For its half-year trading to September, Pacific Edge operating revenue rose 41% to $4.2million, with its Cx-bladder cancer tests up 26% to 7107 for the half.
While its reported loss was down 23% on the same period last year to $8.9million, Pacific Edge’s accumulated losses since 2003 have now tipped into more than $100million.
Pacific Edge shares were unchanged at 38c following the announcement, and were down 24% on a year ago.
Cash in hand at September stood at $4million, but this month an additional $21.3million capital was raised, in a fully underwritten share issue.
As Pacific Edge gains further traction in its crucial United States market, its cash burn per month this year is expected to average out at $1.6million.
Its operating expenses for the half were down 11% on a year to $13.5million.
That included expenses related to winding up an employee incentive scheme where 5.19million shares were issued to employees, booking a non-cash payment expense of $2.92million.
Pacific Edge chairman Chris Gallaher yesterday said the company was working hard to achieve its goal of being cash-flow positive; the company having said during the October capital-raising it expected break even in full-year 2019.
"The rate that we progress is entirely driven by the contribution to revenue from the large-scale [US] customers that we are targeting ... to convert these transformational customers into revenue and cash," Mr Gallaher said in a statement.
Forsyth Barr broker Lyn Howe said Pacific Edge had about 14 months’ cash on hand, was continuing to make progress in the US and was well positioned to capitalise on opportunities once the market opened further.
However, she sounded a caution that Pacific Edge had to deliver on its targets to rebuild investor confidence.
"No disclosure was provided on the breakdown between countries, however we expect this was underpinned by the large US market," Mrs Howe said.
She said the large US market was "complex and challenging" to secure reimbursement for its tests, and Mrs Howe reiterated investors had to "continue to require patience" with Pacific Edge.
Pacific Edge said its primary focus remained on growing revenue by commercialising large-scale customers, including, in the US the Veterans Association, Kaiser Permanante and Centres for Medicare and Medicaid Services; which between them have tens of millions of people on their books.
Several of New Zealand’s district health boards were adopting, or had adopted Pacific Edge bladder tests.
"While the administration and clinical sign off for commercial use by these large organisations can be long and time-consuming, the scale and long-term sales opportunity they present is significant," Pacific Edge said.
Pacific Edge’s chief executive David Darling described the company’s suite of Cx-bladder tests and follow-ups as a "breakthrough product", with more urologists and healthcare providers looking to adopt the products into clinical use.
