ProSomnus(US:OSA)2023-05-14 16:00Revenue Performance - Revenue for the three months ended March 31, 2023, increased by $2 million, or 55.2%, compared to the same period in 2022, driven by increased unit volume and sales and marketing investments [119]. - The company generated revenue of $5.8 million with a net loss of $6.9 million for the three months ended March 31, 2023, compared to revenue of $3.7 million and a net loss of $3.0 million for the same period in 2022 [107]. - Revenue for the three months ended March 31, 2023, was $5,808,380, an increase of $2,065,237 or 55.2% compared to the same period in 2022 [121]. - Revenue from the company's largest customer was 5.6% for the three months ended March 31, 2023, compared to 5.8% for the same period in 2022 [119]. Cost and Margin Analysis - Gross margin decreased to 52.5% for the three months ended March 31, 2023, down from 57% in the same period of 2022, primarily due to increased costs of materials and repairs [120]. - Total cost of revenue increased by $1.2 million, or 74.6%, for the three months ended March 31, 2023, compared to the same period in 2022, due to higher sales volume and material costs [119]. - Gross profit for the same period was $3,051,748, reflecting a gross margin of 52.5%, down from 57.8% in the prior year [121]. Expenses and Losses - Research and development expenses rose to $1,018,969, an increase of $461,336 or 82.7% year-over-year, driven by increased headcount [122]. - General and administrative expenses increased by $2,000,272 or 147.7%, totaling $3,353,007, primarily due to personnel costs and new facility expenses [123]. - Total other expenses increased by $1,631,303 or 146.1%, reaching $2,747,896, largely due to changes in the fair value of debt and warrant liabilities [124]. - Net loss for the three months ended March 31, 2023, was $6,892,171, an increase of $3,911,438 or 131.2% compared to the same period in 2022 [121]. Financial Position - The accumulated deficit as of March 31, 2023, was $217.7 million [107]. - Cash and cash equivalents as of March 31, 2023, were $11,600,000, expected to fund operations for at least 12 months [125]. - Net cash used in operating activities was $3,092,304 for the three months ended March 31, 2023, compared to $1,462,835 in the prior year [128]. Future Outlook - The company anticipates continuing to incur significant expenses and increasing operating losses for the next several years [126]. - Future cash needs may be financed through private or public equity offerings or debt financings, with potential dilution for existing shareholders [126]. - The company plans to expand its North American direct sales organization and enter several European markets to increase case volume and market presence [110]. - FDA clearance was received for an intraoral device enabling remote patient monitoring services, which could create a recurring revenue stream [113]. Market Adoption - The company has prescribed over 150,000 ProSomnus precision devices to date, indicating strong market adoption [102]. - The average reimbursement for intraoral appliance therapy ranges from approximately $2,000 to $3,500 per patient by private insurance and $1,250 to $1,800 by Medicare [106].