IceCure(ICCM) - 2022 Q2 - Quarterly Report

Financial Statements This section presents the company's unaudited interim condensed consolidated financial statements, including the balance sheet, statements of comprehensive loss, changes in shareholders' equity, cash flows, and accompanying notes Unaudited Interim Condensed Consolidated Balance Sheet As of June 30, 2022, IceCure Medical's total assets decreased to $23.8 million from $32.3 million, primarily due to a reduction in cash and cash equivalents, leading to a decline in total shareholders' equity from $27.0 million to $18.9 million Balance Sheet Summary | Financial Metric | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 13,468 | 25,621 | -47.4% | | Total current assets | 21,563 | 30,322 | -28.9% | | Total Assets | 23,813 | 32,281 | -26.2% | | Total Liabilities | 4,937 | 5,323 | -7.2% | | Total Shareholders' Equity | 18,876 | 26,958 | -30.0% | - The company's cash position more than halved in the first six months of 2022, decreasing from $25.6 million to $13.5 million[3] - The accumulated deficit increased from $58.4 million to $67.4 million during the first half of 2022, contributing to the decline in shareholders' equity[3] Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss For the six months ended June 30, 2022, the company reported a net loss of $9.0 million, a significant increase from $3.8 million in 2021, driven by a 27% revenue decrease and substantial rises in R&D and S&M expenses Statements of Comprehensive Loss Summary | Metric | Six months ended June 30, 2022 ($ thousands) | Six months ended June 30, 2021 ($ thousands) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Revenues | 1,512 | 2,073 | -27.1% | | Gross Profit | 818 | 1,193 | -31.4% | | Research and development expenses | 4,649 | 2,730 | +70.3% | | Sales and marketing expenses | 1,533 | 625 | +145.3% | | Operating loss | 8,706 | 3,746 | +132.4% | | Net loss | 8,968 | 3,847 | +133.1% | | Basic and diluted net loss per share | $0.244 | $0.156 | +56.4% | Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity decreased by $8.1 million to $18.9 million by June 30, 2022, primarily due to a $9.0 million net loss, partially offset by $0.9 million in share-based compensation Statements of Changes in Shareholders' Equity Summary | Description | Amount ($ thousands) | | :--- | :--- | | Balance as of January 1, 2022 | 26,958 | | Share-based compensation | 885 | | Pre-funded warrants exercised | 1 | | Net loss for the period | (8,968) | | Balance as of June 30, 2022 | 18,876 | Unaudited Interim Condensed Consolidated Statements of Cash Flows Cash and cash equivalents decreased by $12.1 million to $13.5 million in H1 2022, driven by $6.8 million used in operating activities and $4.8 million in investing activities, contrasting with a $15.2 million increase in H1 2021 Statements of Cash Flows Summary | Cash Flow Activity ($ thousands) | Six months ended June 30, 2022 | Six months ended June 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | (6,845) | (3,561) | | Net cash provided by (used in) investing activities | (4,770) | 4,079 | | Net cash provided by financing activities | 1 | 14,642 | | Increase (decrease) in cash and cash equivalents | (11,614) | 15,160 | - Cash used in operations nearly doubled year-over-year, reflecting the larger net loss and changes in working capital[10] - Financing activities provided virtually no cash in H1 2022, compared to $14.6 million raised from share issuance in H1 2021[10] Notes to the Unaudited Interim Condensed Consolidated Financial Statements This section provides supplemental details on the company's operations, accounting policies, financial condition, including its cryoablation business, going concern assessment, revenue breakdown, and subsequent events Note 1 - General This note describes IceCure Medical's business as a developer of cryoablation devices, its global operations, and management's assessment of its going concern status - IceCure Medical is an Israeli company, listed on NASDAQ and the Tel Aviv Stock Exchange, that develops and commercializes minimally invasive cryoablation devices for freezing tumors[12][13][14] - The company has subsidiaries and operations in the United States, Hong Kong, and China to manage business development, clinical trials, and regulatory approvals in those regions[14][15] - Regarding its 'Going Concern' status, the company has an accumulated deficit of $67.4 million and generated a loss of $9.0 million in H1 2022; however, management expects its cash reserves of $15.4 million as of August 31, 2022, to be sufficient for the next 12 months of operations[17][18][19] Note 2 - Summary of Significant Accounting Policies This note confirms that the interim financial statements adhere to U.S. GAAP and apply accounting policies consistent with the latest annual statements - The unaudited interim financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP)[22] - The significant accounting policies applied are identical to those used in the company's latest annual financial statements[24] Note 4 - Revenues This note details the company's revenue sources, primarily from the sale of consoles, disposables, and exclusive distribution agreements - The company's revenues are primarily derived from the sale of consoles, disposables, and exclusive distribution agreements[29] Revenue Sources | Revenue Source ($ thousands) | Six months ended June 30, 2022 | Six months ended June 30, 2021 | | :--- | :--- | :--- | | Consoles | 361 | 695 | | Disposables | 667 | 556 | | Exclusive distribution agreement | 484 | 822 | | Total | 1,512 | 2,073 | Note 5 - Subsequent Events This note outlines significant events occurring after the reporting period, including the granting of options and issuance of restricted shares to consultants - On July 4, 2022, the company granted 55,222 options to a consultant at an exercise price of approximately $1.76 per share[32] - On July 18, 2022, the company issued 21,000 restricted ordinary shares to a consultant, which are restricted from sale for 12 months[32]