AirSculpt Technologies(US:AIRS)2025-11-07 21:37Financial Performance - Revenue for the three months ended September 30, 2025, was $34.993 million, a decrease of 17.6% compared to $42.548 million for the same period in 2024[17]. - Net loss for the three months ended September 30, 2025, was $9.512 million, compared to a net loss of $6.040 million for the same period in 2024, representing a 57.5% increase in loss[24]. - Comprehensive loss for the three months ended September 30, 2025, was $9.949 million, compared to $5.834 million for the same period in 2024, an increase of 70.5%[24]. - For the nine months ended September 30, 2025, the company reported a net loss of $12.95 million, compared to a net loss of $3.22 million for the same period in 2024[30]. - Adjusted net loss for the three months ended September 30, 2025, was $2.4 million, with an Adjusted net loss per share of $0.04[124]. - Basic loss per share for the three months ended September 30, 2025, was $0.15, compared to $0.10 for the same period in 2024[87]. Assets and Liabilities - Total current assets decreased to $12.218 million as of September 30, 2025, from $17.117 million as of December 31, 2024, a decline of 28.7%[15]. - Total liabilities increased to $103.815 million as of September 30, 2025, from $130.706 million as of December 31, 2024, reflecting a 20.5% increase[15]. - The company reported an accumulated deficit of $40.752 million as of September 30, 2025, compared to $27.802 million as of December 31, 2024, an increase of 46.5%[15]. - Total debt, net as of September 30, 2025, was $56.913 million, down from $69.706 million as of December 31, 2024, indicating a reduction of approximately 18.3%[71]. - The company had a working capital deficit of $(11.9) million as of September 30, 2025, compared to $(11.5) million at December 31, 2024[158]. Cash Flow and Expenses - Cash and cash equivalents decreased to $5.405 million as of September 30, 2025, from $8.235 million as of December 31, 2024, a decline of 34.5%[15]. - Net cash provided by operating activities was $5.63 million for the nine months ended September 30, 2025, a decrease of 34.8% from $8.64 million in 2024[30]. - Net cash used in investing activities was $2.3 million for the nine months ended September 30, 2025, significantly lower than $10.5 million in 2024[159]. - Operating expenses for the three months ended September 30, 2025, were $44.743 million, slightly down from $46.264 million in the same period of 2024, a decrease of 3.3%[17]. - Selling, general and administrative expenses decreased by $6.0 million, or 23.4%, to $19.525 million for the three months ended September 30, 2025, accounting for 55.8% of revenue[138]. Impairment and Charges - The company recorded a loss on impairment of long-lived assets amounting to $7.137 million during the third quarter of fiscal year 2025[21]. - The company recorded a loss on impairment of long-lived assets amounting to $7.25 million for the nine months ended September 30, 2025, compared to only $4,000 in the prior year[30]. - An impairment charge of $4.6 million was recorded for a portion of the Salesforce software implementation project as of September 30, 2025[44]. - The company closed its facility in the United Kingdom, resulting in a loss of $2.3 million related to impairment of property, plant, and equipment[43]. Equity and Offerings - The Company completed an underwritten follow-on equity offering on June 11, 2025, raising net proceeds of approximately $13.8 million from the sale of 3,634,000 shares[82]. - The Company has an at-the-market offering program with a potential aggregate offering price of up to $50.0 million, which is part of a larger $100.0 million registration statement[84]. - The company filed a Registration Statement covering an aggregate initial offering price not to exceed $100.0 million for various securities to enhance liquidity[153]. Operational Highlights - For the three months ended September 30, 2025, the company performed 2,780 cases, representing an 18% decline in revenue to approximately $35.0 million compared to the same period in 2024[105]. - Same-center case growth for the three months ended September 30, 2025, declined by 20.5% compared to the same period in 2024[116]. - The company has implemented a cost reduction program expected to eliminate approximately $3.0 million in annual overhead costs[108]. - The company plans to enhance customer experience and expand consumer financing offerings in fiscal year 2026[113]. - The company aims to focus on new product innovation and introduce new services to expand customer reach and generate incremental revenues[113]. Tax and Compliance - The effective tax rate for the nine months ended September 30, 2025, was approximately 14.5%, compared to (38.5)% for the same period in 2024[55]. - The effective tax rate for the three months ended September 30, 2025, was 14.7%, compared to (13.8)% for the same period in 2024[89]. Internal Controls and Legal Matters - The company is classified as an "emerging growth company" and may not be required to provide certain disclosures for up to five years post-IPO[179]. - As of September 30, 2025, the company's management concluded that its disclosure controls and procedures were effective at a reasonable assurance level[183]. - The management recognizes inherent limitations in internal controls, which may not prevent or detect all misstatements[185]. - The company is subject to ordinary legal proceedings that are not expected to materially affect its financial condition or results of operations[189]. - There were no material changes to the risk factors disclosed in the Annual Report for the year ended December 31, 2024[190].