AVITA Medical(RCEL) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2025, were $18,514,000, representing a 67% increase from $11,104,000 for the same period in 2024[14] - Gross profit for the same period was $15,681,000, up from $9,591,000, indicating a significant improvement in profitability[14] - The net loss for the three months ended March 31, 2025, was $13,859,000, compared to a net loss of $18,658,000 for the same period in 2024, reflecting a reduction in losses by approximately 26%[14] - The company reported a comprehensive loss of $12,333,000 for the three months ended March 31, 2025, compared to a comprehensive loss of $19,839,000 for the same period in 2024[16] - Commercial sales revenue reached $18,450,000 for the three-months ended March 31, 2025, compared to $11,068,000 in 2024, reflecting a 66.5% growth[91] - The company reported a net loss of $13,859,000 for the three-months ended March 31, 2025, an improvement from a net loss of $18,658,000 in the same period of 2024[91] - Operating loss improved by 31% to $11.8 million for the three-months ended March 31, 2025, compared to $17.2 million in the prior year[122] Cash Flow and Liquidity - Cash and cash equivalents increased to $14,870,000 as of March 31, 2025, from $14,050,000 at the end of 2024, showing a positive cash flow trend[12] - Cash flow used in operating activities was $10,309,000 for the three months ended March 31, 2025, compared to $20,864,000 for the same period in 2024, indicating improved cash management[21] - As of March 31, 2025, the Company has an accumulated deficit of $373.7 million and used $10.3 million in cash for operating activities in Q1 2025, compared to $20.9 million in Q1 2024[28] - Cash and cash equivalents at the end of the period were $14.9 million, with sufficient reserves to fund operations for the next 12 months[129] - Net cash used in operating activities was $10.3 million for Q1 2025, a decrease from $20.9 million in Q1 2024, due to higher gross profit[133] - Net cash provided by investing activities was $10.8 million for Q1 2025, down from $15.1 million in Q1 2024, primarily due to lower cash inflows from marketable securities[134] Assets and Liabilities - The company had total liabilities of $74,063,000 as of March 31, 2025, slightly down from $74,968,000 at the end of 2024[12] - Total current assets decreased to $47,967,000 from $57,000,000, primarily due to a reduction in marketable securities[12] - The fair value of long-term debt was estimated at $41,464,000 as of March 31, 2025, down from $42,245,000 at the end of 2024[54] - The company has a contingent liability of $3.0 million as of March 31, 2025, related to the Regenity Agreement[97] Operating Expenses - Operating expenses for the three months ended March 31, 2025, totaled $27,508,000, slightly higher than $26,797,000 for the same period in 2024[14] - Total operating expenses increased by 3% or $0.7 million to $27.5 million compared to $26.8 million in the prior year[124] - Sales and marketing expenses rose by 17% or $2.2 million to $14.8 million, driven by increased salaries and commissions[125] - General and administrative expenses decreased by 29% or $2.6 million to $6.4 million, primarily due to reduced headcount and lower severance payments[126] - Research and development expenses increased by 21% to $6.3 million for the three-months ended March 31, 2025, compared to $5.2 million in the prior year[122] Product Development and Market Position - The RECELL GO Autologous Cell Harvesting Device was approved by the FDA in May 2024, introducing enhanced features for greater consistency in clinical settings[25] - The RECELL GO mini, approved in December 2024, is designed for smaller wounds up to 480 cm², supporting broader adoption in trauma centers[26] - The company initiated a full commercial launch of Cohealyx on April 1, 2025, expanding its therapeutic wound care portfolio[116] - The company plans to conduct post-market studies for Cohealyx and PermeaDerm in 2025 to support ongoing commercialization efforts[119] - The company aims to increase market penetration in U.S. burn centers and position RECELL GO as the standard of care in burn management[119] Compliance and Agreements - The company was not in compliance with the trailing 12-month net revenue covenant for Q1 2025, which was set at $73.0 million, but received a waiver for this covenant[30] - The trailing 12-month revenue covenant was amended to $73.0 million for Q1 2025, with a waiver received for non-compliance[131] - The company entered into a Distribution Agreement with Stedical, increasing its revenue share from 50% to 60% for PermeaDerm sales, with a target of $6.0 million in gross sales for 2025[94] - The company entered into a Credit Agreement providing a $90.0 million loan facility, with $40.0 million borrowed on the closing date[130] - The company filed several exhibits as part of its Quarterly Report on Form 10-Q, including amendments to its Certificate of Incorporation and Credit Agreement[152] Leadership and Governance - The management team is led by President and CEO James Corbett and CFO David O'Toole, indicating continuity in leadership[155] - The report includes certifications from the Chief Executive Officer and Chief Financial Officer, ensuring compliance with regulatory requirements[153]