AVITA Medical(US:RCEL)2023-05-10 16:00Financial Performance - Revenues for the three months ended March 31, 2023, were $10,550,000, representing a 40.0% increase from $7,539,000 in the same period of 2022[16] - Gross profit for the same period was $8,883,000, up from $5,761,000, indicating a gross margin improvement[16] - The net loss for the three months ended March 31, 2023, was $9,220,000, slightly improved from a net loss of $9,463,000 in the prior year[19] - Net loss for the three months ended March 31, 2023, was $9.22 million, a slight improvement from a net loss of $9.46 million in the same period of 2022[24] - Total revenue for the three months ended March 31, 2023, was $10,550,000, representing a 40.4% increase from $7,539,000 in the same period of 2022[103] - Revenue from the United States was $9,425,000, up 27.4% from $7,398,000 year-over-year[103] - Commercial sales accounted for $10,458,000 of total revenue, an increase of 40.4% from $7,446,000 in the prior year[103] Expenses and Liabilities - Total operating expenses increased to $19,421,000 from $15,982,000, primarily driven by higher sales and marketing expenses of $6,540,000 compared to $4,828,000[16] - Stock-based compensation expense for the three months ended March 31, 2023, was $2,640,000, a decrease from $2,932,000 in the same period of 2022[111] - Total liabilities rose to $14,268,000 from $12,967,000, with current liabilities increasing to $11,486,000[14] - The Company’s deferred compensation plan liability increased to $3.3 million as of March 31, 2023, compared to $1.3 million as of December 31, 2022[125] Cash and Cash Equivalents - Cash and cash equivalents increased to $28,050,000 as of March 31, 2023, compared to $18,164,000 at December 31, 2022[14] - Cash flow from operating activities resulted in a net cash used of $9.07 million, compared to $9.37 million in the prior year, indicating a reduction in cash burn[24] - Cash provided by investing activities was $18.79 million, a significant increase from a cash used of $22.60 million in the same period last year, primarily due to maturities of marketable securities[24] - Cash and cash equivalents at the end of the period increased to $28.05 million from $23.74 million at the end of the previous year[24] - The company's cash equivalents, specifically money market funds, increased from $14,089,000 as of December 31, 2022, to $24,797,000 as of March 31, 2023[75] Assets and Marketable Securities - Total assets decreased to $92,622,000 from $98,264,000, reflecting a reduction in marketable securities[14] - The Company’s marketable securities, classified as available-for-sale, include corporate debt securities and U.S. government obligations, and are carried at fair value[52] - As of March 31, 2023, the total current marketable securities amounted to $45,401,000, with a gross unrealized loss of $188,000[73] - The total long-term marketable securities as of March 31, 2023, were valued at $4,189,000, with a gross unrealized loss of $5,000[73] - The net unrealized loss on marketable securities as of March 31, 2023, was $185,000, compared to a net unrealized loss of $426,000 as of December 31, 2022[75] Customer and Revenue Recognition - The company recognized revenue from the sale of the RECELL System to BARDA when the product is placed in the vendor-managed inventory, reflecting a shift in revenue recognition practices[41] - BARDA revenue for emergency deployment accounted for approximately 1% of total revenues for the three months ended March 31, 2023, consistent with the previous year[49] - As of March 31, 2023, no single commercial customer accounted for more than 10% of net accounts receivable, indicating a diversified customer base[49] Research and Development - The Company’s BARDA grant supports ongoing research and development, including clinical trials for soft-tissue reconstruction, with income recognized under a cost-plus-fixed-fee arrangement[55][56] - The company plans to submit a PMA supplement application for the RECELL GO device by June 30, 2023, maintaining its FDA Breakthrough Device designation[26] - The RECELL System has received FDA approval for expanded use in treating acute full-thickness thermal wounds in both pediatric and adult patients[26] - COSMOTEC launched the RECELL System in Japan in September 2022, following regulatory approval, and is evaluating further applications for additional indications[27] Tax and Deferred Compensation - The company recorded a tax expense of $30,000 for the three months ended March 31, 2023, compared to $4,000 in the same period of 2022[118] - As of March 31, 2023, the company had net operating loss carryforwards totaling $129.5 million for federal tax purposes[118] - The company has established a valuation allowance against its net deferred tax assets of $56.5 million as of December 31, 2022[119] - The company did not identify any uncertain tax positions as of March 31, 2023[121] Inventory and Amortization - Total inventory increased to $2,811,000 as of March 31, 2023, from $2,125,000 as of December 31, 2022[95] - Amortization expense related to intangible assets was $9,000 for the three months ended March 31, 2023, compared to $34,000 for the same period in 2022[97] - The Company expects future amortization of amortizable intangible assets to total $407,000[98] Other Financial Information - The Company recorded a foreign currency transaction gain of $11,000 for the three months ended March 31, 2023, compared to a loss of $22,000 in the same period of 2022[33] - The Company entered into a Sales Agreement on April 14, 2023, to offer and sell up to 3,799,164 shares of its common stock, with no sales made under the agreement as of the report date[132] - The Company executed a new office lease in Irvine, California, for a term of 60 months with an average monthly rent of approximately $25,000[133]