CHF Solutions, Inc. Announces 52 Percent Increase in Revenue for Third Quarter 2020 and Provides Company Update
Recent Highlights
- Revenue for the third quarter of 2020 was
$1.9 million , an increase of 52% compared to the prior year period - Increased Aquadex™ therapy utilization in existing pediatric hospital accounts; opened 6 new pediatric hospital accounts
- Partnered with
Acute Kidney Injury Critical Care Research Foundation andWatermark Research Partners to initiate a pediatric registry to collect real-world evidence for the use of Aquadex SmartFlow™ - Announced the Aquadex product line was added to the Federal Supply Schedule, expanding access to all federal agencies and eliminating months of fulfillment process time
- Hosted two webinars during the quarter, led by:
- Dr. David Askenazi, M.D. MSPH on treatment of fluid overload on pediatric patients and clinical benefits of Aquadex therapy
- Dr.John Jefferies , M.D. on the use of precision medicine for the treatment of fluid overload in heart failure patients utilizing the Aquadex SmartFlow system - A 355-patient retrospective study was presented at the Annual Scientific Meeting of
Heart Failure Society of America , which showed substantial mean fluid removal with no negative changes in renal function and reduced rehospitalization rates in patients treated with Aquadex therapy - On
November 3, 2020 , received notification from Nasdaq that the company had regained compliance with NASDAQ’s minimum bid price requirement, after effecting a 1-for-30 reverse stock split to remain in compliance - Cash and cash equivalents totaled
$17.9 million with no debt as ofSeptember 30, 2020
“CHF Solutions achieved very solid performance in the third quarter, most notably within pediatric accounts,” said
Third Quarter 2020 Financial Results
Revenue for the third quarter was
The Company offered incentives to existing customers to upgrade consoles to Aquadex SmartFlow which impacted third quarter gross margins. The Company believes these upgrades will improve the customer experience with the therapy and increase utilization. Additionally, the Company experienced a higher mix of international distributor revenue which normally carries a lower sales price than in the
Operating expenses for the third quarter of 2020 were
Net loss from operations for the third quarter of 2020 was
Cash and cash equivalents were
Webcast and Conference Call Information
The Company will host a conference call and webcast at
About
About the Aquadex SmartFlow System
The Aquadex SmartFlow system delivers clinically proven therapy using a simple, flexible and smart method of removing excess fluid from patients suffering from hypervolemia (fluid overload). The Aquadex SmartFlow system is indicated for temporary (up to 8 hours) or extended (longer than 8 hours in patients who require hospitalization) use in adult and pediatric patients weighing 20 kg or more whose fluid overload is unresponsive to medical management, including diuretics. All treatments must be administered by a health care provider, within an outpatient or inpatient clinical setting, under physician prescription, both having received training in extracorporeal therapies.
Forward-Looking Statements
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding the value that the company brings to its customers. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including, without limitation, those risk associated with our ability to execute on our commercialization strategy, the impact of the COVID-19 pandemic, the possibility that we may be unable to raise sufficient funds necessary for our anticipated operations, our post-market clinical data collection activities, benefits of our products to patients, our expectations with respect to product development and commercialization efforts, our ability to increase market and physician acceptance of our products, potentially competitive product offerings, intellectual property protection, our ability to integrate acquired businesses, our expectations regarding anticipated synergies with and benefits from acquired businesses, and other risks and uncertainties described in our filings with the SEC. Forward-looking statements speak only as of the date when made.
Financials
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands, except per share amounts)
Three months ended |
Nine months ended |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net sales | $ | 1,904 | $ | 1,252 | $ | 5,397 | $ | 4,144 | |||||||
Costs and expenses: | |||||||||||||||
Cost of goods sold | 1,026 | 540 | 2,486 | 1,987 | |||||||||||
Selling, general and administrative | 4,264 | 4,107 | 13,034 | 12,098 | |||||||||||
Research and development | 871 | 1,112 | 2,620 | 3,719 | |||||||||||
Total costs and expenses | 6,161 | 5,759 | 18,140 | 17,804 | |||||||||||
Loss from operations | (4,257 | ) | (4,507 | ) | (12,743 | ) | (13,660 | ) | |||||||
Other income (loss), net | — | (1 | ) | — | (1 | ) | |||||||||
Loss before income taxes | (4,257 | ) | (4,508 | ) | (12,743 | ) | (13,661 | ) | |||||||
Income tax expense | (3 | ) | (1 | ) | (7 | ) | (5 | ) | |||||||
Net loss | $ | (4,260 | ) | $ | (4,509 | ) | $ | (12,750 | ) | $ | (13,666 | ) | |||
Basic and diluted loss per share | $ | (2.08 | ) | $ | (51.12 | ) | $ | (11.27 | ) | $ | (284.70 | ) | |||
Weighted average shares outstanding – basic and diluted | 2,049 | 88 | 1,287 | 64 | |||||||||||
Other comprehensive loss: | |||||||||||||||
Foreign currency translation adjustments | $ | (7 | ) | $ | 1 | $ | (12 | ) | $ | (4 | ) | ||||
Total comprehensive loss | $ | (4,267 | ) | $ | (4,508 | ) | $ | (12,762 | ) | $ | (13,670 | ) | |||
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
2020 |
2019 |
|||||
ASSETS | (unaudited) | |||||
Current assets | ||||||
Cash and cash equivalents | $ | 17,947 | $ | 1,279 | ||
Accounts receivable | 1,048 | 799 | ||||
Inventory | 2,921 | 1,797 | ||||
Other current assets | 235 | 161 | ||||
Total current assets | 22,151 | 4,036 | ||||
Property, plant and equipment, net | 1,244 | 991 | ||||
Operating lease right-of-use asset | 303 | 442 | ||||
Other assets | 21 | 133 | ||||
TOTAL ASSETS | $ | 23,719 | $ | 5,602 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities | ||||||
Accounts payable | $ | 929 | $ | 1,488 | ||
Accrued compensation | 2,012 | 1,592 | ||||
Current portion of operating lease liability | 201 | 186 | ||||
Current portion of finance lease liability | 24 | — | ||||
Other current liabilities | 57 | 85 | ||||
Total current liabilities | 3,223 | 3,351 | ||||
Operating lease liability | 108 | 261 | ||||
Finance lease liability | 60 | — | ||||
Total liabilities | 3,391 | 3,612 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity | ||||||
Series A junior participating preferred stock as of |
— | — | ||||
Series F convertible preferred stock as of |
— | — | ||||
Preferred stock as of |
— | — | ||||
Common stock as of 2,736,060 and 155,802, respectively |
— | — | ||||
Additional paid in capital | 249,378 | 218,278 | ||||
Accumulated other comprehensive income: | ||||||
Foreign currency translation adjustment | 1,202 | 1,214 | ||||
Accumulated deficit | (230,252 | ) | (217,502 | ) | ||
Total stockholders’ equity | 20,328 | 1,990 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 23,719 | $ | 5,602 | ||
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Nine months ended |
||||||||
2020 |
2019 | |||||||
Operating Activities: | ||||||||
Net loss | $ | (12,750 | ) | $ | (13,666 | ) | ||
Adjustments to reconcile net loss to cash flows used in operating activities: | ||||||||
Depreciation and amortization | 253 | 179 | ||||||
Stock-based compensation expense, net | 1,036 | 1,113 | ||||||
Loss on disposal of property and equipment | 46 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (249 | ) | 258 | |||||
Inventory | (1,371 | ) | (158 | ) | ||||
Other current assets | (74 | ) | (74 | ) | ||||
Other assets | 112 | (27 | ) | |||||
Accounts payable and accrued expenses | (166 | ) | 38 | |||||
Net cash used in operating activities | (13,163 | ) | (12,337 | ) | ||||
Investing Activities: | ||||||||
Purchases of property and equipment | (207 | ) | (464 | ) | ||||
Net cash used in investing activities | (207 | ) | (464 | ) | ||||
Financing Activities: | ||||||||
Proceeds from public stock offerings, net | 25,949 | 10,959 | ||||||
Proceeds from warrant exercises | 4,115 | — | ||||||
Payments on finance lease liability | (14 | ) | — | |||||
Net cash provided by financing activities | 30,050 | 10,959 | ||||||
Effect of exchange rate changes on cash | (12 | ) | (4 | ) | ||||
Net increase in cash and cash equivalents | 16,668 | (1,846 | ) | |||||
Cash and cash equivalents - beginning of period | 1,279 | 5,480 | ||||||
Cash and cash equivalents - end of period | $ | 17,947 | $ | 3,634 | ||||
Supplemental cash flow information | ||||||||
Cash paid for income taxes | $ | — | $ | — | ||||
Inventory transferred to property, plant and equipment | $ | 247 | $ | 204 | ||||
Equipment acquired through finance lease liability | $ | 98 | $ | — |
CONTACTS: INVESTORS:Claudia Napal Drayton Chief Financial OfficerCHF Solutions, Inc. 952-345-4205 ir@chf-solutions.comMatt Bacso , CFAGilmartin Group LLC Matt.bacso@gilmartinir.com MEDIA:Jessica Stebing Health+Commerce 260-336-6202 jstebing@healthandcommerce.com
Source: CHF Solutions, Inc.