Atomo Diagnostics reports $3.15m loss in H1 FY24

Atomo Diagnostics Limited (ASX: $AT1) has reported a loss of $3,152,282 for the half-year ended 31 December 2023, a significant improvement from the $5,743,450 loss in the same period in the previous year. The company's revenue of approximately $1.92m was driven by product sales of $1.52m for HIV point-of-care tests and $407k for OEM point-of-care technology. At the end of the period, Atomo Diagnostics had cash and cash equivalents amounting to $6.5 million, with no debt.

Executive Commentary on H1 FY24 Performance

The loss for the group has decreased significantly compared to the same period last year, reflecting improved revenue and margin. The company has focused on reducing operating expenditure and investing prudently in key areas of the business to support market-facing and revenue-generating activities. We have continued to invest in business development activities, particularly in securing new OEM cassette supply customers following the regulatory approval of the Pascal cassette by US FDA. Our strategic partnership with Newfoundland Diagnostics and direct pharmacy expansion in Australia have contributed to revenue growth. We are well-funded to pursue our key priorities in the second half of FY24, including continued growth in HIV Self-Test sales revenues and margins, expansion of Atomo's Point of Care technology supply business, and securing regulatory approvals and launching new rapid test products in key markets.

Summary of H1 FY24 and Outlook

Atomo Diagnostics Limited (ASX: $AT1) has reported a reduced loss in H1 FY24, driven by improved revenue and margin. The company's focus on reducing operating expenditure and investing prudently in key areas of the business has contributed to this improvement. With approximately $6.5 million of cash at bank and no debt, Atomo continues to be well-funded to pursue its key priorities in the second half of FY24, including revenue growth in HIV Self-Test sales, expansion of Point of Care technology supply business, and securing regulatory approvals and launching new rapid test products in key markets. The company has identified regulatory risk, product quality and safety, compliance, supply chain, employees and skilled labor, operational risk, competition, corruption and bribery, resource use and waste management, and climate risk as material business risks that may impact its revenue and profitability. Atomo believes it has adequate systems in place for the management of its exposure to environmental and social risks.