Financial Performance - Net revenues for the year ended December 31, 2024, decreased by $91 thousand to $225 thousand compared to $316 thousand in 2023, primarily due to a decrease in battery replacement sales caused by supply chain limitations [4]. - The company reported a net loss of $20.8 million for the year ended December 31, 2024, compared to a net loss of $29.9 million in 2023, resulting in a net loss per share attributable to common stockholders of $1.49 [17]. - Net loss for the year ended December 31, 2024, was $20,795,000, an improvement from a net loss of $29,922,000 in 2023, representing a reduction of approximately 30% [19]. Cash and Liquidity - As of December 31, 2024, cash and cash equivalents were approximately $5.5 million, an increase from $4.2 million in 2023 [7]. - The company reported a net increase in cash of $1,265,000, compared to an increase of $4,035,000 in 2023, ending the year with cash of $5,483,000 [19]. - Cash flows from operating activities resulted in a net cash used of $17,949,000, slightly higher than the $17,091,000 used in the previous year [19]. - Proceeds from the issuance of term loans (related party) amounted to $20,000,000, contributing to a net cash provided by financing activities of $20,198,000 [19]. - Cash paid for interest increased to $41,000 from $26,000 in 2023, reflecting higher financing costs [19]. Research and Development - Research and development expenses increased by $1.2 million to $10.2 million for the year ended December 31, 2024, compared to $9.0 million in 2023, driven by increased headcount in engineering and clinical departments [5]. - The company has enrolled six out of ten planned participants in the first stage of its pivotal clinical trial for the fully implanted Acclaim cochlear implant, with two participants activated [3]. - The Acclaim cochlear implant received FDA approval to initiate a staged pivotal clinical trial, marking a significant milestone for the company [3]. Assets and Expenditures - The company reported a total assets increase to $11.5 million as of December 31, 2024, compared to $8.3 million in 2023 [15]. - The company incurred $980,000 in capital expenditures for property and equipment, up from $153,000 in 2023, indicating increased investment in assets [19]. Administrative and General Expenses - General and administrative expenses decreased by $438 thousand to $6.8 million for the year ended December 31, 2024, compared to $7.3 million in 2023, primarily due to reduced professional service costs [7]. Inventory and Financial Instruments - The company reported a change in inventory reserve of $76,000, compared to a reversal of $99,000 in the previous year, suggesting adjustments in inventory management [19]. - The change in fair value of convertible notes payable (related party) was $13,332,000 in 2023, indicating significant fluctuations in financial instruments [19]. Dividends and Reimbursement Opportunities - The company recognized accrued and unpaid dividends on Series A Preferred Stock totaling $3,074,000, an increase from $1,349,000 in the previous year [20]. - The establishment of new CPT codes for fully implanted active middle ear implants is expected to enhance reimbursement opportunities for the Esteem implant starting July 2025 [3]. - The company continues to advocate for the Hearing Device Coverage Clarification Act, which could provide a pathway for Medicare coverage of the Esteem implant [2].
Envoy Medical(COCH) - 2024 Q4 - Annual Results