Core Viewpoint - Acutus Medical, Inc. is undergoing a significant operational downsizing to align resources and fulfill obligations to Medtronic, resulting in a workforce reduction of approximately 70% [2][4]. Operational Downsizing - The downsizing is aimed at scaling operations to support the manufacturing and distribution of left-heart access products for Medtronic, as per agreements made in April and June 2022 [3][4]. - The company will continue contract manufacturing for Medtronic until all obligations under the Asset Purchase Agreement and Distribution Agreement are met [5]. Financial Impact - Acutus estimates pre-tax downsizing and exit-related charges between 1.8 million, with a significant portion expected to be incurred in the first quarter of 2025 [6]. - The company anticipates that cash on hand, distribution revenue, and future earn-outs will be sufficient to manage outstanding debt and fund remaining operations [9]. Revenue Sources - The exclusive revenue source will be from the sale of left-heart access products at transfer prices specified in the Distribution Agreement with Medtronic, along with any fee-bearing transition services [7]. - Acutus is eligible for additional net sales earnouts from Medtronic based on a percentage of total net end-user sales of these products until January 2027 [8]. Compliance and Notifications - The company has complied with the WARN Act by notifying affected employees and relevant government authorities regarding the mass layoff [10].
Acutus Medical Announces Operational Downsizing