ENDRA Life Sciences Inc.

For the quarter ended June 30, 2024, ENDRA reported total operating expenses of $2.2 million versus $3.0 million in the same period of 2023. R&D expense fell $684,000, or 49%, and sales and marketing expense declined $85,000, or 34%, while G&A increased $5,000. During the quarter, the company raised $7.3 million in net proceeds from a public offering; as of June 30, 2024, cash and cash equivalents were $6.4 million, and management said that cash runway funds the company into the first half of 2025. Forward guidance: management said it aims to complete the clinical study this year, initiate a pivotal study early next year, and submit the de novo application around mid-2025.

Alexander Tokman framed the quarter as a reset toward execution, saying ENDRA will focus on six changes: stronger operations, sharper prioritization, a new FDA strategy, a revised go-to-market approach, a clearer long-term vision, and improved financial discipline. He said the company reduced operating expenses by $3 million-plus, or about 26% annualized, without affecting the main deliverable of clinical data collection. His tone was constructive and urgency-driven, emphasizing that the team is now aligned on a clearer path and that the company wants to become more actionable and predictable.

Richard Jacroux highlighted the financing and cost base, saying ENDRA raised $7.3 million in net proceeds during the quarter and ended June with $6.4 million of cash and cash equivalents. He said current projections fund the company into the first half of 2025. He also detailed the expense reductions: operating expenses were $2.2 million versus $3.0 million a year ago, with R&D down 49% and sales and marketing down 34% as resources shift toward clinical activity and the European structure is reworked. He added that further expense adjustments are likely as the company resets strategy.

In Q&A, Edward Woo asked how quickly the new strategic path could be implemented and whether management still needed time to evaluate options. Tokman answered that the next 9 to 12 months are already prioritized around finishing the clinical study, gathering data for FDA submission, and generating data for customer promotion, while the longer-term roadmap will be sharpened over the next 6 to 9 months. When asked about the 2025 filing timing, Tokman clarified that the goal is to complete the clinical study this year, start a pivotal study early next year, and submit sometime by mid-2025, but he did not give a more specific filing date.