Allurion Technologies(US:ALUR)2025-11-17 21:14Financial Performance - Revenue for the nine months ended September 30, 2025, was $11.6 million, a decrease of 56.3% compared to $26.5 million for the same period in 2024[232]. - The company incurred a net loss of $22.7 million for the nine months ended September 30, 2025, compared to a net income of $2.4 million for the same period in 2024[232]. - Revenue decreased by $2.7 million, or 50%, to $2.7 million for the three months ended September 30, 2025, and decreased by $14.9 million, or 56%, to $11.6 million for the nine months ended September 30, 2025, compared to the same periods in 2024[271]. - The company reported a net loss of $11.9 million for the three months ended September 30, 2025, compared to a net income of $8.7 million for the same period in 2024[270]. - The company incurred operating losses of $23.9 million and $33.1 million for the nine months ended September 30, 2025 and 2024, respectively[290]. Cost and Expenses - The cost of revenue decreased by $0.9 million, or 40%, to $1.4 million for the three months ended September 30, 2025, and decreased by $3.9 million, or 52%, to $3.7 million for the nine months ended September 30, 2025, compared to the same periods in 2024[272]. - Total operating expenses for the three months ended September 30, 2025, were $10.9 million, a decrease of $4.5 million compared to the same period in 2024[270]. - Gross profit decreased by $1.8 million, or 58%, to $1.3 million for the three months ended September 30, 2025, and decreased by $11.0 million, or 58%, to $8.0 million for the nine months ended September 30, 2025 compared to the same periods in 2024[273]. - Sales and marketing expenses decreased by $2.1 million, or 40%, to $3.1 million for the three months ended September 30, 2025, and decreased by $8.9 million, or 49%, to $9.2 million for the nine months ended September 30, 2025 compared to the same periods in 2024[274][276]. - Research and development expenses decreased by $1.2 million, or 37%, to $2.0 million for the three months ended September 30, 2025, and decreased by $6.8 million, or 51%, to $6.4 million for the nine months ended September 30, 2025 compared to the same periods in 2024[277][278]. - General and administrative expenses decreased by $1.3 million, or 18%, to $5.8 million for the three months ended September 30, 2025, and decreased by $4.5 million, or 22%, to $16.2 million for the nine months ended September 30, 2025 compared to the same periods in 2024[279][280]. Strategic Initiatives - The Allurion Program includes the Allurion Smart Capsule, the world's first swallowable intragastric balloon, and AI-powered remote patient monitoring tools[227]. - The Allurion Virtual Care Suite (VCS) was launched in April 2024 in the U.S. for patients utilizing various weight loss treatments, enhancing patient management[229]. - The company has submitted a premarket application to the FDA for the Allurion Program, aiming for commercialization in the U.S. by June 30, 2026[230][235]. - The company announced a strategic restructuring plan, including a reduction in force of approximately 70 employees, or about 65% of its workforce, with expected severance charges of approximately $1.5 million[249]. - The company signed a term sheet with a strategic partner to expand ex-US distribution and enhance the R&D pipeline, including the potential joint development of a novel GLP-1 drug-eluting intragastric balloon[253]. - The company expects to begin enrollment for a prospective, multi-center study on the combination of the Allurion Program with a low-dose of GLP-1 for weight loss while maintaining muscle mass this year[253]. Financing and Capital Management - The Omnibus Amendment requires the company to maintain minimum cash balances and achieve designated revenue thresholds, tested quarterly[235]. - The company raised at least $12.0 million in aggregate net proceeds through the issuance of shares as part of the Omnibus Amendment[236]. - The Second Amendment to Note Purchase Agreement allows for the mandatory conversion of $5.0 million of RTW Convertible Notes if market capitalization falls below $15.0 million[240]. - The company entered into a securities purchase agreement to issue and sell 2,994,012 shares of Common Stock for an aggregate purchase price of approximately $5.0 million[250]. - The company received net proceeds of $1.3 million from the issuance of shares and warrants in the Leavitt Private Placement on February 20, 2025[295]. - The company received $40.0 million in proceeds from the Revenue Interest Financing Agreement with RTW on August 1, 2023, with an obligation to remit revenue interest payments at specified rates[313]. - The revenue interest payment rate was increased from 6% to 12% for net sales less than or equal to $100 million prior to December 31, 2026, and from 10% to 12% for net sales on or after January 1, 2027[313]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $14.4 million, consisting of $13.6 million from a public offering[328]. - The company entered into a November 2025 Securities Purchase Agreement, agreeing to issue 2,994,012 shares for approximately $5.0 million at a price of $1.67 per share[308]. - On April 16, 2024, the company received $48 million in gross proceeds from the Amended Note Purchase Agreement with RTW, used to repay the Fortress Term Loan[311]. Cash and Liquidity - As of September 30, 2025, the company had $6.1 million in cash and cash equivalents and an accumulated deficit of $244.9 million[290]. - The company expects to continue generating significant operating losses for the foreseeable future and may need to raise additional capital[292]. - For the nine months ended September 30, 2025, net cash used in operating activities was $23.6 million, compared to $29.0 million for the same period in 2024[318][319]. - The company has various non-cancellable operating leases expiring between 2025 and 2028, impacting future cash requirements[310]. - As of September 30, 2025, cash and cash equivalents totaled $6.1 million, primarily invested in money market funds[336]. - The company has no variable rate debt outstanding as of September 30, 2025[337]. Foreign Currency Exposure - A 10% increase or decrease in current exchange rates could materially impact the business, financial condition, or results of operations[339]. - The primary foreign currency exposure is related to sales and expenses in Europe, with additional exposure in the Middle East and Asia-Pacific regions[339]. - An immediate 10% adverse change in foreign exchange rates during the nine months ended September 30, 2025, would have impacted revenues by approximately 5% and expenses by 4%, affecting net income by about 3%[340]. - In comparison, during the nine months ended September 30, 2024, a similar adverse change would have impacted revenues by approximately 6% and expenses by 2%, affecting net loss by about 2%[340]. - The company has not engaged in any foreign currency hedging activities to date[340]. - The company will continue to reassess its approach to managing foreign currency exchange rate risks as international operations grow[340]. Investment Policy - The investment policy focuses on capital preservation and liquidity needs, avoiding speculative financial instruments[335]. - External investment managers are utilized to adhere to the investment policy guidelines[335].