Harvard Apparatus Regenerative Technology, Inc. (HRGN)·Q3 2021 Earnings Summary

Executive Summary

• Q3 2021 net loss widened to $0.85M, or $0.08 per share, vs Q2’s $0.38M and Q3 2020’s $0.66M; the increase was driven primarily by a $0.4M decrease in SBIR grant income, partially offset by a $0.3M reduction in R&D spend .
• Operating expenses declined sequentially to $0.82M from $0.92M in Q2, reflecting continued expense discipline in R&D and G&A .
• Cash and equivalents rose to $1.995M at quarter-end, supported by $2.6M of private placement proceeds during 2021; management guided cash runway into Q2 2022, extending from Q2’s guidance into Q3 2021 .
• No earnings call was held; management plans a future call to outline clinical and business plans—this, plus financing and runway extension, are potential near-term catalysts for stock narrative rather than fundamental revenue/EPS drivers at this pre-revenue stage .

What Went Well and What Went Wrong

• What Went Well

  • Operating expenses fell QoQ (Q3: $0.82M vs Q2: $0.92M), indicating ongoing cost control in R&D and G&A .
  • Cash position improved to $1.995M with $2.6M raised via private placements in 2021; runway extended into Q2 2022 (“We expect that our operating cash on-hand as of September 30, 2021 of $2.0 million will enable us to fund our operating expenses and capital expenditure requirements into the second quarter of 2022.”) .
  • Management signaled a future conference call to discuss clinical and business plans—“The Company will not hold an earnings conference call at this time. The Company plans to hold a conference call at a future date...” .

• What Went Wrong

  • Net loss widened QoQ and YoY (Q3: $0.85M vs Q2: $0.38M; vs Q3 2020: $0.66M), largely due to a drop in grant income; absence of one-time PPP loan forgiveness recognized in Q2 also reduced “other income” tailwinds .
  • No revenue disclosed; financials focused on operating expenses and financing, underscoring continued pre-revenue status and reliance on external funding .
  • Limited qualitative detail in Q3 materials and no Q3 call reduced visibility into timelines for clinical/regulatory milestones and operational execution, a common investor concern in development-stage medtech .

Financial Results

YoY comparison (Q3 2021 vs Q3 2020):

Notes:

• Company did not disclose revenue amounts in Q2 and Q3 press releases; Q1 shows $0 revenue, consistent with development-stage status .

Guidance Changes

No revenue, margin, OpEx, OI&E, tax rate, or dividend guidance was provided in company materials .

Earnings Call Themes & Trends

No Q3 earnings call was held; management intends to hold a future call to discuss clinical/business plans . The table below tracks narrative elements evident in press releases across quarters.

Management Commentary

• “The Company will not hold an earnings conference call at this time. The Company plans to hold a conference call at a future date to discuss its clinical and business plans.”
• “As of September 30, 2021, the Company had operating cash on-hand of $2.0 million… We expect that our operating cash on-hand as of September 30, 2021 of $2.0 million will enable us to fund our operating expenses and capital expenditure requirements into the second quarter of 2022.”
• Prior periods: “As of June 30, 2021, the Company had operating cash on-hand of $0.5 million… will enable us to fund… into the third quarter of 2021.” ; “As of March 31, 2021… $0.5 million… along with… $0.3 million… will enable… into the third quarter of 2021.”

Q&A Highlights

• No Q3 earnings call or Q&A session; management intends to host a future call for clinical/business updates .

Estimates Context

• Consensus EPS and revenue estimates via S&P Global were not retrieved for HRGN at the time of writing; company materials do not reference Street expectations. As a result, estimate comparisons are not provided in this recap .
• Note: Where available, we anchor comparisons on S&P Global consensus; for this quarter, estimates data were unavailable at time of writing.

Key Takeaways for Investors

• Liquidity improved meaningfully: quarter-end cash rose to $1.995M, aided by $2.6M in private placement proceeds; runway extended into Q2 2022, reducing near-term financing risk .
• Operating discipline persisted: total OpEx fell to $0.82M QoQ, with R&D at $0.25M and G&A at $0.57M, supporting a lean burn profile .
• Headline net loss widened QoQ and YoY, driven by lower grant income and absence of Q2’s PPP forgiveness, highlighting sensitivity to non-operating income items in a pre-revenue phase .
• Near-term catalysts are narrative-driven: management’s planned future call to outline clinical and business plans; any regulatory or clinical timeline clarity could influence sentiment .
• With no revenue disclosure and limited qualitative detail, investors should monitor funding updates, grant activity, and forthcoming strategic communications for signals on program advancement and capital needs .
• The share count rose to ~10.0M weighted average in Q3 from ~9.4M in Q2, reflecting financing activity; dilution considerations remain relevant for future capital raising .
• Trading implications: liquidity extension reduces immediate downside financing risk; however, absence of revenue and limited visibility on clinical milestones may cap upside until more substantive program updates are provided .

Sources: Q3, Q2, and Q1 2021 8-K filings and attached press releases and financial tables .