AxoGen(US:AXGN)2025-02-26 21:09Financial Performance - Revenues for the year ended December 31, 2024 increased by $28,326, or 17.8%, to $187,338 compared to $159,012 for the year ended December 31, 2023, driven by a 9.0% increase in unit volume and a 5.5% impact from product mix changes [350]. - Gross profit for the year ended December 31, 2024 was $141,977, an increase of $20,108, or 16.5%, compared to $121,869 for the year ended December 31, 2023, with a gross margin of 75.8% [351]. - Net loss for 2024 decreased to $9.96 million compared to a net loss of $21.72 million in 2023, indicating improved financial performance [422]. - Total revenues for 2024 reached $187.34 million, a 17.8% increase from $159.01 million in 2023 [422]. - Gross profit for 2024 was $141.98 million, up from $121.87 million in 2023, reflecting a gross margin improvement [422]. Expenses and Costs - Total costs and expenses increased by $1,933, or 1.3%, to $145,264 for the year ended December 31, 2024, primarily due to $9,745 in compensation costs [352]. - Sales and marketing expenses increased by $881, or 1.1%, to $78,461 for the year ended December 31, 2024, attributed to $6,028 in compensation costs [353]. - Research and development expenses increased by $428, or 1.6%, to $27,767 for the year ended December 31, 2024, primarily due to product development and clinical expenses [354]. - General and administrative expenses increased by $624, or 1.6%, to $39,036 for the year ended December 31, 2024, mainly due to $921 in bad debt expense [355]. - Total other expense increased by $6,423, or 2528.7%, to $6,677 for the year ended December 31, 2024, primarily due to an increase in interest expense of $5,372 [356]. Cash Flow and Liquidity - Net cash provided by operating activities was $4,535 for the year ended December 31, 2024, compared to net cash used in operating activities of $5,716 for the year ended December 31, 2023 [369]. - Net cash used in investing activities was $10,297 for the year ended December 31, 2024, compared to net cash provided by investing activities of $19,253 for the year ended December 31, 2023 [371]. - Cash and cash equivalents at the end of 2024 were $27.55 million, down from $31.02 million in 2023 [420]. - As of December 31, 2024, the company had $50,000 outstanding in indebtedness under a credit facility, with $35,000 maturing on June 30, 2027, and $15,000 maturing on June 30, 2028 [376]. Inventory and Assets - The company’s total property and equipment, net, was $84,667,000 as of December 31, 2024, down from $88,730,000 in 2023 [492]. - The company's inventory as of December 31, 2024, was $33,183,000, an increase from $23,020,000 in 2023 [491]. - The provision for inventory write-down was $6,989,000 for the year ended December 31, 2024, compared to $1,939,000 in 2023 [491]. - Total current assets increased to $99.22 million in 2024 from $88.00 million in 2023, driven by higher inventory levels [420]. Shareholder Information - The company reported a weighted average of 44.26 million common shares outstanding in 2024, compared to 42.88 million in 2023 [422]. - The net loss attributable to common shareholders for the year ended December 31, 2024, was $9.964 million, compared to $21.716 million in 2023 and $28.948 million in 2022 [518]. - The weighted average common shares outstanding increased to 44,257,754 in 2024 from 42,878,543 in 2023 [518]. Research and Development - Research and development expenses for 2024 were $27.77 million, slightly up from $27.34 million in 2023, indicating continued investment in innovation [422]. - The company plans to continue focusing on the commercialization of its nerve regeneration technologies, including new product developments [430]. Debt and Interest - Long-term debt, net of debt discount and financing fees, increased to $47,496,000 in 2024 from $46,603,000 in 2023 [507]. - The interest rate for each tranche is 7.5% plus the greater of Adjusted SOFR or 2.0%, with a minimum interest rate of 9.5% [509]. - The Company recorded interest expense of $756,000 for the Revenue Participation Agreement for the years ended December 31, 2024, 2023, and 2022 [510]. Stock-Based Compensation - Total stock-based compensation expense for the year ended December 31, 2024, was $15.906 million, compared to $14.418 million in 2023 [521]. - The Company granted 1,010,671 Restricted Stock Units (RSUs) during the year ended December 31, 2024, with an average fair value of $8.79 per share [527]. - The total unrecognized compensation costs related to unvested PSU awards amounted to approximately $8,826,000, expected to be recognized over a weighted-average period of 1.7 years [535].