Workflow
TELA Bio(TELA) - 2021 Q3 - Quarterly Report

Financial Performance - Revenue for Q3 2021 was $7,654,000, representing a 44% increase from $5,313,000 in Q3 2020[18] - Gross profit for the nine months ended September 30, 2021, was $13,154,000, up from $7,572,000 in the same period of 2020, indicating a 74% increase[18] - Total operating expenses for Q3 2021 were $11,819,000, compared to $10,150,000 in Q3 2020, reflecting a 16% increase[18] - Net loss for Q3 2021 was $8,266,000, compared to a net loss of $7,703,000 in Q3 2020, showing an increase in loss of 7%[18] - For the nine months ended September 30, 2021, the company reported a net loss of $24.657 million, compared to a net loss of $21.004 million for the same period in 2020, representing an increase in loss of approximately 17%[27] - Total revenue for the nine months ended September 30, 2021, was $21.089 million, a 68.5% increase from $12.546 million in the same period of 2020[44] - Revenue increased by $2.3 million, or 44%, from $5.3 million for the three months ended September 30, 2020, to $7.7 million for the same period in 2021[91] - The net loss for the three months ended September 30, 2021, was $8.3 million, an increase of $0.6 million, or 7%, from $7.7 million for the same period in 2020[91] Cash and Assets - Cash and cash equivalents decreased to $53,636,000 as of September 30, 2021, down from $74,394,000 at the end of 2020, a decline of 28%[16] - Total assets decreased to $68,809,000 as of September 30, 2021, from $86,458,000 at the end of 2020, a reduction of 20%[16] - Cash and cash equivalents at the end of the period were $53.636 million, down from $81.467 million at the end of the same period in 2020, indicating a decrease of 34.1%[27] - The company reported a net decrease in cash and cash equivalents of $20.8 million for the nine months ended September 30, 2021[141] Liabilities and Deficits - Total liabilities increased to $41,080,000 as of September 30, 2021, compared to $37,432,000 at the end of 2020, an increase of 7%[16] - Accumulated deficit increased to $221,310,000 as of September 30, 2021, from $196,653,000 at the end of 2020, reflecting a 12% increase[16] - The company has an accumulated deficit of $221.3 million as of September 30, 2021[91] - The company anticipates incurring additional losses until it can generate sufficient revenue from its products to cover expenses[31] Research and Development - Research and development expenses for the nine months ended September 30, 2021, were $5,018,000, up from $3,092,000 in the same period of 2020, a 62% increase[18] - Research and development expenses increased by $0.2 million, or 17%, to $1.4 million for the three months ended September 30, 2021, driven by increased testing and development expenses[119] Product Performance - Revenue from OviTex for the nine months ended September 30, 2021, was $16.500 million, up 54.3% from $10.707 million in 2020[44] - The company recognized revenue from OviTex PRS of $4.589 million for the nine months ended September 30, 2021, compared to $1.839 million in 2020, representing a significant growth of 149.5%[44] - Unit sales of OviTex increased by 62% to 5,341 units for the nine months ended September 30, 2021, compared to 3,300 units in the same period of 2020[125] - The OviTex product line is used by more than 380 hospital accounts in the U.S.[84] - The recurrence rate for ventral hernias treated with OviTex is 2.7% at 12 months and remains below 5% at 24 months[83] Operating Activities - The company reported a net cash used in operating activities of $20.844 million for the nine months ended September 30, 2021, compared to $17.352 million in 2020, an increase of 20.5%[27] - Cash used in operating activities for the nine months ended September 30, 2021, was $20.8 million, compared to $17.4 million for the same period in 2020, reflecting an increase of 14.0%[142][143] Expenses - Total operating expenses for the nine months ended September 30, 2021, increased by $8.9 million, or 34%, to $34.9 million, reflecting higher sales and marketing, general and administrative, and research and development costs[123] - Sales and marketing expenses rose by $0.6 million, or 10%, to $6.9 million for the three months ended September 30, 2021, attributed to higher travel and consulting expenses[117] - General and administrative expenses increased by $0.9 million, or 33%, to $3.5 million for the three months ended September 30, 2021, due to higher professional and consulting expenses[118] Financing and Credit Facilities - The company has a credit facility with OrbiMed consisting of up to $35.0 million, with $30.0 million already borrowed[147] - The OrbiMed Term Loans bear interest at a rate of 7.75% plus the greater of one-month LIBOR or 2.0%, with a maturity date of November 16, 2023[149] - The Company must maintain a minimum cash balance of $2.0 million under the OrbiMed Credit Facility[60] Future Outlook - The company expects to incur losses for the foreseeable future due to ongoing uncertainties from the COVID-19 pandemic[91] - The company plans to continue investing in its commercial organization by hiring additional account managers and clinical development specialists[88] - The company is exploring new packaging technology to increase the shelf life of OviTex products[89]