Mon, May 12, 8:55 PM (41 days ago)
**Harvard Bioscience, Inc. (HBIO) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $21.8 million, down 11.2% from $24.5 million in Q1 2024 due to softening global demand. - **Gross Profit:** $12.2 million, down 17.5% from $14.8 million in Q1 2024, with a gross margin of 56.0%. - **Operating Loss:** $49.7 million, significantly higher than the $2.3 million loss in Q1 2024, primarily due to a $48.0 million goodwill impairment charge. - **Net Loss:** $50.3 million, compared to $4.7 million in Q1 2024. - **Cash Flow:** Positive operating cash flow of $3.0 million, up from $1.4 million in Q1 2024. **Profit Margins:** - Gross margin decreased to 56.0% from 60.3% in Q1 2024 due to lower revenue and higher fixed manufacturing costs. **Cash Flow:** - Operating cash flow improved to $3.0 million from $1.4 million in Q1 2024. - Investing activities used $0.7 million, primarily for capital expenditures. - Financing activities used $1.2 million, mainly for debt repayments. **Earnings Changes:** - Significant goodwill impairment charge of $48.0 million in Q1 2025. - Loss per share increased to $1.14 from $0.11 in Q1 2024. **Quarterly Performance Discussion:** - Revenue decline attributed to reduced demand from academic research institutions and CROs. - Cost reductions in sales, marketing, and general administrative expenses. - Goodwill impairment due to sustained stock price decrease and macroeconomic conditions. **Trends and Uncertainties:** - Global economic trends and uncertainties impacting revenue. - Potential refinancing challenges and liquidity risks due to credit agreement amendments. - Nasdaq listing compliance issues due to minimum bid price requirements. **Future Operations Impact:** - Exploring alternative capital sources to refinance debt by June 30, 2025. - Substantial doubt about the ability to continue as a going concern if refinancing is not achieved. - Potential delisting from Nasdaq if minimum bid price is not regained by October 1, 2025.