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Acutus Medical(AFIB) - 2024 Q3 - Quarterly Report
AFIBAcutus Medical(AFIB)2024-11-14 21:39

Revenue and Sales Performance - The company generated revenue of 13.0millionfortheninemonthsendedSeptember30,2024,comparedto13.0 million for the nine months ended September 30, 2024, compared to 4.8 million for the same period in 2023, indicating a significant increase [187]. - Revenue for the three months ended September 30, 2024, was 5.3million,a1565.3 million, a 156% increase from 2.1 million in the same period of 2023, primarily due to increased sales volume of left-heart access products through Medtronic [217]. - Revenue for the nine months ended September 30, 2024, was 13.0million,anincreaseof13.0 million, an increase of 8.2 million, or 170%, compared to 4.8millionforthesameperiodin2023,drivenbyincreasedsalesvolumesofleft−heartaccessproductsthroughMedtronic[230].−FortheninemonthsendedSeptember30,2024,revenuefromcontinuingoperationswasentirelyU.S.−based[200].FinancialLossesandGains−Thenetlossfromcontinuingoperationswas4.8 million for the same period in 2023, driven by increased sales volumes of left-heart access products through Medtronic [230]. - For the nine months ended September 30, 2024, revenue from continuing operations was entirely U.S.-based [200]. Financial Losses and Gains - The net loss from continuing operations was 3.2 million for the nine months ended September 30, 2024, compared to a net loss of 9.9millionforthesameperiodin2023[187].−Netlossondiscontinuedoperationswas9.9 million for the same period in 2023 [187]. - Net loss on discontinued operations was 4.9 million for the nine months ended September 30, 2024, a significant decrease of 33.1millioncomparedtoanetlossof33.1 million compared to a net loss of 38.0 million for the same period in 2023 [239]. - For the nine months ended September 30, 2024, net losses from continuing operations were 3.2million,comparedto3.2 million, compared to 9.9 million for the same period in 2023, indicating a reduction in losses [240]. Costs and Expenses - Cost of products sold for the three months ended September 30, 2024, was 4.9million,up554.9 million, up 55% from 3.1 million in the same period of 2023, attributed to increased sales volumes and improved manufacturing efficiencies [218]. - Cost of products sold was 13.0millionfortheninemonthsendedSeptember30,2024,anincreaseof13.0 million for the nine months ended September 30, 2024, an increase of 5.2 million, or 66%, compared to 7.8millionforthesameperiodin2023[231].−Selling,general,andadministrativeexpensesforthethreemonthsendedSeptember30,2024,were7.8 million for the same period in 2023 [231]. - Selling, general, and administrative expenses for the three months ended September 30, 2024, were 2.3 million, a slight decrease from 2.4millioninthesameperiodof2023[214].−Selling,generalandadministrativeexpenseswere2.4 million in the same period of 2023 [214]. - Selling, general and administrative expenses were 7.9 million for the nine months ended September 30, 2024, a decrease of 1.6million,or171.6 million, or 17%, compared to 9.5 million for the same period in 2023 [233]. - The company expects costs of products sold to increase in absolute dollars as revenue grows in future periods [201]. Restructuring and Workforce Changes - The company recognized 24.1millionofestimatedpre−taxrestructuringandexit−relatedcharges,with24.1 million of estimated pre-tax restructuring and exit-related charges, with 19.0 million attributed to non-cash impairment charges [186]. - The company has reduced its workforce by approximately 65% as part of its restructuring efforts [185]. - The restructuring included workforce reductions and is expected to lead to decreased SG&A expenses in the upcoming years [204]. - The restructuring is expected to incur total costs between 7.0millionand7.0 million and 12.0 million, of which 5.1millionhasalreadybeenpaid[250].CashandLiquidity−Thecompanyhasaworkingcapitalof5.1 million has already been paid [250]. Cash and Liquidity - The company has a working capital of 12.5 million as of September 30, 2024, down from 27.3millionasofDecember31,2023[187].−AsofSeptember30,2024,thecompanyhadcash,cashequivalents,restrictedcash,andmarketablesecuritiestotaling27.3 million as of December 31, 2023 [187]. - As of September 30, 2024, the company had cash, cash equivalents, restricted cash, and marketable securities totaling 12.6 million, down from 29.4millionasofDecember31,2023[240].−Thecompanyhasanobligationtomaintainaminimumliquidityof29.4 million as of December 31, 2023 [240]. - The company has an obligation to maintain a minimum liquidity of 10 million at all times as per the recent amendments to the 2022 Credit Agreement [256]. Asset Sales and Earnouts - The company recognized a gain of 79.5millionfromthesaleofcertainassetstoMedtronicin2022,alongwithpotentialearnoutstotaling79.5 million from the sale of certain assets to Medtronic in 2022, along with potential earnouts totaling 37 million [207]. - The company achieved net sales earnout payments of 13.2millionduringtheninemonthsendedSeptember30,2024,aspartofitsagreementwithMedtronic[243].−ThequarterlymeasurementperiodforNetSalesEarnoutsbeganonJanuary30,2023,with13.2 million during the nine months ended September 30, 2024, as part of its agreement with Medtronic [243]. - The quarterly measurement period for Net Sales Earnouts began on January 30, 2023, with 17.7 million earned from inception to September 30, 2024 [184]. Research and Development - The company has no research and development expenses following the restructuring, which aligns with its new business model [204]. - Research and development expenses were 0.0millionfortheninemonthsendedSeptember30,2024,adecreaseof0.0 million for the nine months ended September 30, 2024, a decrease of 2.8 million, or 100%, compared to 2.8millionforthesameperiodin2023[232].OtherFinancialMetrics−Thecompanyhasanaccumulateddeficitof2.8 million for the same period in 2023 [232]. Other Financial Metrics - The company has an accumulated deficit of 608.1 million as of September 30, 2024, compared to 600.0millionasofDecember31,2023[187].−Interestincomedecreasedby600.0 million as of December 31, 2023 [187]. - Interest income decreased by 1.6 million for the nine months ended September 30, 2024, compared to the same period in 2023, due to decreased cash and marketable securities balances [237]. - The change in fair value of warrant liability decreased by 0.1millionfortheninemonthsendedSeptember30,2024,comparedtothesameperiodin2023,primarilyduetoadeclineinthecompany′sstockprice[236].−Thecompanyhasrecordednoimpairmentstoorwrite−offsofaccountsreceivablesinceinception,withtotalaccountsreceivableof0.1 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to a decline in the company's stock price [236]. - The company has recorded no impairments to or write-offs of accounts receivable since inception, with total accounts receivable of 9.97 million as of September 30, 2024 [244]. - There have been no material changes to critical accounting policies and estimates from those disclosed in the previous annual report [274].