Acutus Medical Reports Second Quarter 2021 Financial Results
08/12/2021 - 04:01 PM
CARLSBAD, Calif., Aug. 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 second quarter of 2021.
Recent Highlights:
Reported revenue of $4.7 million in the second quarter of 2021, compared to $1.1 million in the same quarter last year and $3.6 million in the first quarter of 2021. Increased worldwide installed base of second generation AcQMap consoles to 68 as of June 30, 2021, up from 57 at the end of the prior quarter – bringing the total installed base of AcQMap consoles to 70 as of June 30, 2021. Received US Investigational Device Exemption to commence the study of the AcQBlate Force-Sensing Ablation Catheter and System in the treatment of paroxysmal and persistent atrial fibrillation. Participated in first in-person Heart Rhythm Society (“HRS”) meeting since 2019 that showcased our market-leading innovations and broad product portfolio. Appointed Niamh Pellegrini as a member of the Board of Directors. Completed secondary equity offering, including exercise of the green-shoe over-allotment, for 6,325,000 shares and net proceeds of approximately $83 million . “We are pleased with the momentum in our business during the second quarter, especially in our direct segments which grew nearly 45% sequentially as compared to the first quarter of 2021,” said Vince Burgess, President and CEO of Acutus. “Improved utilization and accelerated new product uptake both contributed to strong results in the quarter while capital sales were relatively stable compared to the first quarter of 2021. Our US business led overall performance, while our UK and Europe teams continued to drive solid execution amidst ongoing regional COVID-19 disruptions. Beyond financial results, we are making great progress advancing several high priority R&D programs as well as clinical trials and regulatory approvals, including – as announced earlier this week – the approval and launch of our groundbreaking AcQMap 8 software suite with advanced imaging algorithms. The recent HRS meeting further underscored our opportunity to transform the field of electrophysiology for patients, physicians, and healthcare systems. With our recent capital raise, we are well-positioned to accelerate critical investments in our business.”
Second Quarter 2021 Financial Results $4.7 million for the second quarter of 2021, compared to $1.1 million in the second quarter last year. The improvement over the same quarter last year was driven by increased direct sales of Acutus disposables and higher procedure volumes, increased sales of the AcQMap console, and distributor sales through the Company’s partner, Biotronik. 59% for the second quarter of 2021, compared with negative 135% in the same quarter last year. The improvement was driven by greater production volumes and efficiencies in labor and manufacturing overhead absorption when compared to the same period last year. We continue to make significant investments in our manufacturing infrastructure to support rapid adoption of our broad product portfolio and to position us to scale in-house production as our business grows. As production volumes increase over time, and we recognize the benefits of console sales and conversions, we expect to see continued improvements to our gross margin profile.
Operating expenses on a GAAP basis were $24.5 million for the second quarter of 2021, compared with $17.9 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 $28.7 million for the second quarter of 2021 and net loss per share was $1.02 on a weighted average basic and diluted outstanding share count of 28.2 million, compared to $23.2 million and a net loss per share of $32.24 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 second quarter of 2021 was $25.0 million , or $0.89 per share, compared to $18.8 million , or $1.08 per share, after giving effect to the pro forma conversion of convertible preferred stock for the second quarter of 2020.
Cash, cash equivalents, marketable securities and restricted cash were $81.2 million as of June 30, 2021. Our secondary equity offering, which was completed in July, resulted in additional net cash proceeds of approximately $83 million .
Outlook and COVID-19
At the same time, the Company continues to make progress with key growth initiatives, including strengthening commercial execution, new product approvals and launches, and improving its operational performance. For the full year, management is leaving its guidance unchanged and projects revenue to range between $22.0 million and $30.0 million .
Non-GAAP Financial Measures
Webcast and Conference Call Information https://ir.acutusmedical.com
About Acutus Medical, Inc.
Caution Regarding Forward-Looking Statements
Investor Contact: Media Contact: Caroline Corner Holly Windler Westwicke ICR M: 619-929-1275 D: 415-202-5678 media@acutusmedical.com caroline.corner@westwicke.com
Acutus Medical, Inc. Consolidated Balance Sheets
(in thousands, except per share amounts) June 30, 2021 December 31, 2020 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 7,127 $ 25,234 Marketable securities, short-term 73,894 105,839 Restricted cash 150 150 Accounts receivable 3,359 2,160 Inventory 14,663 12,958 Prepaid expenses and other current assets 2,859 5,047 Total current assets 102,052 151,388 Marketable securities, long-term — 8,726 Property and equipment, net 15,335 12,356 Right-of-use assets, net 4,841 1,669 Intangible assets, net 5,333 5,653 Goodwill 12,026 12,026 Other assets 1,006 717 Total assets $ 140,593 $ 192,535 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 5,794 $ 8,266 Accrued liabilities 8,908 7,308 Contingent consideration, short-term 2,700 5,400 Operating lease liabilities, short-term 454 933 Total current liabilities 17,856 21,907 Operating lease liabilities, long-term 4,798 1,134 Long-term debt 39,683 39,011 Contingent consideration, long-term 2,400 3,900 Total liabilities 64,737 65,952 Stockholders' equity Preferred stock, $0.001 par value — — Common stock, $0.001 par value 28 28 Additional paid-in capital 494,595 487,290 Accumulated deficit (418,923 ) (361,015 ) Accumulated other comprehensive income 156 280 Total stockholders' equity 75,856 126,583 Total liabilities and stockholders' equity $ 140,593 $ 192,535
Acutus Medical, Inc. Consolidated Statements of Operations and Comprehensive Loss
Three Months Ended June 30, Six Months Ended June 30, (in thousands, except share and per share amounts) 2021 2020 2021 2020 (unaudited) (unaudited) Revenue $ 4,709 $ 1,134 $ 8,300 $ 2,717 Costs and operating expenses: Cost of products sold 7,492 2,663 14,447 5,857 Research and development 9,174 8,176 18,544 16,149 Selling, general and administrative 15,601 9,125 31,853 19,360 Change in fair value of contingent consideration (258 ) 635 (1,411 ) (1,584 ) Total costs and operating expenses 32,009 20,599 63,433 39,782 Loss from operations (27,300 ) (19,465 ) (55,133 ) (37,065 ) Other income (expense): Change in fair value of warrant liability — (2,453 ) — (1,872 ) Interest income 29 95 69 370 Interest expense (1,456 ) (1,370 ) (2,844 ) (2,724 ) Total other expense, net (1,427 ) (3,728 ) (2,775 ) (4,226 ) Loss before income taxes (28,727 ) (23,193 ) (57,908 ) (41,291 ) Income tax benefit — — — — Net loss $ (28,727 ) $ (23,193 ) $ (57,908 ) $ (41,291 ) Other comprehensive income (loss) Unrealized gain (loss) on marketable securities 4 (14 ) 10 (41 ) Foreign currency translation adjustment 92 96 (134 ) 69 Comprehensive loss $ (28,631 ) $ (23,111 ) $ (58,032 ) $ (41,263 ) Net loss per common share, basic and diluted $ (1.02 ) $ (32.24 ) $ (2.06 ) $ (58.16 ) Weighted average shares outstanding, basic and diluted 28,152,305 719,421 28,092,329 709,961
Acutus Medical, Inc. Consolidated Statements of Cash Flows
Six Months Ended June 31, (in thousands) 2021 2020 (unaudited) Cash flows from operating activities Net loss $ (57,908 ) $ (41,291 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 2,747 978 Amortization of intangible assets 320 220 Stock-based compensation expense 6,686 2,898 Amortization of premiums/(accretion of discounts) on marketable securities, net 797 5 Amortization of debt issuance costs 672 314 Amortization of right-of-use assets 343 336 Change in fair value of warrant liability — 1,872 Change in fair value of contingent consideration (1,411 ) (1,584 ) Changes in operating assets and liabilities: Accounts receivable (1,199 ) (597 ) Inventory (1,705 ) (3,616 ) Prepaid expenses and other current assets 2,501 666 Other assets (289 ) 8 Accounts payable (2,727 ) 5,286 Accrued liabilities 1,600 155 Operating lease liabilities (342 ) (411 ) Net cash used in operating activities (49,915 ) (34,761 ) Cash flows from investing activities Purchases of available-for-sale marketable securities (9,134 ) — Sales of available-for-sale marketable securities 4,590 17,095 Maturities of available-for-sale marketable securities 44,407 40,000 Purchases of property and equipment (5,841 ) (4,445 ) Net cash provided by investing activities 34,022 52,650 Cash flows from financing activities Payment of deferred offering costs (10 ) (701 ) Payment of contingent consideration (2,758 ) (2,619 ) Proceeds from stock options exercises 619 205 Net cash used in financing activities (2,149 ) (3,115 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (65 ) 69 Net change in cash, cash equivalents and restricted cash (18,107 ) 14,843 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 $ 7,277 $ 24,445
Acutus Medical, Inc. Reconciliation of GAAP Results to Non-GAAP Results (Unaudited)
Three Months Ended June 30, 2021 Cost of products sold Research and development Selling, general and administrative Loss from operations Other expenses, net Net loss Diluted EPS Reported $ 7,492 $ 9,174 $ 15,601 $ (27,300 ) $ (1,427 ) $ (28,727 ) $ (1.02 ) Amortization of acquired intangibles — — (160 ) 160 — 160 0.01 Stock-based compensation (223 ) (630 ) (2,923 ) 3,776 — 3,776 0.13 Change in fair value of contingent consideration — — — (258 ) — (258 ) (0.01 ) Adjusted $ 7,269 $ 8,544 $ 12,518 $ (23,622 ) $ (1,427 ) $ (25,049 ) $ (0.89 )
Three Months Ended June 30, 2020 Cost of products sold Research and development Selling, general and administrative Loss from operations Other expenses, net Net loss Diluted EPS Reported $ 2,663 $ 8,176 $ 9,125 $ (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 ) (118 ) (981 ) 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 $ 8,058 $ 8,034 $ (17,563 ) $ (1,275 ) $ (18,838 ) $ (1.08 )
Three Months Ended June 30, 2021 2020 Denominator Weighted average shares of common stock outstanding used in GAAP per share calculations 28,152,305 719,421 Adjustments to reflect the assumed conversion of convertible preferred stock (1) — 16,572,935 Shares used in non-GAAP per share calculations 28,152,305 17,292,356
(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 June 30, 2021 and 2020 is set forth in the table below:
As of June 30, 2021 2020 (unaudited) Acutus Direct US 42 20 Europe 18 18 Total Acutus Direct 60 38 Biotronik 10 — Total installed base 70 38
The net increase in installed base for the three and six months ended June 30, 2021 and 2020, exclusive of transfers between Acutus and Biotronik, is set forth in the table below:
Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (unaudited) (unaudited) Acutus Direct US 3 7 5 10 Europe 2 — 4 1 Total Acutus Direct 5 7 9 11 Net systems to Biotronik 3 — 3 — Total net system placements 8 7 12 11
Revenue
The following table sets forth the Company’s revenue for disposables, systems and service/other for the three and six months ended June 30, 2021 and 2020 (in thousands):
Three Month Ended June 30, Six Month Ended June 30, 2021 2020 2021 2020 (unaudited) (unaudited) Acutus Direct Disposables $ 2,816 $ 899 $ 4,599 $ 1,919 Systems 672 — 1,285 520 Service/Other 33 12 68 18 Total Acutus direct revenue 3,521 911 5,952 2,457 Distribution agreements 1,188 223 2,348 260 Total revenue $ 4,709 $ 1,134 $ 8,300 $ 2,717
The following table provides revenue by geographic location for the three and six months ended June 30, 2021 and 2020 (in thousands):
Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (unaudited) (unaudited) Acutus Direct United States $ 2,344 $ 544 $ 3,812 $ 1,313 Europe 1,177 367 2,140 1,144 Total Acutus direct revenue 3,521 911 5,952 2,457 Distribution Agreements United States 143 15 256 15 Europe 1,045 208 2,092 245 Total revenue through distribution agreements 1,188 223 2,348 260 Total revenue $ 4,709 $ 1,134 $ 8,300 $ 2,717
