Acutus Medical Reports Second Quarter and Year-To-Date 2024 Financial Results
08 August 2024 - 10:56PM
Acutus Medical, Inc. (“Acutus” or the “Company”) (OTC: AFIB) today
reported results for the second quarter and year-to-date of 2024.
Recent Highlights:
- Second quarter revenue from Continuing Operations of $4.1
million grew 172% year-over-year, from $1.5 million in the same
quarter last year.
- Operating expenses for continuing operations were $2.2 million,
a reduction of 47% compared to the same period last year.
- Recorded $2.9 million in gain on sale of business, an increase
of 38% compared to the same period last year.
- Cash, cash equivalents, marketable securities and restricted
cash were $13.3 million as of June 30, 2024.
Second Quarter 2024 Financial ResultsRevenue
from Continuing Operations was $4.1 million for the second quarter
of 2024, an increase of 172% compared to $1.5 million for the
second quarter of 2023.
Gross margin on a GAAP basis for continuing operations was
negative 8% for the second quarter of 2024 compared to negative 67%
for the same quarter last year. The improvement was driven by
higher production volumes related to left-heart access
manufacturing and reduced manufacturing overhead expenses.
Operating expenses for continuing operations on a GAAP basis
were $2.2 million for the second quarter of 2024 compared to $4.2
million for the same period last year. The decrease in operating
expenses from reduced discretionary spend under this new business
model.
Net loss on continuing operations on a GAAP basis was $0.4
million for the second quarter of 2024 and net loss per share was
$0.01 on a weighted average basic and diluted outstanding share
count of 29.7 million, compared to a net loss of $4.2 million and a
net loss per share of $0.15 on a weighted average basic and diluted
outstanding share count of 29.0 million for the same period last
year.
Cash, cash equivalents, marketable securities and restricted
cash were $13.3 million as of June 30, 2024.
Loss on Discontinued OperationsLoss on
discontinued operations was $0.6 million for second quarter of
2024, compared to $26.1 million for the same period last year.
Outlook Due to the announced plan to realign
resources to support the left-heart access distribution business
and exit from the electrophysiology mapping and ablation
businesses, the Company will no longer provide financial
guidance.
About AcutusAcutus is focused on the production
of left-heart access products under its distribution agreement with
Medtronic, Inc. Founded in 2011, Acutus is based in Carlsbad,
California.
Caution Regarding Forward-Looking
StatementsThis press release includes statements that may
constitute “forward-looking” statements, usually containing the
words 'believe", "estimate", "project", "expect" or similar
expressions. Forward looking statements inherently involve risks
and uncertainties that could cause actual results to differ
materially from forward-looking statements. Factors that would
cause or contribute to such differences include, but are not
limited to, the Company’s ability to continue to manage expenses
and cash burn rate at sustainable levels, successful completion of
the Company’s restructuring plan, continued acceptance of the
Company’s left-heart access products in the marketplace, the effect
of global economic conditions on the ability and willingness of
Medtronic to purchase the Company’s left-heart access products and
the timing of such purchases, competitive factors, changes
resulting from healthcare policy in the United States and globally
including changes in government reimbursement of procedures,
dependence upon third-party vendors and distributors, timing of
regulatory approvals, the Company’s ability to maintain its listing
on Nasdaq, and other risks discussed in the Company’s periodic and
other filings with the Securities and Exchange Commission. By
making these forward-looking statements, Acutus undertakes no
obligation to update these statements for revisions or changes
after the date of this release, except as required by law.
Investor Contact:Chad HollisterAcutus Medical,
Inc.investors@acutus.com
|
Acutus Medical, Inc. |
|
Consolidated Balance Sheets |
| |
| |
June 30, 2024 |
|
December 31, 2023 |
| (in thousands, except share
and per share amounts) |
(unaudited) |
|
|
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
13,327 |
|
|
$ |
19,170 |
|
|
Marketable securities, short-term |
|
— |
|
|
|
3,233 |
|
|
Restricted cash, short-term |
|
— |
|
|
|
7,030 |
|
|
Accounts receivable |
|
9,235 |
|
|
|
11,353 |
|
|
Inventory |
|
5,213 |
|
|
|
4,278 |
|
|
Prepaid expenses and other current assets |
|
507 |
|
|
|
678 |
|
|
Current assets of discontinued operations (Note 3) |
|
175 |
|
|
|
510 |
|
| Total current assets |
|
28,457 |
|
|
|
46,252 |
|
| |
|
|
|
| Property and equipment, net |
|
808 |
|
|
|
825 |
|
| Right-of-use assets, net |
|
2,831 |
|
|
|
3,189 |
|
| Other assets |
|
94 |
|
|
|
94 |
|
| Non-current assets of
discontinued operations (Note 3) |
|
3,284 |
|
|
|
3,600 |
|
| Total
assets |
$ |
35,474 |
|
|
$ |
53,960 |
|
| |
|
|
|
| LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable |
|
1,683 |
|
|
|
2,761 |
|
|
Accrued liabilities |
|
1,609 |
|
|
|
2,887 |
|
|
Operating lease liabilities, short-term |
|
886 |
|
|
|
718 |
|
|
Long-term debt, current portion |
|
7,055 |
|
|
|
1,864 |
|
|
Warrant liability |
|
128 |
|
|
|
409 |
|
|
Current liabilities of discontinued operations (Note 3) |
|
1,017 |
|
|
|
10,303 |
|
| Total current liabilities |
|
12,378 |
|
|
|
18,942 |
|
| |
|
|
|
| Operating lease liabilities,
long-term |
|
2,771 |
|
|
|
3,243 |
|
| Long-term debt |
|
25,130 |
|
|
|
32,654 |
|
| Total liabilities |
|
40,279 |
|
|
|
54,839 |
|
| |
|
|
|
| Commitments and
contingencies (Note 11) |
|
|
|
| |
|
|
|
| Stockholders'
deficit |
|
|
|
|
Preferred stock, $0.001 par value; 5,000,000 shares authorized as
of June 30, 2024 and December 31, 2023; 6,666 shares of
the preferred stock, designated as Series A Common Equivalent
Preferred Stock, are issued and outstanding as of June 30,
2024 and December 31, 2023 |
|
— |
|
|
|
— |
|
|
Common stock, $0.001 par value; 260,000,000 shares authorized as of
June 30, 2024 and December 31, 2023; 29,775,630 and
29,313,667 shares issued and outstanding as of June 30, 2024
and December 31, 2023, respectively |
|
30 |
|
|
|
29 |
|
| Additional paid-in capital |
|
598,542 |
|
|
|
599,935 |
|
| Accumulated deficit |
|
(602,511 |
) |
|
|
(599,977 |
) |
| Accumulated other comprehensive
loss |
|
(866 |
) |
|
|
(866 |
) |
| Total stockholders' deficit |
|
(4,805 |
) |
|
|
(879 |
) |
| Total liabilities and
stockholders' deficit |
$ |
35,474 |
|
|
$ |
53,960 |
|
| |
|
|
|
|
|
|
|
| Acutus
Medical, Inc. |
| Consolidated
Statements of Operations and Comprehensive Loss |
| |
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| (in thousands, except share
and per share amounts) |
(unaudited) |
|
Revenue |
$ |
4,127 |
|
|
$ |
1,515 |
|
|
$ |
7,752 |
|
|
$ |
2,757 |
|
| Cost of products
sold |
|
4,470 |
|
|
|
2,527 |
|
|
|
8,125 |
|
|
|
4,638 |
|
|
Gross profit (loss) |
|
(343 |
) |
|
|
(1,012 |
) |
|
|
(373 |
) |
|
|
(1,881 |
) |
| |
|
|
|
|
|
|
|
| Operating expenses
(income): |
|
|
|
|
|
|
|
|
Research and development |
|
— |
|
|
|
917 |
|
|
|
— |
|
|
|
1,855 |
|
|
Selling, general and administrative |
|
2,225 |
|
|
|
3,280 |
|
|
|
5,562 |
|
|
|
7,752 |
|
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(77 |
) |
|
|
— |
|
|
|
123 |
|
|
Gain on sale of business |
|
(2,869 |
) |
|
|
(2,072 |
) |
|
|
(5,661 |
) |
|
|
(3,279 |
) |
| Total operating expenses
(income) |
|
(644 |
) |
|
|
2,048 |
|
|
|
(99 |
) |
|
|
6,451 |
|
| Gain (loss) from
operations |
|
301 |
|
|
|
(3,060 |
) |
|
|
(274 |
) |
|
|
(8,332 |
) |
| |
|
|
|
|
|
|
|
| Other income
(expense): |
|
|
|
|
|
|
|
|
Change in fair value of warrant liability |
|
564 |
|
|
|
(604 |
) |
|
|
281 |
|
|
|
842 |
|
|
Interest income |
|
207 |
|
|
|
824 |
|
|
|
488 |
|
|
|
1,676 |
|
|
Interest expense |
|
(1,510 |
) |
|
|
(1,395 |
) |
|
|
(2,988 |
) |
|
|
(2,701 |
) |
|
Other revenue |
|
76 |
|
|
|
— |
|
|
|
76 |
|
|
|
— |
|
| Total other expense, net |
|
(663 |
) |
|
|
(1,175 |
) |
|
|
(2,143 |
) |
|
|
(183 |
) |
| Loss from continuing operations
before income taxes |
|
(362 |
) |
|
|
(4,235 |
) |
|
|
(2,417 |
) |
|
|
(8,515 |
) |
| Net loss from continuing
operations |
|
(362 |
) |
|
|
(4,235 |
) |
|
|
(2,417 |
) |
|
|
(8,515 |
) |
| Discontinued
operations: |
|
|
|
|
|
|
|
|
Loss from discontinued operations before taxes |
|
(552 |
) |
|
|
(14,111 |
) |
|
|
(107 |
) |
|
|
(26,146 |
) |
|
Income tax expense - discontinued operations |
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
| Net loss from discontinued
operations |
|
(552 |
) |
|
|
(14,111 |
) |
|
|
(117 |
) |
|
|
(26,146 |
) |
| Net loss |
$ |
(914 |
) |
|
$ |
(18,346 |
) |
|
$ |
(2,534 |
) |
|
$ |
(34,661 |
) |
| |
|
|
|
|
|
|
|
| Other comprehensive
loss |
|
|
|
|
|
|
|
|
Unrealized loss (gain) on marketable securities |
|
— |
|
|
|
(8 |
) |
|
|
— |
|
|
|
4 |
|
|
Foreign currency translation adjustment |
|
— |
|
|
|
(85 |
) |
|
|
— |
|
|
|
(26 |
) |
| Comprehensive
loss |
$ |
(914 |
) |
|
$ |
(18,439 |
) |
|
$ |
(2,534 |
) |
|
$ |
(34,683 |
) |
| |
|
|
|
|
|
|
|
| Net loss earnings per
share, basic & diluted: |
|
|
|
|
|
|
|
| Loss from continuing
operations |
$ |
(0.01 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.29 |
) |
| Loss from discontinued
operations |
$ |
(0.02 |
) |
|
$ |
(0.49 |
) |
|
$ |
— |
|
|
$ |
(0.90 |
) |
| Net loss per common share |
$ |
(0.03 |
) |
|
$ |
(0.63 |
) |
|
$ |
(0.09 |
) |
|
$ |
(1.20 |
) |
| |
|
|
|
|
|
|
|
| Weighted average shares
outstanding, basic and diluted |
|
29,721,542 |
|
|
|
29,039,732 |
|
|
|
29,727,872 |
|
|
|
28,902,808 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acutus Medical, Inc. |
|
Consolidated Statements of Cash Flows |
| |
| |
Six Months Ended June 30, |
| |
2024 |
|
2023 |
| (in thousands) |
(unaudited) |
| Cash flows from operating
activities |
|
|
|
|
Net loss |
$ |
(2,534 |
) |
|
$ |
(34,661 |
) |
|
Less: (Gain) loss from discontinued operations |
|
117 |
|
|
|
26,146 |
|
| Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
|
Depreciation expense |
|
162 |
|
|
|
231 |
|
|
Non-cash stock-based compensation expense |
|
331 |
|
|
|
1,022 |
|
|
Accretion of discounts on marketable securities, net |
|
(28 |
) |
|
|
(1,037 |
) |
|
Amortization of debt issuance costs |
|
292 |
|
|
|
212 |
|
|
Amortization of operating lease right-of-use assets |
|
358 |
|
|
|
339 |
|
|
Gain on sale of business, net |
|
(5,661 |
) |
|
|
(3,279 |
) |
|
Change in fair value of warrant liability |
|
(281 |
) |
|
|
(842 |
) |
|
Loss on disposal of property and equipment |
|
— |
|
|
|
515 |
|
|
Change in fair value of contingent consideration |
|
— |
|
|
|
123 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(2,322 |
) |
|
|
(1,046 |
) |
|
Inventory |
|
(935 |
) |
|
|
(1,474 |
) |
|
Employer retention credit receivable |
|
— |
|
|
|
4,703 |
|
|
Prepaid expenses and other current assets |
|
182 |
|
|
|
126 |
|
|
Accounts payable |
|
(1,078 |
) |
|
|
(210 |
) |
|
Accrued liabilities |
|
(1,453 |
) |
|
|
(1,629 |
) |
|
Operating lease liabilities |
|
(304 |
) |
|
|
(277 |
) |
|
Other long-term liabilities |
|
— |
|
|
|
8 |
|
| Net cash used in operating
activities - continuing operations |
|
(13,154 |
) |
|
|
(11,030 |
) |
| Net cash used in operating
activities - discontinued operations |
|
(10,750 |
) |
|
|
(20,067 |
) |
| Net cash used in operating
activities |
|
(23,904 |
) |
|
|
(31,097 |
) |
| |
|
|
|
| Cash flows from investing
activities |
|
|
|
|
Proceeds from sale of business |
|
10,276 |
|
|
|
17,000 |
|
|
Purchases of available-for-sale marketable securities |
|
— |
|
|
|
(33,880 |
) |
|
Sales of available-for-sale marketable securities |
|
500 |
|
|
|
— |
|
|
Maturities of available-for-sale marketable securities |
|
2,750 |
|
|
|
48,250 |
|
|
Purchases of property and equipment |
|
(143 |
) |
|
|
(777 |
) |
| Net cash provided by investing
activities - continuing operations |
|
13,383 |
|
|
|
30,593 |
|
| Net cash provided by (used in)
investing activities - discontinued operations |
|
316 |
|
|
|
(207 |
) |
| Net cash provided by investing
activities |
|
13,699 |
|
|
|
30,386 |
|
| |
|
|
|
| Cash flows from financing
activities |
|
|
|
|
Repayment of debt |
|
(2,625 |
) |
|
|
— |
|
|
Proceeds from the exercise of stock options |
|
— |
|
|
|
4 |
|
|
Repurchase of common shares to pay employee withholding taxes |
|
— |
|
|
|
(23 |
) |
|
Proceeds from employee stock purchase plan |
|
— |
|
|
|
25 |
|
| Net cash provided by financing
activities - continuing operations |
|
(2,625 |
) |
|
|
6 |
|
| Net cash used in financing
activities - discontinued operations |
|
(41 |
) |
|
|
(240 |
) |
| Net cash used in financing
activities |
|
(2,666 |
) |
|
|
(234 |
) |
| |
|
|
|
| Effect of exchange rate changes
on cash, cash equivalents and restricted cash |
|
(2 |
) |
|
|
(346 |
) |
| |
|
|
|
| Net change in cash, cash
equivalents and restricted cash |
|
(12,873 |
) |
|
|
(1,291 |
) |
| Cash, cash equivalents and
restricted cash, at the beginning of the period |
|
26,200 |
|
|
|
31,348 |
|
| Cash, cash equivalents
and restricted cash, at the end of the period |
$ |
13,327 |
|
|
$ |
30,057 |
|
| |
|
|
|
| Supplemental disclosure
of cash flow information: |
|
|
|
| Cash paid for interest |
|
2,561 |
|
|
|
2,458 |
|
| |
|
|
|
| Supplemental disclosure
of noncash investing and financing activities: |
|
|
|
| Accounts receivable from sale of
business |
$ |
(5,836 |
) |
|
$ |
3,381 |
|
| Change in unrealized (gain) loss
on marketable securities |
$ |
— |
|
|
$ |
(4 |
) |
| Change in unpaid purchases of
property and equipment |
$ |
— |
|
|
$ |
(54 |
) |
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