Q3 2022 Enzo Biochem Inc Earnings Call

June 10, 2022

Greetings and welcome to the Enzo Biochem third quarter 2022 financial results and business update at this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone.

Pat.

As a reminder, this conference is being recorded I would now like to turn the conference over to your host Chris calories lifestyle Advisors Investor Relations for Enzo Biochem. Thank you you may begin.

I'll keep that as a reminder, this conference is being recorded I would now like to turn the conference over to your host Chris calories lifestyle Advisors Investor Relations for Enzo Biochem. Thank you you may begin.

Thank you Melissa and good morning, everyone. Joining us today from the company argument Hamid or Fannie and Chief Executive Officer, and David Bench, Chief Financial Officer.

Thank you Melissa and good morning, everyone. Joining us today from the company argument I need our Forte, and Chief Executive Officer, and David Bench, Chief Financial Officer.

<unk> issued a press release detailing our financial results for the third quarter of this fiscal year. This morning and is now available on the investor.

<unk> of the Enzo website before we begin I would like to read the company's safe Harbor statement, except for historical information. The matters discussed in this news release may be considered forward looking statements within the meaning of section 27.

<unk> issued a press release detailing our financial results for the third quarter of this fiscal year. This morning and is now available on the investor.

Of the Securities Act of 1933 as amended and section 21 E of the Securities Exchange Act of 1934 as amended such statements include declarations regarding the intent belief or current expectations of the company and its management, including those related to cash flow gross margins revenues and.

Change Act of 1934 as amended such statements include declarations regarding the intent belief or current expectations of the company and its management, including those related to cash flow gross margins revenues and expenses, which are dependent on a number of factors outside of the control of the company, including the markets for the <unk>.

<unk>, which are dependent on a number of factors outside of the control of the company, including the markets for the company's products and services cost of goods and services. Other expenses government regulations litigation and general business conditions. Please see risks risk factors in the company's Form 10-K for the fiscal year ended.

Company's products and services cost of goods and services other expenses government regulation litigation and general business conditions. Please see risk by risk factors in the company's Form 10-K for the fiscal year ended July 31, 2021 investors are cautioned that any such forward looking statements are not guarantees.

July 31, 2021 investors are cautioned that any such forward looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect.

Actual results the company disclaims any obligations to update any forward looking statements as a result of developments occurring after the date of this conference call. During this conference call. The company may refer to EBITDA, a non-GAAP measure EBITDA is not and should not be considered an alternative to net income loss income loss from.

<unk> future performance and involve a number of risks and uncertainties that could materially affect.

Operations or any other measure for determining operating performance. The company has provided a reconciliation of the difference to GAAP on its website www dot Enzo dot com and in its press release issued this morning, I would like now to turn the call over to our need for funding and Chief Executive Officer.

non-GAAP measure EBITDA is not and should not be considered an alternative to net income loss income loss from operations or any other measure for determining operating performance.

He has provided a reconciliation of the difference to GAAP on its website www dot Enzo dot com and in its press release issued this morning, I would like now to turn the call over to Hamid or funny, and Chief Executive Officer of Enzo Biochem Hamid. Please go ahead.

Enzo Biochem for me. Please go ahead.

Yes.

Thank you Chris Good morning, and thank you for joining us on our third quarter business and financial update call today.

Okay.

Yesterday, we issued our third quarter 2022 financial and operating results and we hope you have had some time to review.

Thank you Chris Good morning, and thank you for joining us on our third quarter business and financial update call today.

Yesterday, we issued our third quarter 2022 financial and operating results and we hope you have had some time to review.

We will begin the call discussing our corporate strategy.

Operational focus.

While summarizing some key achievements of this quarter.

We will begin the call discussing our corporate strategy.

We will also provide perspectives on the current laboratory testing landscape.

Operational focus.

As in.

While summarizing some key achievements this quarter.

And life Sciences market.

I will then pass the call over domestic David bench, our CFO . After my opening remarks to review the financials in greater detail.

We will also provide perspectives on the current laboratory testing landscape.

And life Sciences market.

I will then pass the call over domestic David bench, our CFO after my opening remarks.

And then we will open the call for a question and answer session, but first let me quickly run through some topline financials.

To review the financials in greater detail.

And then we will open the call for a question and answer session, but first let me quickly run through some top line financial.

Total revenue for the third quarter, ending April 3rd yet was $26 2 million lower sequentially.

And year over year due to anticipated waning of COVID-19 testing volumes.

Total revenue for the third quarter, ending April 3rd yet was $26 2 million lower sequentially.

And the economic shutdowns in Asia.

Year over year due to anticipated waning of COVID-19 testing volumes and.

Cancel Enzo life Sciences revenue was $7.6 million in Q3, consistent year over year, and an increase of 9% on a year to date basis, demonstrating stability in the E. L F customer base.

And the economic shutdowns in Asia.

And so Enzo life Sciences revenue was seven 6 million in Q3, consistent year over year, and an increase of 9% on a year to date basis, demonstrating stability in the customer base.

Despite shortfalls in Covid revenue.

Enzo clinical labs routine revenue increased 10%.

And overall non COVID-19 revenue increased 3% on year over year basis.

Despite shortfalls in Covid revenue Enzo clinical labs routine revenue increased 10%.

We have made great progress with regard to operations strategy and positioning of Enzo.

And overall non Covid revenue increased 3% on a year over year basis.

I want to highlight a few important recent milestones as he built a future Enzo.

We have made great progress with regard to operations strategy and positioning of Enzo.

Number one and <unk> corporate structure and our focused return number to building the future management team number three our corporate governance.

I want to highlight a few important recent milestones as he built a future Enzo.

Number one <unk> corporate structure and our focused return number two building that future management team number three our corporate governance.

And before.

Adding strategic partnerships.

And gross revenue initiatives.

Okay.

Before.

As for number one Enzo structure and focus through time, we mentioned on the past earnings calls.

Adding strategic partnerships.

And gross revenue initiatives.

We are taking a renewed focused approach to enzo its portfolio of assets.

Yeah.

As for number one and the structure and focus through time, we mentioned on the past earnings calls.

The maturation of our corporate structure is important to support this approach.

We are taking a renewed focused approach to enzo its portfolio of assets.

And as those corporate structure is supported by three separate businesses that make the entire organization stronger.

The maturation of our corporate structure is important to support this approach.

Work independently, but also leverage one another.

Enzo is corporate structure is supported by three separate businesses that make the entire organization stronger.

We often use the analogy of a string of rope when we discuss.

Working independently, but also leverage one another.

It internally to help visualize the three aspects of the business.

We often use the analogy of a string of rope when we discussed it.

Enzo Life Sciences, our global product Division, Enzo clinical labs, our services Division and Enzo diagnostics are emerging diagnostic platforms for clinical labs and point of care settings.

It internally to help visualize the three aspects of the business.

Enzo Life Sciences, our global product Division.

Zelle clinical labs, our services Division and Enzo diagnostics are emerging diagnostic platforms for clinical labs and point of care settings.

This structure allows enzo to generate synergies across a multitude of assets and resources.

As we implement our integrated end to end solutions.

This structure allows enzo to generate synergies across a multitude of assets and resources.

Able to pass on significant cost savings to our clients and inherently understand their pain points and provide tailored solutions.

As we implement our integrated end to end solutions.

Able to pass on significant cost savings to our clients and inherently understand their pain points and provide tailored solutions.

After all we're eating our own home cooking, whereas others in our industry are simply selling to others.

Successfully compete by offering our products and services to a range of end user segments from academic institutions and industrial clients to clinical laboratories, and urgent care facilities, all supported by a deep portfolio of IP and assets.

After all we are eating our own home cooking, whereas others in our industry are simply selling to others.

Yeah.

While revenue declined this quarter largely due to COVID-19 testing volume.

We remain on plan for both.

While revenue declined this quarter largely due to COVID-19 testing volume.

Operational and revenue budget perspective.

Our team remained proactive in positioning the company around core competencies to generate recurring revenue opportunities that are profitable and invest in growth segments, where there are higher returns on investment.

We remain on plan for both.

Operational and revenue budget perspective.

Now turning to point number two building the future management team.

As promised in previous quarters, Enzo has focused considerable time and resources during the last quarter to bring together and executive team to lead our global work for force poised for success.

Yeah.

Now turning to point number two building that future management team.

As promised in previous quarters, Enzo has focused considerable time and resources during the last quarter to bring together and executive team to lead our global workforce for us poised for success.

With the ability to drive our initiatives are focused return.

Be it rounding off the management team by adding commercial leaders to our team.

With the ability to drive our initiatives are focused return.

Okay.

In March we announced the appointment of David bench, and Cara can earn two new expanded executive management positions.

We are rounding off the management team by adding commercial leaders to our team.

Okay.

In March we announced the appointment of David bench, and Cara can earn two new expanded executive management positions.

<unk> was named Chief operating officer from her previous role as Chief Commercial Officer.

David bench, our current Chief Financial Officer was named to additional Rolls up senior Vice President Treasurer and corporate Secretary.

<unk> was named Chief operating officer from her previous role as Chief Commercial Officer.

David bench, our current Chief Financial Officer was named to additional role of senior Vice President Treasurer and corporate Secretary.

These two executives are instrumental in leading Enzo along with me into the future.

In Yesterdays earnings release, we announced the addition of several new key employees, including our head of clinical laboratory cell.

These two executives are instrumental in leading Enzo along with me into the future.

In Yesterdays earnings release, we announced the addition of several new key employees, including ahead of clinical laboratory cell.

Regional sales leader for Enzo Life Sciences Division and ahead of quality assurance and regulatory affairs.

Our new head of laboratory sells brings two decades of experience in the clinical laboratory market that will be extremely valuable as the lab expand its operations.

Regional sales leader for our Enzo Life Sciences Division and ahead of quality assurance and regulatory affairs.

Our new head of laboratory sales brings two decades of experience in the clinical laboratory market.

The senior regional sales leader brings over 25 years of experience in our life Sciences business development and strategic partnerships.

Be extremely valuable as the lab expand its operations.

The senior regional sales leader brings over 25 years of experience in our life Sciences business development and strategic partnerships.

Our lead efforts in our geographical expansion and market penetration.

Our new head of quality assurance and regulatory affairs comes to Enzo with 25, plus years of regulatory expertise product development and commercialization and compliance experience that will be instrumental towards FDA.

Our lead efforts in our geographical expansion.

And market penetration.

Missions of our proprietary <unk> molecular platform.

As well as our path forward.

In completion of ISO 9000 certification of our manufacturing facilities.

Missions of our proprietary <unk> molecular platform as well as our path forward in.

We continue to deliver on our commitment to strengthen the leadership team.

In completion of ISO 9000 certification of our manufacturing facilities.

And expect more announcements in regard in that regard in Q4 2022.

We continue to deliver on our commitment to strengthen the leadership team.

Okay.

And expect more announcements in regard in that regard in Q4 2022.

Regarding point number three corporate governance.

<unk> made significant progress in this quarter.

We recently came to terms with our one.

Okay.

Regarding point number three corporate governance.

One of <unk> largest shareholder Harbor Discovery fund, which enables the board and management to focus on operational issues.

We have made significant progress in this quarter.

We recently came to terms with our <unk>.

One of <unk> largest shareholder Harbor discovery fund.

As we prioritize transparency it is important to highlight Enzo management team has been refreshed and for our five current Enzo Board members have been appointed in the past 24 months.

Which enables the board and management to focus on operational issues.

As we prioritize transparency it is important to highlight Enzo management team has been refreshed and for our five current Enzo Board members have been appointed in the past 24 months.

Each of them brings a wealth of experience to the company to guide it in this critical time of growth.

More notably in April 2022.

Each of them brings a wealth of experience to the company guided in this critical time of growth.

The company announced the approval of all four proposals presented at the 2022.

More notably in April 2022.

Annual meeting of shareholders. These modifications improved our company's corporate governance and allowed the newly formed leadership team to further prioritize shareholder friendly initiatives.

The company announced the approval of all four proposals presented at the 2022.

Annual meeting of shareholders. These modifications improved our company's corporate governance.

It is important to note that this approval required the boat up 80% of the outstanding shares of Enzo Biochem, certainly not an easy feat to achieve but together.

<unk> allowed the newly formed leadership team to further prioritize shareholder friendly initiatives.

It is important to note that this approval required to vote up 80% of the outstanding shares of Enzo Biochem.

We're able to accomplish that goal.

Regarding point number four strategic partnerships and growth initiatives, we continue to make careful investments.

Certainly not an easy feat to achieve but together.

We were able to accomplish that goal.

Okay.

Intended to further accelerate growth of our core life Sciences, and clinical lab business.

Regarding point number four strategic partnerships and growth initiatives, we continue to make careful investments.

As well as invest in our third pillar diagnostic platforms.

Intended to further accelerate growth of our core life Sciences, and clinical lab business.

We remain committed to investing in technology that enables our business, including launching a refreshed quality management system rolling out multi factor authentication and investing in our global website, which will be completed in early <unk>.

As well as invest in our third pillar diagnostic platforms.

Calendar year 2023.

This new web site is specifically designed to optimize our transactional capabilities and rival other E Commerce site.

Calendar year 2023.

This new website.

In life Sciences area.

Typically designed to optimize our transactional capabilities.

While strengthening <unk> brand awareness, facilitating customer integration and an easy to use portal to review product details and providing GAAP friction less reordering.

And rival other E Commerce site.

In life Sciences area.

While strengthening <unk> brand awareness, facilitating customer integration and an easy to use portal to review product details and providing GAAP friction less reordering.

Platform, we will continue to invest in technology initiatives.

Where there is ability to save costs enhance our products and service our accelerate revenues.

Platform, we will continue to invest in technology initiative.

Where there is.

The ability to save costs enhance our products and service our accelerate revenues.

And so life Sciences achieved growth in the United States, Despite channel issues in Europe , and economic shutdowns in various segments of Asia.

Okay.

And so life Sciences achieved growth in the United States, Despite channel issues in Europe , and economic shutdowns in various segments of Asia.

We added two new distributors in Asia, a target area that we believe is poised for growth.

Additionally, our GMP facilities and Farmingdale enables the company to continue to expand from basic research to more industrial clients in fact, our average.

We added two new distributors in Asia, a target area that we believe is poised for growth.

Additionally, our GMP facilities and Farmingdale enables the company to continue to expand from basic research to more industrial clients in fact, our average.

Our average product order remained above $1000 per order for seventh straight quarter, despite not having any bulk orders in this quarter.

Ordered our average product order remained above $1000 per order for seven straight quarter, despite not having any bulk orders in this quarter.

Our enhanced product offering.

Expanded personnel refresh sales and the upcoming website launch will most certainly contribute to our growth in E. L. S Division in the very near term.

Our enhanced product offering expanded.

Expanded personnel refresh sale and the upcoming website launch will most certainly contribute to our growth in LLS division in the very near term.

We had a productive quarter in our clinical laboratory.

Which we believe.

We will provide us with significant momentum as we move into the fourth fiscal quarter of 2022.

We had a productive quarter in our clinical laboratory.

Which we believe will.

And prepare for fiscal year 2023.

We will provide us with significant momentum as we move into the fourth fiscal quarter of 2022.

We delivered on our commitment to expand our product menu, adding over 43 net new tests in the quarter and 90.

And prepare for fiscal year 2023.

We delivered on our commitment to expand our product menu, adding over 43 net new tests in.

Two net new tests on a year to year to date basis.

This growth in high margin markets will drive greater revenue per test.

In the quarter and 90.

Two net new tests on a year to year to date basis.

In both the near term.

Near and future term and over the long term.

This growth in high margin markets will drive greater revenue per test.

We are also targeting new customer groups, adding new patient service centers and using our COVID-19 success as a model for higher margin testing.

In both the near term.

Nir and future term and over the long term.

We are also targeting new customer groups, adding new patient service centers and using our COVID-19 success as a model for higher margin testing.

Enzo diagnostics platforms, including our molecular platforms and point of care initiatives are positioned for success.

At the beginning of pandemic Enzo pivoted.

Enzo diagnostics platforms, including our molecular platforms and point of care initiatives are positioned for success.

Jen Flex molecular platform, which was being developed for women's health to process COVID-19 test samples.

At the beginning of pandemic Enzo pivoted Gen.

The success of processing over 1 million COVID-19 tests on the platform and meeting the FDA stringent policy standards.

<unk> flex molecular platform, which was being developed for women's health to process COVID-19 test samples.

The success of processing over 1 million COVID-19 tests on the platform and meeting the FDA stringent policy standards.

Has led management to revert back to developing other molecular tests on the platform. We are leveraging our higher margin testing model demonstrated during COVID-19 to other market segments, such as the women's health sexually transmitted.

Has led management to revert back to developing other molecular tests on the platform, we're leveraging our higher margin testing model demonstrated during COVID-19 to other market segments, such as the women's health.

He says and other molecular testing needs.

Based on the applications and versatility updates Gen flex platform.

Actually transmitted diseases and other molecular testing needs.

As you May recall in January we received New York State approval for the use.

Based on the application and versatility update Gen flex platform.

Enzo is chlamydia gonorrhea Entre kimonos test on Gen flex.

As you May recall in January we received New York State approval for the use.

Building out our portfolio of laboratory developed tests using to Gentilesse platform.

Enzo is chlamydia gonorrhea and check pneumonia test on Gen <unk>.

Furthermore, we are extremely excited to report this quarter at Enzo received.

Building out our portfolio of laboratory developed tests using the <unk> platform.

Another New York State Department of Health approval for its HPV molecular diagnostics test on the Gen Flex flat farm, we received approval for these PCR best based test.

Furthermore, we are extremely excited to report this quarter at Enzo received.

Another New York State Department of Health approval for its HPV molecular diagnostics test on the Gen. Flex platform. We've received approval for these PCR best based test.

That are designed to detect 14 high risk HPV variance.

HPV testing as part of Enzo is focus on women's health sexually transmitted infections and oncology and Leverages its long history in HPV detection.

That are designed to detect 14 high risk HPV variant.

HPV testing as part of Enzo is focused on women's health sexually transmitted infection and oncology and Leverages its long history in HPV detection.

Enzo is on pace to have the entire menu of tests submitted to New York State approval this fiscal year and begin submissions.

To the FDA for five 10-K approval in 2023.

Continuing on the diagnostic platform Si we.

The FDA for 500 10-K approval in 2023.

We are preparing the launch.

Of an in situ hybridization.

Continuing on the diagnostic platform Si we.

Loop RNA probes.

In the late summer, which will give us access to $15 million gene expression and spatial biology market.

We are preparing the launch.

And in situ.

Hybridization.

Loop RNA probes.

In the late summer, which will give us access to 15 million gene expression and spatial biology market.

<unk> RNA.

Ish probes.

Uniquely combine the precision of targeted sequence specific RNA probes.

<unk> RNA.

With the superior sensitivity of Enzo is patent that loop RNA technology.

Ish probes.

Uniquely combine the precision of targeted sequence specific RNA probes.

And Pip you RNA ish probes enables scientists.

With the superior sensitivity of Enzo is patent that loop RNA technology.

To visualize the expression and specially spatially localized nuclear asset targets in tissue and cells.

And Pip you RNA ish probes enables scientists.

To visualize the expression and specially spatially localized nuclear asset targets in tissue and cells.

While preserving the methodology morphology of the sample.

The novel Technology of Amp, GPU RNA ish probes.

While preserving that methodology morphology of the sample.

Be Great addition to Enzo life Sciences drug development, and discovery and Enzo clinical and.

The novel Technology of <unk> RNA ish probes.

And atomic pathology portfolios.

Be Great addition to Enzo life Sciences drug development, and discovery and Enzo clinical and.

We believe this product will leverage <unk> core competency and be able to further lift our life Sciences division growth in fiscal year 2023.

And atomic pathology portfolios.

We believe this product will leverage <unk> core competency and be able to further lift our life Sciences division growth in fiscal year 2023.

We continue to achieve milestones with regards to development of a CLIA waived point of care device for clinical testing.

We continue to achieve milestones with regards to development of a clear wave point of care device for clinical testing.

I will provide additional details on this platform on future calls.

Last but not least as you may have read in our press release, we have engaged an investment banking firm to explore strategic alternatives.

I will provide additional details on this platform on future calls.

Last but not least as you may have read in our press release, we have engaged an investment banking firm to explore strategic alternatives.

David will further elaborate to that end.

We are very excited for the opportunities that lie ahead.

Finishing 2022 strong and prepare for a year of revenue growth in fiscal year 2023.

David.

Further elaborate to that end.

We are very excited for the opportunities that lie ahead.

Finishing 2022 strong and prepare for a year of revenue growth in fiscal year 2023.

Particularly regarding life sciences and diagnostic platforms.

During the next few quarters I expect to provide our investors with updates regarding our progress towards delivery of our initiatives during our quarterly calls as well as providing more information about our strategy and opportunities on a go forward basis.

Particularly regarding life sciences and diagnostic platforms.

With these insights I would like to turn the call over to our CFO , Mr. David bench for a detailed review.

Our third quarter financials, Dave.

With these insights I would like to turn the call over to our CFO , Mr. David bench for a detailed review of our third quarter financials.

David.

Thanks, Amit.

I'll now provide a review of the financials for the fiscal third quarter ending April 32022.

David.

Total revenue reached $26 2 million for the third quarter, a decrease of 20% from $32 8 million in the third quarter last year the decline on a sequential as well as year over year basis was due to the previously anticipated waning of COVID-19 volumes on the lab side and.

Thanks, Amit.

I'll now provide a review of the financials for the fiscal third quarter ending April 32022.

Total revenue reached $26 2 million for the third quarter, a decrease of 20% from $32 8 million in the third quarter last year.

The economic shutdowns in Asia on the product side.

The decline on a sequential as well as year over year basis was due to the previously anticipated waning of COVID-19 volumes on the lab side and the economic shutdowns in Asia on the product side.

On a divisional basis, Enzo clinical lab service revenue for the third quarter was $18 6 million a decrease of 26% from $25 million in the third quarter of fiscal year 2021.

Divisional basis, Enzo clinical lab service revenue for the third quarter was $18 6 million.

This decline was driven by service accession counts declining into the spring season, while the decline in COVID-19 revenue was certainly a factor our routine testing revenue increased 10% and our overall non COVID-19 revenue increased 3% on a year over year basis there.

A decrease of 26% from $25 million in the third quarter of fiscal year 2021.

Goodbye demonstrating core testing recovery.

Enzo added 43, new tests in the third quarter, reaching a total of 126, new turf added year to date on a gross basis, we are targeting specialty testing and have hired a sales leader that focus on catering to these specialists.

Thereby demonstrating core testing recovery.

Enzo added 43, new tests in the third quarter, reaching a total of 126, new turf added year to date on a gross basis.

Enzo life Sciences side of the business revenue for the third quarter was $7 6 million.

We are targeting specialty testing and have hired a sales leader that focus on catering to these specialists.

A slight decrease year over year and revenue increased 9% a year to date basis, demonstrating stability and the <unk> customer base the economic shutdown in Asia affected sales after the supply chain issues in Europe .

Enzo life Sciences side of the business revenue for the third quarter was $7 6 million a.

A slight increase year over year and revenue increased 9% year to date basis, demonstrating stability in the Eos customer base, the economic shutdown in Asia affected sales as to the supply chain issues in Europe .

Thus, assuming a return to a normal market environment, we remain confident that overall annual growth should reach 10% for the year ending fiscal year 'twenty 'twenty. Two we have added new talent that comes with preexisting relationships and connections globally.

The blended gross margin for the quarter declined to 39% from the year ago period gross margin of 49% on a consolidated basis. This was negatively negatively impacted by both Enzo clinical labs as well as into life science in the quarter and the clinical lab margin decreased from 49% to 40 <unk>.

On a year over year basis due to the reduction of higher margin Covid test.

Enzo maintains clinical services margin of at least 40%, which is considered healthy for a laboratory and demonstrates the initial success of our cost savings initiatives.

On a year over year basis, due to the reduction of higher margin <unk>.

Enzo maintains clinical services gross margin of at least 40%, which is considered healthy for a laboratory and demonstrates the initial success of our cost savings initiatives.

And so life science gross margin declined to 36% when compared to the year ago period.

While there were several factors, including increased manufacturing head count and higher cost of materials, we expect margins to return to historical levels in the coming quarters.

<unk> life science gross margin declined to 36% when compared to the year ago period.

While there were several factors, including increased manufacturing head count and higher cost of materials, we expect margins to return to historical levels in the coming quarters.

Research and development expenses increased modestly to $1 1 million or 4% of total revenue consistent with the year ago period.

Selling general and administrative expenses decreased to $11 4 million from $12 $1 million in the year ago period.

Research and development expenses increased modestly to $1 1 million or 4% of total revenue consistent with the year ago period.

The lower SG&A expense was primarily due to lower commission compensation earned on services revenue legal and other expenses decreased as well primarily due to <unk>.

Selling general and administrative expenses decreased to $11 4 million.

From $12 1 million in the year ago period.

The lower SG&A expense was primarily due to lower commission compensation earned on services revenue legal and other expenses decreased as well primarily due to <unk>.

Litigation and other legal matters.

Our GAAP net loss totaled $4 9 million or negative <unk> 10 per share compared with net income of 2.0, a million dollars or four cents per share in the year ago quarter.

Litigation and other legal matters.

Our GAAP net loss totaled $4 9 million or negative <unk> 10 per share compared with net income of 2.0 or $1 million or <unk> <unk> per share in the year ago quarter.

Adjusted EBITDA loss in the quarter totaled $1 $8 million versus adjusted EBITDA of $2 $7 million in the third quarter of 2021.

Adjusted EBITDA loss in the quarter totaled $1 8 million.

Cash and cash equivalents restricted cash and marketable securities totaled $32 $1 million as of April 32022, compared to $44 $3 million at the end of fiscal year 2021, due to strategic initiatives Borden corporate matters investments in inventory higher a R.

Versus adjusted EBITDA of $2 7 million in the third quarter of 2021.

Cash and cash equivalents restricted cash and marketable securities totaled $32 1 million as of April 32022, compared to $44 3 million at the end of fiscal year 2021, due to strategic initiatives Borden corporate matters investments in inventory higher or lower.

Lower accounts payable and greater investments in capital assets.

We expect corporate expenses to decline due to reduced legal expenses and the restructuring of the corporate management team.

Your accounts payable and greater investments in capital assets.

Days sales outstanding and Enzo clinical labs continued to trend at approximately 30 days.

We expect corporate expenses to decline due to reduced legal expenses and the restructuring of the corporate management team.

Life Sciences days sales outstanding increased by seven days over the past year due to larger order sizes and lager.

Days sales outstanding and Enzo clinical labs continue to trend at approximately 30 days Lifesciences days sales outstanding increased by seven days over the past year due to larger order sizes and lager were required lead times.

<unk> lead times.

As of April 32022, the company had $48 7 million shares outstanding.

The company continues to explore cost savings opportunities and we have maintained our previously announced goal of an additional $10 million of savings with $5 million of which targeted for calendar year 2022.

As of April 32022, the company had $48 7 million shares outstanding.

The company continues to explore cost savings opportunities. We have maintained our previously announced goal of an additional $10 million of savings with $5 million of which targeted for calendar year 2022.

As you May have noted in the press release, we are pleased to engage with one of the Premier health care banking firms to assist with strategic initiatives.

As you May have noted in the press release, we are pleased to engage with one of the premier healthcare banking firms to assist with strategic initiatives.

To this end, we recently engaged Jefferies LLC to provide advisory services, including the evaluation of strategic alternatives for the company, It's Enzo clinical labs, and Enzo Life Sciences Division as well as its various assets.

Jeffrey is an American multinational independent investment Bank and financial services company that is headquartered in New York City.

I'll now turn the call back over to Amit for closing remarks.

Jefferies as an American multinational independent investment Bank and financial services company headquartered in New York City.

Thank you David.

Over the past months.

We took key steps designed to increase our efficiency in large revenue base and position ourselves for new levels of growth there.

I'll now turn the call back over to Amit for closing remarks.

Thank you David.

Over the past months.

We took key steps designed to increase our efficiency in large our revenue base and position ourselves for new levels of growth.

We are well positioned as we work to execute on key elements of our focused return strategy.

We remain confident.

Well positioned as we work to execute on key elements of our focused return strategy.

In our strategic vision, and our ability to execute on it.

In the year ahead to a growing and well positioned company.

We remain confident.

In our strategic vision, and our ability to execute on it in the year ahead to a growing and well positioned company there.

Thereby building, both short term and long term shareholder value.

Through our focused return approach.

Thereby building, both short term and long term shareholder value.

On behalf of the management team I would like to take a moment to thank the entire Enzo team for their dedication and determination as we move into a new era at Enzo Biochem.

Through our focused return approach.

On behalf of the management team I would like to take a moment to thank the entire Enzo team for their dedication and determination.

At this time.

Operator.

Please open the floor for questions.

As we move into a new era at Enzo Biochem.

Thank you at this time well be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question. Kim You May press star two if you'd like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up their hands.

At this time.

Operator.

Please open the floor for questions.

Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question. Kim You May press star two if you'd like to remove your question from the queue for participants using speaker equipment, it may be necessary to pick up their hands.

Before pressing the star keys in the interest of time, we ask that you each keep to one question and one follow up thank you.

Before pressing the star keys, and the interest of time, we ask that you each keep to one question and one follow up thank you.

Our first question comes from the line of P. J saw it with Potomac capital. Please proceed with your question.

Hi, Good morning could you just clarify regarding the Jefferies process, what the differences versus the prior process and I guess related to that since you aren't starting from scratch on this process is it too optimistic to think that this can be a faster process than if you were starting from day one.

Our first question comes from the line of P. J <unk> with Potomac Capital. Please proceed with your question.

Hi, Good morning could you just clarify regarding the Jefferies process, what the differences versus the prior process and I guess related to that since you launched starting from scratch on this process is it too optimistic to think that this can be a faster process than if you were starting from day one.

So at this stage, we're not going to make any public comments in regards to that but we are picking up where we left off let's just leave it at that.

So at this stage, we are not going to make any public comments in regards to that but we are picking up where we left off let's just leave it at that.

Thank you for the question.

Thank you, ladies and gentlemen, once again it is star one to ask a question at this time, well pause a moment to allow for any other questions.

Thank you for the question.

Thank you, ladies and gentlemen, once again it is star one to ask a question at this time, but pause a moment to allow for any other questions.

Yeah.

Okay.

Yeah.

Okay.

Thank you ladies and gentlemen, this concludes our question and answer session I'll turn the floor back to Mr. Fannie and for any final comments.

Okay.

Thank you very much for joining us today, we are extremely proud of the team's achievements and growth. This last quarter, we remain committed to generating value for our shareholder and look forward to discussing further progress with you on our fiscal fourth quarter earnings call.

Thank you ladies and gentlemen, this concludes our question and answer session I'll turn the floor back to Mr. Fannon for any final comments.

This fall.

Okay.

Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.

This fall.

Thank you. This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation.

Q3 2022 Enzo Biochem Inc Earnings Call

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