Asensus Surgical, Inc. (NYSE American: ASXC), a medical device
company that is digitizing the interface between the surgeon and
the patient to pioneer a new era of Performance-Guided Surgery™,
today announced its operating and financial results for the third
quarter 2023.
Recent Highlights
- 17% growth in
surgical procedures, with over 2,700 procedures performed globally
year to date at September 30, 2023
- Two Senhance
Surgical programs initiated in the quarter, with two programs
initiated subsequent to the end of the third quarter, bringing the
year-to-date total to five
- The Company had cash
and cash equivalents and short-term investments, excluding
restricted cash, of approximately $33.1 million at September 30,
2023
"I'm pleased with the progress we've made and the strong
foundation we are building for the future. We anticipate reaching
important milestones in the upcoming quarters,” said Anthony
Fernando, Asensus Surgical President and CEO. “With the LUNA™
Surgical System program progressing as planned, our primary
objective continues to be the completion of our preclinical
evaluation planned for December this year with the full LUNA
system. Additionally, we are excited to see notable traction in the
pediatrics space, a testament to our commitment to advancing
surgical technology for all patients and the unique features of the
Senhance System.”
2023 Milestones
During the third quarter of 2023, the Company achieved the
following developmental milestones:
- Finalized
manufacturing strategy with Flex for LUNA Surgical System
- Finalized strategic relationship with NVIDIA as our graphics
hardware provider
During the last quarter of 2023, the Company continues to expect
to achieve the following developmental milestones:
- Complete integrated
system testing for our LUNA Surgical System
- Conduct preclinical
evaluation for our LUNA Surgical System
- Finalize manufacturing partner for the updated Intelligent
Surgical Unit™ (ISU™) platform
For the full year 2023, the Company now expects to initiate 8 -
10 new Senhance programs, revised from the previous estimate.
LUNA System
The LUNA System's development is in progress and is now entering
the testing and evaluation phase before regulatory submissions.
Preclinical evaluation is on track to be completed in December this
year with seven U.S and European surgeons in attendance over a week
long period to perform preclinical procedures on porcine models to
confirm the performance of the LUNA system. Future milestones
include freezing the system's design in early 2024, followed by
verification and validation testing, and pilot manufacturing. The
Company is confident in the regulatory pathway for the LUNA System.
Ongoing communication with the FDA, along with strong in-house
regulatory expertise and past successful submissions for the
Senhance System, lead the Company to anticipate using a standard
510(k) pathway in the U.S., rather than the more complex de novo
pathway. This streamlined approach is expected to apply globally,
offering a quicker market entry compared to new entrants.
Market Development
Procedure Volumes
Year to date ended September 30, 2023, there was a 17% growth in
procedures completed utilizing the Senhance System over the same
period in 2022. The main drivers of this expansion were consistent
utilization patterns brought on by an increased installed base and
an increase of new surgeon users at existing installations.
2023 Senhance Program Initiations
Year to date, the Company initiated five new Senhance Surgical
System placements or sales, which consisted of two in Japan, one in
Germany, one in the Commonwealth of Independent States (CIS)
region, and one in the United States.
In August, the Company initiated a program with First Towakai
Hospital, in their urology, gynecology, and gastroenterology
departments. This initiation in Japan further strengthens the
Company’s presence in the region.
In July, Mayo Clinic Hospital, Saint Marys Campus, a leading
U.S.-based hospital, became the first hospital in the United States
to exclusively utilize the Senhance System for pediatric surgery.
The system's specialized features, including augmented
intelligence, machine learning, haptic feedback, and tailored
instruments, make it exceptionally well-suited for pediatric
procedures.
After the close of the third quarter, the Company placed one
additional system and sold a second system.
Klinikum Idar-Oberstein Hospital in Germany, initiated a
Senhance Surgical System in the Clinic for General, Visceral and
Minimally Invasive Surgery. The second system was sold to the
Company's distribution partner and is planned for installation in
the Commonwealth of Independent States (CIS) region.
Third Quarter Financial Results
For the three months ended September 30, 2023, the Company
reported revenue of $1.1 million, as compared to revenue of $2.6
million in the three months ended September 30, 2022. Revenue in
the third quarter of 2023 included $0.5 million in lease revenue,
$0.3 million in instruments and accessories, and $0.3 million in
services.
For the three months ended September 30, 2023, total operating
expenses were $18.5 million, as compared to $17.2 million, in the
three months ended September 30, 2022.
For the three months ended September 30, 2023, net loss was
$18.3 million, or $0.07 per share, as compared to a net loss of
$18.9 million, or $0.08 per share, in the three months ended
September 30, 2022.
Adjusted net loss is a non-GAAP financial measure. See the
reconciliation of GAAP to Non-GAAP Measures below. For the three
months ended September 30, 2023, the adjusted net loss was $15.6
million, or $0.06 per share, as compared to the adjusted net loss
of $16.9 million, or $0.07 per share in the three months ended
September 30, 2022, after adjusting for the following non-cash
charges: amortization of intangible assets, change in fair value of
contingent consideration, and change in fair value of warrant
liabilities.
Balance Sheet Updates
The Company had cash and cash equivalents and short-term
investments, excluding restricted cash, of approximately $33.1
million as of September 30, 2023.
In July, a registered direct offering was successfully
completed, yielding approximately $10 million in gross proceeds.
The infusion of these funds is strategically earmarked to fortify
working capital and contribute to ongoing research and development
endeavors.
Based on the recent financing and our current operating plan,
the Company anticipates that available cash will now sustain
operations until the late second quarter of 2024.
Conference Call
To listen to the conference call on your telephone, please dial
1-888-886-7786 for domestic callers and 1-416-764-8658 for
international callers, approximately ten minutes prior to the start
time. To access the live audio webcast or archived recording, use
the following link https://ir.asensus.com/events-and-presentations.
The replay will be available on the Company’s website.
About Asensus Surgical, Inc.
Asensus Surgical, Inc. is digitizing the interface between the
surgeon and patient to pioneer a new era of Performance-Guided
Surgery by unlocking clinical intelligence for surgeons to enable
consistently superior outcomes and a new standard of surgery.
Based upon the foundations of digital laparoscopy and the
Senhance® Surgical System, the Company is developing the LUNA™
Surgical System, a next generation robotic and instrument system as
a foundation of its digital surgery solution. These systems are and
will be powered by the Intelligent Surgical Unit to increase
surgeon control and reduce surgical variability. With the addition
of machine vision, augmented intelligence, and deep learning
capabilities throughout the surgical experience, we intend to
holistically address the current clinical, cognitive and economic
shortcomings that drive surgical outcomes and value-based
healthcare. The Senhance Surgical System is now available for sale
in the US, EU, Japan, Russia, and select other countries. For a
complete list of indications for use, visit:
www.senhance.com/indications. To learn more about
Performance-Guided Surgery, and digital laparoscopy with the
Senhance Surgical System visit www.asensus.com..
Follow Asensus
Email Alerts: https://ir.asensus.com/email-alertsLinkedIn:
https://www.linkedin.com/company/asensus-surgical-incTwitter:
https://twitter.com/AsensusSurgicalYouTube:
https://www.youtube.com/@AsensusSurgicalVimeo:
https://vimeo.com/asxcTikTok:
https://www.tiktok.com/@asensus_surgical
Forward-Looking Statements
This press release includes statements relating to Asensus
Surgical, our 2023 third quarter results, and our plans for the
remainder of 2023 and beyond. These statements and other statements
regarding our future plans and goals constitute "forward looking
statements'' within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
and are intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. Such statements are subject to risks and uncertainties that
are often difficult to predict, are beyond our control and which
may cause results to differ materially from expectations and
include whether, based on our current cash and current operating
plan, we will have sufficient available cash to sustain operations
until the late second quarter of 2024 and whether we will be able
to successfully complete financing sufficient to sustain our
operations after that time, whether we will be able to achieve
wider adoption of the Senhance System and optimizing its
utilization, whether we will initiate 8-10 new Senhance programs
during 2023, whether our LUNA System development efforts will
continue on the anticipated timeline, whether our regulatory
submissions for the LUNA System will be successful, and whether in
the last quarter of 2023, we will complete integrated system
testing for the LUNA Surgical System, conduct preclinical
evaluation for the LUNA Surgical System and finalize a
manufacturing partner for the ISU. For a discussion of the
risks and uncertainties associated with the Company’s business,
please review our filings with the Securities and Exchange
Commission (SEC). You are cautioned not to place undue reliance on
these forward-looking statements, which are based on our
expectations as of the date of this press release and speak only as
of the origination date of this press release. We undertake no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Asensus Surgical, Inc.Condensed Consolidated
Statements of Operations and Comprehensive Loss(in
thousands, except per share
amounts)(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ |
301 |
|
|
$ |
1,964 |
|
|
$ |
892 |
|
|
$ |
2,565 |
|
Service |
|
|
295 |
|
|
|
335 |
|
|
|
779 |
|
|
|
1,067 |
|
Lease |
|
|
493 |
|
|
|
264 |
|
|
|
1,475 |
|
|
|
991 |
|
Total revenue |
|
|
1,089 |
|
|
|
2,563 |
|
|
|
3,146 |
|
|
|
4,623 |
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
|
1,171 |
|
|
|
3,057 |
|
|
|
4,008 |
|
|
|
4,316 |
|
Service |
|
|
581 |
|
|
|
365 |
|
|
|
1,849 |
|
|
|
1,506 |
|
Lease |
|
|
1,117 |
|
|
|
982 |
|
|
|
3,033 |
|
|
|
2,752 |
|
Total cost of revenue |
|
|
2,869 |
|
|
|
4,404 |
|
|
|
8,890 |
|
|
|
8,574 |
|
Gross
loss |
|
|
(1,780 |
) |
|
|
(1,841 |
) |
|
|
(5,744 |
) |
|
|
(3,951 |
) |
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
9,290 |
|
|
|
6,741 |
|
|
|
28,409 |
|
|
|
20,422 |
|
Sales and marketing |
|
|
4,138 |
|
|
|
3,615 |
|
|
|
13,140 |
|
|
|
10,936 |
|
General and administrative |
|
|
4,571 |
|
|
|
4,853 |
|
|
|
15,163 |
|
|
|
15,378 |
|
Amortization of intangible assets |
|
|
114 |
|
|
|
2,398 |
|
|
|
340 |
|
|
|
7,601 |
|
Change in fair value of contingent consideration |
|
|
366 |
|
|
|
(416 |
) |
|
|
674 |
|
|
|
(1,168 |
) |
Property and equipment impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
432 |
|
Total Operating Expenses |
|
|
18,479 |
|
|
|
17,191 |
|
|
|
57,726 |
|
|
|
53,601 |
|
Operating
Loss |
|
|
(20,259 |
) |
|
|
(19,032 |
) |
|
|
(63,470 |
) |
|
|
(57,552 |
) |
Other income
(expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of warrant liabilities |
|
|
2,278 |
|
|
|
— |
|
|
|
2,278 |
|
|
|
— |
|
Interest income |
|
|
406 |
|
|
|
291 |
|
|
|
1,276 |
|
|
|
806 |
|
Interest expense |
|
|
— |
|
|
|
(99 |
) |
|
|
— |
|
|
|
(440 |
) |
Other expense |
|
|
(686 |
) |
|
|
(29 |
) |
|
|
(1,146 |
) |
|
|
(261 |
) |
Total Other Income, net |
|
|
1,998 |
|
|
|
163 |
|
|
|
2,408 |
|
|
|
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes |
|
|
(18,261 |
) |
|
|
(18,869 |
) |
|
|
(61,062 |
) |
|
|
(57,447 |
) |
Income tax expense |
|
|
57 |
|
|
|
55 |
|
|
|
136 |
|
|
|
224 |
|
Net loss |
|
|
(18,318 |
) |
|
|
(18,924 |
) |
|
|
(61,198 |
) |
|
|
(57,671 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share
attributable to common stockholders – basic and diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares used in computing net loss per common share – basic and
diluted |
|
|
256,184 |
|
|
|
236,713 |
|
|
|
244,744 |
|
|
|
236,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(18,318 |
) |
|
|
(18,924 |
) |
|
|
(61,198 |
) |
|
|
(57,671 |
) |
Foreign currency translation
(loss) gain |
|
|
(640 |
) |
|
|
(1,655 |
) |
|
|
84 |
|
|
|
(4,018 |
) |
Unrealized gain (loss) on
available-for-sale investments |
|
|
67 |
|
|
|
86 |
|
|
|
473 |
|
|
|
(610 |
) |
Comprehensive loss |
|
$ |
(18,891 |
) |
|
$ |
(20,493 |
) |
|
$ |
(60,641 |
) |
|
$ |
(62,299 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asensus Surgical, Inc.Condensed Consolidated
Balance Sheets(in thousands, except share
amounts)(Unaudited) |
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
21,699 |
|
|
$ |
6,329 |
|
Short-term investments, available-for-sale |
|
|
11,420 |
|
|
|
64,195 |
|
Accounts receivable, net |
|
|
662 |
|
|
|
2,256 |
|
Inventory, net |
|
|
6,683 |
|
|
|
8,284 |
|
Prepaid expenses |
|
|
4,174 |
|
|
|
3,584 |
|
Employee retention tax credit receivable |
|
|
— |
|
|
|
554 |
|
Other current assets |
|
|
1,324 |
|
|
|
1,671 |
|
Total Current Assets |
|
|
45,932 |
|
|
|
86,873 |
|
Restricted cash |
|
|
1,615 |
|
|
|
1,141 |
|
Long-term investments, available-for-sale |
|
|
— |
|
|
|
3,865 |
|
Inventory, net of current portion |
|
|
5,640 |
|
|
|
5,469 |
|
Property and equipment, net |
|
|
9,237 |
|
|
|
9,542 |
|
Intellectual property, net |
|
|
1,278 |
|
|
|
1,576 |
|
Deferred tax assets, net |
|
|
150 |
|
|
|
174 |
|
Operating lease right-of-use assets, net |
|
|
5,004 |
|
|
|
4,950 |
|
Other long-term assets |
|
|
1,871 |
|
|
|
2,463 |
|
Total Assets |
|
$ |
70,727 |
|
|
$ |
116,053 |
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,526 |
|
|
$ |
3,348 |
|
Accrued employee compensation and benefits |
|
|
4,967 |
|
|
|
4,508 |
|
Accrued expenses and other current liabilities |
|
|
1,258 |
|
|
|
1,293 |
|
Operating lease liabilities, current |
|
|
916 |
|
|
|
800 |
|
Deferred revenue |
|
|
456 |
|
|
|
465 |
|
Total Current Liabilities |
|
|
12,123 |
|
|
|
10,414 |
|
Long-Term Liabilities: |
|
|
|
|
|
|
|
|
Warrant liabilities |
|
|
4,842 |
|
|
|
— |
|
Contingent consideration |
|
|
1,930 |
|
|
|
1,256 |
|
Noncurrent operating lease liabilities |
|
|
4,579 |
|
|
|
4,738 |
|
Total Liabilities |
|
|
23,474 |
|
|
|
16,408 |
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Common stock $0.001 par value, 750,000,000 shares authorized at
September 30, 2023 and December 31, 2022; 264,111,257 and
236,895,440 issued and outstanding at September 30, 2023 and
December 31, 2022,
respectively |
|
|
264 |
|
|
|
237 |
|
Preferred stock, $0.01 par value, 25,000,000 shares authorized, no
shares issued and outstanding at September 30, 2023 and December
31, 2022 |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
970,952 |
|
|
|
962,731 |
|
Accumulated deficit |
|
|
(922,133 |
) |
|
|
(860,935 |
) |
Accumulated other comprehensive loss |
|
|
(1,830 |
) |
|
|
(2,388 |
) |
Total Stockholders’ Equity |
|
|
47,253 |
|
|
|
99,645 |
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
70,727 |
|
|
$ |
116,053 |
|
Asensus Surgical, Inc.Condensed Consolidated
Statements of Cash Flows(in
thousands)(Unaudited) |
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
Operating Activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(61,198 |
) |
|
$ |
(57,671 |
) |
Adjustments to reconcile net loss to net cash and cash equivalents
used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
2,405 |
|
|
|
2,481 |
|
Amortization of intangible assets |
|
|
340 |
|
|
|
7,601 |
|
(Accretion) amortization of discounts and premiums on investments,
net |
|
|
(454 |
) |
|
|
556 |
|
Stock-based compensation |
|
|
5,913 |
|
|
|
6,361 |
|
Deferred tax expense |
|
|
136 |
|
|
|
224 |
|
Change in inventory reserves |
|
|
297 |
|
|
|
386 |
|
Bad debt expense |
|
|
— |
|
|
|
9 |
|
Property and equipment impairment |
|
|
— |
|
|
|
432 |
|
Loss on disposal of property and equipment |
|
|
— |
|
|
|
97 |
|
Change in fair value of warrant liabilities |
|
|
(2,278 |
) |
|
|
— |
|
Change in fair value of contingent consideration |
|
|
674 |
|
|
|
(1,168 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
1,587 |
|
|
|
(1,735 |
) |
Inventory |
|
|
536 |
|
|
|
(535 |
) |
Operating lease right-of-use assets |
|
|
(142 |
) |
|
|
237 |
|
Prepaid expenses |
|
|
(590 |
) |
|
|
(693 |
) |
Employee retention tax credit receivable |
|
|
554 |
|
|
|
164 |
|
Other current and long-term assets |
|
|
310 |
|
|
|
(2,123 |
) |
Accounts payable |
|
|
1,236 |
|
|
|
449 |
|
Accrued employee compensation and benefits |
|
|
566 |
|
|
|
236 |
|
Accrued expenses and other current liabilities |
|
|
(97 |
) |
|
|
— |
|
Deferred revenue |
|
|
(5 |
) |
|
|
(139 |
) |
Operating lease liabilities |
|
|
(43 |
) |
|
|
(53 |
) |
Net cash and cash equivalents
used in operating activities |
|
|
(50,253 |
) |
|
|
(44,884 |
) |
Investing Activities: |
|
|
|
|
|
|
|
|
Purchase of available-for-sale investments |
|
|
(12,268 |
) |
|
|
(25,588 |
) |
Proceeds from maturities of available-for-sale investments |
|
|
69,835 |
|
|
|
67,702 |
|
Purchase of property and equipment |
|
|
(488 |
) |
|
|
(904 |
) |
Net cash and cash equivalents
provided by investing activities |
|
|
57,079 |
|
|
|
41,210 |
|
Financing Activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock and warrants, net of
issuance costs |
|
|
9,946 |
|
|
|
— |
|
Taxes paid related to net share settlement of vesting of restricted
stock units |
|
|
(497 |
) |
|
|
(350 |
) |
Proceeds from exercise of stock options |
|
|
5 |
|
|
|
18 |
|
Net cash and cash equivalents
provided by (used in) financing activities |
|
|
9,454 |
|
|
|
(332 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
|
(466 |
) |
|
|
(300 |
) |
Net increase (decrease) in
cash, cash equivalents and restricted cash |
|
|
15,814 |
|
|
|
(4,306 |
) |
Cash, cash equivalents and
restricted cash, beginning of period |
|
|
7,470 |
|
|
|
19,283 |
|
Cash, cash equivalents and
restricted cash, end of period |
|
$ |
23,284 |
|
|
$ |
14,977 |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure for
Cash Flow Information: |
|
|
|
|
|
|
|
|
Cash paid for leases |
|
$ |
1,067 |
|
|
$ |
729 |
|
Cash paid for taxes |
|
$ |
230 |
|
|
$ |
79 |
|
|
|
|
|
|
|
|
|
|
Supplemental Schedule of
Non-cash Investing and Financing Activities: |
|
|
|
|
|
|
|
|
Transfer of inventories to property and equipment |
|
$ |
2,227 |
|
|
$ |
1,293 |
|
Lease liabilities arising from obtaining right-of-use assets |
|
$ |
796 |
|
|
$ |
316 |
|
|
Asensus Surgical, Inc. Reconciliation
of Non-GAAP Measures Adjusted Net Loss and
Adjusted Net Loss per Share (in thousands
except per share
amounts) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common stockholders (GAAP) |
$ |
(18,318 |
) |
|
$ |
(18,924 |
) |
|
$ |
(61,198 |
) |
|
$ |
(57,671 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets (a) |
|
114 |
|
|
|
2,398 |
|
|
|
340 |
|
|
|
7,601 |
|
|
Change in fair
value of contingent consideration (b) |
|
366 |
|
|
|
(416 |
) |
|
|
674 |
|
|
|
(1,168 |
) |
|
Impairment of
property and equipment (c) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
432 |
|
|
Change in fair
value of warrant liabilities (d) |
|
2,278 |
|
|
|
— |
|
|
|
2,278 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net loss attributable to common stockholders
(Non-GAAP) |
$ |
(15,560 |
) |
|
$ |
(16,942 |
) |
|
$ |
(57,906 |
) |
|
$ |
(50,806 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Net loss
per share attributable to common stockholders (GAAP) |
$ |
(0.07 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets (a) |
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.03 |
|
|
Change in fair
value of contingent consideration (b) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Impairment of
property and equipment (c) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Change in fair
value of warrant liabilities (d) |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net loss per share attributable to common stockholders
(Non-GAAP) |
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.24 |
) |
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The non-GAAP financial measures for the three
and nine months ended September 30, 2023 and 2022, provide
management with additional insight into the Company’s results of
operations from period to period without non-cash charges and are
calculated using the following adjustments:
a) Intangible assets that are amortized consist
of developed technology and purchased patent rights recorded at
cost and amortized over 7 to 10 years.
b) Contingent consideration in connection with
the acquisition of the Senhance System in 2015 is recorded as a
liability and is the estimate of the fair value of potential
milestone payments related to business acquisitions. Contingent
consideration is measured at fair value using a Monte-Carlo
simulation utilizing significant unobservable inputs including the
probability of achieving each of the potential milestones, revenue
volatility, EURO to USD exchange rate, and an estimated discount
rate associated with the risks of the expected cash flows
attributable to the various milestones. Significant increases or
decreases in any of the probabilities of success or changes in
expected timelines for achievement of any of these milestones would
result in a significantly higher or lower fair value of these
milestones, respectively, and commensurate changes to the
associated liability. The contingent consideration is revalued at
each reporting period and changes in fair value are recognized in
the consolidated statements of operations and comprehensive
loss.
c) Property and equipment impairment associated
with returned Senhance Systems under operating leases that are not
expected to generate future cash flows sufficient to recover their
net book value.
d) During the three months ended September 30,
2023, the Company recorded warrant liabilities related to common
stock warrants issued in the registered direct offering in July
2023.
Warrant liabilities were recorded at their
initial estimated fair value. Adjustments associated with changes
in fair value of the warrant liabilities are included in the
Company’s condensed consolidated statements of operations and
comprehensive loss.
INVESTOR CONTACT:Mark Klausner or Mike
VallieICR Westwickeinvest@asensus.com 443-213-0499
MEDIA CONTACT:Dan VentrescaMatter
CommunicationsAsensusPR@matternow.com 617-874-5488
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