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REVELATION BIOSCIENCES, INC. (REVB)·Q2 2024 Earnings Summary

Executive Summary

  • Pre-revenue quarter with materially higher loss driven by a $7.3M legal judgment: Q2 2024 net loss was $(8.39)M vs $(1.45)M YoY and $(2.68)M in Q1 2024; the swing was largely “Other (expense) income, net” from the LifeSci Capital judgment recorded in Q2 .
  • Cash and equivalents ended at $12.07M; management guided runway “through 2024,” with going-concern disclosure highlighting the need to raise capital to fund operations beyond one year from issuance of the Q2 statements .
  • Clinical execution progressed: Phase 1 for Gemini met the primary safety endpoint with statistically significant biomarker activity; company planned to initiate a Phase 1b CKD study in 2H24, a potential near-term catalyst .
  • No revenue and no earnings call transcript available; S&P Global consensus estimates were unavailable for comparison (micro-cap coverage and/or access limit), so beats/misses vs Street cannot be assessed.

What Went Well and What Went Wrong

What Went Well

  • Positive clinical readout for Gemini: “primary endpoint…safety and tolerability…met” with “statistically significant dose dependent upregulation of key biomarkers,” supporting the immunostimulatory preconditioning thesis; Phase 1b CKD start targeted for 2H24 .
  • Operating execution: R&D spend increased YoY to fund clinical activities (GEM-AKI/PSI), reflecting advancing programs (R&D $1.39M vs $0.91M YoY) .
  • Balance sheet liquidity: Cash maintained at $12.07M at quarter-end (vs $11.99M at YE23) helped by Q1 2024 equity raise earlier in the year .

What Went Wrong

  • Large legal charge drove the loss: “Other (expense) income, net” was $(5.87)M in Q2, primarily from the $7.3M LifeSci judgment; net loss widened to $(8.39)M from $(1.45)M YoY and $(2.68)M in Q1 .
  • Going-concern risk: Management disclosed substantial doubt about continuing as a going concern without new financing; runway only “through 2024” .
  • Accrued expenses spiked to $8.45M (from $1.15M YE23), reflecting judgment accruals and elevating current liabilities to $11.13M, compressing equity to $1.14M .

Financial Results

MetricQ4 2023Q1 2024Q2 2024
Revenue ($USD)$0 (pre-revenue) $0 (pre-revenue) $0 (pre-revenue)
Research & Development Expense ($)$1,059,984 $717,582 $1,394,929
General & Administrative Expense ($)$1,265,906 $1,184,556 $1,127,468
Total Operating Expenses ($)$2,325,890 $1,902,138 $2,522,397
Loss from Operations ($)$(2,325,890) $(1,902,138) $(2,522,397)
Change in Fair Value of Warrant Liability ($)$68,202 $68,427 $4,416
Other Income (Expense), net ($)$54,785 $(847,722) $(5,871,838)
Total Other Income (Expense), net ($)$122,987 $(779,295) $(5,867,422)
Net (Loss) ($)$(2,202,903) $(2,681,433) $(8,389,819)
Diluted EPS ($)$(133.64) $(39.37) $(5.13)
Wtd-Avg Shares (Diluted)16,484 68,115 1,635,234

Notes:

  • No segment reporting; company has one operating segment .
  • The large Q2 “Other (expense) income, net” is driven primarily by the LifeSci Capital judgment recognized in the quarter .

Estimates vs. Actuals (Q2 2024):

  • Consensus Revenue: Not available (S&P Global consensus unavailable).
  • Consensus EPS: Not available (S&P Global consensus unavailable).
  • As a result, beats/misses relative to Street cannot be assessed this quarter.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayFY 2024N/A“Sufficient to fund operations through 2024” New disclosure
Development Milestone2H 2024N/AStart Phase 1b CKD (PRIME) in U.S. New milestone timing
Going ConcernForward 12 monthsN/ASubstantial doubt without additional financing Deteriorated risk disclosure

Earnings Call Themes & Trends

(No Q2 2024 earnings call transcript found; themes below reflect press releases and 10-Q narrative.)

TopicPrevious Mentions (Q4 2023)Previous Mentions (Q1 2024)Current Period (Q2 2024)Trend
Clinical progress (Gemini)FY24 plan momentum (context from FY update) Phase 1 completed; biomarker activity (context via Q2 PR) Safety met; significant biomarker upregulation; plan Phase 1b CKD in 2H24 Advancing
Cash runway / financingN/A in Q4’23 PR cited hereN/ARunway “through 2024”; going-concern warning; need to raise capital Weaker
Legal/regulatory (LifeSci judgment)N/AN/A$7.3M judgment (Aug 1, 2024) recognized; drove “Other expense” Headwind materialized
R&D execution (spend mix)R&D at ~$1.06M in Q4’23 R&D $0.72M in Q1’24 R&D $1.39M with higher clinical costs (GEM-AKI/PSI) Higher clinical spend
Segment/reportingSingle segment Single segment Single segment Unchanged

Management Commentary

  • “The primary endpoint to evaluate the safety and tolerability of escalating doses of Gemini was met… and statistically significant dose dependent upregulation of key biomarkers was observed, demonstrating the immunostimulatory preconditioning effect of Gemini… we look forward to… the start of a Phase 1b study in CKD patients.” — James Rolke, CEO .
  • Liquidity commentary: Cash and equivalents of $12.1M; runway through 2024 .
  • Risk commentary: Substantial doubt about going concern without additional financing .

Q&A Highlights

  • No Q2 2024 earnings call transcript was found; the company did not provide a Q&A session in the materials reviewed [Search returned none].

Estimates Context

  • Street consensus (S&P Global) for Q2 2024 revenue and EPS was not available; the company’s micro-cap status and/or access limit prevented retrieval. Therefore, we cannot assess beats/misses vs estimates this quarter.

Key Takeaways for Investors

  • Loss volatility remains high due to non-operating items; the $7.3M LifeSci judgment materially impacted Q2 results and current liabilities, compressing equity and heightening financing risk .
  • Runway through 2024 and going-concern disclosure signal a likely near-term capital raise; dilution risk is elevated .
  • Clinical momentum is the key potential upside catalyst: positive Phase 1 biomarker activity and planned Phase 1b CKD trial start are the principal value drivers to watch .
  • Operating expenses are being directed toward clinical execution (R&D up YoY), while G&A remained contained YoY; monitor OpEx discipline amid funding constraints .
  • With no revenue and limited sell-side coverage, stock volatility may be catalyst-driven (trial starts/readouts, financing, legal outcomes) rather than earnings-driven; monitor subsequent Q3/Q4 updates (e.g., IND/regulatory steps and GMP supply noted later in 2024) for progress signals .

Appendix: Additional Detail and Cross-References

  • Q2 2024 8-K/Press Release (Aug 9, 2024): financials, cash, corporate highlights .
  • Q2 2024 10-Q (Aug 9, 2024): full financial statements, going concern, legal judgment details, balance sheet composition .
  • Prior quarter comps: Q1 2024 press metrics cited within Q1 2025 release (for “same period 2024”) ; Q4 2023 metrics in FY24 earnings materials .