OptiNose(US:OPTN)2023-05-11 11:13Financial Performance - Total revenues for the three months ended March 31, 2023, were $11,846,000, a decrease of 19.5% compared to $14,760,000 for the same period in 2022[22]. - Net loss for the three months ended March 31, 2023, was $18,847,000, compared to a net loss of $25,333,000 for the same period in 2022, representing a 25.7% improvement[24]. - The company reported a loss from operations of $14,368,000 for the three months ended March 31, 2023, compared to a loss of $21,395,000 for the same period in 2022, indicating a 32.8% improvement[22]. - Net product revenues for the three months ended March 31, 2023, were $11.8 million, a decrease of 20% from $14.8 million in the same period of 2022[133]. - Total operating expenses decreased to $26.2 million for the three months ended March 31, 2023, down 27.5% from $36.2 million in 2022[132]. - Cash used in operating activities decreased by $8.9 million to $10.5 million for the three months ended March 31, 2023, compared to $19.3 million in 2022[140]. Assets and Liabilities - Cash and cash equivalents at the end of the period were $83,928,000, down from $94,244,000 at the end of 2022, indicating a decrease of 10.4%[21]. - Total current assets decreased to $112,171,000 as of March 31, 2023, from $140,484,000 as of December 31, 2022, reflecting a decline of 20.1%[21]. - Total liabilities decreased to $188,710,000 as of March 31, 2023, from $200,846,000 as of December 31, 2022, a reduction of 6.0%[21]. - As of March 31, 2023, the Company had cash and cash equivalents of $83,928 and a working capital deficiency of $54,132[33]. - The Company has incurred recurring net losses since inception, accumulating a deficit of $703,740 as of March 31, 2023[34]. Expenses - Research and development expenses for the three months ended March 31, 2023, were $1,785,000, down 62.9% from $4,802,000 in the same period of 2022[22]. - Selling, general and administrative expenses decreased to $22,723,000 for the three months ended March 31, 2023, from $29,339,000 in the same period of 2022, a decrease of 22.5%[22]. - For the three months ended March 31, 2023, the total accrued expenses and other current liabilities amounted to $31,080, a decrease from $44,864 as of December 31, 2022, reflecting a reduction of approximately 30.8%[77]. Revenue Recognition - The Company recognizes revenue from XHANCE sales at the point customers obtain control of the product, which generally occurs upon delivery[54]. - The Company is subject to discount obligations under state Medicaid programs and Medicare, with reserves recorded in the same period the related revenue is recognized[57]. - The Company’s total product revenue allowances decreased to $17,236 as of March 31, 2023, from $27,993 as of December 31, 2022, indicating a reduction of approximately 38.4%[77]. Market and Sales - The total estimated number of XHANCE prescriptions in Q1 2023 was 84,400, representing a 1% increase from 83,500 in Q1 2022[109]. - The INS prescription market increased by 5% from Q1 2022 to Q1 2023[109]. - The total estimated number of new prescriptions for XHANCE in Q1 2023 was 30,400, a 3% increase from 29,500 in Q1 2022[116]. - The total estimated number of refill prescriptions for XHANCE in Q1 2023 remained unchanged at 54,000 compared to Q1 2022[116]. - The number of physicians prescribing XHANCE decreased by 6% to 8,545 in Q1 2023 from 8,027 in Q1 2022[116]. - Approximately 80% of commercially insured lives are in a plan that covers XHANCE as of March 31, 2023[116]. Future Outlook - The company expects full year 2023 net product revenues to be between $62.0 million and $68.0 million[119]. - Average net product revenues per prescription for the full year 2023 are expected to be approximately $200[119]. - The company expects total GAAP operating expenses for 2023 to be between $88.0 million and $93.0 million, approximately a $30.0 million reduction compared to 2022[143]. - The company anticipates requiring additional capital in the near term to maintain compliance with financial covenants and fund operations[146]. Compliance and Governance - The Chief Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[158]. - There were no changes in internal control over financial reporting during the three months ended March 31, 2023, that materially affected the internal control[159]. - The company entered into amended and restated employment agreements with executive officers on May 9, 2023[161].