CapForce Inc.

OpGen reported second-quarter 2023 revenue of approximately $736,000 versus $967,000 in Q2 2022. First-half 2023 revenue was approximately $1.65 million, up about 15% from approximately $1.44 million in the first half of 2022. Q2 operating expenses were $5.9 million versus $6.2 million a year ago; R&D was $1.4 million versus $2.3 million, a 39% reduction. G&A was $2.4 million versus $2.1 million, and sales and marketing was approximately $1.2 million in both periods. Cash ended at approximately $3.2 million on June 30, 2023, down from approximately $7.4 million at year-end 2022. Management said current cash is not expected to fund operations beyond September 2023 and stated there is substantial doubt about the company’s ability to continue as a going concern. Looking ahead, management expects full response to the FDA’s requests on the Unyvero UTI de novo submission in Q4 2023. The next phase of the FIND collaboration is expected to take about 10 months with an assigned budget of up to approximately $600,000, with a first payment of about $200,000 due on signing and the remainder tied to delivery milestones. Management also said recent commercial contracts total potential annualized revenue volume of up to $1.5 million.

Oliver Schacht said the quarter showed traction across all platforms and emphasized commercialization as the main priority. He highlighted milestones with FIND and InfectoGnostics, the FDA submission and follow-up review for Unyvero UTI, the Fisher Healthcare distribution agreement, and progress in China and with Ares sequencing services. His tone was constructive on business momentum, but he repeatedly framed future execution around continued financing and partnership development.

Albert Weber focused on the financial trend lines and liquidity pressure. He cited Q2 revenue of approximately $736,000, first-half revenue of approximately $1.65 million, operating expenses of $5.9 million in Q2, and cash of approximately $3.2 million at June 30, 2023. He said the $3.5 million public offering proceeds are intended to support commercialization, manufacturing, R&D, and debt repayment, but also stated the company does not expect current cash to last beyond September 2023 and that substantial doubt remains about going concern status. He also noted the EIB standstill agreement after a partial $1 million payment in June and said non-dilutive funding typically covers only 40% to 80% of project costs, requiring OpGen co-funding.

There was no analyst Q&A on the call. Management instead used the prepared remarks to address the key issues investors would have asked about: the FDA’s request for additional information on the Unyvero UTI de novo filing, the extension of the FIND collaboration, the Fisher distribution rollout, and the company’s liquidity shortfall. The main unresolved concern was financing, with management saying it is pursuing restructuring, refinancing, equity or debt capital, asset sales, strategic transactions, and possible bankruptcy-law relief if needed.