Sientra(SIEN) - 2022 Q2 - Quarterly Report

Financial Performance - Net sales increased by $1.4 million, or 7.0%, to $21.5 million for the three months ended June 30, 2022, compared to $20.1 million for the same period in 2021[121] - The company reported a loss from operations of $15.9 million for the three months ended June 30, 2022, compared to a loss of $9.2 million for the same period in 2021[120] - The company experienced a net loss of $18.3 million for the three months ended June 30, 2022, compared to a net loss of $20.1 million for the same period in 2021[120] - Net sales increased by $4.5 million, or 11.7%, to $42.9 million for the six months ended June 30, 2022, compared to $38.4 million for the same period in 2021[131] - The company incurred a net loss of $36.3 million for the six months ended June 30, 2022, compared to a net loss of $74.8 million for the same period in 2021[130] Cost and Expense Management - Gross margin improved to 59.2% for the three months ended June 30, 2022, up from 56.0% in the same period of 2021, primarily due to a decrease in unit costs of gel implants[122] - Total operating expenses increased to $28.7 million for the three months ended June 30, 2022, up from $20.4 million in the same period of 2021[120] - Sales and marketing expenses rose by $3.2 million, or 30.4%, to $13.7 million for the three months ended June 30, 2022, driven by increased payroll and marketing initiatives[123] - Research and development expenses increased by $0.6 million, or 23.3%, to $3.0 million for the three months ended June 30, 2022, mainly due to higher clinical and regulatory costs[124] - General and administrative expenses surged by $4.5 million, or 59.8%, to $12.1 million for the three months ended June 30, 2022, attributed to higher payroll and legal settlement fees[125] - Gross margin improved to 59.6% for the six months ended June 30, 2022, up from 55.8% in 2021, primarily due to a decrease in unit costs of gel implants[132] - Sales and marketing expenses rose by $7.0 million, or 31.2%, to $29.3 million for the six months ended June 30, 2022, driven by increased payroll and marketing initiatives[133] - Research and development expenses increased by $1.5 million, or 32.8%, to $6.1 million for the six months ended June 30, 2022, due to higher clinical and regulatory costs[134] - General and administrative expenses grew by $6.8 million, or 44.1%, to $22.3 million for the six months ended June 30, 2022, mainly from increased payroll and legal fees[135] Cash Flow and Liquidity - Cash used in operating activities was $30.8 million for the six months ended June 30, 2022, compared to $14.8 million for the same period in 2021[144] - As of June 30, 2022, the company had cash and cash equivalents of $25.0 million, with the ability to receive an additional $14.0 million on a term loan[139] - The company is evaluating various funding alternatives to improve liquidity, including potential capital raises through equity securities and debt financing[140] Business Developments - The company received approval from Health Canada on March 23, 2022, to begin commercialization of its silicone gel breast implants in Canada[103] - The sales organization consisted of 76 employees as of June 30, 2022, unchanged from the previous year[121] - Loss from discontinued operations decreased by $1.5 million for the three months ended June 30, 2022, due to the sale of the miraDry business[128]