Avinger(US:AVGR)2020-07-30 23:33Financial Performance - The company generated revenues of $9.9 million in 2017, $7.9 million in 2018, and $9.1 million in 2019, with growth in 2019 attributed to the next-generation Pantheris and the launch of Pantheris SV[114]. - As of June 30, 2020, the company reported a net loss of $4.0 million for the quarter and $9.9 million for the six months, with an accumulated deficit of $358.2 million since inception[123]. - For the three months ended June 30, 2020, revenue decreased by approximately $0.9 million or 37% compared to the same period in 2019, primarily due to the deferral of elective procedures caused by the COVID-19 pandemic[147]. - For the six months ended June 30, 2020, revenue decreased by $0.4 million or 10% compared to the same period in 2019, reflecting the impact of COVID-19[156]. - The company reported a net loss of $9.9 million for the six months ended June 30, 2020, which was partially offset by non-cash charges of $2.4 million[178]. COVID-19 Impact - The company has experienced a significant decline in sales due to COVID-19, particularly as elective procedures were deferred[115]. - The company has taken measures to manage cash and resources during COVID-19, including a 20% reduction in base salaries for non-manufacturing employees and a 20% reduction in hours for manufacturing workers[117]. Financing Activities - The company received loan proceeds of $2.3 million under the Paycheck Protection Program on April 23, 2020, as part of the CARES Act[119]. - The company received loan proceeds of $2.3 million under the Paycheck Protection Program, which may be forgiven if used for qualifying expenses[133]. - Net cash provided by financing activities for the six months ended June 30, 2020 was $14.0 million, an increase of 74.4% compared to $8.0 million in the same period in 2019[181][183]. - The company completed a public offering of 17,979 shares of Series B preferred stock, receiving net proceeds of approximately $15.5 million after fees[127]. - The company sold 216,618 shares of common stock at an offering price of $16.425 per share, resulting in net proceeds of approximately $3.0 million[128]. - The company completed a public offering of 728,500 shares of common stock and 8,586 shares of Series C convertible preferred stock, receiving net proceeds of approximately $10.2 million[130]. - The company filed a universal shelf registration statement to offer up to $50.0 million of its securities, with a public offering of 3,813,559 shares of common stock at an offering price of $1.18 per share, resulting in net proceeds of approximately $3.8 million[131]. - The company completed a public offering of 6,428,572 shares of common stock at an offering price of $0.70 per share, receiving net proceeds of approximately $3.9 million[132]. - The company completed a public offering of 12,600,000 shares of common stock at an offering price of $0.25 per share, resulting in net proceeds of approximately $3.0 million[135]. - The company completed a public offering of 20,000,000 shares of common stock at an offering price of $0.27 per share, receiving net proceeds of approximately $5.5 million[136]. - The company completed a public offering of 23,000,000 shares at an offering price of $0.27 per share, resulting in net proceeds of approximately $5.5 million[174]. Operating Expenses - Total operating expenses for the three months ended June 30, 2020 were $3.951 million, a decrease of $1.475 million or 27% compared to $5.426 million in the same period of 2019[150]. - Research and development expenses for the three months ended June 30, 2020 decreased by less than $0.1 million or 3% compared to the same period in 2019, primarily due to cost reduction measures[151]. - Selling, general and administrative expenses for the three months ended June 30, 2020 decreased by approximately $1.4 million or 35% compared to the same period in 2019[153]. - Interest expense, net for the three months ended June 30, 2020 increased by $0.1 million or 50% compared to the same period in 2019, primarily due to a higher loan balance[154]. Cash and Liquidity - As of June 30, 2020, the company had cash and cash equivalents of $16.6 million, up from $10.9 million as of December 31, 2019[164]. - Net cash used in operating activities for the six months ended June 30, 2020 was $8.4 million, compared to $9.6 million for the same period in 2019, reflecting a decrease of 12.5%[178][179]. - The total CRG Loan amount as of June 30, 2020 is $9.8 million, with a contractual obligation of $14.2 million including future interest[182]. - The total PPP Loan amount as of June 30, 2020 is $2.33 million, with a contractual obligation of $2.36 million including future interest[186]. - The company maintains cash and cash equivalents with one financial institution, which is believed to have sufficient assets and liquidity to mitigate credit risk[189]. Future Outlook - The company anticipates 510(k) clearance for the Ocelaris product line extension by the end of 2020, which features enhanced imaging capabilities and a user-controlled deflectable tip[111]. - The company is progressing on the next generation Lightbox imaging console, the L300, with a 510(k) submission expected in Q4 2020 or Q1 2021[112]. - The company plans to submit a 510(k) application to expand the indication for the Pantheris device to include in-stent restenosis once the INSIGHT clinical trial is fully enrolled[110]. - The company expects gross margin to increase over the long term as production volume increases and fixed manufacturing overhead costs are spread over a larger number of units produced[141]. - The company expects to incur losses for the foreseeable future and may require additional financing to fund operations[165]. Regulatory and Compliance - The company received a Nasdaq delisting notice on March 10, 2020, due to the minimum bid price for its common stock being below $1 for 30 consecutive business days[120]. - There were no customers that represented more than 10% of accounts receivable as of June 30, 2020[190]. - The company does not currently use or plan to use financial derivatives in its investment portfolio, limiting interest rate risk exposure[188]. - The company had no investing activities during the six months ended June 30, 2020[185].