NEW YORK – Aspira Women's Health, formerly known as Vermillion, reported after the close of the market on Thursday that its second quarter revenues were down 32 percent year over year.
For the quarter ended June 30, the company reported total revenues of $746,000, down from $1.1 million a year ago. Product revenues were down 32 percent to $743,000 from $1.1 million in Q2 2019. The company posted $3,000 in service revenue, down 93 percent from $42,000 in the year-ago quarter.
Aspira performed 2,458 OVA1 tests in the quarter, down 21 percent from 3,129 OVA1 tests performed in Q2 2019. Revenue per test was $295 during the quarter, compared to $352 per test in Q2 2019.
During a conference call following the release of the financial results, Aspira President and CEO Valerie Palmieri attributed the drop in revenues and test volumes to the SARS-CoV-2 pandemic, noting that many hospitals had eliminated elective surgeries during the quarter and had delayed many ovarian cancer surgeries, opting to administer chemotherapy, instead.
She said that OVA1 test volumes in May were at 60 percent of the pre-pandemic run rate. That figure rose to 74 percent in June and has been in the low 80 percent range in July and August.
Aspira began offering SARS-CoV-2 serology testing in the quarter, completing validation of its test in June. The company is offering testing with the Roche Elecsys Anti-SARS-CoV-2 antibody assay. It also plans to launch antigen testing for the virus, though Palmieri said that effort had been postponed to late Q3 or Q4 due to delays in obtaining instrumentation.
CFO Bob Beechey noted during the call that Aspira has amended the terms of its financing agreement with the state of Connecticut with respect to the target employment levels set by the deal. He said that the company hit those levels in Q2 and is eligible to receive a $2 million loan from the state. Aspira previously received a $4 million loan under the agreement in 2016.
Beechey also said the company received proceeds of approximately $5.1 million from the exercise of warrants during the quarter. It also closed a private placement that grossed $11 million just after the end of the quarter.
Aspira's net loss for the quarter narrowed to $3.8 million, or $.04 per share, from $4.3 million, or $.06 per share, in Q2 2019.
The company's R&D expenses for Q2 were $380,000, up 69 percent from $225,000 in Q2 2019. Its SG&A expenses fell 16 percent to $3.6 million from $4.3 million in the same period last year.
Aspira ended the quarter with $10.9 million in cash and cash equivalents.
In morning trading on Nasdaq, Aspira stock was down 7 percent to $3.77.