Establishment Labs(ESTA)2025-02-28 21:01Financial Position - As of December 31, 2024, the company had an accumulated deficit of $444.7 million and cash of $90.3 million, compared to $40.0 million in 2023[409]. - As of December 31, 2024, total material cash requirements were estimated at $282.4 million, including debt obligations and future lease payments[420]. - The company has outstanding debt obligations of $221.4 million under a Credit Agreement, with interest rates of 9% for the first two tranches and 10% for the third[422]. - Cash balances increased to $90.3 million as of December 31, 2024, from $40.0 million in 2023[445]. Operating Activities - The net cash used in operating activities for 2024 was $58.5 million, with a net loss of $84.6 million, while in 2023, it was $88.5 million with a net loss of $78.5 million[415][416]. - Cash flows from operating activities showed a decrease in cash of $50.3 million in 2024, compared to a decrease of $26.3 million in 2023[414]. Investing Activities - Net cash used in investing activities for 2024 was $15.6 million, primarily for purchases related to a new manufacturing facility, compared to $24.5 million in 2023[417]. Financing Activities - Net cash provided by financing activities in 2024 was $125.9 million, mainly from a public offering and borrowings under the Credit Agreement, compared to $86.2 million in 2023[418][419]. - The company completed a registered direct offering in November 2024, resulting in net proceeds of approximately $49.7 million[411]. Future Outlook - The company expects to continue generating losses in the near term and may need to raise additional capital to execute its business plan[409][413]. - Future capital requirements will depend on market adoption of products, regulatory activities, and costs associated with R&D and commercialization[413]. Research and Development - R&D costs include personnel, materials, clinical expenses, and consulting services, expensed as incurred[431]. Inventory and Obsolescence - Inventory obsolescence provision recorded was $4.2 million as of December 31, 2024, compared to $3.9 million in 2023[435]. Foreign Currency Impact - Foreign currency transaction loss for the year ended December 31, 2024, amounted to $8.8 million, compared to a gain of $1.8 million in 2023[441]. - An immediate 10% adverse change in foreign exchange rates would impact revenues by approximately 2.4% and net loss by a similar amount[446]. - The company has not engaged in any foreign currency hedging activities, reassessing its approach as international operations grow[446]. Tax and Impairment - No material uncertain tax positions were recorded as of December 31, 2024, and 2023[440]. - There were no impairment charges or changes in estimated useful lives for long-lived assets during the years ended December 31, 2024, and 2023[436]. Inflation and Compensation - Inflation did not significantly impact the results of operations for any periods presented in the consolidated financial statements[447]. - Share-based compensation expense is recognized ratably over the requisite service period based on fair value at grant date[442].