G Medical Warns On Missing Q1 Sales Guidance Of $30M

G Medical Innovations Holdings Ltd GMVD said that it would not meet its forecast of $30 million in revenues in Q1 of 2022.
The company said that the previously reported purchase orders from McDade Products LLC for 6 million co-branded LiveNow COVID-19 PCR Test Collection Kits (approximately $20 million in orders) have not materialized into revenues due to a slowdown of the pandemic.
Approximately $6 million of invoices have been submitted for payment, $0.7 million has been received, and another batch of claims of approximately $1 million is to be filed for payment.
Further, the proposed budget for COVID-19 tests, which the U.S. Congress has not yet approved, creates further uncertainty about the revenue the company expected to receive and recognize from sales of such tests in its testing centers.
G Medical plans to announce the final Q1 revenue numbers as part of the release of its financial results for the first six months of 2022.
The Biden administration has announced that it expects another pandemic outbreak as early as this fall with new variants and expects about 100 million patients, which the company believes will increase the need for tests.
Price Action: GMVD shares closed 5.31% lower at $0.70 on Wednesday.