Renalytix Plc (NASDAQ:RNLX) Q2 2023 Earnings Call Transcript

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And so my confidence has grown over time and I think the team internally and the expert advisory team would agree. Again, there’s no guarantees. We’re very humble in this process, but we’re also pleased that FDA is indicating specific timing to us. I’d hoped it would be in the March quarter, just fine if it’s in the June quarter. And obviously, we’ll keep the market up to date as we get additional information. But achieving FDA in the near-term would be a lot of fun at this point, given that we got breakthrough device designation in I believe May of 2019, COVID notwithstanding. But this will be quite an achievement if we’re able to cross the line.

Randy Baron: We’re all rooting for you. O.J., let me shift to you. I really love to get your take on cash burn, let’s call it on average for the quarter. In other words, you’re not giving guidance, we don’t have a test. But if you’ve got 40 something million in cash, how far down the runway does that get us, does that get us to profitability, just give us some high level color on what we should expect for cash burn? Thanks.

O. James Sterling: Yep. So comfortable that we’ve got the cash to get through the next few important milestones. So FDA if it comes, LCD demonstrates some revenue growth and diversity away from Mount Sinai. So, those key areas you can’t yet comment on whether that’s enough cash to get us to profitability, but gets us on our way there. And I think as we’ve demonstrated in February there is a good set of institutional investors, including new investors that have an interest in Renalytix. So we’ve demonstrated an ability to raise capital if we need it. So I feel pretty good overall in where we are. And certainly for the next 12 months we’ve got the ability to throttle expenses as needed, depending on how revenue comes in. And I think you’ve seen in the last couple of quarters, we have successfully reduced cash burn as well. And so I think things look okay.

Randy Baron: Okay, I am sorry, I just missed your actual answer. Should we model closer 10 million a quarter, 5 million a quarter, like just directionally how should we think about cash burn?

O. James Sterling: Right, well, you’re asking for forward-looking guidance for that question which we don’t give.

Randy Baron: Let me ask the question O.J. If the burn rate was historically 10 million, could it conceptually get as low as 6 million or 7 million, are there some structural reasons why cash burn cannot fall below a certain level?

James McCullough: Well, of course, there are reasons why certain level in which cash can get below on the burn. So theoretically, could cash get as low as 6 million or 7 million, sure, but I am not saying on this call that anybody should be modeling that.

James McCullough: You talking about cash burn rate, Randy, or cash balance?

Randy Baron: Yeah. James, I’m just trying to get a sense of, you got 43 million cash, you did a wonderful raise bringing some real players, which I think is great, and suggest that there’s a lot of support in the institutional market for what you’re doing. But obviously, in this market like you said, you never know how the capital markets are going to go and if they’re going to be open again. So I think it’s a fair question to say, how far could this conceptually get us? So if you take 40 divided by to O.J. just response 7, the worst case scenario starts to get a sense that this could push us really deep into calendar 2024, am I correct thinking about it that way?

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