Change Agents (CHGA) Q3 2024 earnings summary

Executive summary

• Focused on precision diagnostics and clinical laboratory services, with a 40% equity stake in Lab Services MSO and ownership of income-producing real estate in New Jersey.

• Net loss for Q3 2024 was $1.68M, up 13.1% year-over-year; nine-month net loss was $5.18M, down 27.6% from prior year.

• Working capital deficit increased to $10.94M as of September 30, 2024, from $5.91M at year-end 2023.

• Substantial doubt exists about ability to continue as a going concern due to recurring losses and negative cash flow.

Financial highlights

• Q3 2024 real property rental revenue: $345K (+4.2% YoY); nine months: $988K (+5.7% YoY).

• Q3 2024 real property operating income: $99.6K (+130.6% YoY); nine months: $193.5K (+26.9% YoY).

• Loss from equity method investment in Lab Services MSO: $447.9K in Q3 2024 (vs. $354.5K income in Q3 2023); $669.8K loss for nine months (vs. $370.1K income prior year).

• Net loss per share: Q3 2024 $(1.82), nine months $(6.45); improved from $(2.06) and $(10.34) YoY.

• Cash balance at September 30, 2024: $1.02M (up from $285K at year-end 2023).

Outlook and guidance

• Rental revenue and operating income expected to remain stable with minimal increase.

• Ongoing focus on laboratory rollup strategy and commercialization of proprietary diagnostic products.

• Plans to raise additional capital through equity or debt; no assurance of success.