CHF Solutions, Inc. Announces Fourth Quarter Financial Results and Provides Company Update
- Received 510(k) clearance in the
U.S. and CE Mark in the EU for adult and pediatric patients who weigh 20 kg or more and for the next generation Aquadex console, which will be sold as Aquadex SmartFlow™.
- Announced expansion of commercial presence in
Europe with distribution arrangement forGermany ,Austria andSwitzerland . - Announced presentation of clinical data from an investigator-initiated analysis at the
American Society of Kidney Week highlighting the efficacy and simplicity of use of Aquadex FlexFlow in treating patients in critical care settings such as cardiogenic shock, anasarca, ATN with fluid overload, ESRD with bridge ultrafiltration between hemodialysis treatment, and post-operative fluid overload. - Completed sales force realignment to increase focus on cardiac surgery and eventually pediatrics. Revenue for fourth quarter ended
December 31, 2019 was$1.4 million , a decrease of 8.8 percent from Q4 2018. For the year 2019, revenue totaled$5.5 million , a 10 percent increase from 2018. - Ended the year with
$1.3 million in cash and no debt. Subsequent to quarter end, announced the closing of an underwritten public offering for net proceeds of approximately$8.6 million , for total proforma cash balance of$9.9 million .
“I look back at 2019 as a very successful year for the company,” said
The Company will host a conference call and webcast at
About
About the Aquadex SmartFlow System
The Aquadex SmartFlow system is a clinically proven therapy that provide a safe, effective, and predictable method of removing excess fluid from patients suffering from 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 kilograms or more whose fluid overload is unresponsive to medical management, including diuretics. All treatments must be administered by a healthcare provider, within an outpatient or inpatient clinical setting, under physician prescription, both of whom 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 new market opportunities and anticipated growth in 2020 and beyond. 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 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
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share amounts)
| Three months ended |
Year ended |
||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net sales | $ | 1,367 | $ | 1,499 | $ | 5,511 | $ | 4,998 | |||||||
| Costs and Expenses: | |||||||||||||||
| Cost of goods sold | 673 | 984 | 2,660 | 3,670 | |||||||||||
| Selling, general and administrative | 4,187 | 3,822 | 16,285 | 15,311 | |||||||||||
| Research and development | 953 | 946 | 4,672 | 3,053 | |||||||||||
| Total costs and expenses | 5,813 | 5,752 | 23,617 | 22,034 | |||||||||||
| Loss from operations | (4,446 | ) | (4,253 | ) | (18,106 | ) | (17,036 | ) | |||||||
| Other income, net | 1 | — | — | 10 | |||||||||||
| Loss before income taxes | (4,445 | ) | (4,253 | ) | (18,106 | ) | (17,026 | ) | |||||||
| Income tax expense | (3 | ) | (3 | ) | (8 | ) | (6 | ) | |||||||
| Net loss | $ | (4,448 | ) | $ | (4,256 | ) | $ | (18,114 | ) | $ | (17,032 | ) | |||
| Basic and diluted loss per share | $ | (1.12 | ) | $ | (8.37 | ) | $ | (9.30 | ) | $ | (42.14 | ) | |||
| Weighted average shares outstanding – basic and diluted | 3,988 | 509 | 2,433 | 404 | |||||||||||
| Other comprehensive loss: | |||||||||||||||
| Foreign currency translation adjustment | $ | (5 | ) | $ | (2 | ) | $ | (9 | ) | $ | (4 | ) | |||
| Total comprehensive loss | $ | (4,453 | ) | $ | (4,258 | ) | $ | (18,123 | ) | $ | (17,036 | ) | |||
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
2019 |
||||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 1,279 | $ | 5,480 | ||
| Accounts receivable | 799 | 786 | ||||
| Inventories | 1,797 | 1,658 | ||||
| Other current assets | 161 | 203 | ||||
| Total current assets | 4,036 | 8,127 | ||||
| Property, plant and equipment, net | 991 | 536 | ||||
| Operating lease right-of-use asset, net | 442 | — | ||||
| Other assets | 133 | 113 | ||||
| TOTAL ASSETS | $ | 5,602 | $ | 8,776 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 1,488 | $ | 1,133 | ||
| Accrued compensation | 1,592 | 1,498 | ||||
| Current portion of operating lease liability | 186 | — | ||||
| Other current liabilities | 85 | 209 | ||||
| Total current liabilities | 3,351 | 2,840 | ||||
| Operating lease liability | 261 | — | ||||
| Total liabilities | 3,612 | 2,840 | ||||
| Commitments and contingencies | ||||||
| Stockholders’ equity | ||||||
| Series A junior participating preferred stock as of |
— | — | ||||
| Series F convertible preferred stock as of both |
— | — | ||||
| Preferred stock as of both |
— | — | ||||
| Common stock as of 4,674,068 and 513,445, respectively |
— | — | ||||
| Additional paid‑in capital | 218,278 | 204,101 | ||||
| Accumulated other comprehensive income: | ||||||
| Foreign currency translation adjustment | 1,214 | 1,223 | ||||
| Accumulated deficit | (217,502 | ) | (199,388 | ) | ||
| Total stockholders’ equity | 1,990 | 5,936 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 5,602 | $ | 8,776 | ||
Consolidated Statements of Cash Flows
(in thousands)
| For the years ended |
|||||||||
| 2019 | 2018 | ||||||||
| Operating Activities | |||||||||
| Net loss | $ | (18,114 | ) | $ | (17,032 | ) | |||
| Adjustments to reconcile net loss to cash flows from operating activities: | |||||||||
| Depreciation and amortization | 239 | 232 | |||||||
| Stock-based compensation expense | 1,512 | 2,087 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (13 | ) | (241 | ) | |||||
| Inventories | (343 | ) | (70 | ) | |||||
| Other current assets | 42 | (67 | ) | ||||||
| Other assets and liabilities | 18 | (14 | ) | ||||||
| Accounts payable and accrued expenses | 292 | 545 | |||||||
| Net cash used in operations | (16,367 | ) | (14,560 | ) | |||||
| Investing activities: | |||||||||
| Purchase of property and equipment | (490 | ) | (198 | ) | |||||
| Net cash used in investing activities | (490 | ) | (198 | ) | |||||
| Financing activities: | |||||||||
| Net proceeds from public stock offerings, net | 12,665 | 4,647 | |||||||
| Net cash provided by financing activities | 12,665 | 4,647 | |||||||
| Effect of exchange rate changes on cash | (9 | ) | (4 | ) | |||||
| Net decrease in cash and cash equivalents | (4,201 | ) | (10,115 | ) | |||||
| Cash and cash equivalents—beginning of year | 5,480 | 15,595 | |||||||
| Cash and cash equivalents—end of year | $ | 1,279 | $ | 5,480 | |||||
| Supplemental schedule of non-cash activities | |||||||||
| Financing fees incurred for subsequent equity financing included in other assets and accounts payable | $ | 111 | $ | 78 | |||||
| Inventory transferred to property, plant and equipment | $ | 204 | $ | — | |||||
| Supplemental cash flow information | |||||||||
| Cash paid for income taxes | $ | 4 | $ | 2 | |||||
CONTACTS: INVESTORS:Claudia Napal Drayton Chief Financial OfficerCHF Solutions, Inc. 952-345-4205 ir@chf-solutions.com -or-Bret Shapiro Managing Partner CORE IR 516-222-2560 brets@coreir.com www.coreir.com
Source: CHF Solutions, Inc.
