ProSomnus(OSA) - 2023 Q4 - Annual Results

Financial Performance - ProSomnus reported record revenues of $7.8 million for Q4 2023, a 35% increase compared to $5.8 million in Q4 2022, and $27.7 million for the fiscal year 2023, a 43% increase from $19.4 million in 2022[2]. - Revenue for the three-month period ended December 31, 2023, was $7,838,000, representing a 10.8% increase from $7,071,000 in the previous quarter and a 35.3% increase from $5,792,000 year-over-year[15]. - Total revenue for the year ended December 31, 2023, was $27,652,000, a 42.6% increase compared to $19,393,000 for the year ended December 31, 2022[16]. Operating Expenses - Operating expenses, excluding cost of revenue, decreased over 8% compared to Q2 2024 and nearly 19% as a percentage of revenue over the same period[2]. - Total operating expenses for the three-month period ended December 31, 2023, were $12,848,000, up 13.8% from $11,287,000 in the previous quarter[15]. - Sales and marketing expenses for Q4 2023 were $3.4 million, a decrease of 6% compared to Q2 2023, and for the full year, these expenses totaled $13.1 million, an increase of 48% year-over-year[6]. - General and administrative expenses for Q4 2023 were $4.0 million, a decrease of 11% compared to Q2 2023, while for the full year, these expenses totaled $15.2 million, an increase of 54% year-over-year[7]. - Research and development expenses for Q4 2023 were $1.4 million, with a full year total of $4.8 million, reflecting a 61% increase compared to 2022, driven by ongoing development projects[8]. - Research and development expenses for the year ended December 31, 2023, increased by 61.1% to $4,802,000 from $2,981,000 in the previous year[16]. Net Loss and Financial Position - Net loss for the three-month period ended December 31, 2023, was $6,869,000, a 38.9% improvement from a net loss of $11,239,000 in the previous quarter[15]. - Cash and restricted cash at December 31, 2023, totaled $7.1 million, reflecting a decrease of $4.9 million from $12.0 million at September 30, 2023[10]. - Cash and cash equivalents decreased to $7,063,000 as of December 31, 2023, down from $15,916,000 as of December 31, 2022[19]. - Total current liabilities increased to $14,341,000 as of December 31, 2023, compared to $7,091,000 as of December 31, 2022[20]. - The accumulated deficit increased to $234,889,000 as of December 31, 2023, compared to $210,794,000 as of December 31, 2022[20]. Strategic Initiatives - The company initiated a comprehensive review of financing and strategic alternatives to strengthen its balance sheet and fund future growth initiatives[2]. - ProSomnus submitted a 510(k) Premarket Notification to the FDA for severe indication label expansion, currently in the substantive review phase[3]. Delivery and Satisfaction - ProSomnus maintained over 98% on-time delivery and high patient and provider satisfaction[3]. Fair Value Changes - The company reported a significant decrease in the fair value of earnout liability, with a change of $12,190,000 for the year ended December 31, 2023, compared to $9,260,000 in the previous year, reflecting a 31.6% increase[16]. Asset Changes - Total assets decreased to $26,287,000 as of December 31, 2023, from $33,200,000 as of December 31, 2022[19].