Acutus Medical(AFIB) - 2024 Q1 - Quarterly Report

Financial Performance - In Q1 2024, the company generated revenue of $3.6 million, up from$1.2 million in Q1 2023, indicating a 200% year-over-year increase[178]. - The company reported net losses from continuing operations of $2.1 million for Q1 2024, compared to$4.3 million for Q1 2023, reflecting a 51.2% improvement[178]. - Revenue for the three months ended March 31, 2024, was $3.6 million, a 192$1.2 million in the same period of 2023, driven by increased sales volume of left-heart access products through Medtronic[213]. - The company experienced a net loss of $1.6 million for the three months ended March 31, 2024, significantly improved from a net loss of$16.3 million in the same period of 2023[211]. - Net income from discontinued operations was $0.4 million for the three months ended March 31, 2024, compared to a net loss of$12.0 million for the same period in 2023, a change of $12.5 million[222]. Cash Flow and Financial Position - As of March 31, 2024, the company had cash, cash equivalents, restricted cash, and marketable securities of$20.0 million, down from $29.4 million as of December 31, 2023[223]. - Net cash provided by operating activities from continuing operations was$7.0 million for the three months ended March 31, 2024, compared to net cash used of $5.3 million for the same period in 2023[223]. - For the three months ended March 31, 2024, net cash used in operating activities from continuing operations was$6.95 million, an increase of 32.3% from $5.30 million in the same period of 2023[242]. - The company experienced a net change in cash, cash equivalents, and restricted cash of$(7.74) million for the three months ended March 31, 2024, compared to $(1.47) million in the same period of 2023[242]. Restructuring and Operational Changes - A strategic restructuring in November 2023 led to a workforce reduction of approximately 65$23.1 million of estimated pre-tax restructuring charges, with $1.6 million for severance and$2.9 million for retention bonuses[177]. - The company has transitioned to solely manufacturing left-heart access products for Medtronic under a Distribution Agreement, eliminating its mapping and ablation business[169][176]. - The company anticipates a significant decrease in research and development expenses in the upcoming years due to the shift in its business model following the restructuring[200]. Sales and Earnings - The company earned $9.4 million related to Net Sales Earnouts in 2023, with$7.3 million paid in January 2024[175]. - For the three months ended March 31, 2024, the company recognized an estimated gain of $2.8 million related to net sales earnouts from Medtronic[206]. - The company recognized an estimated gain on sale of$2.8 million related to Medtronic's left-heart access net sales earn-outs, an increase of $1.6 million compared to the same period in 2023[219]. - The company expects to receive a percentage of Medtronic's quarterly commercial sales of the products, starting at 100$1.4 million and accounts receivable of $0.4 million during the three months ended March 31, 2024[243]. Legal and Compliance - Biotronik has alleged a breach of contractual obligations, with the company intending to defend itself vigorously[252]. - The company is currently trading on the OTC Pink Sheets after being suspended from trading on The Nasdaq Capital Market due to non-compliance with listing requirements[182]. Debt and Financing - The 2022 Credit Agreement provides a term loan facility of$35.0 million, with interest rates tied to the one-month adjusted term Secured Overnight Financing Rate plus 9.0% per annum[234]. - The company has incurred significant operating losses and negative cash flows from operations since inception, anticipating continued losses for at least the next several years[223].