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Scorpius Holdings, Inc. (NHWK)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 2024 revenue was $0.76M, up 15.6% year over year but down sharply from Q1’s $3.51M, with diluted EPS at $(26.98) versus $(106.67) in Q2 2023; management had pre-announced a $0.3–$0.8M revenue range and delivered near the top of that range .
  • Cost controls continued: R&D and SG&A declined materially year-over-year in Q2; operating loss improved vs Q2 2023 but remained significant at $(8.70)M .
  • Liquidity and going-concern remain the central risk; the company expects current cash to be insufficient beyond December 2024 without additional capital, and is pursuing financings (reverse split, resumed NYSE trading, and subsequent offering approvals) as catalysts .
  • Strategic ramp: microbial cGMP manufacturing commenced in July and mammalian cGMP is planned for Q3 2024, with management positioning CDMO capabilities and backlog/contract pipeline as drivers for future growth .

What Went Well and What Went Wrong

What Went Well

  • Cost discipline: Q2 R&D fell to $3.61M from $5.15M YoY, and SG&A to $5.01M from $7.05M, reflecting program eliminations and lower consulting/professional spend .
  • Operational milestones: “microbial cGMP manufacturing which we commenced in July 2024” and mammalian cGMP anticipated in Q3, signaling scale-up of manufacturing services .
  • Market/Listing: NYSE American lifted the trading suspension; normal trading resumed Aug 2, a prerequisite for equity capital access and investor visibility .

Management quote: “We are successfully executing our strategy to enhance revenue and reduce costs… built a 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 (Q1 update) .

What Went Wrong

  • Sequential revenue decline: Q2 revenue of $0.76M versus Q1 $3.51M highlights lumpy process development revenue recognition and contract timing .
  • Continued losses: Q2 operating loss $(8.70)M and net loss from continuing operations $(9.28)M underscore ongoing burn despite cost reductions .
  • Liquidity/going concern: Management foresees insufficient cash beyond December 2024 without new capital; customer concentration and limited contract durations add revenue predictability risk .

Financial Results

Note: Q2 2024 financials reflect the 1-for-200 reverse split; Q1 2024 EPS is pre-split and not directly comparable.

MetricQ2 2023 (oldest)Q1 2024Q2 2024 (newest)
Revenue ($)$657,778 $3,513,948 $759,944
Cost of revenues ($)$383,692 $938,212 $837,937
Operating loss ($)$(11,926,829) $(5,321,840) $(8,698,285)
Net loss from continuing ops ($)$(11,576,196) $(4,657,688) $(9,283,709)
Diluted EPS – continuing ops ($)$(106.67) $(0.16) $(26.98)

Segment/KPIs

KPIQ2 2023 (oldest)Q1 2024Q2 2024 (newest)
Deferred revenue – total ($)$(2,734,524) $(591,259) $(2,423,739)
Accounts receivable – closing ($)$375,192 (Dec 31, 2023) $535,028 (Mar 31, 2024) $1,319,618 (Jun 30, 2024)
Backlog / bookings narrative—$10.8M backlog (as of Mar 31, 2024) —

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue (prelim)Q2 2024None$0.3M–$0.8M (preliminary unaudited) N/A (first pre-announcement)
Microbial cGMP manufacturingQ3 2024 start windowNoneCommenced in July 2024 (operational) Initiated
Mammalian cGMP manufacturingQ3 2024NoneAnticipated commencement in Q3 2024 Planned
Liquidity runwayCY2024—Cash/short-term investments ~ $1.5M at 6/30; insufficient beyond Dec 2024 absent capital raise Caution reiterated

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available in our source set.

TopicPrevious Mentions (Q4 2023 and Q1 2024)Current Period (Q2 2024)Trend
CDMO scaling$4.8M Q4’23 revenue; >$20M bookings; optimism on capacity leverage Microbial cGMP commenced, mammalian cGMP planned Q3 Operational ramp continues
Cost disciplineR&D/SG&A reductions outlined in Q1 R&D down to $3.61M; SG&A to $5.01M YoY Sustained cost reduction YoY
Liquidity/financingPublic offerings in Mar/May 2024; convertible note Reverse split; trading suspension lifted; offering path approved; Aug capital raise Active financing steps
Customer concentrationFew customers >10% revenue Two customers >10% of Q2 revenue Ongoing concentration risk
Listing complianceLate filings cured; at risk notices from NYSE American Suspension removed; trading resumed on NYSE American Stabilized listing status

Management Commentary

  • “We are successfully executing our strategy to enhance revenue and reduce costs… built a highly scalable business model… increase utilization of our state-of-the-art San Antonio campus… confident that the future for Scorpius is brighter than ever” — Jeff Wolf (Q1 2024 update) .
  • “We commenced microbial cGMP manufacturing in July 2024 and anticipate mammalian cGMP manufacturing in the third quarter of 2024… cGMP manufacturing contracts will generally be larger than the process development contracts we have booked to date” — Shareholder letter (Aug 2024) .
  • “NYSE Regulation has withdrawn its delisting determination… lifting the trading suspension… common stock… resume trading on the NYSE American” — Company press release (Jul 30, 2024) .

Q&A Highlights

No Q2 2024 earnings call transcript was available; there are no Q&A disclosures to summarize from primary sources in this period set.

Estimates Context

Wall Street consensus (S&P Global Capital IQ) for Q2 2024 EPS and revenue was unavailable due to missing mapping for NHWK in the SPGI dataset. As a result, we cannot assess beat/miss versus consensus for Q2 2024.

Key Takeaways for Investors

  • Sequential softness: Q2 revenue ($0.76M) fell sharply from Q1 ($3.51M), highlighting contract timing and lumpy process development revenue; watch Q3 as cGMP manufacturing ramps .
  • Cost reduction is real: YoY declines in R&D and SG&A, but losses remain large; sustained cost discipline is necessary for margin trajectory .
  • Liquidity is the fulcrum: Management flags going-concern risk without capital; reverse split, NYSE trading resumption, and subsequent offering approvals suggest near-term financing pathways but carry dilution risk .
  • Operational catalysts: Microbial cGMP already started; mammalian cGMP anticipated Q3—if executed, CDMO revenue mix should shift to larger contracts over time, potentially improving utilization and gross profit mix .
  • Customer concentration: Two customers accounted for >10% of Q2 revenue; expanding the customer base and bookings remains critical to smoothing quarterly volatility .
  • Near-term trading implications: Financing events and capital structure changes (reverse split, warrant overhang) can drive volatility; monitor execution on cGMP milestones and any new contract wins/backlog updates .

Appendix: Additional Data and Disclosures

  • Cash and equivalents: $1.47M at 6/30/24; accounts receivable rose to $1.32M; deferred revenue totaled $2.42M—key working capital items to watch as cGMP operations scale .
  • Late filings and material weaknesses: Internal control weaknesses and prior filing delays were disclosed; remediation efforts underway but risks persist .
  • Subsequent capital raise: On Aug 19, 2024, company completed a public offering (common shares and pre-funded warrants) for gross proceeds of ~$14.4M, bolstering liquidity post-Q2 .

Sources:
Financials and operations (Q2 2024 10‑Q):
Q2 2024 preliminary release (8‑K 2.02):
Shareholder letter and offering update:
Reverse stock split and trading suspension removal:
Q1 2024 10‑Q financials:
Q1 2024 press release (revenue/backlog):
FY2023 business update press release:
Underwriting agreement/offering mechanics: