Acutus Medical(AFIB) - 2021 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements For Q1 2021, the company reported 127% revenue growth to $3.6 million but a net loss of $29.2 million Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2021 (unaudited) | December 31, 2020 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $8,631 | $25,234 | | Marketable securities | $98,113 | $114,565 | | Total current assets | $116,107 | $151,388 | | Total assets | $161,946 | $192,535 | | Liabilities & Equity | | | | Total current liabilities | $18,471 | $21,907 | | Long-term debt | $39,339 | $39,011 | | Total liabilities | $61,685 | $65,952 | | Total stockholders' equity | $100,261 | $126,583 | Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2021 (unaudited) | Three Months Ended March 31, 2020 (unaudited) | | :--- | :--- | :--- | | Revenue | $3,591 | $1,583 | | Cost of products sold | $6,955 | $3,194 | | Loss from operations | $(27,833) | $(17,600) | | Net loss | $(29,181) | $(18,098) | | Net loss per share, basic and diluted | $(1.04) | $(25.84) | Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2021 (unaudited) | Three Months Ended March 31, 2020 (unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,273) | $(17,558) | | Net cash provided by investing activities | $12,172 | $31,717 | | Net cash used in financing activities | $(2,378) | $(2,584) | | Net change in cash, cash equivalents and restricted cash | $(16,603) | $11,548 | Notes to Condensed Consolidated Financial Statements The notes detail the company's business, accounting policies, history of losses, and the impact of COVID-19 - The company is an arrhythmia management company focused on tools for catheter-based ablation procedures[19] - Despite a successful IPO, the company has a history of operating losses ($390.2M accumulated deficit) and expects to incur significant future losses[20] - The COVID-19 pandemic has negatively impacted business by restricting hospital access and reducing elective procedures[21] Revenue Breakdown by Type (in thousands) | Revenue Type | Q1 2021 (unaudited) | Q1 2020 | | :--- | :--- | :--- | | Acutus Direct - Disposables | $1,783 | $1,017 | | Acutus Direct - Systems | $613 | $520 | | Acutus Direct - Service/Other | $35 | $10 | | Total Acutus Direct | $2,431 | $1,547 | | Distribution Agreements | $1,160 | $36 | | Total Revenue | $3,591 | $1,583 | Revenue Breakdown by Geography (in thousands) | Geography | Q1 2021 (unaudited) | Q1 2020 | | :--- | :--- | :--- | | Acutus Direct | | | | United States | $1,468 | $770 | | Europe | $963 | $777 | | Distribution Agreements | | | | United States | $113 | $0 | | Europe | $1,047 | $36 | | Total Revenue | $3,591 | $1,583 | - All convertible preferred stock was automatically converted into common stock following the August 2020 IPO[119] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses 127% revenue growth in Q1 2021 driven by an expanded installed base, alongside a widening net loss - The company's business model focuses on a global sales presence to provide a complete solution for cardiac arrhythmia treatment[152] Total Installed Base of AcQMap Systems | Region | As of March 31, 2021 (unaudited) | As of March 31, 2020 | | :--- | :--- | :--- | | Acutus Direct - US | 39 | 13 | | Acutus Direct - Europe | 16 | 18 | | Total Acutus Direct | 55 | 31 | | Biotronik | 7 | 0 | | Total Installed Base | 62 | 31 | - Key performance factors include AcQMap System market acceptance, commercial organization effectiveness, and the COVID-19 impact[165][166] Comparison of Results of Operations (in thousands) | Line Item | Q1 2021 (unaudited) | Q1 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $3,591 | $1,583 | $2,008 | 127% | | Cost of products sold | $6,955 | $3,194 | $3,761 | 118% | | Research and development | $9,370 | $7,973 | $1,397 | 18% | | Selling, general and administrative | $16,252 | $10,235 | $6,017 | 59% | | Loss from operations | $(27,833) | $(17,600) | $(10,233) | 58% | | Net loss | $(29,181) | $(18,098) | $(11,083) | 61% | - Cash and marketable securities totaled $106.7 million as of March 31, 2021, sufficient for the next 12 months of operations[192][196] Item 3. Quantitative and Qualitative Disclosures about Market Risk As a smaller reporting company, Acutus Medical is not required to provide information for this item - The company is not required to provide these disclosures as it qualifies as a "smaller reporting company" under SEC regulations[209] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2021 - The CEO and CFO concluded that the company's disclosure controls and procedures are effective as of March 31, 2021[211] - There were no material changes in internal control over financial reporting during the quarter[212] PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is not currently a party to any material legal proceedings - The company is not a party to any litigation expected to have a material adverse effect on its business or financial condition[214] Item 1A. Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Form 10-K - There have been no material changes from the risk factors disclosed in the company's annual report for the year ended December 31, 2020[215] Item 2. Recent Sales of Unregistered Securities The company reported no recent sales of unregistered securities during the period - No unregistered securities were sold during the reporting period[215] Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including required certifications and iXBRL data - The report includes required CEO and CFO certifications and financial statements formatted in Inline Extensible Business Reporting Language (iXBRL)[218]