Avinger(AVGR) - 2024 Q2 - Quarterly Results

Second Quarter and Recent Highlights Avinger reported Q2 2024 revenue of $1.8 million and a 20% gross margin, while advancing its coronary CTO system and securing new financing | Metric | Value | | :--- | :--- | | Q2 2024 Revenue | $1.8 million | | Q2 2024 Gross Margin | 20% | - Streamlined operating costs in June 2024 to support the existing peripheral user base while advancing coronary product development, with full effects expected in the second half of 2024[2] - Continued Phase III studies for its coronary CTO-crossing system, with an Investigational Device Exemption (IDE) submission anticipated in Q3 2024[2] - Completed the conversion of $11 million of debt into convertible preferred stock, reducing outstanding principal debt to $2.6 million[2] - Secured up to $24 million in additional growth financing, with an initial $6 million funded in June 2024[2] Management Commentary Management confirmed the coronary CTO solution is on track for Q3 2024 IDE filing, alongside cost streamlining and sales team focus - The company's coronary CTO solution is on track for filing an IDE application by the end of Q3 2024[2] - Avinger aims to address the large, underserved coronary CTO market, which is characterized by invasive, complex, and expensive procedures with uncertain outcomes[2] - The company has streamlined its operating cost profile and focused its field sales team on supporting peripheral device users, expecting reduced operating expenses in H2 2024[3] Second Quarter 2024 Financial Results Avinger reported Q2 2024 revenue of $1.8 million, a net loss of $4.4 million, and initiated cost reductions, ending the quarter with $8.8 million in cash | Financial Metric | Q2 2024 (Millions) | Q1 2024 (Millions) | Q2 2023 (Millions) | | :--- | :--- | :--- | :--- | | Total Revenue | $1.8M | $1.9M | $2.0M | | Gross Margin | 20% | 18% | 30% | | Operating Expenses | $4.5M | $5.4M | $4.3M | | Net Loss | $4.4M | $5.5M | $4.2M | | Adjusted EBITDA Loss | $3.8M | $3.9M | $3.4M | - In June 2024, the company initiated a cost reduction program, reducing headcount by approximately 24% to streamline operations and focus on its coronary artery disease program[4] - Cash and cash equivalents totaled $8.8 million as of June 30, 2024[5] - In May 2024, converted $11 million of debt into preferred stock, reducing principal debt to $2.6 million with no principal payments required until 2027[6] Financial Statements This section presents the unaudited consolidated financial statements for Q2 2024, including Statements of Operations, Adjusted EBITDA reconciliation, and the Balance Sheet Statements of Operations and Comprehensive Loss Avinger reported Q2 2024 total revenues of $1.85 million, a gross profit of $378,000, and a net loss of $4.36 million, resulting in a $2.82 net loss per share | Metric (in thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Revenues | $1,847 | $2,041 | | Gross Profit | $378 | $605 | | Total Operating Expenses | $4,505 | $4,334 | | Loss from Operations | $(4,127) | $(3,729) | | Net Loss | $(4,362) | $(4,176) | | Net Loss per Share | $(2.82) | $(8.86) | Reconciliation of Adjusted EBITDA to Net Loss and Comprehensive Loss Avinger reported a Q2 2024 non-GAAP Adjusted EBITDA loss of $3.83 million, reconciled from a GAAP net loss of $4.36 million | Metric (in thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net loss and comprehensive loss | $(4,362) | $(4,176) | | Add: Interest expense, net | $234 | $445 | | Add: Stock-based compensation | $207 | $239 | | Add: Certain depreciation and amortization | $86 | $68 | | Adjusted EBITDA | $(3,834) | $(3,422) | Balance Sheet As of June 30, 2024, Avinger reported total assets of $17.3 million, total liabilities of $9.5 million, and a shift to $7.8 million in stockholders' equity | Metric (in thousands) | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $8,806 | $5,275 | | Total current assets | $14,900 | $12,162 | | Total assets | $17,295 | $13,770 | | Total current liabilities | $9,002 | $19,300 | | Total liabilities | $9,542 | $19,972 | | Total stockholders' equity (deficit) | $7,753 | $(6,202) | About Avinger, Inc. Avinger is a medical device company developing image-guided, catheter-based systems for diagnosing and treating peripheral and coronary vascular diseases - Avinger designs and develops the first image-guided, catheter-based system for diagnosing and treating vascular disease[8] - The company's current products, including the Ocelot, Tigereye®, and Pantheris® families, are used for treating peripheral artery disease (PAD)[8] - Avinger is developing its first product for coronary artery disease (CAD), an image-guided system for crossing CTOs in the coronary arteries[8] Non-GAAP Financial Measures Avinger uses non-GAAP financial measures like Adjusted EBITDA to supplement GAAP results, providing investors with additional insights into operational performance and trends - The company uses non-GAAP financial measures to help investors evaluate ongoing operating results and trends[10] - Avinger defines Adjusted EBITDA as net loss and comprehensive loss adjusted for interest expense, other income, stock-based compensation, certain inventory charges, and depreciation/amortization[12] - A reconciliation of non-GAAP measures to their most directly comparable GAAP measures is provided in the financial statement tables[11]