Artificial intelligence (AI) diagnostics company Renalytix AI recorded $0.4m (£0.29m) of pharmaceutical services revenue in its first half, it announced on Tuesday.
The AIM-traded firm said the cost of revenue for the six months ended 31 December was $0.2m.
Its operating expenses totalled $14m, up from $5m year-on-year, while general and administrative expenses increased due to a $2.8m rise in compensation and related benefits due to increased headcount, a $2.2m increase in insurance costs, a $1.6m increase in legal and accounting fees due to Securities and Exchange Commission filings and U.S. public listing compliance, a $0.4m increase in consulting and professional fees, a $0.3m rise in recruiting expenses, and an increase of $0.2m in marketing, facility and other operating expenses.
Research and development-related expenses were $1.5m higher, the firm said, due to increased headcount and the associated compensation and related benefits, including share-based payments.
Those increases came as the company continued to develop its core technology and prepared for expanded clinical operations with Mount Sinai and additional health care system partnership programmes, and two development studies focused on the long-term effects of Covid-19 on kidney health, the board explained.
Its net loss before tax was $16.2m for the six months ended 31 December, including one-time charges and extraordinary expenses, widening from $6.3m for the first half of the 2020 financial year.
Cash, cash equivalents and short-term investments totalled $74.5m at period end.
“Our path to establishing advanced precision prognostics to guide and inform population-wide kidney health continues to become clearer,” said chief executive officer James McCullough.
“The January finalisation of the Medicare Coverage of Innovative Technology rule provides the foundation to achieve broad insurance coverage for ‘KidneyIntelX’.”
McCullough said that, with the firm’s newly-announced partnerships with University of Utah and DaVita, it was “on track” to exceed its goal of implementing KidneyIntelX across at least three major healthcare networks before its fiscal year ends in June.
“We expect to announce additional partnerships in 2021 that will further set the foundation for direct access to KidneyIntelX in advance of Medicare coverage by large groups of primary care and specialist clinicians treating early stage diabetic kidney disease patients.”
At 1111 GMT, shares in Renalytix AI were up 3.51% at 885p.