AVITA Medical(RCEL) - 2020 Q4 - Annual Report

Financial Performance - Revenues for the year ended June 30, 2020, totaled $14.3 million, an increase of $8.8 million or 161% compared to $5.5 million for the year ended June 30, 2019[236]. - Gross profit for the year ended June 30, 2020, was $11.3 million, representing a gross margin of 79%, up from 77% in the prior year[237]. - Operating expenses for the year ended June 30, 2020, were $57.9 million, a 62% increase from $35.7 million in the previous year[239]. - Net loss for the year ended June 30, 2020, was $42 million, an increase of $16.9 million or 67% compared to a net loss of $25.1 million in the prior year[241]. - BARDA income for the year ended June 30, 2020, was $3.9 million, down from $5.9 million in the previous year, reflecting a decline of 34%[238]. Expenses and Investments - Sales and marketing expenses for the year ended June 30, 2020, totaled $14.8 million, a 21% increase from $12.3 million in the prior year[239]. - Share-based compensation increased to $16.5 million for the year ended June 30, 2020, a significant rise of 747% from $1.9 million in the previous year[239]. - Research and development expenses rose to $8.5 million in 2020 from $7.9 million in 2019, reflecting ongoing investment in R&D activities[264]. - The company received $0.1 million and $1.6 million in R&D Incentives for the years ended June 30, 2020 and 2019, respectively[254]. Cash Flow and Financing - For the year ended June 30, 2020, net cash used in operating activities was $22.7 million, an increase from $19.3 million in 2019, primarily due to higher operating costs associated with the commercialization of the RECEL System[257]. - Net cash provided by financing activities increased significantly to $77.1 million in 2020 from $29.7 million in 2019, resulting from a series of financing transactions including share issuance[259]. - Cash and restricted cash at the end of the year increased to $73.8 million in 2020 from $20.4 million in 2019, indicating improved liquidity[256]. - The company has no plans to pay dividends and will assess market conditions for potential share issuance to ensure adequate funding for opportunities[261]. - The company has no significant external borrowing and is not subject to externally imposed capital requirements[262]. Future Outlook and Contracts - Future operating expenses are expected to increase due to ongoing research and development and commercialization activities, partially offset by increased sales of the RECELL System[241]. - BARDA has agreed to procure the RECELL System under a vendor-managed inventory plan valued at $7.6 million, with delivery expected to commence in the second half of 2020[253]. - The company aims to expand the clinical indications for the RECELL System in the U.S. but has no plans for clinical studies outside the U.S. at this time[265]. - Contractual obligations as of June 30, 2020, total $607,000, primarily for operating lease obligations[267]. Research Collaborations - The company maintains valuable research collaborations with institutions in the U.S., Australia, Japan, and Europe to develop solutions for skin injuries[263].