Net losses balloon at Renalytix AI in third quarter

Renalytix AI recorded $0.6m (£0.43m) of services revenue in its third quarter, it said on Tuesday, related to work performed for Mount Sinai, and $0.1m of testing revenue.

The AIM-traded firm said the cost of revenue for the three months ended 31 March totalled $0.2m.

Its operating expenses came in at $8.1m for the period, expanding from $2.7m during the same time a year earlier.

Research and development expenses increased by $1.7m, to $3.1m for the third quarter, the board said.

“The increase in research and development was primarily due to increased headcount, consulting, and professional fees to support the ongoing development of KidneyIntelX as well as research studies focused on long-term effects of Covid-19 on kidney health,” the directors said in their statement.

General and administrative expenses increased by $4.2m to $5.5m for the three months ended 31 March.

“The increase was primarily due to increased expenses related to public listing compliance, headcount and consulting and professional fees.”

Renalytix said the net loss attributable to ordinary shareholders was $8.8m for the period, widening from the $0.7m it reported 12 months prior.

Cash, cash equivalents and short-term investments totalled $70.1m at period end, compared with $14.3m on 30 June 2020.

At 0900 BST, shares in Renalytix AI were down 4.8% at 1,071p.