Xtant Medical (US:XTNT)2023-11-14 21:06CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS The report contains forward-looking statements subject to risks from acquisitions, supply chain, economic conditions, and regulatory approvals - The report contains forward-looking statements subject to risks and uncertainties, including those related to product integration from acquisitions, stem cell shortages for OsteoVive, inflation, supply chain disruptions, economic slowdowns, labor shortages, debt servicing, liquidity, COVID-19 impacts, sales performance, new product development, third-party reliance, personnel retention, GPO/IDN agreements, growth initiatives, OEM business, reimbursement, regulatory approvals, international operations, business combinations, product liability, AATB accreditation, intellectual property, and stock listing11121314 PART I. FINANCIAL INFORMATION This part presents the company's unaudited condensed consolidated financial information and related disclosures ITEM 1. FINANCIAL STATEMENTS This section presents the unaudited condensed consolidated financial statements for Xtant Medical Holdings, Inc. and its subsidiaries, including balance sheets, statements of operations, comprehensive income (loss), equity, and cash flows, along with detailed notes explaining business description, significant accounting policies, recent acquisitions, revenue breakdown, and other financial details Condensed Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (in thousands) | ASSETS | Sep 30, 2023 | Dec 31, 2022 | Change | | :----------------------------------- | :----------- | :----------- | :----- | | Cash and cash equivalents | $8,664 | $20,298 | $(11,634) | | Trade accounts receivable, net | $19,150 | $10,853 | $8,297 | | Inventories | $34,334 | $17,285 | $17,049 | | Total current assets | $64,107 | $49,318 | $14,789 | | Property and equipment, net | $9,097 | $5,785 | $3,312 | | Goodwill | $6,514 | $3,205 | $3,309 | | Intangible assets, net | $10,492 | $344 | $10,148 | | Total Assets | $92,003 | $60,229 | $31,774 | | LIABILITIES & STOCKHOLDERS' EQUITY | | | | | Accounts payable | $5,358 | $3,490 | $1,868 | | Accrued liabilities | $8,934 | $5,496 | $3,438 | | Line of credit | $3,999 | $3,379 | $620 | | Current portion of long-term debt | $2,833 | $2,333 | $500 | | Total current liabilities | $21,921 | $15,218 | $6,703 | | Long-term debt, plus premium and less issuance costs | $14,352 | $9,687 | $4,665 | | Total Liabilities | $37,322 | $26,058 | $11,264 | | Total Stockholders' Equity | $54,681 | $34,171 | $20,510 | | Total Liabilities & Stockholders' Equity | $92,003 | $60,229 | $31,774 | Condensed Consolidated Statements of Operations This section outlines the company's financial performance, including revenue, cost of sales, gross profit, and net income or loss Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :----------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total Revenue | $25,019 | $14,462 | $63,195 | $42,699 | | Cost of Sales | $9,685 | $6,566 | $24,865 | $18,868 | | Gross Profit | $15,334 | $7,896 | $38,330 | $23,831 | | Loss from Operations | $(3,385) | $(1,900) | $(6,352) | $(5,031) | | Bargain purchase gain | $11,028 | $0 | $11,028 | $0 | | Net Income (Loss) | $9,231 | $(2,353) | $4,963 | $(6,276) | | Basic Net Income (Loss) Per Share | $0.07 | $(0.03) | $0.04 | $(0.07) | | Diluted Net Income (Loss) Per Share | $0.07 | $(0.03) | $0.04 | $(0.07) | Condensed Consolidated Statements of Comprehensive Income (Loss) This section reports total comprehensive income or loss, including net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | 3 Months Ended Sep 30, 2023 | 3 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2023 | 9 Months Ended Sep 30, 2022 | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net Income (Loss) | $9,231 | $(2,353) | $4,963 | $(6,276) | | Foreign currency translation adjustments | $(146) | $0 | $(146) | $0 | | Comprehensive Income (Loss) | $9,085 | $(2,353) | $4,817 | $(6,276) | Condensed Consolidated Statements of Equity This section details changes in stockholders' equity, including common stock, paid-in capital, and accumulated deficit Condensed Consolidated Statements of Equity (in thousands, except number of shares) | Metric | Dec 31, 2022 | Sep 30, 2023 | | :----------------------------------- | :----------- | :----------- | | Common Stock Shares | 108,874,803 | 129,788,947 | | Additional Paid-In Capital | $277,841 | $293,534 | | Accumulated Other Comprehensive Loss | $0 | $(146) | | Accumulated Deficit | $(243,670) | $(238,707) | | Total Stockholders' Equity | $34,171 | $54,681 | - Stockholders' Equity increased by $20.5 million from December 31, 2022, to September 30, 2023, primarily due to a $14.0 million private placement of common stock and net income of $9.2 million in Q3 202324 Condensed Consolidated Statements of Cash Flows This section summarizes cash flows from operating, investing, and financing activities over specific periods Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (9 Months Ended Sep 30) | 2023 | 2022 | | :----------------------------------------- | :----- | :----- | | Net cash used in operating activities | $(8,600) | $(3,053) | | Net cash used in investing activities | $(22,471) | $(1,137) | | Net cash provided by financing activities | $19,366 | $3,406 | | Net change in cash and cash equivalents and restricted cash | $(11,758) | $(784) | | Cash and cash equivalents and restricted cash at end of period | $8,749 | $17,603 | Notes to Unaudited Condensed Consolidated Financial Statements These notes provide detailed explanations and breakdowns for the financial statements, covering business operations, accounting policies, recent acquisitions, revenue segmentation, asset and liability specifics, debt structure, equity compensation, and other significant financial and operational disclosures Business Description, Basis of Presentation and Summary of Significant Accounting Policies This section describes the company's business, the basis of financial statement presentation, and key accounting policies applied - Xtant Medical Holdings, Inc. is a global medical technology company focused on orthobiologics and spinal implant systems for spinal fusion procedures28 - On July 3, 2023, the company completed a private placement of 20,000,000 common shares at $0.75 per share, generating $15.0 million in gross proceeds for working capital and general corporate purposes32 - Goodwill increased from $3,205 thousand at January 1, 2023, to $6,514 thousand at September 30, 2023, primarily due to the acquisition of Surgalign SPV, Inc.[