance Sheet HighlightsQ3 2019Q2 2020Q3 2020
Cash and Equivalents ($USD)$32,977 $49,925 $13,715,534
Total Assets ($USD)—$617,589 $15,367,766
Working Capital ($USD)—$(4,254,802) $13,522,343
Share MetricsQ3 2019Q2 2020Q3 2020
Weighted Avg Shares (basic & diluted)3,866,751 3,929,205 7,439,225

Note: Margins not meaningful given zero revenue .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial guidanceFY2020None disclosed None disclosed N/A

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2020)Current Period (Q3 2020)Trend
Immune monitoring commercializationPlanning FDA pathway (510(k)) for AiM/AditxtScore; validation studies and vendor/partner development Focus on AditxtScore for COVID-19; EUA submitted in late August; CLIA-certified operations established to launch as LDT Jan 2021 Accelerating
Regulatory (EUA/510(k))Targeting 510(k) submission by 12/31/2020; engaging with FDA Continuing EUA path for COVID-19 and indicating EUA may provide a path to 510(k) Progressing
Financing & runwayIPO completed July 2 (net ~$9.5M); working capital deficit pre-IPO Follow-on offering completed Sept 10 ($9.6M gross); cash $13.72M; runway ≥12 months Strengthened
R&D execution (ADi™)Pre-clinical data in skin grafts and psoriasis; IND milestones renegotiated with LLU Continued pre-clinical stage; milestone schedule detailed; no new clinical data disclosed in Q3 Steady
COVID-19 applicationConcept for infectious disease monitoring; building partnerships CLIA certification and imminent LDT launch for COVID-19 Near-term commercialization
Organization/teamCFO appointment; options grants upon IPO; building team Additional option grants post-quarter (board and employees) Building

Management Commentary

  • “It’s been an exciting quarter for Aditxt … most importantly, we introduced the first application of our AditxtScore™ Monitoring platform … we’re working hard to position the Company for commercialization … with cash of $13.7 million at September 30th … we are well positioned to achieve our goals for growth.” — Amro Albanna, CEO .
  • “As we prepare to roll out the AditxtScore™ immune monitoring platform … the establishment of our own CLIA-certified AditxtScore™ operation is vital … we believe that the upcoming availability of two new vaccines … will increase the need for ongoing monitoring of the immune system.” — Amro Albanna, CEO .

Q&A Highlights

  • No Q3 2020 earnings call transcript or Q&A was available in the company’s filings/catalog for the period.

Estimates Context

  • Wall Street consensus estimates (EPS, revenue) via S&P Global were unavailable at the time of request; comparison to estimates cannot be made at this time. Attempted retrieval resulted in an SPGI rate-limit error.

Key Takeaways for Investors

  • Liquidity de-risks near-term execution: cash of $13.72M and completed capital raises support ≥12 months of operations while pre-revenue .
  • Commercial launch catalyst: CLIA-certified AditxtScore operations enable LDT launch for COVID-19 targeted for January 2021; pending EUA response and future 510(k) pathway could broaden adoption .
  • Expense ramp reflects transition from development to commercialization and public company costs; monitor opex discipline and stock-based comp trends as commercialization proceeds .
  • Revenue visibility hinges on AditxtScore adoption and regulatory milestones; absence of guidance emphasizes tracking operational updates and regulatory filings .
  • Equity dynamics: significant increase in share count post-offerings; watch dilution and warrant/option overhang as instruments vest/exercise .
  • Regulatory milestones renegotiated with LLU provide extended timelines through 2027; progress against IND/Phase timelines will be key to the ADi™ program’s value creation .
  • Near-term trading implications: headlines around CLIA/EUA/launch timing and any early customer/partnership wins for AditxtScore likely drive sentiment and liquidity given pre-revenue status .