Why did OSTX miss Q3 2024 EPS forecasts so badly?

OS Therapies (OSTX) missed the Q3 2024 EPS forecasts by a wide margin, reporting an earnings per share (EPS) of -$0.26 for the quarter, according to its latest report period in 2024 Q4. This significant shortfall can be attributed to several key factors: 1. **Revenue Recognition and Grant Revenue**: A substantial portion of OSTX's revenue is derived from grant funding, which is subject to significant variability and unpredictability. For instance, in Q3 2024, the company recognized grant revenue of $1.4 million, compared to $3.1 million in the same period of the previous year. This decrease in grant revenue by approximately $1.7 million is a primary factor contributing to the negative EPS. 2. **Cost of Goods Sold (COGS) and Operating Expenses**: OSTX's COGS and operating expenses also significantly impact its net income. In Q3 2024, the company's COGS were approximately $1.2 million, with operating expenses amounting to around $2.5 million. These costs, combined with the lower revenue from grant funding, lead to a substantial operating loss, further affecting the EPS. In summary, OSTX's Q3 2024 EPS miss is primarily due to a combination of lower grant revenue and higher costs, which together result in a substantial negative earnings impact.