News Release

Nuwellis, Inc. Announces Third Quarter 2023 Financial Results

November 7, 2023

MINNEAPOLIS, Nov. 07, 2023 (GLOBE NEWSWIRE) -- Nuwellis, Inc. (Nasdaq: NUWE), a medical technology company dedicated to transforming the lives of people with fluid overload, today reported financial results for the third quarter ended September 30, 2023.

  • Revenue of $2.4 million for the third quarter 2023, increased 16% over the prior quarter and increased 17% over the prior-year period.
  • Therapy utilization, or the number of circuits per placed console, increased 26% over the prior year, reflecting continued increases in the number of patients treated with the Aquadex® therapy.
  • By customer category, third quarter 2023 revenue in Heart Failure increased 27% over the same period last year, Critical Care and Pediatrics increased 16% and 9%, respectively.
  • Despite continuing hospital capital budget constraints, our installed console base increased. In the third quarter, we sold 20 consoles, an increase of 11 units vs prior quarter.

“Our 17% annual revenue growth in the third quarter was driven by steady progress on our key strategic initiatives, including leveraging our growing body of clinical evidence to increase the number of patients treated with the Aquadex Ultrafiltration System. We believe these efforts drove both adoption and growth, with a 26% increase in therapy utilization and continued revenue growth across all customer categories,” said Nestor Jaramillo, Jr., President and CEO of Nuwellis. “In addition to the strong sales results, we are very excited with our two strategic collaborations with SeaStar and DaVita. We congratulate SeaStar on its recent receipt of an Approvable Letter from the FDA for its Pediatric SCD device, as to which we have exclusive U.S. distribution rights. We continue to make progress in the pilot phase of our Supply and Collaboration Agreement with DaVita. With focused execution across multiple growth levers, our team is committed to make Aquadex ultrafiltration therapy the new standard of care for fluid overload patients resistant to diuretics,” concluded Mr. Jaramillo.

Third Quarter 2023 Financial Results

Revenue for the third quarter of 2023 was $2.4 million, a 17% growth over the prior-year period. Results in the quarter were driven by a 26% increase in circuit sales.

Gross margin was 57.3% for the third quarter of 2023, compared to 61.0% in the prior-year period. The decline in gross margin was primarily driven by lower console manufacturing volumes. US disposable product margins are 74.0% which are in-line with medical technology industry standards.

Selling, general and administrative expenses for the third quarter of 2023 were $3.4 million, compared to $4.2 million in the prior-year period. The $800,000 decrease was primarily due to reduced headcount and related compensation expense.

Third quarter research and development expenses were $1.1 million, compared to $928 thousand in the third quarter of 2022, reflecting a modest increase in spend related to the final phases of the development of our new pediatric dedicated CRRT device as we approach IDE submission.

Total operating expense of $4.5 million was down 12% year over year and down 26% sequentially; due to cost saving measures implemented early in Q3.

Net loss for the third quarter of 2023 was $3.4 million, or a loss of $1.81 per share, compared to a net loss of $3.9 million, or a loss of $36.72 per common share, in the prior-year period. The decrease in net loss per share is due to an increase in sales, lower spend, and an increase in weighted average share count.

At September 30, 2023, the Company had no debt and cash and cash equivalents of $4.9 million, with approximately 1.9 million common shares outstanding. On October 17, Nuwellis closed an underwritten public offering with gross proceeds of $2.25 million before deducting underwriting discounts and commissions related to the offering.

Webcast and Conference Call Information
The Company will host a conference call and webcast at 9:00 AM ET today to discuss its financial results and provide an update on the company’s performance.

To access the live webcast, please visit the Investors page of the Nuwellis website at Alternatively, you may access the live conference call by dialing 1-833-816-1404 (U.S) or 1-412-317-0497 (international) and using the conference ID: 10182705. An audio archive of the webcast will be available following the call on the Investors page at

About Nuwellis
Nuwellis, Inc. (Nasdaq: NUWE) is a medical technology company dedicated to transforming the lives of patients suffering from fluid overload through science, collaboration, and innovation. The Company is focused on commercializing the Aquadex SmartFlow® system for ultrafiltration therapy. Nuwellis is headquartered in Minneapolis, Minnesota with a wholly owned subsidiary in Ireland. For more information visit or visit us on LinkedIn.

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 may be considered 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 2023 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 risks 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, and other risks and uncertainties described in our filings with the SEC. Forward-looking statements speak only as of the date when made. Nuwellis does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Vivian Cervantes
Gilmartin Group

Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
    September 30
    December 31,
ASSETS   (unaudited)      
Current assets          
Cash and cash equivalents $ 4,930   $ 17,737  
Marketable securities       569  
Accounts receivable   1,425     1,406  
Inventories, net   2,336     2,661  
Other current assets   947     396  
Total current assets   9,638     22,769  
Property, plant and equipment, net   912     980  
Operating lease right-of-use asset   762     903  
Other assets   120     21  
TOTAL ASSETS $ 11,432   $ 24,673  
Current liabilities            
Accounts payable and accrued liabilities $ 1,707   $ 2,245  
Accrued compensation   1,021     2,161  
Current portion of operating lease liability   211     196  
Current portion of finance lease liability   8     28  
Other current liabilities   45     58  
Total current liabilities   2,992     4,688  
Common stock warrant liability       6,868  
Operating lease liability   601     760  
Total liabilities   3,593     12,316  
Commitments and contingencies          
Stockholders’ equity          
Series A junior participating preferred stock as of September 30, 2023 and December 31, 2022, par value $0.0001 per share; authorized 30,000 shares, none outstanding        
Series F convertible preferred stock as of both September 30, 2023 and December 31, 2022, par value $0.0001 per share; authorized 127 shares, issued and outstanding 127 shares        
Series I convertible preferred stock as of September 30, 2023 and December 31, 2022, par value $0.0001; authorized 1,049,280, issued and outstanding none and 1,049,280, respectively
Preferred stock as of both September 30, 2023 and December 31, 2022, par value
$0.0001 per share; authorized 39,969,873 shares, none outstanding
Common stock as of September 30, 2023 and December 31, 2022, par value
$0.0001 per share; authorized 100,000,000 shares, issued and outstanding 1,864,265 and 536,394 shares, respectively
Additional paid-in capital   289,980     279,736  
Accumulated other comprehensive income:            
Foreign currency translation adjustment   (24 )   (18 )
Unrealized gain on marketable securities       56  
Accumulated deficit   (282,117 )   (267,417 )
Total stockholders’ equity   7,839     12,357

See notes to the condensed consolidated financial statements.

Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts)
    Three months ended
September 30
Nine months ended
September 30
    2023     2022
Net sales $ 2,412   $ 2,065   $ 6,313   $ 6,204  
Cost of goods sold   1,031     806     2,718     2,780  
Gross profit   1,381     1,259     3,595     3,424  
Operating expenses:                        
Selling, general and administrative   3,428     4,251     13,582     12,920  
Research and development   1,117     928     4,050     3,141  
Total operating expenses   4,545     5,179     17,632     16,061  
Loss from operations   (3,164 )   (3,920 )   (14,037 )   (12,637 )
Other income (expense), net   (204 )   52     98     14  
Change in fair value of warrant liability           (755 )    
Loss before income taxes   (3,368 )   (3,868 )   (14,694 )   (12,623 )
Income tax expense   (2 )   (2 )   (6 )   (6 )
Net loss $ (3,370 ) $ (3,870 ) $ (14,700 ) $ (12,629
Basic and diluted loss per share $ (1.81 ) $ (36.72 ) $ (10.21 ) $ (119.85
Weighted average shares outstanding – basic and diluted   1,864     105     1,439     105  
Other comprehensive loss:                        
Foreign currency translation adjustments $   $ 2   $ (6 ) $ 1  
Total comprehensive loss $ (3,370 ) $ (3,868 ) $ (14,706 ) $ (12,628 )
See notes to the condensed consolidated financial statements.

Condensed Consolidated Statements of Cash Flows
(in thousands)
    Nine months ended
September 30
Operating Activities:            
Net loss $ (14,700 ) $ (12,629 )
Adjustments to reconcile net loss to cash flows used in operating activities:            
Depreciation and amortization   253     301  
Stock-based compensation expense, net   513     697  
Change in fair value of warrant liability   755      
Net realized gain on marketable securities   (65 )    
Changes in operating assets and liabilities:            
Accounts receivable   (19 )   (350 )
Inventory, net   325     (113 )
Other current assets   (551 )   (40 )
Other assets and liabilities   (16 )   (142 )
Accounts payable and accrued expenses   (1,678 )   254  
Net cash used in operating activities   (15,183 )   (12,022 )
Investing Activities:            
Proceeds from sale of marketable securities   578      
Additions to intangible assets   (99 )    
Purchases of property and equipment   (185 )   (103 )
Net cash provided by (used in) investing activities   294     (103 )
Financing Activities:            
Proceeds from ATM stock offerings, net   2,108      
Payments on finance lease liability   (20
)   (28 )
Net cash provided by (used in) financing activities   2,088     (28 )
Effect of exchange rate changes on cash   (6
)   1  
Net decrease in cash and cash equivalents   (12,807 )   (12,152 )
Cash and cash equivalents - beginning of period   17,737     24,205  
Cash and cash equivalents - end of period $ 4,930   $ 12,053  
Supplemental cash flow information            
Inventory transferred to property, plant and equipment $   $ 37  
Non-cash impact of conversion of warrants to common stock (see Note 3) $ 6,868   $  
See notes to the condensed consolidated financial statements.

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