Acutus Medical Reports Second Quarter and Year-To-Date 2024 Financial Results

CARLSBAD, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Acutus Medical, Inc. (“Acutus” or the “Company”) (OTC: AFIB) today reported results for the second quarter and year-to-date of 2024.

Recent Highlights:

• Second quarter revenue from Continuing Operations of $4.1 million grew 172% year-over-year, from $1.5 million in the same quarter last year.
  
• Operating expenses for continuing operations were $2.2 million, a reduction of 47% compared to the same period last year.
  
• Recorded $2.9 million in gain on sale of business, an increase of 38% compared to the same period last year.
  
• Cash, cash equivalents, marketable securities and restricted cash were $13.3 million as of June 30, 2024.
  

Second Quarter 2024 Financial Results
Revenue from Continuing Operations was $4.1 million for the second quarter of 2024, an increase of 172% compared to $1.5 million for the second quarter of 2023.

Gross margin on a GAAP basis for continuing operations was negative 8% for the second quarter of 2024 compared to negative 67% for the same quarter last year. The improvement was driven by higher production volumes related to left-heart access manufacturing and reduced manufacturing overhead expenses.

Operating expenses for continuing operations on a GAAP basis were $2.2 million for the second quarter of 2024 compared to $4.2 million for the same period last year. The decrease in operating expenses from reduced discretionary spend under this new business model.

Net loss on continuing operations on a GAAP basis was $0.4 million for the second quarter of 2024 and net loss per share was $0.01 on a weighted average basic and diluted outstanding share count of 29.7 million, compared to a net loss of $4.2 million and a net loss per share of $0.15 on a weighted average basic and diluted outstanding share count of 29.0 million for the same period last year.

Cash, cash equivalents, marketable securities and restricted cash were $13.3 million as of June 30, 2024.

Loss on Discontinued Operations
Loss on discontinued operations was $0.6 million for second quarter of 2024, compared to $26.1 million for the same period last year.

Outlook
Due to the announced plan to realign resources to support the left-heart access distribution business and exit from the electrophysiology mapping and ablation businesses, the Company will no longer provide financial guidance.  

About Acutus
Acutus is focused on the production of left-heart access products under its distribution agreement with Medtronic, Inc. Founded in 2011, Acutus is based in Carlsbad, California.

Caution Regarding Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements, usually containing the words 'believe", "estimate", "project", "expect" or similar expressions. Forward looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company’s ability to continue to manage expenses and cash burn rate at sustainable levels, successful completion of the Company’s restructuring plan, continued acceptance of the Company’s left-heart access products in the marketplace, the effect of global economic conditions on the ability and willingness of Medtronic to purchase the Company’s left-heart access products and the timing of such purchases, competitive factors, changes resulting from healthcare policy in the United States and globally including changes in government reimbursement of procedures, dependence upon third-party vendors and distributors, timing of regulatory approvals, the Company’s ability to maintain its listing on Nasdaq, and other risks discussed in the Company’s periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, Acutus undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Investor Contact:
Chad Hollister
Acutus Medical, Inc.
[e-mail]

Acutus Medical, Inc.
Consolidated Balance Sheets
	June 30,  2024				December 31,  2023
(in thousands, except share and per share amounts)	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	13,327			$	19,170
Marketable securities, short-term		—				3,233
Restricted cash, short-term		—				7,030
Accounts receivable		9,235				11,353
Inventory		5,213				4,278
Prepaid expenses and other current assets		507				678
Current assets of discontinued operations (Note 3)		175				510
Total current assets		28,457				46,252
Property and equipment, net		808				825
Right-of-use assets, net		2,831				3,189
Other assets		94				94
Non-current assets of discontinued operations (Note 3)		3,284				3,600
Total assets	$	35,474			$	53,960
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		1,683				2,761
Accrued liabilities		1,609				2,887
Operating lease liabilities, short-term		886				718
Long-term debt, current portion		7,055				1,864
Warrant liability		128				409
Current liabilities of discontinued operations (Note 3)		1,017				10,303
Total current liabilities		12,378				18,942
Operating lease liabilities, long-term		2,771				3,243
Long-term debt		25,130				32,654
Total liabilities		40,279				54,839
Commitments and contingencies (Note 11)
Stockholders' deficit
Preferred stock, $0.001 par value; 5,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 6,666 shares of the preferred stock, designated as Series A Common Equivalent Preferred Stock, are issued and outstanding as of June 30, 2024 and December 31, 2023		—				—
Common stock, $0.001 par value; 260,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 29,775,630 and 29,313,667 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively		30				29
Additional paid-in capital		598,542				599,935
Accumulated deficit		(602,511	)			(599,977	)
Accumulated other comprehensive loss		(866	)			(866	)
Total stockholders' deficit		(4,805	)			(879	)
Total liabilities and stockholders' deficit	$	35,474			$	53,960

Acutus Medical, Inc.
Consolidated Statements of Operations and Comprehensive Loss
	Three Months Ended June 30,								Six Months Ended June 30,
	2024				2023				2024				2023
(in thousands, except share and per share amounts)	(unaudited)
Revenue	$	4,127			$	1,515			$	7,752			$	2,757
Cost of products sold		4,470				2,527				8,125				4,638
Gross profit (loss)		(343	)			(1,012	)			(373	)			(1,881	)
Operating expenses (income):
Research and development		—				917				—				1,855
Selling, general and administrative		2,225				3,280				5,562				7,752
Change in fair value of contingent consideration		—				(77	)			—				123
Gain on sale of business		(2,869	)			(2,072	)			(5,661	)			(3,279	)
Total operating expenses (income)		(644	)			2,048				(99	)			6,451
Gain (loss) from operations		301				(3,060	)			(274	)			(8,332	)
Other income (expense):
Change in fair value of warrant liability		564				(604	)			281				842
Interest income		207				824				488				1,676
Interest expense		(1,510	)			(1,395	)			(2,988	)			(2,701	)
Other revenue		76				—				76				—
Total other expense, net		(663	)			(1,175	)			(2,143	)			(183	)
Loss from continuing operations before income taxes		(362	)			(4,235	)			(2,417	)			(8,515	)
Net loss from continuing operations		(362	)			(4,235	)			(2,417	)			(8,515	)
Discontinued operations:
Loss from discontinued operations before taxes		(552	)			(14,111	)			(107	)			(26,146	)
Income tax expense - discontinued operations		—				—				(10	)			—
Net loss from discontinued operations		(552	)			(14,111	)			(117	)			(26,146	)
Net loss	$	(914	)		$	(18,346	)		$	(2,534	)		$	(34,661	)
Other comprehensive loss
Unrealized loss (gain) on marketable securities		—				(8	)			—				4
Foreign currency translation adjustment		—				(85	)			—				(26	)
Comprehensive loss	$	(914	)		$	(18,439	)		$	(2,534	)		$	(34,683	)
Net loss earnings per share, basic & diluted:
Loss from continuing operations	$	(0.01	)		$	(0.15	)		$	(0.08	)		$	(0.29	)
Loss from discontinued operations	$	(0.02	)		$	(0.49	)		$	—			$	(0.90	)
Net loss per common share	$	(0.03	)		$	(0.63	)		$	(0.09	)		$	(1.20	)
Weighted average shares outstanding, basic and diluted		29,721,542				29,039,732				29,727,872				28,902,808

Acutus Medical, Inc.
Consolidated Statements of Cash Flows
	Six Months Ended June 30,
	2024				2023
(in thousands)	(unaudited)
Cash flows from operating activities
Net loss	$	(2,534	)		$	(34,661	)
Less: (Gain) loss from discontinued operations		117				26,146
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		162				231
Non-cash stock-based compensation expense		331				1,022
Accretion of discounts on marketable securities, net		(28	)			(1,037	)
Amortization of debt issuance costs		292				212
Amortization of operating lease right-of-use assets		358				339
Gain on sale of business, net		(5,661	)			(3,279	)
Change in fair value of warrant liability		(281	)			(842	)
Loss on disposal of property and equipment		—				515
Change in fair value of contingent consideration		—				123
Changes in operating assets and liabilities:
Accounts receivable		(2,322	)			(1,046	)
Inventory		(935	)			(1,474	)
Employer retention credit receivable		—				4,703
Prepaid expenses and other current assets		182				126
Accounts payable		(1,078	)			(210	)
Accrued liabilities		(1,453	)			(1,629	)
Operating lease liabilities		(304	)			(277	)
Other long-term liabilities		—				8
Net cash used in operating activities - continuing operations		(13,154	)			(11,030	)
Net cash used in operating activities - discontinued operations		(10,750	)			(20,067	)
Net cash used in operating activities		(23,904	)			(31,097	)
Cash flows from investing activities
Proceeds from sale of business		10,276				17,000
Purchases of available-for-sale marketable securities		—				(33,880	)
Sales of available-for-sale marketable securities		500				—
Maturities of available-for-sale marketable securities		2,750				48,250
Purchases of property and equipment		(143	)			(777	)
Net cash provided by investing activities - continuing operations		13,383				30,593
Net cash provided by (used in) investing activities - discontinued operations		316				(207	)
Net cash provided by investing activities		13,699				30,386
Cash flows from financing activities
Repayment of debt		(2,625	)			—
Proceeds from the exercise of stock options		—				4
Repurchase of common shares to pay employee withholding taxes		—				(23	)
Proceeds from employee stock purchase plan		—				25
Net cash provided by financing activities - continuing operations		(2,625	)			6
Net cash used in financing activities - discontinued operations		(41	)			(240	)
Net cash used in financing activities		(2,666	)			(234	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(2	)			(346	)
Net change in cash, cash equivalents and restricted cash		(12,873	)			(1,291	)
Cash, cash equivalents and restricted cash, at the beginning of the period		26,200				31,348
Cash, cash equivalents and restricted cash, at the end of the period	$	13,327			$	30,057
Supplemental disclosure of cash flow information:
Cash paid for interest		2,561				2,458
Supplemental disclosure of noncash investing and financing activities:
Accounts receivable from sale of business	$	(5,836	)		$	3,381
Change in unrealized (gain) loss on marketable securities	$	—			$	(4	)
Change in unpaid purchases of property and equipment	$	—			$	(54	)