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Pulse Biosciences Reports Q1 2024 Financial Results Amidst Strategic Business Developments

GuruFocus Research
·3-min read

  • GAAP Net Loss: ($10.1M) for Q1 2024, compared to ($9.8M) for Q1 2023.

  • Non-GAAP Net Loss: ($8.1M) for Q1 2024, compared to ($8.6M) for Q1 2023.

  • Total GAAP Costs and Expenses: $10.6M for Q1 2024, up from $9.6M in the same period last year.

  • Cash and Cash Equivalents: $34.9M as of March 31, 2024, down from $54.1M as of March 31, 2023.

  • Stock-based Compensation Expense: Increased to $1.8M in Q1 2024 from $0.9M in Q1 2023.

  • Research and Development Expenses: Rose to $6.7M in Q1 2024 from $5.8M in Q1 2023.

  • Rights Offering: Expected gross proceeds up to $60M, with additional proceeds up to $66M upon exercise of all warrants.

On May 7, 2024, Pulse Biosciences Inc (NASDAQ:PLSE) disclosed its first quarter financial outcomes and business developments in its latest 8-K filing. The company, known for its innovative CellFX Nanosecond Pulsed Field Ablation (nsPFA) technology, is navigating through a phase marked by strategic investments in research and development aimed at enhancing its product portfolio and preparing for commercial launches.

Company Overview

Pulse Biosciences is a trailblazer in bioelectric medicine, focusing on developing its proprietary CellFX nsPFA technology. This technology, which delivers nanosecond pulses of electrical energy to selectively clear cells without harming surrounding non-cellular tissue, has applications in various medical conditions that currently lack optimal treatment options. The company primarily operates in North America, where it generates most of its revenue through the sale of systems.

Financial Performance Insights

The first quarter of 2024 saw Pulse Biosciences experiencing an increase in total GAAP costs and expenses, which amounted to $10.6 million compared to $9.6 million in the same period last year. This rise was primarily due to an uptick in non-cash stock-based compensation expenses, which doubled from $0.9 million in Q1 2023 to $1.8 million in Q1 2024. Additionally, research and development expenses escalated as the company bolstered its efforts to advance the CellFX nsPFA product line.

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On the earnings front, the GAAP net loss widened slightly to $10.1 million from $9.8 million year-over-year. However, on a non-GAAP basis, the net loss improved to $8.1 million from $8.6 million, reflecting a more controlled operational cost structure excluding non-cash expenses and other adjustments.

Liquidity and Capital Resources

The companys cash reserves saw a decrease, with cash and cash equivalents totaling $34.9 million as of March 31, 2024, down from $54.1 million a year earlier. This reduction is attributed to increased cash used in operations, primarily driven by annual cash bonus payouts and intensified research and development activities.

Strategic Developments and Future Outlook

Amidst these financial dynamics, Pulse Biosciences has been actively pursuing regulatory advancements and clinical studies. Noteworthy is the FDAs request for additional clinical data for the CellFX nsPFA Percutaneous Electrode System, indicating a move towards regulatory clearance. Furthermore, the company has adjusted the rights offering schedule to better align with its strategic funding needs, potentially enhancing its financial flexibility through mid-2026.

CEO Kevin Danahy expressed optimism about the technologys validation and its potential impact on healthcare, emphasizing ongoing efforts to launch the CellFX nsPFA percutaneous electrode commercially following further clinical and regulatory milestones.

Investor and Analyst Perspectives

Todays conference call, as announced by Pulse Biosciences, will likely provide investors and analysts further insights into the companys strategic initiatives and financial health. The managements commentary and the subsequent Q&A session are anticipated to shed more light on the companys operational strategies and outlook.

In conclusion, while Pulse Biosciences navigates through increased expenses and strategic investments, its focus on advancing its proprietary technology and preparing for commercial scalability is evident. The outcomes of ongoing clinical studies and regulatory interactions will be crucial in shaping the companys trajectory in the coming quarters.

Explore the complete 8-K earnings release (here) from Pulse Biosciences Inc for further details.

This article first appeared on GuruFocus.