Acutus Medical(AFIB) - 2024 Q2 - Quarterly Report

Financial Performance - The company generated revenue of $7.8 million for the six months ended June 30, 2024, compared to$2.8 million for the same period in 2023, indicating a significant increase[184]. - Revenue for the three months ended June 30, 2024, was $4.1 million, a 172$1.5 million in the same period of 2023, primarily due to increased sales volume of left-heart access products through Medtronic[216]. - Revenue from continuing operations was $7.8 million for the six months ended June 30, 2024, compared to$2.8 million for the same period in 2023, representing an increase of $5.0 million or 181$914,000, significantly reduced from a net loss of $18.3 million in the same period of 2023, indicating improved financial performance[214]. - Net loss from continuing operations was$2.4 million for the six months ended June 30, 2024, compared to a net loss of $8.5 million for the same period in 2023, a reduction of$6.1 million or 72%[240]. Cost and Expenses - Cost of products sold for the three months ended June 30, 2024, was $4.5 million, up 77$2.5 million in the same period of 2023, attributed to increased sales volumes despite improvements in manufacturing efficiencies[217]. - Cost of products sold was $8.1 million for the six months ended June 30, 2024, compared to$4.6 million for the same period in 2023, an increase of $3.5 million or 75$2.2 million for the three months ended June 30, 2024, compared to $3.3 million in the same period of 2023, primarily due to workforce reductions and lower insurance premiums[219]. - Selling, general and administrative expenses decreased to$5.6 million for the six months ended June 30, 2024, from $7.8 million for the same period in 2023, a decrease of$2.2 million or 28%[232]. - Research and development expenses were $0.0 million for the three months ended June 30, 2024, a 100$0.9 million in the same period of 2023, due to the company's restructuring efforts[218]. - Research and development expenses were $0.0 million for the six months ended June 30, 2024, a decrease of$1.9 million or 100% compared to $1.9 million for the same period in 2023[231]. Restructuring and Workforce - The company underwent a restructuring that resulted in a workforce reduction of approximately 65$24.1 million of estimated pre-tax restructuring and exit-related charges, with a significant portion attributed to non-cash impairment charges[183]. - The restructuring aims to reduce operating expenses and focus on manufacturing and distributing left-heart access products to Medtronic[242]. - The company incurred $5.1 million of the anticipated$7.0 million to $12.0 million in restructuring costs, with the restructuring believed to be substantially complete[250]. - The restructuring efforts are expected to lead to a decrease in selling, general and administrative expenses in upcoming years[204]. Cash and Liquidity - The company had cash, cash equivalents, restricted cash, and marketable securities of$13.3 million as of June 30, 2024, down from $29.4 million as of December 31, 2023[240]. - The company believes its current cash, cash equivalents, and anticipated cash earnouts are sufficient to fund operations for at least the next 12 months[251]. - The company has a minimum liquidity requirement of$10,000,000 at all times as per the amended 2022 Credit Agreement[256]. Partnerships and Agreements - The company relies solely on its strategic partnership with Medtronic for revenue generation, focusing on manufacturing left-heart access products[187]. - The company achieved the Transfer Earnout on December 31, 2022, receiving $17.0 million from Medtronic on January 14, 2023[180]. - The quarterly measurement period for Net Sales Earnouts began on January 30, 2023, with$15.2 million earned from inception to June 30, 2024[181]. - The earnout period for Rhythm Xience ended in June 2023, with a final payment of $1.9 million made in July 2023[267]. - Biotronik has been issued$5.0 million in Series D convertible preferred stock and may receive up to $10.0 million based on regulatory and sales milestones, with$2.0 million paid as of December 31, 2023[268]. Stock and Market Activity - Nasdaq suspended trading of the company's common stock on May 9, 2024, leading to formal delisting on May 26, 2024, with trading now occurring on the OTC Pink Market[185]. - As of June 30, 2024, the company has no off-balance sheet arrangements[270]. Accounting and Compliance - There have been no material changes to critical accounting policies and estimates since the annual report for the year ended December 31, 2023[272]. - Significant accounting policies are detailed in Note 2 of the condensed consolidated financial statements[273]. - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[275].