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Scorpius Holdings, Inc. (NHWK)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 revenue was $3.5M, up 359% YoY, with operating discipline reducing R&D by 38% and SG&A by 23%; net loss narrowed 64% to $4.4M ($0.16/share) .
  • Backlog stood at $10.8M as of March 31, 2024, supporting visibility into near‑term demand; cash and short‑term investments were ~$1.7M at quarter‑end, supplemented by $6.0M gross proceeds from a May 16, 2024 public offering .
  • The company’s preliminary Q1 revenue estimate (May 13 8‑K) of $4.0–$5.0M was revised to $3.5M actual recognized revenue in the May 28 press release (8‑K filed May 29), highlighting estimate risk in early unaudited figures .
  • Management reiterated a focus on scaling utilization and achieving operating leverage; microbial cGMP manufacturing commenced in July 2024 and mammalian cGMP is anticipated to commence in Q3 2024, framing potential revenue mix shift in 2H24 and beyond .

What Went Well and What Went Wrong

What Went Well

  • Material top‑line acceleration: revenue increased 359% YoY to $3.5M, driven by expanded CDMO process development work .
  • Cost controls: operating expense reductions vs. prior year—R&D down to $3.9M (from $6.3M) and SG&A down to $5.0M (from $6.5M)—contributed to a 64% reduction in net loss to $4.4M ($0.16/share) .
  • Backlog and commercial traction: revenue backlog of $10.8M as of March 31, 2024, underpinning demand; CEO emphasized scalable model and operating leverage at the San Antonio campus: “highly scalable business model poised to generate meaningful cash flow as we continue to grow our sales and increase utilization of our state‑of‑the‑art San Antonio campus” .

What Went Wrong

  • Preliminary estimate miss: the company’s May 13 preliminary Q1 revenue estimate of $4.0–$5.0M was higher than the $3.5M subsequently recognized, underscoring closing/estimate risk in unaudited figures .
  • Cash balance remained tight exiting Q1: ~$1.7M at March 31, requiring external financing; the company raised ~$6.0M gross proceeds on May 16 to bolster liquidity .
  • Sequential step down vs. Q4 2023: Q1 revenue ($3.5M) declined from Q4 2023 ($4.8M), indicating variability in project timing as the mix is still primarily process development pre‑cGMP ramp .

Financial Results

YoY Comparison – Q1 2024 vs Q1 2023

Metric ($USD Millions, except per share)Q1 2023Q1 2024
Total Revenue$0.8 (PD $0.7, License $0.1) $3.5 (PD)
Cost of Revenues$0.6 $0.9
Gross Profit (calc)$0.2 $2.6
Research & Development$6.3 $3.9
SG&A$6.5 $5.0
Net Loss$(12.8) $(4.4)
EPS (Basic/Diluted)$(0.49) $(0.16)

Notes: PD = Process Development. Gross Profit is calculated from cited revenue and cost of revenues .

Sequential Revenue Trend

Metric ($USD Millions)Q3 2023Q4 2023Q1 2024
Total Revenue$0.7 (PD $0.6, Service $0.1) $4.8 $3.5

Revenue Mix (Segments/Type)

Revenue Type ($USD Millions)Q1 2023Q1 2024
Process Development$0.7 $3.5
License/Service$0.1 $0.0

KPIs and Balance/Liquidity

KPIQ4 2023Q1 2024
Revenue Backlog—$10.8M as of 3/31/24
Cash, Cash Equivalents & ST Investments$2.4M as of 12/31/23 ~$1.7M as of 3/31/24
External Financing—$6.0M gross proceeds (5/16/24)
cGMP Manufacturing Milestones—Microbial cGMP commenced July 2024; Mammalian anticipated Q3 2024

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Revenue (Q1 preliminary)Q1 2024$4.0–$5.0M preliminary unaudited (5/13) Actual recognized: $3.5M process development (press release 5/28; 8‑K 5/29) Lower vs preliminary
Cash Flow Positive TimingMulti‑period“Cash flow positive by early 2025” (4/29 release) “Become cash flow positive in the near future” (5/28 release) Timing softened/less specific
cGMP Manufacturing Start2H 2024Not specified in Q1 press; outlook evolvingMicrobial cGMP commenced July 2024; Mammalian anticipated Q3 2024 Updated execution timeline

Earnings Call Themes & Trends

Note: A Q1 2024 earnings call transcript was not available in our document set; themes derive from Q3 2023, Q4 2023, and Q1 2024 press releases .

TopicPrevious Mentions (Q‑2 = Q3’23; Q‑1 = Q4’23)Current Period (Q1’24)Trend
CDMO capacity/utilizationQ3’23: Advancing San Antonio operations; evaluating strategic options Emphasis on scalable model and operating leverage with increased utilization Improving utilization narrative
Bookings/BacklogQ4’23: >$20M bookings to date; set up for growth Backlog $10.8M as of 3/31/24 Sustained demand visibility
Cost structureQ3’23: R&D ~$5.2M; SG&A $6.1M R&D $3.9M; SG&A $5.0M; net loss down 64% YoY Cost discipline strengthening
Liquidity/FinancingQ3’23 cash ~$9.5M Q1’24 cash ~$1.7M plus $6.0M gross raise in May Liquidity supported by financing
cGMP rampQ4’23: Positioned for growth; minimal capex required Microbial cGMP started July; mammalian expected Q3 2024 (post‑Q1 update) Execution milestones achieved/near
Strategy/PositioningQ4’23: Cash flow positive by early 2025 “Near future” cash flow positive; scalable model reiterated Tone confident but timing less specific

Management Commentary

  • “We are successfully executing our strategy to enhance revenue and reduce costs… achieved a 359% increase in revenue while reducing operating expenses by 34% over the same period last year… highly scalable business model poised to generate meaningful cash flow as we continue to grow our sales and increase utilization of our state‑of‑the‑art San Antonio campus.” — Jeff Wolf, CEO .
  • “We believe this performance reinforces the growing demand for our services… our growing revenue backlog… stood at $10.8 million as of March 31, 2024.” — Jeff Wolf, CEO .
  • Prior context: “$4.8 million of revenue in Q4 2023… 570% increase from Q3 2023… bookings of more than $20 million… optimistic about becoming cash flow positive by early 2025.” — Jeff Wolf, CEO .

Q&A Highlights

  • A Q1 2024 earnings call transcript was not located in our document set; therefore, Q&A highlights and any call‑specific guidance clarifications are unavailable based on the provided sources.

Estimates Context

  • Wall Street consensus (S&P Global) for NHWK/SCPX could not be retrieved; consensus appears unavailable for this name at this time.
  • As a result, we do not present “vs. consensus” comparisons for Q1 2024. Where directional estimate references were made intra‑quarter, the company’s own preliminary Q1 revenue estimate ($4.0–$5.0M) exceeded the subsequently reported $3.5M recognized revenue in the press release .

Key Takeaways for Investors

  • Revenue inflected materially YoY (+359%), while OpEx cuts drove a 64% reduction in net loss; early signs of operating leverage are emerging as the CDMO book ramps .
  • Backlog of $10.8M provides visibility; the commencement of microbial cGMP (July) and anticipated mammalian cGMP (Q3) set up potential contract size/mix shift toward larger manufacturing engagements in 2H24/2025 .
  • Liquidity was tight at quarter‑end ($1.7M), mitigated by a $6.0M gross offering in May; continued access to capital is a watch item as the company scales .
  • The preliminary Q1 revenue estimate was revised downward to actual recognized revenue, underscoring the inherent variability of unaudited intra‑quarter estimates; investors should anchor on filed press releases and subsequent updates .
  • Near‑term trading catalysts: evidence of cGMP revenue conversion, additional bookings/backlog updates, and continued OpEx discipline could positively influence sentiment; conversely, any delays in cGMP ramp or liquidity constraints could pressure shares .
  • Medium‑term thesis: scaling utilization at the San Antonio campus with minimal incremental capex, translating backlog into higher‑margin cGMP manufacturing, and progressing toward cash flow breakeven as signaled by management .