Acutus Medical Reports First Quarter 2021 Financial Results
05/12/2021 - 04:01 PM
CARLSBAD, Calif., May 12, 2021 (GLOBE NEWSWIRE) -- Acutus Medical, Inc. (“Acutus” or the “Company”) (Nasdaq: AFIB), an arrhythmia management company focused on improving the way cardiac arrhythmias are diagnosed and treated, today reported results for the first quarter of 2021.
Recent Highlights:
Reported revenue of $3.6 million in the first quarter of 2021, compared to $1.6 million in the same quarter last year. Increased worldwide installed base of second generation AcQMap consoles to 57 as of March 31, 2021, up from 51 at the end of the prior quarter – bringing the total installed base of AcQMap consoles to 62 as of March 31, 2021. Commenced US IDE trial for the AcQBlate Force-Sensing Ablation Catheter and System. Advanced AcQBlate Force-Sensing Ablation Catheter and System from limited to full market release in CE Mark countries. Received US 510K clearance for AcQCross, a full suite of universal transseptal crossing devices. “We are pleased with the progress on several key strategic initiatives, including improved revenue performance and commercial execution, the initiation of our US ablation therapy IDE clinical trial, and new product introductions. In the face of regional COVID-19 headwinds, our commercial teams are driving accelerated uptake for our complete guided ablation solutions globally,” said Vince Burgess, President and CEO of Acutus. “Our Europe direct organization and Biotronik partnership led the Company’s first quarter performance, and we continue to see strong execution from these teams. In the US, we are encouraged to see this part of our business gaining momentum as end-markets improve.”
First Quarter 2021 Financial Results $3.6 million for the first quarter of 2021, compared to $1.6 million in the first quarter last year. The improvement over the same quarter last year was driven by increased direct sales of Acutus disposables, sales of the AcQMap consoles, and distributor sales through the Company’s partner, Biotronik.
Gross margin on a GAAP basis was negative 94% for the first quarter of 2021, compared with negative 102% in the same quarter last year. During the quarter, the Company incurred charges for the write-off of excess and obsolete inventory related to the transition to fully in-house manufacturing and product line transition for its transseptal access crossing device portfolio as well as for certain short shelf-life products currently in inventory. These charges had a significant impact on gross margin in the quarter, and this is not expected to recur in subsequent periods.
Operating expenses on a GAAP basis were $24.5 million for the first quarter of 2021, compared with $16.0 million in the same quarter last year. The increase was driven by the expansion of Acutus’ commercial team in conjunction with its full commercial launch, increased general and administrative costs incurred associated with being a public company, and change in fair value of the contingent consideration related to the acquisition of Rhythm Xience.
Net loss on a GAAP basis was $29.2 million for the first quarter of 2021 and net loss per share was $1.04 on a weighted average basic and diluted outstanding share count of 28.0 million, compared to $18.1 million and a net loss per share of $25.84 on a weighted average basic and diluted outstanding share count of 0.7 million in the same period of the prior year. Excluding amortization of acquired intangibles, non-cash stock-based compensation expense, remeasurement of the warrant liability, and changes in the fair value of contingent consideration, the Company’s non-GAAP net loss for the first quarter of 2021 was $27.3 million , or $0.97 per share, compared to $19.0 million , or $1.11 per share, after giving effect to the pro forma conversion of convertible preferred stock for the first quarter of 2020.
Cash, cash equivalents, marketable securities and restricted cash were $106.9 million as of March 31, 2021.
Outlook and COVID-19 $22.0 million and $30.0 million . With respect to the second quarter of 2021, management expects revenue to range between $3.8 million and $5.0 million .
Non-GAAP Financial Measures
Webcast and Conference Call Information https://ir.acutusmedical.com .
About Acutus Medical, Inc.
Caution Regarding Forward-Looking Statements
Acutus Medical, Inc. Consolidated Balance Sheets
March 31, December 31, (in thousands, except per share amounts) 2021 2020 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 8,631 $ 25,234 Marketable securities, short-term 86,888 105,839 Restricted cash 150 150 Accounts receivable 2,477 2,160 Inventory 13,837 12,958 Prepaid expenses and other current assets 4,124 5,047 Total current assets 116,107 151,388 Marketable securities, long-term 11,225 8,726 Property and equipment, net 14,648 12,356 Right-of-use assets, net 1,480 1,669 Intangible assets, net 5,493 5,653 Goodwill 12,026 12,026 Other assets 967 717 Total assets $ 161,946 $ 192,535 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 6,108 $ 8,266 Accrued liabilities 8,808 7,308 Contingent consideration, short-term 2,600 5,400 Operating lease liabilities, short-term 955 933 Total current liabilities 18,471 21,907 Operating lease liabilities, long-term 875 1,134 Long-term debt 39,339 39,011 Contingent consideration, long-term 3,000 3,900 Total liabilities 61,685 65,952 Stockholders' equity Preferred stock, $0.001 par value — — Common stock, $0.001 par value 28 28 Additional paid-in capital 490,369 487,290 Accumulated deficit (390,196 ) (361,015 ) Accumulated other comprehensive income 60 280 Total stockholders' equity 100,261 126,583 Total liabilities and stockholders' equity $ 161,946 $ 192,535
Acutus Medical, Inc. Consolidated Statements of Operations and Comprehensive Loss
Three Months Ended March 31, (in thousands, except share and per share amounts) 2021 2020 (unaudited) Revenue $ 3,591 $ 1,583 Costs and operating expenses: Cost of products sold 6,955 3,194 Research and development 9,370 7,973 Selling, general and administrative 16,252 10,235 Change in fair value of contingent consideration (1,153 ) (2,219 ) Total costs and operating expenses 31,424 19,183 Loss from operations (27,833 ) (17,600 ) Other income (expense): Change in fair value of warrant liability — 581 Interest income 40 275 Interest expense (1,388 ) (1,354 ) Total other expense, net (1,348 ) (498 ) Loss before income taxes (29,181 ) (18,098 ) Income tax benefit — — Net loss $ (29,181 ) $ (18,098 ) Other comprehensive income (loss) Unrealized gain (loss) on marketable securities 6 (27 ) Foreign currency translation adjustment (226 ) (27 ) Comprehensive loss $ (29,401 ) $ (18,152 ) Net loss per common share, basic and diluted $ (1.04 ) $ (25.84 ) Weighted average shares outstanding, basic and diluted 28,031,686 700,505
Acutus Medical, Inc. Consolidated Statements of Cash Flows
Three Months Ended March 31, (in thousands) 2021 2020 (unaudited) Cash flows from operating activities Net loss $ (29,181 ) $ (18,098 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 1,241 429 Amortization of intangible assets 160 110 Stock-based compensation expense 2,910 1,741 Amortization of premiums/(accretion of discounts) on marketable securities, net 412 (5 ) Amortization of debt issuance costs 328 154 Amortization of right-of-use assets 180 169 Change in fair value of warrant liability — (581 ) Change in fair value of contingent consideration (1,153 ) (2,219 ) Changes in operating assets and liabilities: Accounts receivable (317 ) (708 ) Inventory (879 ) (1,809 ) Prepaid expenses and other current assets 1,104 214 Other assets (250 ) (267 ) Accounts payable (2,091 ) 3,602 Accrued liabilities 1,500 (83 ) Operating lease liabilities (237 ) (207 ) Net cash used in operating activities (26,273 ) (17,558 ) Cash flows from investing activities Purchases of available-for-sale marketable securities (9,135 ) — Sales of available-for-sale marketable securities — 8,100 Maturities of available-for-sale marketable securities 25,000 25,300 Purchases of property and equipment (3,693 ) (1,683 ) Net cash provided by investing activities 12,172 31,717 Cash flows from financing activities Payment of contingent consideration (2,547 ) (2,584 ) Proceeds from stock options exercises 169 — Net cash used in financing activities (2,378 ) (2,584 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (124 ) (27 ) Net change in cash, cash equivalents and restricted cash (16,603 ) 11,548 Cash, cash equivalents and restricted cash, at the beginning of the period 25,384 9,602 Cash, cash equivalents and restricted cash, at the end of the period $ 8,781 $ 21,150
Acutus Medical, Inc. Reconciliation of GAAP Results to Non-GAAP Results (Unaudited)
Three Months Ended March 31, 2021 Cost of Selling, Research Loss from Other Net loss Diluted Reported $ 6,955 $ 16,252 $ 9,370 $ (27,833 ) $ (1,348 ) $ (29,181 ) $ (1.04 ) Amortization of acquired intangibles — (160 ) — 160 — 160 0.01 Stock-based compensation (157 ) (2,311 ) (442 ) 2,910 — 2,910 0.10 Change in fair value of contingent consideration — — — (1,153 ) — (1,153 ) (0.04 ) Adjusted $ 6,798 $ 13,781 $ 8,928 $ (25,916 ) $ (1,348 ) $ (27,264 ) $ (0.97 )
Three Months Ended March 31, 2020 Cost of Selling, Research Loss from Other Net loss Diluted Reported $ 3,194 $ 10,235 $ 7,973 $ (17,600 ) $ (498 ) $ (18,098 ) $ (25.84 ) Adjustment for assumed conversion of convertible preferred stock — — — — — — 24.78 Amortization of acquired intangibles — (110 ) — 110 — 110 0.01 Stock-based compensation (108 ) (1,422 ) (211 ) 1,741 — 1,741 0.10 Change in fair value of contingent consideration — — — (2,219 ) — (2,219 ) (0.13 ) Change in fair value of warrant liability — — — — (581 ) (581 ) (0.03 ) Adjusted $ 3,086 $ 8,703 $ 7,762 $ (17,968 ) $ (1,079 ) $ (19,047 ) $ (1.11 )
Three Months Ended June 30, 2020 Cost of Selling, Research Loss from Other Net loss Diluted Reported $ 2,663 $ 9,125 $ 8,176 $ (19,465 ) $ (3,728 ) $ (23,193 ) $ (32.24 ) Adjustment for assumed conversion of convertible preferred stock — — — — — — 30.90 Amortization of acquired intangibles — (110 ) — 110 — 110 0.01 Stock-based compensation (58 ) (981 ) (118 ) 1,157 — 1,157 0.07 Change in fair value of contingent consideration — — — 635 — 635 0.04 Change in fair value of warrant liability — — — — 2,453 2,453 0.14 Adjusted $ 2,605 $ 8,034 $ 8,058 $ (17,563 ) $ (1,275 ) $ (18,838 ) $ (1.08 )
Three Months Ended September 30, 2020 Cost of Selling, Research Loss from Other Net loss Diluted Reported $ 5,141 $ 15,833 $ 8,343 $ (26,262 ) $ (5,026 ) $ (31,288 ) $ (1.95 ) Adjustment for assumed conversion of convertible preferred stock — — — — — — 0.61 Amortization of acquired intangibles — (110 ) — 110 — 110 — Stock-based compensation (127 ) (6,008 ) (239 ) 6,374 — 6,374 0.27 Change in fair value of contingent consideration — — — 118 — 118 0.01 Change in fair value of warrant liability — — — — 3,683 3,683 0.16 Adjusted $ 5,014 $ 9,715 $ 8,104 $ (19,660 ) $ (1,343 ) $ (21,003 ) $ (0.90 )
Three Months Ended December 31, 2020 Cost of Selling, Research Loss from Other Net loss Diluted Reported $ 4,891 $ 15,164 $ 8,962 $ (28,006 ) $ (1,373 ) $ (29,402 ) $ (1.05 ) Income tax expense — — — — 23 23 — Amortization of acquired intangibles — (127 ) — 127 — 127 — Stock-based compensation (147 ) (2,378 ) (305 ) 2,831 — 2,831 0.10 Change in fair value of contingent consideration — — — 1,563 — 1,563 0.06 Adjusted $ 4,744 $ 12,659 $ 8,657 $ (23,485 ) $ (1,350 ) $ (24,858 ) $ (0.89 )
Three Months Ended March 31, June 30, September 30, December 31, 2021 2020 2020 2020 2020 Denominator Weighted average shares of common stock outstanding used in GAAP per share calculations 28,031,686 700,505 719,421 16,080,467 27,897,224 Adjustments to reflect the assumed conversion of convertible preferred stock (1) — 16,409,293 16,572,935 7,205,624 — Shares used in non-GAAP per share calculations 28,031,686 17,109,798 17,292,356 23,286,091 27,897,224
(1) Assumes the conversion of outstanding shares of convertible preferred stock into shares of common stock as if such conversion had occurred at the beginning of the period or their issuance dates, if later.
Acutus Medical, Inc. Key Business Metrics
Installed Base
The total installed base as of March 31, 2021 and 2020 is set forth in the table below:
As of March 31, 2021 2020 (unaudited) Acutus Direct US 39 13 Europe 16 18 Total Acutus Direct 55 31 Biotronik 7 — Total installed base 62 31
The net increase in installed base for the three months ended March 31, 2021 and 2020, exclusive of transfers between Acutus and Biotronik, is set forth in the table below:
Three Months Ended March 31, 2021 2020 (unaudited) Acutus Direct US 2 3 Europe 2 1 Total Acutus Direct 4 4 Net systems to Biotronik — — Total net system placements 4 4
Revenue
The following table sets forth the Company’s revenue for disposables, systems, and service/other for the three months ended March 31, 2021 and 2020 (in thousands):
Three Month Ended March 31, 2021 2020 (unaudited) Acutus Direct Disposables $ 1,783 $ 1,017 Systems 613 520 Service/Other 35 10 Total Acutus direct revenue 2,431 1,547 Distribution agreements 1,160 36 Total revenue $ 3,591 $ 1,583
The following table provides revenue by geographic location for the three months ended March 31, 2021 and 2020 (in thousands):
Three Months Ended March 31, 2021 2020 (unaudited) Acutus Direct United States $ 1,468 $ 770 Europe 963 777 Total Acutus direct revenue 2,431 1,547 Distribution Agreements United States 113 — Europe 1,047 36 Total revenue through distribution 1,160 36 Total revenue $ 3,591 $ 1,583
