Fourth Quarter and Recent Business Highlights:
- Reported revenue of
$13.8 million in the fourth quarter of 2022, compared with revenue of$13.6 million in the fourth quarter of 2021 and$12.6 million in the third quarter of 2022 - Symphion revenue of
$12.1 million for full-year 2022 increased 13% from 2021 - Appointed
Todd Usen as Chief Executive Officer at the start of 2023 concurrent with the retirement of former CEODavid Clapper - Closed on a
$30 million private placement of common stock onFebruary 9, 2023 , led byAccelmed Partners II L.P. with participation byNew Enterprise Associates
“With a successful financing behind us, we are well-positioned to enter a new chapter of growth and drive shareholder value,” said
Fourth Quarter 2022 Financial Results
Revenue was
Overall gross margin was 53.4% for the fourth quarter of 2022, decreasing from 57.3% in the same period of 2021 and 54.1% reported in the third quarter of 2022. This reduction in gross margin was due in part to the shift in product mix from Genesys HTA to Symphion, which currently has a lower gross margin. Additionally, we have placed a significant number of controllers over the past year at customer sites, contributing to an increase in the cost of goods sold, as the cost of the controllers amortize over future time periods.
Operating expenses were
Net loss in the fourth quarter of 2022 was
Adjusted EBITDA for the fourth quarter of 2022 was negative
Full-Year 2022 Financial Results
Revenue was
Overall gross margin was 54.2% for the full-year 2022, decreasing from the gross margin of 58.6% for the full-year 2021. This reduction in gross margin was mainly a result of the shift in product mix from Genesys HTA to Symphion, which currently has a lower gross margin. The gross margin was also negatively impacted as fixed overhead costs were spread over a smaller base of product revenue in 2022 compared to 2021.
Operating expenses were
Net loss for the full-year 2022 was
Adjusted EBITDA for the full-year 2022 was negative
Financial Outlook for Fiscal Year 2023
We plan to discuss 2023 annual guidance on our first quarter earnings call in May, following completion of our strategic business review with our board and new CEO.
Webcast and Conference Call Information
Use of Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
To provide investors with additional information regarding the Company’s financial results, it has provided EBITDA and adjusted EBITDA. The Company calculates EBITDA, a non-GAAP financial measure, as net income/(loss) excluding depreciation and amortization, interest income and expense and income tax expense. The Company calculates adjusted EBITDA, a non-GAAP financial measure by further excluding non-cash items for stock-based compensation expenses, loss on extinguishment of long-term debt and convertible notes, gain on extinguishment of PPP loan, change in fair value of redeemable convertible preferred stock warrant liability, change in fair value of contingent consideration liability and change in fair value of derivative liabilities. EBITDA margin represents EBITDA as a percentage of revenue. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue. EBITDA and Adjusted EBITDA should be viewed as measures of operating performance that are supplements to, and not substitutes for, operating income (loss), net income (loss) and other
The Company has included adjusted EBITDA in this earnings release because it is a key measure used by the Company’s management and board of directors to evaluate and compare the Company’s financial and operational performance over multiple periods, identifying trends affecting the Company’s business, formulating business plans and making strategic decisions. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain non-recurring variable charges. In addition, the Company believes that providing each of EBITDA and Adjusted EBITDA, together with a reconciliation of net loss to each such measure, helps investors make comparisons between
Each of EBITDA and Adjusted EBITDA is used by the Company’s management team as an additional measure of Company performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of EBITDA and Adjusted EBITDA help the Company’s management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of net income or income from continuing operations. Each of EBITDA and Adjusted EBITDA has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on management’s current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and actual results may differ materially from those expressed or implied in such statements due to numerous risks and uncertainties. Forward-looking statements may include information regarding trends and expectations for the Company’s products and technology, demand for the Company’s products, the Company’s expected financial performance, expenses, and position in the market and outlook for fiscal year 2023, and the impact of COVID-19 and its variants on the Company’s operations and those of its customers. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of the Company’s quarterly report on Form 10-Q for the quarter ended
About
Contact:
Media/Press: media@minervasurgical.com
Investors: investor.relations@minervasurgical.com
www.minervasurgical.com
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Statements of Operations
(in thousands, except share and per share amounts)
Years Ended December 31, | ||||||||
2022 | 2021 | |||||||
Revenues | $ | 50,294 | $ | 52,103 | ||||
Cost of goods sold | 23,052 | 21,580 | ||||||
Gross profit | 27,242 | 30,523 | ||||||
Operating expenses | ||||||||
Sales and marketing | 38,328 | 32,193 | ||||||
General and administrative | 14,370 | 22,183 | ||||||
Research and development | 5,443 | 5,292 | ||||||
Total operating expenses | 58,141 | 59,668 | ||||||
Loss from operations | (30,899 | ) | (29,145 | ) | ||||
Interest income | 89 | 10 | ||||||
Interest expense (includes $nil and | (3,222 | ) | (11,728 | ) | ||||
Change in fair value of derivative liabilities | - | 38,007 | ||||||
Loss on extinguishment of convertible notes | - | (21,295 | ) | |||||
Gain on extinguishment of PPP loan | - | 3,036 | ||||||
Other expense, net | (69 | ) | (340 | ) | ||||
Net loss before income taxes | (34,101 | ) | (21,455 | ) | ||||
Income tax expense | (11 | ) | (9 | ) | ||||
Net loss | $ | (34,112 | ) | $ | (21,464 | ) | ||
Net loss per share attributable to common stockholders, basic and diluted | $ | (1.18 | ) | $ | (3.06 | ) | ||
Weighted-average common shares used in computing net loss per share, basic and diluted | 28,808,445 | 7,012,226 |
Balance Sheets
(in thousands, except share and per share amounts)
December 31, 2022 | December 31, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 6,942 | $ | 40,608 | ||||
Restricted cash, current | 604 | 7,283 | ||||||
Accounts receivable, net | 7,244 | 7,292 | ||||||
Inventory | 16,850 | 15,682 | ||||||
Prepaid expenses and other current assets | 4,479 | 4,139 | ||||||
Total current assets | 36,119 | 75,004 | ||||||
Restricted cash, net of current portion | 265 | 524 | ||||||
Intangible assets, net | 26,778 | 34,970 | ||||||
Property and equipment, net | 5,042 | 4,594 | ||||||
Operating lease right-of-use asset | 270 | — | ||||||
Other non-current assets | 426 | — | ||||||
Total assets | $ | 68,900 | $ | 115,092 | ||||
Liabilities and stockholders’ equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 2,804 | $ | 3,629 | ||||
Accrued compensation | 3,701 | 3,518 | ||||||
Accrued liabilities | 5,524 | 10,662 | ||||||
Contingent consideration liability, current | — | 5,000 | ||||||
Operating lease liability | 355 | — | ||||||
Current portion of long-term debt | 1,894 | — | ||||||
Total current liabilities | 14,278 | 22,809 | ||||||
Long-term debt | 37,441 | 39,085 | ||||||
Contingent consideration liability, net of current portion | — | 9,094 | ||||||
Total liabilities | 51,719 | 70,988 | ||||||
Commitments and contingencies (Note 8) | ||||||||
Stockholders` equity: | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 29 | 28 | ||||||
Additional paid-in capital | 300,809 | 293,621 | ||||||
Accumulated other comprehensive income | 11 | 11 | ||||||
Accumulated deficit | (283,668 | ) | (249,556 | ) | ||||
Total stockholders’ equity | 17,181 | 44,104 | ||||||
Total liabilities and stockholders’ equity | $ | 68,900 | $ | 115,092 |
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin: The following table presents reconciliation of net loss to adjusted EBITDA for each of the periods indicated.
Years Ended December 31, | ||||||||
(in thousands, except percentage figures) | 2022 | 2021 | ||||||
Net loss | $ | (34,112 | ) | $ | (21,464 | ) | ||
Depreciation and amortization | 10,806 | 10,620 | ||||||
Interest (income) expense, net | 3,133 | 11,718 | ||||||
Income tax expense | 11 | 9 | ||||||
EBITDA | (20,162 | ) | 883 | |||||
EBITDA margin | (40.1% | ) | 1.7% | |||||
Adjustments: | ||||||||
Loss on extinguishment of convertible notes | — | 21,295 | ||||||
Gain on extinguishment of PPP loan | — | (3,036 | ) | |||||
Stock-based compensation expense | 6,978 | 6,817 | ||||||
Change in fair value of redeemable convertible preferred stock warrant liability | — | 328 | ||||||
Change in fair value of contingent consideration liability | (9,094 | ) | 427 | |||||
Change in fair value of derivative liabilities | — | (38,007 | ) | |||||
Adjusted EBITDA | $ | (22,278 | ) | $ | (11,293 | ) | ||
Adjusted EBITDA margin | (44.3% | ) | (21.7% | ) |
Source:
2023 GlobeNewswire, Inc., source