Motus GI(US:MOTS)2023-11-13 21:11Revenue and Cost of Revenue - Revenue for Q3 2023 totaled $86.0 thousand, a decrease of $192.0 thousand compared to $278.0 thousand in Q3 2022, primarily due to reduced sales force from restructuring[94] - Cost of revenue for Q3 2023 was $48.0 thousand, a decrease of $35.0 thousand compared to $83.0 thousand in Q3 2022, mainly due to fewer disposable units sold[95] - Revenue for the nine months ended September 30, 2023, totaled $255.0 thousand, a decrease of $228.0 thousand compared to $483.0 thousand in the same period in 2022, due to reduced EVS product sales[103] - Cost of revenue for the nine months ended September 30, 2023 decreased by $42.0 thousand to $283 thousand, primarily due to a net decrease of $104.0 thousand in system disposable evaluation and commercial units sold, partially offset by an increase of $62.0 thousand in inventory impairment[104] Research and Development Expenses - Research and development expenses for Q3 2023 were $0.7 million, a decrease of $0.9 million compared to $1.6 million in Q3 2022, driven by lower clinical trial and personnel costs[97] - Research and development expenses decreased by $1.4 million to $2.9 million for the nine months ended September 30, 2023, driven by reductions in salaries, clinical studies, and professional services costs[105] Sales and Marketing Expenses - Sales and marketing expenses for Q3 2023 were $0.2 million, a decrease of $1.1 million compared to $1.3 million in Q3 2022, primarily due to reduced personnel and tradeshow costs[99] - Sales and marketing expenses decreased by $2.2 million to $1.4 million for the nine months ended September 30, 2023, primarily due to lower salaries and personnel costs supporting the Pure-Vu System commercialization[106] General and Administrative Expenses - General and administrative expenses for Q3 2023 were $1.6 million, a decrease of $0.4 million compared to $2.0 million in Q3 2022, mainly due to lower personnel and stock compensation costs[101] - General and administrative expenses decreased by $1.1 million to $5.1 million for the nine months ended September 30, 2023, mainly due to reductions in share-based compensation and professional fees[107] Pure-Vu System and FDA Clearance - The Pure-Vu System achieved adequate bowel cleanliness rates greater than 95% in clinical studies, with potential to reduce dependency on conventional bowel prep regimens[85] - The Pure-Vu EVS System received FDA 510(k) clearance in October 2023, with market introduction expected in the coming months, and cost of goods reduced by approximately 50% compared to the current EVS device[89] Financial Position and Liquidity - As of September 30, 2023, the company had $5.7 million in cash and cash equivalents and an accumulated deficit of $151.4 million, with a net loss of $10.1 million for the nine months ended September 30, 2023[90] - As of September 30, 2023, the company had cash and cash equivalents of $5.7 million and an accumulated deficit of $151.4 million, raising substantial doubt about its ability to continue as a going concern[109][112] - Net cash used in operating activities for the nine months ended September 30, 2023 was $9.3 million, including a net loss of $10.1 million, partially offset by non-cash expenses and changes in working capital[114] - The company raised $3.0 million in net proceeds from a private placement on May 17, 2023, issuing common stock and warrants[110] - The company's long-term debt includes a Convertible Note with an outstanding principal balance of $4.0 million and Tranche B and C loans totaling $5.3 million as of September 30, 2023[123][124] - The company expects to require significant additional capital to fund operations and may seek equity, debt financing, or strategic transactions[117] - The company's 2021 Shelf Registration Statement allows for the issuance of up to $100.0 million in securities, with $25.0 million allocated to an at-the-market offering program[118][119] Strategic and Financing Alternatives - The company continues to explore strategic and financing alternatives, including potential acquisitions, mergers, or asset sales, to support the commercialization of the Pure-Vu System[88]