Ra Medical Systems Announces First Quarter Results

FORT MILL, SC / ACCESSWIRE / June 2, 2023 / Ra Medical Systems, Inc. (NYSE American:RMED) today announced financial and company highlights for the first quarter ended March 31,2023. Among the quarter highlights are the following:

• RMED concluded the acquisition with the private, company Catheter Precision, Inc. ("Catheter"), in January 2023. Catheter is in the MedTech space of cardiac electrophysiology.
• Catheter onboarded five direct salespersons and several field clinical persons to assist in the broad US launch of its VIVO product, a product utilized to non-invasively determine the source, or earliest activation, of a ventricular arrhythmia.
• Catheter introduced to the market its new LockeT closure device, designed to assist the physician in closing the percutaneous catheter insertion site in the patient's body, at the end of the catheter procedure.
• Closed on $8 million in new financing in March 2023.
• Announced the appointment of its new Chief Financial Officer, Steve Passey.
• Announced the resignation of its CEO, and appointment of its new Interim CEO, David Jenkins, as of April 28, 2023.
• Revenues for the quarter ended March 31, 2023 were $85 thousand, net loss was $66.4 million and cash used by operations was $12.1 million, which includes a $5.0 million cash payment associated with a legacy settlement.

Accounting for the Merger

The merger of Catheter into RMED was accounted for as an acquisition. The acquisition was accomplished by the issuance of preferred stock to the Catheter shareholders and certain convertible promissory notes holders, with conversion rights and obligations over time, subject to the approval of the RMED shareholders, which was obtained in March 2023, and certain other conditions. RMED utilized an outside valuation firm to assist in the determination of estimates to be used to book the estimate of value of the various assets acquired and liabilities assumed. The estimates of the acquisition values were initiated by valuing the preferred stock exchanged as of January 9, 2023, at a derived discount from the trading price of RMED's common stock. The gross estimated value assigned was $82.9 million. Of that gross estimated value, $37.0 million was assigned to developed technologies, $314 thousand for assets purchased, $7.6 million for royalties payable, $2.9 million for other liabilities assumed and $56.1 million for the remainder of the purchase price, booked as goodwill.