Audited US GAAP financial results

Renalytix PLC

01 October 2024

 

Renalytix plc

("Renalytix" or the "Company")

Audited US GAAP financial results for the fiscal year ended 30 June 2024

LONDON and NEW YORK, 1 October, 2024 - Renalytix plc (NASDAQ: RNLX) (LSE: RENX), an artificial intelligence-enabled in vitro diagnostics company, focused on optimizing clinical management of kidney disease to drive improved patient outcomes and advance value-based care, confirms that it has published its audited US GAAP financial results for the fiscal year ended 30 June 2024 as disclosed in its Form 10-K filed with the Securities and Exchange Commission.

The consolidated balance sheet of as of June 30, 2024, and the related consolidated statements of operations and comprehensive loss, shareholders' equity (deficit), and cash flows for the year ended June 30, 2024, are provided further below.

The full announcement is available to view on the Company website:

https://investors.renalytix.com/financials-and-filings/sec-filings

Audited Full Year Fiscal 2024 Results under IFRS will be issued in due course.

For further information, please contact:

Renalytix plc	www.renalytix.com
James McCullough, CEO	Via Walbrook PR
Stifel (Nominated Adviser and Joint Broker)	Tel: [phone]
Nicholas Moore / Nick Harland / Ben Good
Oberon Capital (Joint Broker)	Tel: [phone]
Mike Seabrook / Nick Lovering
Walbrook PR Limited	Tel: [phone] or [e-mail]
Paul McManus / Alice Woodings / Charlotte Edgar	Mob: [phone]
CapComm Partners
Peter DeNardo	Tel: [phone] or [e-mail]

About Renalytix

Renalytix (NASDAQ: RNLX) (LSE: RENX) is an artificial intelligence enabled in-vitro diagnostics and laboratory services company that is the global founder and leader in the field of bioprognosis™ for kidney health. In late 2023, our kidneyintelX.dkd test was recognized as the first and only FDA-authorized prognostic test to enable early-stage CKD (stages 1-3b) risk assessment for progressive decline in kidney function in T2D patients. By understanding how disease will progress, patients and clinicians can take action earlier to improve outcomes and reduce overall health system costs. For more information, visit www.renalytix.com.

Important Notices

Stifel Nicolaus Europe Limited and Oberon Investments Limited are authorised and regulated in the United Kingdom by the Financial Conduct Authority ("FCA") and are acting exclusively for the Company and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Renalytix for providing the protections afforded to its clients nor for providing advice in relation to the subject matter of this announcement.

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise.

This announcement (including any information incorporated by reference in this announcement) and other information published by the Company contain statements about the Company that are or may be deemed to be forward looking statements. Without limitation, any statements preceded or followed by or that include the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects" or words or terms of similar substance or the negative thereof, may be forward looking statements.

These forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Due to such uncertainties and risks, readers should not rely on such forward-looking statements, which speak only as of the date of this announcement. The Company disclaims any obligation or responsibility to update publicly or review any forward-looking or other statements contained in this announcement, except as required by applicable law.

The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

RENALYTIX PLC

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)				June 30, 2024				June 30, 2023
Assets
Current assets:
Cash and cash equivalents				$	4,680			$	24,682
Accounts receivable					722				776
Prepaid expenses and other current assets					716				1,424
Total current assets					6,118				26,882
Property and equipment, net					216				1,027
Right-of-use asset					-				159
Investment in VericiDx					698				1,460
Other Assets					940				1,101
Total assets				$	7,972			$	30,629
Liabilities and Shareholders' Equity (Deficit)
Current liabilities:
Accounts payable				$	1,590			$	1,485
Accounts payable - related party					1,018				1,451
Accrued expenses and other current liabilities					3,354				6,644
Accrued expenses - related party					1,329				1,963
Current lease liability					45				130
Convertible notes-current					4,159				4,463
Total current liabilities					11,495				16,136
Convertible notes-noncurrent					4,331				7,485
Noncurrent lease liability					-				41
Total liabilities					15,826				23,662
Commitments and contingencies (Note 10)
Shareholders' equity (deficit):
Ordinary shares, £0.0025 par value per share: 161,842,057 shares    authorized; 154,368,191 and 93,781,478 shares issued and    outstanding at June 30, 2024 and June 30, 2023, respectively					478				286
Additional paid-in capital					204,893				186,456
Accumulated other comprehensive loss					(1,443)				(1,450)
Accumulated deficit					(211,782)				(178,325)
Total shareholders' equity (deficit)					(7,854)				6,967
Total liabilities and shareholders' equity (deficit)				$	7,972			$	30,629

RENALYTIX PLC

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

		Twelve Months Ended			Twelve Months Ended
(in thousands, except share and per share data)		June 30, 2024			June 30, 2023
Revenue		$	2,289		$	3,403
Cost of revenue			2,133			2,683
Gross profit			156			720
Operating expenses:
Research and development			9,290			14,298
General and administrative			19,751			28,662
Impairment loss on property, equipment and other long-lived assets			723			-
Performance of contract liability to affiliate			-			(19)
Total operating expenses			29,764			42,941
Loss from operations			(29,608)			(42,221
Equity in net losses of affiliate			-			(9)
Foreign currency gain, net			163			358
Fair value adjustment to VericiDx investment			(505)			(1,282)
Fair value adjustment to convertible notes			(3,751			(3,107)
Other income, net			249			656
Net loss before income taxes			(33,452)			(45,605)
Income tax expense			(4)			(2)
Net loss			(33,456)			(45,607
Net loss per ordinary share-basic		$	(0.31		$	(0.55)
Net loss per ordinary share-diluted		$	(0.31		$	(0.55)
Weighted average ordinary shares-basic			108,179,366			82,210,050
Weighted average ordinary shares-diluted			108,179,366			82,210,050
Other comprehensive income (loss):
Changes in the fair value of the convertible notes			305			(337)
Foreign exchange translation adjustment			(298)			(198)
Comprehensive loss		$	(33,449)		$	(46,142)

RENALYTIX PLC

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT)

		Ordinary shares								Additional paid-in				Accumulated other comprehensive				Accumulated				Total shareholders'
(in thousands, except share data)		Shares				Amount				capital				loss				deficit				equity (deficit)
Balance at June 30, 2022			74,760,432			$	228			$	164,012			$	(915)			$	(132,718)			$	30,607
Shares issued under the Securities Purchase Agreement			18,722,960				57				19,248				-				-				19,305
Shares issued under the employee share purchase plan			298,086				1				260				-				-				261
Stock-based compensation expense			-				-				2,936				-				-				2,936
Changes in the fair value of the convertible notes			-				-				-				(337)				-				(337
Currency translation adjustments			-				-				-				(198)				-				(198
Net loss			-				-				-								(45,607)				(45,607
Balance at June 30, 2023			93,781,478				286				186,456				(1,450)				(178,325)				6,967
Shares issued under the Securities Purchase Agreement, net of offering costs			50,801,873				161				11,656				-				-				11,817
Shares issued for repayment of convertible bond			9,523,972				30				4,978				-				-				5,008
Vesting of RSUs			185,540				1				-				-				-				1
Shares issued under the employee share purchase plan			75,328				-				93				-				-				93
Stock-based compensation expense			-				-				1,710				-				-				1,710
Changes in the fair value of the convertible notes			-				-				-				305				-				305
Currency translation adjustments			-				-				-				(298)				-				(298
Net loss			-				-				-				-				(33,456)				(33,456
Balance at June 30, 2024			154,368,191			$	478			$	204,893			$	(1,443)			$	(211,782)			$	(7,854)

RENALYTIX PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)		Year Ended June 30, 2024				Year Ended June 30, 2023
Cash flows from operating activities:
Net loss		$	(33,456	)		$	(45,607	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			364				508
Impairment loss on property, equipment and other long-lived assets			723				-
Stock-based compensation			1,710				2,932
Equity in losses of affiliate			-				9
Reduction of Kantaro liability			-				(55	)
Fair value adjustment to VericiDx investment			505				1,282
Unrealized foreign exchange gain			-				(1,008	)
Realized loss on sale of ordinary shares in VericiDx			135				-
Realized foreign exchange gain			(132	)			-
Fair value adjustment to convertible debt, net interest paid			3,502				1,999
Non cash lease expense			67				106
Changes in operating assets and liabilities:
Accounts receivable			54				125
Prepaid expenses and other current assets			798				1,299
Receivable from affiliates			-				75
Accounts payable			106				80
Accounts payable - related party			(433	)			368
Accrued expenses and other current liabilities			(3,419	)			3,397
Accrued expenses - related party			(635	)			451
Deferred revenue			-				(46	)
Net cash used in operating activities			(30,111	)			(34,085	)
Cash flows from investing activities:
Purchase of equipment			(4	)			-
Net cash used in investing activities			(4	)			-
Cash flows from financing activities:
Payment of convertible notes principal			(1,660	)			(3,180	)
Proceeds from issuance of ordinary shares in Private Placement			13,533				20,296
Payment of offering costs			(1,716	)			(991	)
Proceeds from the issuance of ordinary shares under employee share    purchase plan			93				261
Net cash provided by financing activities			10,250				16,386
Effect of exchange rate changes on cash			(137	)			1,048
Net decrease in cash and cash equivalents			(20,002	)			(16,651	)
Cash and cash equivalents, beginning of year			24,682				41,333
Cash and cash equivalents, end of year		$	4,680			$	24,682
Supplemental noncash investing and financing activities:
Noncash lease liabilities arising from obtaining right-of-use assets		$	-			$	265
Cash paid for interest on convertible debt		$	249			$	-
Issuance of shares for debt repayment		$	(5,008	)		$	-

 

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