Losses widen as Renalytix achieves revenue in first quarter

Artificial intelligence (AI) diagnostics company Renalytix reported first quarter revenue of $0.5m on Tuesday, up from nil at the same time last year.

The AIM-traded firm said its cost of revenue for the three months ended 30 September was $0.2m, while operating expense expanded to $12.1m from $5.4m.

Within operating expenses, research and development expenses totalled $4m for the quarter, up from $1.7m.

“The increase in research and development expense was primarily due to professional fees as the company continued utility studies at Mount Sinai, and began utility studies at Wake Forest as well as the University of Utah,” the board said in its statement.

General and administrative expenses came in at $8.1m for the first quarter, rising from from $4.1m a year earlier.

“The increase was primarily due to an increase in compensation and related benefits, including share-based payments, due to increased headcount, as well as an increase in consulting and professional fees as the company continues to grow.”

Renalytix said its net loss attributable to ordinary shareholders came in at $10.1m for the three months ended 30 September, widening from $7.2m for the first quarter of last year.

Cash and cash equivalents totalled $54.3m at period end.

At 0949 GMT, shares in Renalytix were down 12.08% at 527.53p.