Revenue and Sales Performance - The company generated revenue of $13.0 million for the nine months ended September 30, 2024, compared to $4.8 million for the same period in 2023, indicating a significant increase [187]. - Revenue for the three months ended September 30, 2024, was $5.3 million, a 156% increase from $2.1 million in the same period of 2023, primarily due to increased sales volume of left-heart access products through Medtronic [217]. - Revenue for the nine months ended September 30, 2024, was $13.0 million, an increase of $8.2 million, or 170%, compared to $4.8 million for the same period in 2023, driven by increased sales volumes of left-heart access products through Medtronic [230]. - For the nine months ended September 30, 2024, revenue from continuing operations was entirely U.S.-based [200]. Financial Losses and Gains - The net loss from continuing operations was $3.2 million for the nine months ended September 30, 2024, compared to a net loss of $9.9 million for the same period in 2023 [187]. - Net loss on discontinued operations was $4.9 million for the nine months ended September 30, 2024, a significant decrease of $33.1 million compared to a net loss of $38.0 million for the same period in 2023 [239]. - For the nine months ended September 30, 2024, net losses from continuing operations were $3.2 million, compared to $9.9 million for the same period in 2023, indicating a reduction in losses [240]. Costs and Expenses - Cost of products sold for the three months ended September 30, 2024, was $4.9 million, up 55% from $3.1 million in the same period of 2023, attributed to increased sales volumes and improved manufacturing efficiencies [218]. - Cost of products sold was $13.0 million for the nine months ended September 30, 2024, an increase of $5.2 million, or 66%, compared to $7.8 million for the same period in 2023 [231]. - Selling, general, and administrative expenses for the three months ended September 30, 2024, were $2.3 million, a slight decrease from $2.4 million in the same period of 2023 [214]. - Selling, general and administrative expenses were $7.9 million for the nine months ended September 30, 2024, a decrease of $1.6 million, or 17%, compared to $9.5 million for the same period in 2023 [233]. - The company expects costs of products sold to increase in absolute dollars as revenue grows in future periods [201]. Restructuring and Workforce Changes - The company recognized $24.1 million of estimated pre-tax restructuring and exit-related charges, with $19.0 million attributed to non-cash impairment charges [186]. - The company has reduced its workforce by approximately 65% as part of its restructuring efforts [185]. - The restructuring included workforce reductions and is expected to lead to decreased SG&A expenses in the upcoming years [204]. - The restructuring is expected to incur total costs between $7.0 million and $12.0 million, of which $5.1 million has already been paid [250]. Cash and Liquidity - The company has a working capital of $12.5 million as of September 30, 2024, down from $27.3 million as of December 31, 2023 [187]. - As of September 30, 2024, the company had cash, cash equivalents, restricted cash, and marketable securities totaling $12.6 million, down from $29.4 million as of December 31, 2023 [240]. - The company has an obligation to maintain a minimum liquidity of $10 million at all times as per the recent amendments to the 2022 Credit Agreement [256]. Asset Sales and Earnouts - The company recognized a gain of $79.5 million from the sale of certain assets to Medtronic in 2022, along with potential earnouts totaling $37 million [207]. - The company achieved net sales earnout payments of $13.2 million during the nine months ended September 30, 2024, as part of its agreement with Medtronic [243]. - The quarterly measurement period for Net Sales Earnouts began on January 30, 2023, with $17.7 million earned from inception to September 30, 2024 [184]. Research and Development - The company has no research and development expenses following the restructuring, which aligns with its new business model [204]. - Research and development expenses were $0.0 million for the nine months ended September 30, 2024, a decrease of $2.8 million, or 100%, compared to $2.8 million for the same period in 2023 [232]. Other Financial Metrics - The company has an accumulated deficit of $608.1 million as of September 30, 2024, compared to $600.0 million as of December 31, 2023 [187]. - Interest income decreased by $1.6 million for the nine months ended September 30, 2024, compared to the same period in 2023, due to decreased cash and marketable securities balances [237]. - The change in fair value of warrant liability decreased by $0.1 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to a decline in the company's stock price [236]. - The company has recorded no impairments to or write-offs of accounts receivable since inception, with total accounts receivable of $9.97 million as of September 30, 2024 [244]. - There have been no material changes to critical accounting policies and estimates from those disclosed in the previous annual report [274].
Acutus Medical(AFIB) - 2024 Q3 - Quarterly Report