Nuwellis(US:NUWE)2024-05-07 14:29Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $1.9 million, representing a 2% increase year-over-year, driven by an 11% increase in consumable utilization [17][21] - Gross margin improved to 64.1% in Q1 2024 from 58.4% in the prior year, primarily due to higher manufacturing volumes of consumables [9] - Operating loss decreased to $4.7 million in Q1 2024 from $5.8 million in the prior year, showing a $1.1 million improvement [10] - Net loss attributable to common shareholders was $3.8 million or a loss of $0.60 per share, compared to a net loss of $6.5 million or $5.76 per share in Q1 2023 [41] Business Line Data and Key Metrics Changes - Consumable sales represented 82% of total revenue, which grew 11% compared to last year [5] - Pediatric customer category revenue grew by 40%, driven by a 54% increase in consumable utilization [17][21] - Critical care revenue remained flat, but consumable sales in this category increased by 9% [5][21] Market Data and Key Metrics Changes - The company continues to expand its pediatric customer category, acquiring five new accounts over the past 12 months, totaling 40 accounts compared to 10 in 2019 [17] - The company has begun commercializing Quelimmune in targeted medical centers, pursuing IRB approvals in five accounts [19] Company Strategy and Development Direction - The company is focused on increasing awareness of the efficacy of Aquadex and expanding its pediatric product offerings, including the development of the Vivian device for pediatric continuous kidney replacement therapy [6][7][33] - The company anticipates significant expense reductions approaching 50% through operational efficiency initiatives for the rest of the year [22] - The collaboration with DaVita aims to pilot Aquadex therapy for adult heart failure patients, which could accelerate clinical adoption [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth momentum for 2024, driven by increased therapy adoption and diminishing capital expenditure headwinds in hospitals [33][36] - The company is optimistic about the commercialization of Quelimmune and the progress of the DaVita pilot program [33][38] Other Important Information - Total operating expenses for Q1 2024 were $5.9 million, a decrease of approximately $1 million compared to the first quarter of 2023 [22] - The company closed an underwritten public offering with gross proceeds of $2.7 million on April 30, 2024 [23] Q&A Session Summary Question: Status of SeaStar distribution agreement - Management confirmed that training for personnel has started, with a phased approach targeting five centers initially, followed by another five [24][25] Question: Cost reduction programs - Management indicated that strategic initiatives for sales and marketing, reverse heart failure, and the Vivian device remain unaffected, while software development for Vivian has been impacted [27] Question: Cash burn rate and financing - Management expects the net proceeds from the recent financing will sustain operations until early fall, allowing time to execute on key milestones [48]