23andMe announces continued concerns regarding liquidity

23andMe (ME) ended December 31, 2024 with cash and cash equivalents of $79.4M, compared to $126.6M as of September 30, 2024 and $216.5M as of March 31, 2024. 23andMe has no debt on its balance sheet. The company stated, “We will need additional liquidity to fund our operations and financial commitments for the 12 months after the issuance date of the unaudited interim condensed consolidated financial statements included in the Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2024 to be filed with the Securities and Exchange Commission. Accordingly, management has determined that there is substantial doubt about the company’s ability to continue as a going concern. To improve our financial condition and liquidity position, we are attempting to raise additional capital. In addition, we are working to implement cost-cutting measures, including additional reductions in operating expenses, negotiating terminations of our long-term real estate leases, and attempting to reach a settlement covering all U.S. customers affected by the cyber incident as well as to resolve non-U.S. litigation and ongoing investigations from various governmental agencies arising from the cyber incident. Our ability to continue as a going concern will be contingent upon our ability to successfully implement steps such as those referenced above. If we fail to do so and are unable to raise sufficient capital or enter into a strategic transaction, we would be forced to modify or cease operations, or take other actions.”