Financial Performance - Total revenue for the three months ended June 30, 2022, was $2,066,000, compared to $1,799,000 for the same period in 2021, representing a 14.8% increase[13] - Gross profit for the six months ended June 30, 2022, was $1,927,000, up from $1,299,000 in the same period of 2021, indicating a 48.3% increase[13] - The company reported a net loss per share of $(0.07) for the three months ended June 30, 2022, compared to $(0.06) for the same period in 2021[13] - For the six months ended June 30, 2022, the company reported a net loss of $17.511 million, compared to a net loss of $12.994 million for the same period in 2021[20] - The company recorded a net loss of $8.243 million for the three months ended June 30, 2022, compared to a net loss of $7.074 million in the same period of 2021, indicating a 16.5% increase in losses[13] Operating Expenses - Operating expenses for the three months ended June 30, 2022, totaled $9,186,000, compared to $8,768,000 for the same period in 2021, reflecting a 4.8% increase[13] - Sales and marketing expenses for the six months ended June 30, 2022, were $8,077,000, up from $7,126,000 in the same period of 2021, indicating a 13.4% increase[13] - Research and development expenses for the six months ended June 30, 2022, were $2,758,000, compared to $2,343,000 for the same period in 2021, representing a 17.7% increase[13] - The company recorded stock-based compensation expenses totaling $552,000 for Q2 2022, compared to $1,067,000 for Q2 2021[69] Cash Flow and Liquidity - The company used $16.477 million in cash for operating activities during the first half of 2022, an increase from $11.745 million in the prior year[20] - As of June 30, 2022, the company had $20.480 million in cash and cash equivalents, down from $52.993 million at the end of the previous year[25] - The company has a working capital of $15.91 million as of June 30, 2022[25] Liabilities and Equity - Total liabilities as of June 30, 2022, were $9,894,000, down from $10,907,000 as of December 31, 2021, indicating a decrease of 9.3%[9] - The total stockholders' equity as of June 30, 2022, was $14,122,000, a significant decrease from $30,172,000 as of December 31, 2021[10] - The accumulated deficit as of June 30, 2022, was $(489,239,000), compared to $(471,728,000) as of December 31, 2021, reflecting an increase in the deficit of 3.7%[10] Capital Raising and Funding - The company plans to raise capital through various means, including public or private equity offerings and strategic alliances, but there is no assurance that additional funding will be available[26] - The Company raised approximately $47,720,000 in net proceeds from a public offering of 6,900,000 shares at a price of $7.50 per share, after deducting underwriting discounts and offering expenses[60] Compliance and Regulatory Issues - The company received a deficiency letter from Nasdaq regarding its stock price falling below the $1.00 minimum requirement, with a compliance deadline of November 28, 2022[27] - The company has been notified of a deficiency regarding the minimum bid price for its common stock, with a deadline to regain compliance by November 28, 2022[27] Research and Development - The company entered into a research agreement with Harvard's Dana-Farber Cancer Institute, with payments of approximately $1.2 million due upon achieving certain milestones in 2022 and 2023[71] - The Company entered into a research agreement with Dana-Farber Cancer Institute and others for a multi-omic diagnostic aid for endometriosis, with payments of approximately $1.2 million due upon achieving certain milestones[71] Impact of COVID-19 - The company has implemented virtual sales and marketing strategies due to the impact of COVID-19, which has affected patient enrollment for clinical studies[29] Legal and Insurance Matters - The Company is not currently involved in any legal proceedings that would materially affect its financial position[58] - The Company has established reserves for specific liabilities in connection with legal actions deemed probable and estimable[58] - The Company expects to be reimbursed by the insurance company for the remaining unpaid estimated charges of $90,000 within three months of payment[57] - The Company expects to be reimbursed by the insurance company for remaining charges related to the commercial reorganization within three months of payment[57] Debt Obligations - The Company has a loan agreement with the State of Connecticut for up to $4 million, bearing interest at 2.0% per annum, with maturity on April 15, 2026[39] - The Company has a future minimum principal payment obligation of $2,832,000 under the DECD loan, with payments due in the following years: $103,000 in 2022, $406,000 in 2023, $452,000 in 2024, $461,000 in 2025, and $341,000 in 2026[43] - As of June 30, 2022, total long-term debt, net of issuance costs, was $2,536,000, down from $2,718,000 as of December 31, 2021, reflecting a decrease of approximately 6.7%[42] Stock Options and Compensation - As of June 30, 2022, 10,087,299 shares of Aspira common stock were subject to outstanding stock options under the 2019 Stock Incentive Plan[63] - The Company recorded $334,000 in stock option forfeitures for Q1 2022[64] - The company recorded $109,000 in forfeitures for stock-based compensation for the three months ended June 30, 2022[65]
Aspira Women’s Health (AWH) - 2022 Q2 - Quarterly Report