Asensus Surgical(US:ASXC)2024-05-14 22:59Financial Data and Key Metrics Changes - For Q1 2024, the company reported revenue of $1.1 million, an increase from $1 million in Q1 2023, with revenue breakdowns of $0.5 million in lease revenue, $0.3 million in instruments and accessories, and $0.3 million in services [14] - Total operating expenses for Q1 2024 were $22.7 million, up from $20.4 million in Q1 2023 [15] - The net loss attributable to common stockholders was $22.5 million or $0.08 per share in Q1 2024, compared to a net loss of $22.2 million or $0.09 per share in Q1 2023 [15] - Adjusted net loss attributable to common stockholders was $18 million or $0.07 per share in Q1 2024, down from an adjusted net loss of $22 million or $0.09 per share in Q1 2023 [15][16] Business Line Data and Key Metrics Changes - The Senhance system was used in nearly 900 procedures worldwide in Q1 2024, indicating growth in adoption [12] - The company expects to initiate 8 to 10 new programs globally in 2024 and anticipates a 15% to 20% annual growth in procedure volume [18] Market Data and Key Metrics Changes - Japan is identified as one of the faster-growing markets, with positive momentum in case volume growth and system placements [31] - The Sendai Tokushukai Hospital in Japan has entered into an agreement to lease a Senhance Surgical System, marking the second institution in a major private hospital system to adopt the technology [13] Company Strategy and Development Direction - The company is focused on advancing the development of the next-generation LUNA Surgical System and associated digital solutions while driving adoption of the current Senhance platform [17] - The timeline for LUNA includes freezing system design in Q3 2024, conducting verification and validation testing in Q4 2024, and anticipating a 510(k) submission in the second half of 2025 [17][18] - The potential acquisition by KARL STORZ is viewed as an opportunity to enhance clinical value and expand the adoption of digital surgery solutions [9][10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the ongoing diligence process with KARL STORZ and has not observed any negative impact on operations or customer sentiment during the acquisition discussions [28] - The company is well-positioned for continued momentum in 2024, focusing on key initiatives and maintaining growth with the Senhance system [14][18] Other Important Information - The company has entered a non-binding letter of intent with KARL STORZ for a potential acquisition at $0.35 per share, with a 10-week exclusivity period for due diligence [8][10] - The company has drawn $7 million from a $10 million financing package from KARL STORZ to support operations [11][16] Q&A Session Summary Question: Timeline for the exclusivity period with KARL STORZ - The exclusivity period began on March 28, 2024, and is currently seven weeks in, with ongoing diligence [22] Question: What if the transaction does not go through? - If the transaction does not proceed, the $10 million becomes a secured promissory note, allowing the company to continue operations [24] Question: Impact on commercial operations during the transaction process - There have been no challenges in commercial operations, and the acquisition is perceived positively by customers [28] Question: Trends in adoption and growth in Japan - Japan is experiencing positive momentum in case volume growth and system placements, contributing to the company's growth strategy [31] Question: Timeline for LUNA development amidst the acquisition - The timeline for LUNA remains on track, with no anticipated shifts due to the potential acquisition [35]