Sientra(US:SIEN)2022-05-12 20:17Financial Performance - Net sales increased by $3.1 million, or 16.9%, to $21.4 million for the three months ended March 31, 2022, compared to $18.3 million for the same period in 2021[119]. - Gross margin improved to 60.0% for the three months ended March 31, 2022, up from 55.4% in the same period of 2021, primarily due to a decrease in unit costs of gel implants[122]. - Cost of goods sold increased by $0.4 million, or 4.8%, to $8.6 million for the three months ended March 31, 2022, compared to $8.2 million for the same period in 2021[121]. Operating Expenses - Sales and marketing expenses rose by $3.8 million, or 31.9%, to $15.6 million for the three months ended March 31, 2022, compared to $11.8 million for the same period in 2021[124]. - Research and development expenses increased by $0.9 million, or 43.2%, to $3.1 million for the three months ended March 31, 2022, compared to $2.2 million for the same period in 2021[125]. - General and administrative expenses increased by $2.3 million, or 29.0%, to $10.2 million for the three months ended March 31, 2022, compared to $7.9 million for the same period in 2021[126]. Cash Flow - Net cash used in operating activities was $17.9 million for the three months ended March 31, 2022, compared to $12.8 million for the same period in 2021, primarily due to increases in accounts receivable and inventory[135]. - Net cash used in investing activities was $0.2 million for the three months ended March 31, 2022, a decrease from $1.3 million in the same period in 2021, due to reduced property and equipment purchases[136]. - Net cash provided by financing activities was $5.3 million for the three months ended March 31, 2022, down from $39.4 million in the same period in 2021, primarily due to a decrease in proceeds from the issuance of common stock[138]. - As of March 31, 2022, the company had $38.9 million in cash and cash equivalents, with historical cash outflows primarily associated with research and development activities[131]. Business Operations - The company has one operating segment in continuing operations named Plastic Surgery, focusing on breast implants, tissue expanders, and scar management products[99]. - As of March 31, 2022, the sales organization consisted of 76 employees, an increase from 66 employees in the same period of 2021[120]. - The company received approval from Health Canada on March 23, 2022, to begin commercialization of its smooth round HSC and HSC+ silicone gel breast implants in Canada[102]. Challenges and Future Outlook - The ongoing impact of the COVID-19 pandemic continues to affect the company's revenues, with restrictions on non-emergency procedures leading to significant revenue harm since the second quarter of 2020[103]. - The company anticipates that operating expenses will remain consistent and will need to generate significant net sales to achieve profitability[130]. - The company may need to raise additional debt or equity capital to fund ongoing operations, as cash generated from operations may be insufficient[141]. - The company has incurred significant net operating losses since inception and expects these losses to continue in the near term[130]. - The liquidity position and capital requirements are subject to various factors, including the ability to meet customer requirements and costs associated with regulatory compliance[140]. Other Financial Information - Other income (expense), net decreased due to a change in the fair value of the derivative liability, which did not reoccur in the current period[127]. - Loss from discontinued operations increased by $2.0 million due to the sale of the miraDry business[129].