Executive Summary

Q2 2025 net revenue was $1.25M with gross margin turning positive at 58.9%; net loss from continuing operations narrowed to $4.47M and diluted EPS was $(0.11) . Versus S&P Global consensus, revenue materially missed ($3.55M* est.), while EPS beat (est. $(0.15)*) as cost reductions drove margin improvement .
Management highlighted a potential ~$50M non-dilutive cash inflow from Crown Medical Collections beginning in the coming months, positioning liquidity for H2 2025, alongside progress pursuing DIP financing secured by recoveries .
Strategic catalysts: BE-Smart esophageal pre-cancer test received a key U.S. patent; commercialization path is advancing under a favorable LDT enforcement backdrop; Nebula Genomics has been streamlined and positioned for sale or breakeven growth .
The Board approved exploring a crypto treasury strategy (including Bitcoin) with guardrails to minimize dilution; a special meeting is set to increase authorized shares to 1B to enable high-valuation capital raises if the stock appreciates .

What Went Well and What Went Wrong

What Went Well

Gross margin turned positive, rising to 58.9% YoY from (10.3)%; consumer products gross margin improved to 67.8% from 36.8%, reflecting better product mix and cost discipline .
Operating discipline: management reduced operating expenses materially YTD and cited “cut [our] operating loss nearly in half year-over-year” as gross margins turned positive; CEO: “Operationally, we turned gross margins positive and cut our operating loss nearly in half year-over-year.” .
Crown Medical Collections initiative advancing toward litigation and potential near-term settlements; management expects cash collections to begin within months, supporting non-dilutive liquidity .

What Went Wrong

Revenue softness: no diagnostic services revenue and lower consumer product shipments drove net revenue down YoY to $1.25M and down sequentially vs. Q1’s $1.43M .
Liquidity tightness: cash and equivalents were $0.17M with a working capital deficit of ~$1.1M at quarter-end, increasing reliance on external financing .
Costs related to restructuring and financing still a drag: interest expense was $0.59M; debt extinguishment and asset disposal losses impacted results . The company also closed a $3M senior secured convertible note financing in July to bridge liquidity .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$1.50	$1.43	$1.25
Gross Profit ($USD Millions)	$(0.16)	$0.53	$0.73
Gross Margin %	(10.3)%	36.8%	58.9%
General & Administration ($USD Millions)	$6.93	$4.09	$4.62
Research & Development ($USD Millions)	$0.14	$0.10	$0.00
Loss from Operations ($USD Millions)	$(7.23)	$(3.66)	$(3.89)
Net Loss from Continuing Ops ($USD Millions)	$(5.46)	$(4.68)	$(4.47)
Diluted EPS (Continuing Ops, $USD)	$(0.29)	$(0.13)	$(0.11)

Segment/margin detail:

Metric	Q2 2024	Q2 2025
Diagnostic Services Revenue ($USD Millions)	$0.00	$0.00
Cost of Revenues – Diagnostic ($USD Millions)	$0.70	$0.10
Cost of Revenues – Consumer Products ($USD Millions)	$1.00	$0.40
Consumer Products Gross Margin %	36.8%	67.8%
Overall Gross Margin %	(10.3)%	58.9%

Balance sheet and cash flow KPIs:

KPI	Dec 31, 2024	Mar 31, 2025	Jun 30, 2025
Cash & Equivalents ($USD Millions)	$0.68	$0.09	$0.17
Working Capital ($USD Millions)	$(1.50)	$0.72	$(1.10)
Stockholders’ Equity ($USD Millions)	$7.35	$15.12	$11.44
Interest Payments YTD ($USD Millions)	—	$0.38 (Q1)	$0.67 (H1 total)

Non-GAAP:

Metric	Q2 2024	Q2 2025
EBITDA ($USD Millions)	$(5.69)	$(1.76)
Adjusted EBITDA ($USD Millions)	$(4.83)	$(0.81)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue / EPS	FY/Q3+	None provided	No formal quantitative guidance. Management emphasizes cost control, margin improvement, and strategic liquidity events (Crown Collections, Nebula sale) .	Maintained “no formal guidance”
BE-Smart commercialization	H2’25–2026	Under study submission	Patent granted; LDT path with accelerated timeline; advancing KOL and publication steps; commercialization preparations underway .	Raised visibility/accelerated path
Crown Medical Collections	H2’25	Not previously quantified in guidance	~$50M net recovery expected; collections anticipated to begin within months; pursuing DIP financing .	Introduced/confirmed timing
Crypto Treasury Strategy	H2’25+	Not applicable	Board-approved exploration; partnership-driven approach; seeking authorization to 1B shares to enable high-valuation capital raise if stock appreciates .	Introduced

Note: Company did not provide formal revenue, margin, OpEx, OI&E, or tax rate guidance ranges.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
BE-Smart commercialization	Accelerate as cash-pay diagnostic; manuscript preparation and submission; KOL engagement .	Patent granted; management frames faster LDT path and near-term commercialization steps; emphasizes diagnostic accuracy and insurer value -.	Improving momentum; validation progressing
Crown Medical Collections	~$50M net recovery potential; litigation prep .	“Hog wild” litigation post-bankruptcy court timeline (4–8 weeks); expect cash inflows within months; DIP financing under evaluation - .	Near-term execution steps
Nebula Genomics	Strategic alternatives via ThinkEquity; streamlined ops, breakeven trajectory .	Maintain sale option vs. growing for higher valuation; subscription renewals and cost cuts support breakeven/profitability -.	Optionality; improved operating profile
Cost structure	Headcount/IT reductions; divestiture of Pharmaloz .	Opex reductions sustained; operating loss reduced; margins positive .	Structural improvement
Crypto treasury strategy	Not present in Q4; introduced mid-Q2 (Board authorization) .	Board-approved initiative; focus on Bitcoin; guardrails vs. dilution; special meeting to increase authorized shares -.	New strategic pillar

Management Commentary

“Operationally, we turned gross margins positive and cut our operating loss nearly in half year-over-year… [LDT non-enforcement] positions our BE-Smart™ test for a faster path to market.” — Ted Karkus, CEO .
“We have a test that diagnoses esophageal cancer earlier and more accurately… It will save the insurance companies billions of dollars.” -.
“The Board has approved a strategic treasury initiative involving… Bitcoin… designed as an additional growth lever… while continuing to advance our core businesses.” .
“We are not pursuing a reverse merger… our objective is to generate substantial capital with minimal impact on existing shareholders.” .

Q&A Highlights

BE-Smart next steps: publication in a major journal, onboarding KOLs, initial GI network rollout via standard pathology workflows; commercialization “not that far away” -.
Crown collections timing: court date in ~4–8 weeks triggers aggressive outreach; many insurers ready to settle after formal filing; cash inflows depend on negotiation timing .
Crypto strategy/dilution: focus on raising capital only at higher share prices; exploring DIP financing to avoid equity if Crown proceeds materialize; intent to structure anti-dilutive raises -.
Patent runway: initial patent likely ~20 years, with ability to extend via additional inventions and data as commercialization scales .

Estimates Context

Metric	Q2 2025 Consensus	Q2 2025 Actual	Result
Revenue ($USD Millions)	$3.55*	$1.25	MISS
Primary EPS ($USD)	$(0.15)*	$(0.11)	BEAT
# of Estimates (EPS / Revenue)	1* / 1*	—	Limited coverage

Values retrieved from S&P Global*.

Implication: given limited analyst coverage, the significant revenue shortfall versus consensus and improving margin trajectory suggests near-term estimate revisions will likely lower revenue while moderating EPS loss assumptions due to opex cuts and product mix .

Key Takeaways for Investors

Margin inflection: consumer product mix and aggressive cost controls drove gross margin to 58.9% and improved Adjusted EBITDA to $(0.81)M; watch sustainability into Q3/Q4 as volumes normalize .
Liquidity bridge: near-term funding relies on the $3M senior secured notes and prospective DIP financing; Crown recoveries (~$50M net) are the key non-dilutive catalyst for H2 2025 .
BE-Smart commercialization: patent grant and LDT pathway underpin potential 2026 revenue ramp; subsequent Q4 press release confirmed study acceptance, reinforcing validation ahead of rollout -.
Strategic optionality: Nebula sale vs. operating breakeven adds flexibility; capital from Crown or high-valuation raises could fund growth without heavy dilution -.
Crypto treasury initiative: special meeting to increase authorized shares is critical to attract institutional partners and execute a high-valuation capital strategy if the stock appreciates; monitor governance and guardrail disclosures .
Estimate regime: with only one covering estimate, volatility around prints is high; expect consensus to recalibrate lower on revenue but acknowledge EPS resilience from cost actions .
Trading setup: near-term catalysts include Crown litigation milestones and BE-Smart commercialization updates; watch for press releases and shareholder vote outcomes that could change liquidity dynamics and narrative .

All citations reference primary documents: Q2 2025 8-K and press release [10:*], Q2 2025 earnings call transcript [9:*], Q1 2025 press release [23:*], Q4 2024 press release [2:*], and other Q2 press releases [11:*] [12:*] [13:*] [14:*].

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