NeoGenomics Reports Second Quarter 2024 Results

Second Quarter Revenue Increased 12% to $165 Million

Raising Revenue Guidance $655 to $667 Million and Adjusted EBITDA to $33 to $37 Million

NeoGenomics, Inc. (NASDAQ: NEO) (the “Company”), a leading oncology testing services company, today announced its second-quarter results for the period ended June 30, 2024.

Second Quarter 2024 Highlights As Compared To Second Quarter 2023

Consolidated revenue increased 12% to $165 million
Clinical Services revenue increased 15% to $141 million
Advanced Diagnostics revenue decreased 3% to $23 million
Net loss decreased 23% to $19 million
Adjusted EBITDA increased 630% to positive $11 million

“The second quarter represents the fourth consecutive positive Adjusted EBITDA quarter with continued strong growth in volumes, revenues, and earnings,” said Chris Smith, NeoGenomics’ Chief Executive Officer. “We are well positioned to continue the momentum in the second half of the year and are committed to expanding our broad menu to help deliver innovative care for patients and driving long-term sustainable growth.”

Second-Quarter Results

Consolidated revenue for the second quarter of 2024 was $165 million, an increase of 12% over the same period in 2023. Clinical Services revenue of $141 million increased year-over-year by 15%. Clinical test volume(1) increased by 6% year-over-year. Average revenue per clinical test (“revenue per test”) increased by 9% to $454. Advanced Diagnostics revenue decreased by 3% to $23 million compared to the second quarter of 2023.

Consolidated gross profit for the second quarter of 2024 was $72.5 million, an increase of 21.0% compared to the second quarter of 2023. This increase was primarily due to an increase in revenue partially offset by higher compensation and benefit costs. Consolidated gross profit margin, including amortization of acquired intangible assets and stock-based compensation expense, was 44.1%. Adjusted Gross Profit Margin(2), excluding amortization of acquired intangible assets and stock-based compensation expense, was 47.3%.

Operating expenses for the second quarter of 2023 were $94 million, an increase of $5 million, or 5%, compared to the second quarter of 2023. Operating expenses included higher compensation and benefit costs as well as an increase in legal and professional fees. These increases were partially offset by a decrease in restructuring activities.

Net loss for the quarter decreased $6 million, or 23%, to $19 million compared to net loss of $24 million for the second quarter of 2023.

Adjusted EBITDA(2) increased $13 million, or 630%, to positive $11 million compared to negative $2 million in the second quarter of 2023. Adjusted Net Income(2) was $4 million compared to Adjusted Net Loss(2) of $7 million in the second quarter of 2023.

Cash and cash equivalents and marketable securities totaled $388 million at quarter end.

2024 Financial Guidance(3)

The Company revised its full-year 2024 guidance(3), as initially issued on February 20, 2024.

FY 2023

Initial FY 2024 Guidance

Revised FY 2024 Guidance(3)

YOY % Change from FY 2023

(in millions)

Actual

Low

High

Low

High

Low

High

Consolidated revenue

$592

$650

$660

$655

$667

11%

13%

Net loss

$(88)

$(72)

$(66)

$(88)

$(81)

—%

Adjusted EBITDA

$21

$24

$33

$37

1000%

1133%

________________________________________

(1)

Clinical testing excludes tests and revenue for Advanced Diagnostics.

(2)

The Company has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Gross Profit Margin, Adjusted Net Loss, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled “Use of Non-GAAP Financial Measures.” See also the tables reconciling such measures to their closest GAAP equivalent.

(3)

The Company reserves the right to adjust this guidance at any time based on the ongoing execution of its business plan. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company’s securities, and are reminded that the foregoing estimates should not be construed as a guarantee of future performance.

Conference Call

The Company has scheduled a webcast and conference call to discuss its second quarter 2024 results on Monday, July 29, 2024 at 4:30 p.m. Eastern Time. To access the live call via telephone, interested investors should dial (888) 506-0062 (domestic) or (973) 528-0011 (international) at least five minutes prior to the call. The participant access code provided for this call is 276062. The live webcast may be accessed by visiting the Investor Relations section of our website at ir.neogenomics.com. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the company’s website.

About NeoGenomics, Inc.

NeoGenomics, Inc. specializes in cancer genetics testing and information services, providing one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. The Company’s Advanced Diagnostics Division serves pharmaceutical clients in clinical trials and drug development.

NeoGenomics is committed to connecting patients with life altering therapies and trials. We believe that, together, with our partners, we can help patients with cancer today and the next person diagnosed tomorrow. In carrying out these commitments, NeoGenomics adheres to relevant data protection laws, provides transparency and choice to patients regarding the handling and use of their data through our Notice of Privacy Practices, and has invested in leading technologies to secure the data we maintain.

Headquartered in Fort Myers, FL, NeoGenomics operates CAP accredited and CLIA certified laboratories for full-service sample processing in Fort Myers, Florida; Aliso Viejo and San Diego, California; Research Triangle Park, North Carolina; and Houston, Texas; and a CAP accredited full-service, sample-processing laboratory in Cambridge, United Kingdom. NeoGenomics also has several, small, non-processing laboratory locations across the United States for providing analysis services. NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations throughout the United States, and a pharmaceutical firm in Europe.

Forward Looking Statements

This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “would,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” “guidance,” “plan,” “potential” and other words of similar meaning, although not all forward-looking statements include these words. This press release includes forward-looking statements. These forward-looking statements address various matters, including statements regarding improving operational efficiency, returning to profitable growth and its ongoing executive recruitment process. Each forward-looking statement contained in this press release is subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company's ability to identify and implement appropriate financial and operational initiatives to improve performance, to identify and recruit executive candidates, to continue gaining new customers, offer new types of tests, integrate its acquisitions and otherwise implement its business plan, and the risks identified under the heading "Risk Factors" contained in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and the Company's other filings with the Securities and Exchange Commission.

We caution investors not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document (unless another date is indicated), and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

NeoGenomics, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30, 2024 (unaudited)

December 31, 2023

ASSETS

Current assets

Cash and cash equivalents

355,085

342,488

Marketable securities, at fair value

32,770

72,715

Accounts receivable, net

146,581

131,227

Inventories

23,214

24,156

Prepaid assets

17,396

17,987

Other current assets

9,157

8,239

Total current assets

584,203

596,812

Property and equipment, net

92,158

92,012

Operating lease right-of-use assets

83,671

91,769

Intangible assets, net

356,404

373,128

Goodwill

522,766

Other assets

4,075

4,742

Total non-current assets

1,059,074

1,084,417

Total assets

1,643,277

1,681,229

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable and other current liabilities

86,312

90,694

Current portion of operating lease liabilities

3,574

5,610

Current portion of convertible senior notes, net

200,073

—

Total current liabilities

289,959

96,304

Long-term liabilities

Operating lease liabilities

63,294

67,871

Convertible senior notes, net

339,577

538,198

Deferred income tax liabilities, net

23,015

24,285

Other long-term liabilities

11,548

13,034

Total long-term liabilities

437,434

643,388

Total liabilities

727,393

739,692

Stockholders’ equity

Total stockholders’ equity

915,884

941,537

Total liabilities and stockholders’ equity

1,643,277

1,681,229

NeoGenomics, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

NET REVENUE

Clinical Services

141,388

123,156

275,923

238,025

Advanced Diagnostics

23,114

23,761

44,819

46,112

Total net revenue

164,502

146,917

320,742

284,137

COST OF REVENUE

92,008

87,026

182,779

169,432

GROSS PROFIT

72,494

59,891

137,963

114,705

Operating expenses:

General and administrative

63,328

60,308

129,125

121,857

Research and development

7,886

7,502

15,506

14,897

Sales and marketing

21,677

18,901

41,898

35,160

Restructuring charges

1,544

3,074

3,942

7,758

Total operating expenses

94,435

89,785

190,471

179,672

LOSS FROM OPERATIONS

(21,941

)

(29,894

)

(52,508

)

(64,967

)

Interest income

(4,592

)

(4,308

)

(9,426

)

(7,532

)

Interest expense

1,666

1,784

3,351

3,541

Other expense (income), net

(730

)

265

(616

)

Loss before taxes

(19,017

)

(26,640

)

(46,698

)

(60,360

)

Income tax benefit

(375

)

(2,309

)

(995

)

(5,234

)

NET LOSS

(18,642

)

(24,331

)

(45,703

)

(55,126

)

NET LOSS PER SHARE

Basic

(0.15

)

(0.19

)

(0.36

)

(0.44

)

Diluted

(0.15

)

(0.19

)

(0.36

)

(0.44

)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

Basic

126,405

125,356

126,257

125,192

Diluted

126,405

125,356

126,257

125,192

NeoGenomics, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Six Months Ended June 30,

2024

2023

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

(45,703

)

(55,126

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation

19,651

18,523

Amortization of intangibles

16,723

17,566

Stock-based compensation

16,615

10,463

Non-cash operating lease expense

4,793

4,648

Amortization of convertible debt discount and debt issue costs

1,452

1,433

Impairment of assets

333

1,660

Other adjustments

159

Changes in assets and liabilities, net

(26,046

)

(13,412

)

Net cash used in operating activities

(12,023

)

(14,240

)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of marketable securities

—

(6,756

)

Proceeds from maturities of marketable securities

40,501

62,868

Purchases of property and equipment

(18,663

)

(17,421

)

Net cash provided by investing activities

21,838

38,691

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of equipment financing obligations

—

(61

)

Issuance of common stock, net

2,782

1,504

Net cash provided by financing activities

2,782

1,443

Net change in cash and cash equivalents

12,597

25,894

Cash and cash equivalents, beginning of period

342,488

263,180

Cash and cash equivalents, end of period

355,085

289,074

Use of Non-GAAP Financial Measures

In order to provide greater transparency regarding our operating performance, the financial results and financial guidance in this press release refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company’s core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company’s core test-level operating results across reporting periods and when comparing those same results to those published by our peers. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies.

Definitions of Non-GAAP Measures

Non-GAAP Adjusted EBITDA

“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income, (ii) interest expense, (iii) tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) restructuring charges, (vii) intellectual property (“IP”) litigation, and (viii) other significant or non-operating (income) or expenses, net.

Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin

“Adjusted cost of revenue” is defined by NeoGenomics as cost of revenue before: (i) amortization of acquired intangible assets, and, if applicable in a reporting period, (ii) stock-based compensation expense.

“Adjusted gross profit” is defined by NeoGenomics as total revenue less adjusted cost of revenue.

“Adjusted gross profit margin” is defined by NeoGenomics as adjusted cost of revenue divided by total revenue.

Non-GAAP Adjusted Net (Loss) Income

“Adjusted net (loss) income” is defined by NeoGenomics as net (loss) income from continuing operations plus: (i) amortization of intangible assets, (ii) stock-based compensation expense, and, if applicable in a reporting period, (iii) restructuring charges, (iv) IP litigation, and (v) other significant or non-operating (income) or expenses, net. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method unless the effect of this adjustment on both the adjusted net (loss) income and weighted average diluted common shares outstanding would be anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method.

Non-GAAP Adjusted Diluted EPS

“Adjusted diluted EPS” is defined by NeoGenomics as adjusted net (loss) income divided by adjusted diluted shares outstanding. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted diluted shares outstanding will also include any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted diluted shares outstanding will exclude any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period.

Reconciliation of GAAP Net Loss to Non-GAAP EBITDA and Adjusted EBITDA

(in thousands)

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Net loss (GAAP)

(18,642

)

(24,331

)

(45,703

)

(55,126

)

Adjustments to net loss:

Interest income

(4,592

)

(4,308

)

(9,426

)

(7,532

)

Interest expense

1,666

1,784

3,351

3,541

Income tax benefit

(375

)

(2,309

)

(995

)

(5,234

)

Depreciation

9,746

9,475

19,651

18,523

Amortization of intangibles

8,361

8,783

16,723

17,566

EBITDA (non-GAAP)

(3,836

)

(10,906

)

(16,399

)

(28,262

)

Further adjustments to EBITDA:

Stock-based compensation expense

8,841

5,705

16,615

10,463

Restructuring charges

1,544

3,074

3,942

7,758

IP litigation

1,962

—

6,243

—

Other significant (income) expenses, net(4)

2,358

3,960

874

Adjusted EBITDA (non-GAAP)

10,869

(2,051

)

14,361

(9,167

)

_________________

(4)

For the three months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. For the three months ended June 30, 2023, other significant (income) expenses, net, includes fees related to a regulatory matter and other non-recurring items. For the six months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. For the six months ended June 30, 2023, other significant (income) expenses, net, CEO transition costs, fees related to a regulatory matter and other non-recurring items.

Reconciliation of Segment and Consolidated GAAP Cost of Revenue, Gross Profit and Gross Profit Margin to

Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin

(dollars in thousands)

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

% Change

2024

2023

% Change

Clinical Services:

Total revenue (GAAP)

141,388

123,156

14.8

275,923

238,025

15.9

Cost of revenue (GAAP)

78,094

71,746

8.8

154,938

139,038

11.4

Adjustments to cost of revenue(5)

(4,552

)

(4,263

)

(9,159

)

(8,527

)

Adjusted cost of revenue (non-GAAP)

73,542

67,483

9.0

145,779

130,511

11.7

Gross profit (GAAP)

63,294

51,410

23.1

120,985

98,987

22.2

Adjusted gross profit (non-GAAP )

67,846

55,673

21.9

130,144

107,514

21.0

Gross profit margin (GAAP)

44.8

41.7

43.8

41.6

Adjusted gross profit margin (non-GAAP)

48.0

45.2

47.2

45.2

Advanced Diagnostics:

Total revenue (GAAP)

23,114

23,761

(2.7

44,819

46,112

(2.8

Cost of revenue (GAAP)

13,914

15,280

(8.9

27,841

30,394

(8.4

Adjustments to cost of revenue(6)

(715

)

(590

)

(1,413

)

(1,179

)

Adjusted cost of revenue (non-GAAP)

13,199

14,690

(10.1

26,428

29,215

(9.5

Gross profit (GAAP)

9,200

8,481

8.5

16,978

15,718

8.0

Adjusted gross profit (non-GAAP )

9,915

9,071

9.3

18,391

16,897

8.8

Gross profit margin (GAAP)

39.8

35.7

37.9

34.1

Adjusted gross profit margin (non-GAAP)

42.9

38.2

41.0

36.6

Consolidated:

Total revenue (GAAP)

164,502

146,917

12.0

320,742

284,137

12.9

Cost of revenue (GAAP)

92,008

87,026

5.7

182,779

169,432

7.9

Adjustments to cost of revenue(5)(6)

(5,267

)

(4,853

)

(10,572

)

(9,706

)

Adjusted cost of revenue (non-GAAP)

86,741

82,173

5.6

172,207

159,726

7.8

Gross profit (GAAP)

72,494

59,891

21.0

137,963

114,705

20.3

Adjusted gross profit (non-GAAP )

77,761

64,744

20.1

148,535

124,411

19.4

Gross profit margin (GAAP)

44.1

40.8

43.0

40.4

Adjusted gross profit margin (non-GAAP)

47.3

44.1

46.3

43.8

_______________

(5)

Clinical Services cost of revenue adjustments for the three months ended June 30, 2024 includes $4.3 million of amortization of acquired intangible assets and $0.2 million of stock-based compensation. Clinical Services cost of revenue adjustments for the three months ended June 30, 2023 includes $4.3 million of amortization of acquired intangible assets. Clinical Services cost of revenue adjustments for the six months ended June 30, 2024 includes $8.6 million of amortization of acquired intangible assets and $0.5 million of stock-based compensation. Clinical Services cost of revenue adjustments for the six months ended June 30, 2023 includes $8.5 million of amortization of acquired intangible assets. There were no stock-based compensation amounts recorded for the three and six months ended June 30, 2023.

(6)

Advanced Diagnostics cost of revenue adjustments for the three months ended June 30, 2024 includes $0.6 million of amortization of acquired intangible assets and $0.1 million of stock-based compensation. Advanced Diagnostics cost of revenue adjustments for the three months ended June 30, 2023 includes $0.6 million of amortization of acquired intangible assets. Advanced Diagnostics cost of revenue adjustments for the six months ended June 30, 2024 includes $1.2 million of amortization of acquired intangible assets and $0.2 million of stock-based compensation. Advanced Diagnostics cost of revenue adjustments for the six months ended June 30, 2023 includes $1.2 million of amortization of acquired intangible assets. There were no stock-based compensation amounts recorded for the three and six months ended June 30, 2023.

Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss

and GAAP EPS to Non-GAAP Adjusted EPS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

2024

2023

Net loss (GAAP)

(18,642

)

(24,331

)

(45,703

)

(55,126

)

Adjustments to net loss, net of tax:

Amortization of intangibles

8,361

8,783

16,723

17,566

Stock-based compensation expense

8,841

5,705

16,615

10,463

Restructuring charges

1,544

3,074

3,942

7,758

IP litigation

1,962

—

6,243

—

Other significant (income) expenses, net(7)

2,358

3,960

874

Adjusted net loss (non-GAAP)

4,424

(6,693

)

1,780

(18,465

)

Net loss per common share (GAAP)

Diluted EPS

(0.15

)

(0.19

)

(0.36

)

(0.44

)

Adjustments to diluted loss income per share:

Amortization of intangibles

0.07

0.13

0.14

Stock-based compensation expense

0.07

0.05

0.13

0.08

Restructuring charges

0.01

0.02

0.03

0.06

IP litigation

0.02

—

0.05

—

Other significant (income) expenses, net(7)

0.02

—

0.03

0.01

Rounding and impact of diluted shares in adjusted diluted shares(8)

(0.01

)

—

Adjusted diluted EPS (non-GAAP)

0.03

(0.05

)

0.01

(0.15

)

Weighted average shares used in computation of adjusted diluted EPS:

Diluted common shares (GAAP)

126,405

125,356

126,257

125,192

Dilutive effect of options, restricted stock, and converted shares(9)(10)

—

Adjusted diluted shares outstanding (non-GAAP)

126,405

125,356

126,257

125,192

_________________

(7)

For the three months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. For the three months ended June 30, 2023, other significant (income) expenses, net, includes fees related to a regulatory matter and other non-recurring items. For the six months ended June 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. For the six months ended June 30, 2023, other significant (income) expenses, net, includes CEO transition costs, fees related to a regulatory matter and other non-recurring items.

(8)

This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive or GAAP net (loss) income is positive and adjusted net (loss) income is negative, also compensates for the effects of additional diluted shares included or excluded in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes.

(9)

In those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive.

(10)

In those periods in which GAAP net (loss) income is positive and adjusted net (loss) income is negative, this adjustment excludes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period.

Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures

(in thousands, except per share amounts)

(unaudited)

GAAP net loss in 2024 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) stock-based compensation, (iii) restructuring charges, and (iv) other one-time expenses. These charges have been included in GAAP net loss available to stockholders and GAAP net loss per share; however, they have been removed from adjusted net loss and adjusted diluted net loss per share.

The following table reconciles the Company’s 2024 outlook for net loss and EPS to the corresponding non-GAAP measures of adjusted net loss, adjusted EBITDA, and adjusted diluted EPS:

Year Ended December 31, 2024

Low Range

High Range

Net loss (GAAP)

(88,000

)

(81,000

)

Amortization of intangibles

33,000

Stock-based compensation expenses

33,000

32,000

Restructuring charges

5,000

Other one-time expenses

20,000

Adjusted net loss (non-GAAP)

3,000

9,000

Interest and taxes

(11,000

)

(11,000

)

Depreciation

41,000

39,000

Adjusted EBITDA (non-GAAP)

33,000

37,000

Net loss per diluted share (GAAP)

(0.69

)

(0.64

)

Adjustments to net loss per diluted share:

Amortization of intangibles

0.26

Stock-based compensation expenses

0.26

0.25

Restructuring charges

0.04

Other one-time expenses

0.16

Rounding and impact of diluted shares in adjusted diluted shares(11)

(0.01

)

—

Adjusted diluted EPS(12) (non-GAAP)

0.02

0.07

Weighted average assumed shares outstanding in 2024:

Diluted shares (GAAP)

127,000

Options, restricted stock, and converted shares not included in diluted shares(12)

—

Adjusted diluted shares outstanding (non-GAAP)

127,000

_________________

(11)

This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, also compensates for the effects of additional diluted shares included in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes.

(12)

For those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive.

Supplemental Information

Clinical(13) Tests Performed and Revenue

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2024

2023

% Change

2024

2023

% Change

Clinical(13):