AFIB - Acutus Medical Reports Fourth Quarter and Full Year 2023 Financial Results | Benzinga
CARLSBAD, Calif., April 01, 2024 (GLOBE NEWSWIRE) -- Acutus Medical, Inc. ("Acutus" or the "Company") (NASDAQ:AFIB) today reported results for the fourth quarter and full year ended December 31,2023.
Recent Highlights:
- Announced strategic realignment of resources and corporate restructuring on November 8, 2023 with the objective of optimizing financial position and maximizing free cash flow.
- The Continuing Operations focuses on the implementation of the business model to shift to solely support the manufacturing and distribution of Medtronic's left-heart access product portfolio.
- Discontinued Operations relates to the Company's mapping and ablation business that was wound down as part of the strategic realignment of resources and corporate restructuring.
- Fourth quarter revenue from Continuing Operations of $2.4 million grew 118% year-over-year, from $1.1 million in the year ago fourth quarter.
- Full year revenue from Continuing Operations of $7.2 million, grew 136% year-over-year from $3.0 million in 2022.
Full Year 2024 Financial Results
Revenue from Continuing Operations was $2.4 million for the fourth quarter of 2023, an increase of 118% compared to $1.1 million for the fourth quarter of 2022. The improvement over last year was driven by sales through the Company's distribution agreement with Medtronic.
Full Year 2024 Financial Results
Revenue from Continuing Operations was $7.2 million for the full year of 2023, an increase of 136% compared to $3.0 million for the full year of 2022. The improvement over last year was primarily driven by sales through the Company's distribution agreement with Medtronic.
Gross margin on a GAAP basis was negative 44% for the full year ended December 31,2023 compared to negative 63% for the full year ended December 31, 2022. The improvement was driven by higher production volumes related to left-heart access manufacturing, operational efficiencies implemented on the production line, and reduced manufacturing overhead expenses.
Operating expenses for continuing operations, consisting of research and development, and selling, general and administrative expenses on a GAAP basis were $17.5 million for the year ended December 31,2023 compared to $23.4 million for the same period last year. The decrease in operating expenses resulted from reduced discretionary spend, and the reprioritization of certain research and development programs.
Net loss on continuing operations on a GAAP basis was $11.9 million for the full year ended December 31, 2023 and net loss per share was $0.41 on a weighted average basic and diluted outstanding share count of 29.3 million, compared to a net income of $28.8 million and a net earnings per share of $1.02 on a weighted average basic outstanding share count of 29.3, and a net earnings per share of $0.78 on a weighted average diluted outstanding share count of 28.6 million for the same quarter last year. The decrease in net Income is primarily related to the change in the gain on sale of the Left Heart Access business to Medtronic from the year ended December 31, 2022.
Cash, cash equivalents, marketable securities and restricted cash were $29.4 million as of December 31, 2023.
Loss on Discontinued Operations
Loss on discontinued operations was $69.7 million for the year ended December 31, 2023, compared to $68.4 million for the year ended December 31, 2022. This increase of $1.3 million was primarily attributable to an increase in restructuring expense of $21.9 million, which includes the $16.4 million loss recorded on classification of held for sale, offset by a decrease in selling and marketing expenses of $8.5 million, a decrease in research and development expenses of $6.7 million and an improvement in gross profit margin of 2,900 basis points, during the year ended December 31, 2023.
Outlook
Due to the announced plan to realign resources to support the left-heart access distribution business and exit from the electrophysiology mapping and ablation businesses, the Company will no longer provide financial guidance.
About Acutus
Acutus is focused on the production of left-heart access products under its distribution agreement with Medtronic, Inc. Founded in 2011, Acutus is based in Carlsbad, California.
Caution Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company's ability to continue to manage expenses and cash burn rate at sustainable levels, successful completion of the Company's restructuring plan, continued acceptance of the Company's left-heart access products in the marketplace, the effect of global economic conditions on the ability and willingness of Medtronic to purchase the Company's left-heart access products and the timing of such purchases, competitive factors, changes resulting from healthcare policy in the United States and globally including changes in government reimbursement of procedures, dependence upon third-party vendors and distributors, timing of regulatory approvals, the Company's ability to maintain its listing on Nasdaq, and other risks discussed in the Company's periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, Acutus undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
| Investor Contact: |
| Chad Hollister |
| Acutus Medical, Inc. |
| investors@acutus.com |
| Acutus Medical, Inc. |
| Consolidated Balance Sheets |
| (in thousands, except share and per share amounts) |
| December 31, 2023 |
| December 31, 2022 |
| ASSETS |
| Current assets: |
| Cash and cash equivalents |
| $ |
| 19,170 |
| $ |
| 25,584 |
| Marketable securities, short-term |
| 3,233 |
| 44,863 |
| Restricted cash, short-term |
| 7,030 |
| 5,764 |
| Accounts receivable |
| 11,353 |
| 17,919 |
| Inventory |
| 4,278 |
| 1,794 |
| Employer retention credit receivable |
| — |
| 4,703 |
| Prepaid expenses and other current assets |
| 678 |
| 1,254 |
| Current assets of discontinued operations (Note 3) |
| 510 |
| 15,986 |
| Total current assets |
| 46,252 |
| 117,867 |
| Property and equipment, net |
| 825 |
| 1,669 |
| Right-of-use assets, net |
| 3,189 |
| 3,872 |
| Other assets |
| 94 |
| 94 |
| Non-current assets of discontinued operations (Note 3) |
| 3,600 |
| 9,938 |
| Total assets |
| $ |
| 53,960 |
| $ |
| 133,440 |
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY |
| Current liabilities: |
| Accounts payable |
| 2,761 |
| 2,473 |
| Accrued liabilities |
| 2,887 |
| 3,310 |
| Contingent consideration, short-term |
| — |
| 1,800 |
| Operating lease liabilities, short-term |
| 718 |
| 319 |
| Long-term debt, current portion |
| 1,864 |
| — |
| Warrant liability |
| 409 |
| 3,346 |
| Current liabilities of discontinued operations (Note 3) |
| 10,303 |
| 8,624 |
| Total current liabilities |
| 18,942 |
| 19,872 |
| Operating lease liabilities, long-term |
| 3,243 |
| 4,103 |
| Long-term debt |
| 32,654 |
| 34,434 |
| Other long-term liabilities |
| — |
| 12 |
| Total liabilities |
| 54,839 |
| 58,421 |
| Commitments and contingencies (Note 12) |
| Stockholders' (deficit) equity |
| Preferred stock, $0.001 par value; 5,000,000 shares authorized as of December 31, 2023 and December 31, 2022; 6,666 shares of the preferred stock, designated as Series A Common Equivalent Preferred Stock, are issued and outstanding as of December 31, 2023 and December 31, 2022, respectively |
| — |
| — |
| Common stock, $0.001 par value; 260,000,000 shares authorized as of December 31, 2023 and December 31, 2022; 29,313,667 and 28,554,656 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively |
| 29 |
| 29 |
| Additional paid-in capital |
| 599,935 |
| 594,173 |
| Accumulated deficit |
| (599,977 |
| ) |
| (518,314 |
| ) |
| Accumulated other comprehensive loss |
| (866 |
| ) |
| (869 |
| ) |
| Total stockholders' equity |
| (879 |
| ) |
| 75,019 |
| Total liabilities and stockholders' equity |
| $ |
| 53,960 |
| $ |
| 133,440 |
| Acutus Medical, Inc. |
| Consolidated Statements of Operations and Comprehensive Loss |
| Year Ended December 31, 2023 |
| (in thousands, except share and per share amounts) |
| 2023 |