What caused ELUT's EPS decline in Q2-Q4 2024?

The decline in Elutia Inc.'s (ELUT) EPS from Q2 to Q4 2024 can be attributed to several key factors: 1. **Revenue Decline**: Elutia's net sales decreased by 1.5% year-over-year, primarily due to lower sales volumes in the Cardiovascular segment, despite growth in Device Protection and Women's Health segments. This decline in revenue contributed to the lower EPS. 2. **Cost of Goods Sold**: The cost of goods sold remained stable at $13.7 million, with a gross margin of 43.9% compared to 44.7% in 2023. Although the gross margin was slightly lower, the overall decrease in revenue had a more significant impact on the EPS. 3. **Operating Expenses**: Operating expenses increased to $46.4 million from $41.6 million, driven by higher general and administrative costs, which rose due to non-cash equity compensation grants. This increase in operating expenses contributed to the lower EPS. 4. **Litigation Costs and Loss on Revaluation of Warrant Liability**: Elutia reported a net loss from continuing operations of $54.1 million, compared to $41.2 million in the previous year, reflecting increased litigation costs and a loss on the revaluation of warrant liability. These increased costs had a direct impact on the EPS. 5. **Strategic Initiatives and Investments**: Elutia has been focusing on strategic partnerships and product growth, which has led to some positive developments, such as an 18% growth in BioEnvelope sales and a 12% increase in full-year SimpliDerm sales. However, these strategic initiatives may have required significant investments that affected short-term profitability. In summary, ELUT's EPS decline from Q2 to Q4 2024 was primarily caused by a combination of revenue decline, increased operating expenses, and higher litigation costs, despite some positive developments in strategic initiatives and product growth.