Executive Summary

Revenue declined 9% year over year to $5.36M, with diluted EPS at $(0.12); gross margin improved to 39.6% on cost reductions .
Management emphasized renewed client acquisition and exploring new markets; no formal quantitative guidance was provided .
Operating cash flow was $(0.47)M and cash ended at $1.42M, reflecting continued working capital pressure .
Near-term stock catalysts: evidence of revenue stabilization from sales initiatives and sustained margin improvement from cost controls; risks include AR concentration and prior debt covenant non-compliance (waiver received) .

What Went Well and What Went Wrong

Gross margin expanded to 39.6% from 37.6% YoY due to cost reduction programs; sequential levels align with prior commentary on offsetting revenue declines through efficiencies .
Strategic focus shift: “With a renewed focus on client acquisition, we are confident we are positioning the Company first for revenue stabilization and then for growth” — Brian Hullinger, CEO .
Disclosure controls deemed effective in Q1, supporting reporting reliability amid operational changes .

Revenue fell 9% YoY and net loss widened to $(0.69)M; diluted EPS deteriorated to $(0.12) from $(0.07) YoY .
G&A increased 9% YoY to $1.79M (33% of revenue), driven by legal, accounting, and consulting fees, pressuring operating leverage .
Liquidity pressure: operating cash flow $(0.47)M and cash declined to $1.42M; AR concentrations increased risk (two customers represented 31% and 17% of AR), and the company received a waiver for a fixed charge coverage ratio covenant breach .

Metric	Q1 2023	Q3 2023	Q1 2024
Revenue ($USD Millions)	$5.86	$5.70	$5.36
Diluted EPS ($)	$(0.07)	$(0.36)	$(0.12)
Gross Margin %	37.6%	37.0%	39.6%
EBIT Margin %	-9.0% (−$0.53M/$5.86M)	-19.4% (−$1.11M/$5.70M)	-10.6% (−$0.57M/$5.36M)

Notes:

Prior quarter (Q4 2023) revenue/EPS were not disclosed in the FY 2023 press release; Q3 2023 is shown for sequential trend .

KPI	Q1 2023	Q1 2024
Operating Cash Flow ($USD Millions)	$(0.23)	$(0.47)
Cash and Equivalents ($USD Millions)	$4.38	$1.42
Accounts Receivable ($USD Millions)	$3.69	$3.88

Metric	Period	Previous Guidance	Current Guidance	Change
Dividends per share	Q1 2024	Quarterly dividend previously $0.07/share (suspended Aug 2023)	No dividend declared (suspension continues)	Lowered/maintained suspension

No formal quantitative guidance for revenue, margins, OpEx, OI&E, tax rate, or segment-specific metrics was provided in Q1 materials –.

No Q1 2024 earnings call transcript was found for PMD; themes are drawn from press releases and 10-Q MD&A –.

Topic	Previous Mentions (Q3 2023 and FY 2023)	Current Period (Q1 2024)	Trend
Labor market/macro impact	Labor shortage adversely affected clients’ hiring; revenue decline despite add-on test growth	Lower volumes from base business due to general economic conditions and continued labor shortage	Persistent headwind
Cost reduction/restructuring	Cost reductions improved gross margin; restructuring to align costs; non-recurring legal/CEO transition costs	Gross margin up YoY from cost programs; G&A up on legal/consulting costs	Margins improving; OpEx mix elevated
Sales initiatives/new markets	CRO hire; go-to-market improvements; partnerships aided international growth	Renewed focus on client acquisition; exploring new markets/applications	Executing against growth strategy
Legal/regulatory	Settlement with consultant; payment over 18 months	Prior settlement payments continue; legal fees pressure G&A	Tail-end impacts
Pricing/mix	4Q22 price increase; add-on tests (fentanyl, benzodiazepines) growth	Testing and shipping/collection both down YoY	Mix under pressure
Tax/valuation allowance	Deferred tax assets valuation allowance; higher tax expense in FY23	Maintains full valuation allowance; 20.2% effective tax rate in Q1	Ongoing constraint

“Although we experienced a decrease in revenues and earnings for the quarter, we remain optimistic about the future… With a renewed focus on client acquisition, we are confident we are positioning the Company first for revenue stabilization and then for growth.” — Brian Hullinger, CEO .
“As cost reductions from Q4 continue to materialize, we will start our pursuit of new markets and new applications for our hair testing science…” — Brian Hullinger, CEO (FY 2023) .
“Leveraging our expertise… combined with a renewed focus on client acquisition, we expect… drive sustainable growth and solidify our position as the leader in the industry.” — Shannon Shoemaker, CRO (FY 2023) .

No Q1 2024 earnings call transcript was available; Q&A highlights cannot be provided [functions.ListDocuments (no transcript)] .

S&P Global consensus estimates for PMD were unavailable due to missing mapping in the SPGI CIQ company map; no estimate comparisons can be made at this time [functions.GetEstimates error].
Values would be retrieved from S&P Global if available.

Margin trajectory improving: gross margin expanded to 39.6% YoY on cost reductions; watch for sustained margin resilience amid lower volumes .
Revenue stabilization is the key narrative shift; management’s client acquisition and new market focus is the principal lever to reverse declines, with prior CRO-driven go-to-market changes providing execution infrastructure .
Liquidity and working capital warrant monitoring: operating cash outflow $(0.47)M; cash $1.42M; potential need for financing if growth lags (company notes no line of credit) .
Risk flags: AR concentration (31%/17% in Q1) and prior covenant non-compliance (waiver received); these could elevate financing costs or counterparty risk if macro softness persists .
Mix and volume headwinds continue: both testing and shipping/collection revenues declined YoY; near-term upside requires visible hiring recovery among clients or new verticals contributing .
No formal guidance and suspended dividend maintained; rerating likely hinges on evidence of top-line stabilization and continued cost discipline .
Tactical: monitor next print for sequential revenue trends and OpEx normalization; strategic: assess traction in partnerships/new markets cited in prior year as a driver of international growth .

Headquarters relocation to Dallas (Jan 2, 2024), aligning corporate footprint with operational priorities .
Recognition as Top 10 Employee Health Testing Services Provider (Mar 21, 2024), reinforcing brand positioning with employers .

Q1 2024 8-K press release and Items 2.02/9.01: .
Q1 2024 10-Q: financial statements, MD&A, liquidity, tax, leases, debt, revenue disaggregation, controls: –.
FY 2023 8-K press release: –.
Q3 2023 8-K press release: –.
Q2 2023 8-K press release: –.
Company investor site and news distribution confirming Q1 press release: .