Table of Contents
Revenue Breakdown
- Third-party Payer: $15,638 (84%)
- Medicare: $5,170 (28%)
- Patient Self-Pay: $3,516 (19%)
- HMOs: $4,295 (23%)
The majority of Enzo Biochem Inc’s clinical services revenues were generated within the United States.
Product Revenue
Enzo Biochem Inc follows ASC Topic 606 guidelines for product revenue. They generate product revenue from the sale
of single-use products used in the identification of genomic information. The revenue is recorded net of sales tax
and is considered earned when certain criteria are met, including having a contract with a customer, identifying
promised products, determinable transaction price, and transferring control of the products to the customer. The
performance obligation for product sales is satisfied at the point of shipment or delivery, depending on
contractual terms. The company recognizes a receivable when it has an unconditional right to payment. Payment
terms for shipments range from 30 to 90 days.
Geographical Breakdown
- United States: $13,282 (72%)
- Europe: $5,869 (32%)
- Asia Pacific: $2,951 (16%)
Consolidated Balance of Accounts Receivables
As of February 1, 2023, the consolidated balance of accounts receivables for Enzo Biochem Inc was $10,866,
representing a decrease compared to the previous year.
Interest and Cash Flows
The company paid $204 in interest during the nine months ended April 30, 2023. Additionally, the net reductions
in the measurement of right-of-use assets and liabilities included in cash flows from operating activities was $5,
a decrease from the previous year. Enzo Biochem Inc also recorded right of use assets and operating lease
liabilities of $1,717 during this period.
Inventories
In terms of inventories, Enzo Biochem Inc’s raw materials inventory increased to $2,061, while work in process
inventory increased to $2,835, and finished products inventory decreased to $10,393.
Carrying Amount of Goodwill
Enzo Biochem Inc’s carrying amount of goodwill is $7,452 as of April 30, 2023, with no impairment determined. The
company reviews the recoverability of the carrying value of long-lived assets annually or more frequently if
indicators of potential impairment exist.
Revolving Loan and Security Agreement
Enzo Biochem Inc has entered into a Revolving Loan and Security Agreement with Gemino Healthcare Finance, LLC for
a maximum revolving line of credit of $8 million. The company borrowed $5,500 under this agreement, with a net
balance outstanding of $3,354 as of April 30, 2023. The Credit Facility requires the company to maintain certain
minimum liquidity levels, which it was not in compliance with as of April 30, 2023.
Mortgage and Loans Payable
The company also has mortgage and loans payable, with a balance owed under the mortgage agreement of $3,861 as of
April 30, 2023. The mortgage agreement includes affirmative and negative covenants and events of default. Enzo
Biochem Inc is not currently in compliance with the liquidity covenant or an unsubordinated liabilities to net
capital base leverage ratio covenant, resulting in all mortgage debt being classified as current.
Leases
Enzo Biochem Inc recognizes and discloses leases in accordance with ASC Topic 842. The company has operating leases
and finance leases, which are recognized as right-of-use assets and lease liabilities on the balance sheet.
Operating lease expenses are recognized on a straight-line basis over the lease term, while finance lease costs
include amortization of leased assets and interest on lease liabilities.
Lease Assets and Liabilities
- Lease Assets: $13,601
- – Right-of-Use Assets for Operating Leases: $13,457
- – Finance Leases: $144
- Lease Liabilities: $14,497
- – Current Operating Lease Liabilities: $3,706
- – Current Finance Leases: $57
- – Non-current Operating Lease Liabilities: $10,734
- – Non-current Other Liabilities and Finance Leases: $1,000
Accrued Liabilities
- Payroll, Benefits, and Commissions: $3,970
- Professional Fees: $1,104
- Legal: $7,154
- Other Purposes: $5,266
Controlled Equity Offering
Enzo Biochem Inc has recently entered into a Controlled Equity Offering agreement with B. Riley Securities, Inc,
allowing the company to offer and sell shares of its common stock with an aggregate offering price of up to $30
million. The company pays a commission of 3.0% of the aggregate gross proceeds received from the offering to B.
Riley Securities, Inc.
Conclusion
In conclusion, Enzo Biochem Inc has reported strong revenue growth in the nine months ended April 30, 2023,
driven by third-party payer and product revenues. The company also has a significant amount of lease assets and
liabilities, as well as mortgage and loans payable. Despite some non-compliance issues, Enzo Biochem Inc is
actively managing its financial obligations and remains optimistic about its future prospects.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!