ProSomnus(US:OSA)2024-07-31 20:58Financial Performance - The company generated revenue of $9.1 million and a net loss of $15.2 million for the three months ended June 30, 2024, compared to revenue of $6.9 million and a net income of $0.9 million for the same period in 2023[204]. - For the six months ended June 30, 2024, the company reported revenue of $16.6 million and a net loss of $11.7 million, compared to revenue of $12.7 million and a net loss of $6.0 million for the same period in 2023[204]. - Revenue increased by $2,158, or 31.1%, for the three months ended June 30, 2024, compared to the same period in 2023, driven by increased adoption of precision devices and sales and marketing investments[226]. - Revenue increased by $3.8 million, or 29.9%, for the six months ended June 30, 2024, compared to the same period in 2023, driven by increased adoption of precision devices[234]. - Net loss for the three months ended June 30, 2024, was $15,181, compared to a net income of $905 for the same period in 2023, representing a 1,777.5% increase in loss[227]. Restructuring and Capital - The company initiated a voluntary restructuring process under Chapter 11 on May 7, 2024, aiming to secure approximately $20 million in new capital to support ongoing operations and strategic initiatives[195]. - The restructuring plan includes $11 million from a debtor-in-possession credit facility and a potential $9 million new-money equity capital raise[197]. - The company expects to maintain normal business operations during the restructuring process, including fulfilling customer and vendor obligations[196]. - The ability to continue as a going concern depends on successfully exiting the Chapter 11 restructuring[239]. Costs and Expenses - Total cost of revenue increased by $1.1 million, or 34.6%, for the three months ended June 30, 2024, primarily due to higher sales volume and increased material costs[228]. - Sales and marketing expenses decreased by $1.2 million, or 33.6%, for the three months ended June 30, 2024, mainly due to reduced travel and in-person event expenses[229]. - General and administrative expenses decreased by $1.0 million, or 22.3%, for the three months ended June 30, 2024, attributed to lower personnel costs and professional services[229]. - Research and development expenses decreased by $0.2 million, or 14.8%, for the three months ended June 30, 2024, primarily due to reduced headcount-related costs[230]. - Total cost of revenue increased by $2.2 million, or 36.8%, for the six months ended June 30, 2024, due to higher sales volume and increased material costs[234]. - Sales and marketing expenses decreased by $2.1 million, or 32.1%, for the six months ended June 30, 2024, compared to the same period in 2023[235]. - General and administrative expenses decreased by $1.9 million, or 23.8%, for the six months ended June 30, 2024, primarily due to a $1.7 million decrease in personnel costs and bonuses[235]. - Research and development expenses decreased by $0.3 million, or 11.4%, for the six months ended June 30, 2024, driven by a decrease in headcount-related personnel and consulting costs[236]. Cash Flow and Obligations - Net cash used in operating activities was $10.3 million for the six months ended June 30, 2024, due primarily to a net loss of $11.7 million[241]. - Net cash provided by financing activities was $9.0 million for the six months ended June 30, 2024, due to proceeds from the issuance of DIP loans[243]. - Recorded contractual obligations totaled $48.5 million as of June 30, 2024, with a total of $59.4 million including obligations after 2024[245]. Compliance and Notifications - The company was notified of noncompliance with Nasdaq's listing requirements, leading to the suspension of trading of its common stock on April 18, 2024[198]. Other Information - The accumulated deficit as of June 30, 2024, was $246.6 million[204]. - ProSomnus precision intraoral devices have been prescribed for over 250,000 patients since their commercial availability in August 2014[200]. - Revenue from the Company's largest customer was 4.45% and 5.2% for the six months ended June 30, 2024, and 2023, respectively[234]. - Total other income, net decreased by $0.7 million, or 16.9%, to $4.5 million for the six months ended June 30, 2024[236]. - Reorganization items during the three months ended June 30, 2024, amounted to $12.2 million, resulting from debt valuation adjustments and bankruptcy-related fees[231]. - Reorganization items during the three months ended June 30, 2024 amounted to $12.2 million, resulting from a debt valuation adjustment of $10.1 million[237]. - The company expects to continue incurring operating losses and negative cash flows from operations for the foreseeable future[238].