CHF Solutions, Inc. Announces 14 Percent Increase in Revenue for Second Quarter 2020 Over Previous Quarter and Provides Compa...
August 04 2020 - 08:00AM
CHF Solutions, Inc. (Nasdaq: CHFS) announced today its results for
the second quarter ended June 30, 2020, which included the
following highlights:
- Revenue for the second quarter ended June 30, 2020, was $1.9
million, an increase of 14 percent from the first quarter of 2020
and 11 percent compared to the same period of the prior year.
- Hosted two physician-led webinars on treatment of critically
ill, COVID-19 patients, including a discussion of the publication
SARS-CoV-2 (COVID-19) and intravascular volume management
strategies in the critically ill.1 which addressed the role of
ultrafiltration in the treatment of COVID-19 patients.
- Hosted a webinar led by Dr. David Askenazi, M.D. MSPH on
treatment of fluid overload on pediatric patients. Announced
partnership for a pediatric registry.
- Announced the signing of a new a distribution arrangement to
sell in the United Arab Emirates, effectively initiating presence
in the Middle East.
- Submitted a patent application for an adaptation of Aquadex
SmartFlow™ system to rapidly clear cytokines.
- Initiated a distribution agreement with Renal Sense, Ltd. to
market and sell complementary real-time monitoring of patient’s
renal function to prevent acute kidney injury.
- Ended the quarter with $7.8 million in cash and no debt. During
the quarter, closed on two registered direct offering for next
proceeds of $3.4 million, and received $2.1 million from warrant
exercises.
“We continue to be very pleased that we produce a product that
is providing a meaningful therapy for treating the COVID-19
patients,” said John Erb, chairman and CEO of CHF Solutions. “We
know we are very fortunate to be less impacted than many small
medical device companies, and although the rest of the year is full
of uncertainty, we remain optimistic about the value we can bring
to our customers and our investors.”
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
http://ir.chf-solutions.com/events. Alternatively, you may access
the live conference call by dialing (877) 303-9826 (U.S.) or (224)
357-2194 (international) and using conference ID: 3591247. An audio
archive of the webcast will be available following the call at
http://ir.chf-solutions.com/events.
About CHF Solutions CHF Solutions, Inc.
(Nasdaq: CHFS) is a medical device company dedicated to changing
the lives of patients suffering from fluid overload through
science, collaboration and innovation. The company is focused on
developing, manufacturing and commercializing the Aquadex
SmartFlow™ system for ultrafiltration therapy. CHF Solutions is
headquartered in Minneapolis, Minn., with wholly-owned subsidiaries
in Australia and Ireland. The company has been listed on the Nasdaq
Capital Market since February 2012.
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 StatementsCertain 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. CHF Solutions 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.
1. https://pubmed.ncbi.nlm.nih.gov/32336959/
FINANCIALS
CHF SOLUTIONS, INC. AND
SUBSIDIARIESCondensed Consolidated
Statements of Operations and Comprehensive
Loss(unaudited, in thousands, except per share
amounts)
|
|
Three months ended June 30, |
Six months endedJune 30, |
|
|
2020 |
|
2019 |
|
|
2020 |
2019 |
|
Net sales |
$ |
1,863 |
|
$ |
1,677 |
|
$ |
3,493 |
|
$ |
2,892 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
664 |
|
|
835 |
|
|
1,460 |
|
|
1,447 |
|
Selling, general and
administrative |
|
4,234 |
|
|
3,973 |
|
|
8,770 |
|
|
7,991 |
|
Research and
development |
|
885 |
|
|
1,297 |
|
|
1,749 |
|
|
2,607 |
|
Total costs and
expenses |
|
5,783 |
|
|
6,105 |
|
|
11,979 |
|
|
12,045 |
|
Loss from
operations |
|
(3,920 |
) |
|
(4,428 |
) |
|
(8,486 |
) |
|
(9,153 |
) |
Loss before income
taxes |
|
(3,920 |
) |
|
(4,428 |
) |
|
(8,486 |
) |
|
(9,153 |
) |
Income tax expense |
|
(2 |
) |
|
(2 |
) |
|
(4 |
) |
|
(4 |
) |
Net loss |
$ |
(3,922 |
) |
$ |
(4,430 |
) |
$ |
(8,490 |
) |
$ |
(9,157 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share |
$ |
(0.10 |
) |
$ |
(1.93 |
) |
$ |
(0.37 |
) |
$ |
(8.82 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding – basic and diluted |
|
37,923 |
|
|
2,295 |
|
|
27,181 |
|
|
1,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments |
$ |
(2 |
) |
$ |
(3 |
) |
$ |
(5 |
) |
$ |
(5 |
) |
Total comprehensive
loss |
$ |
(3,924 |
) |
$ |
(4,433 |
) |
$ |
(8,495 |
) |
$ |
(9,162 |
) |
CHF SOLUTIONS, INC. AND
SUBSIDIARIESCondensed Consolidated Balance
Sheets(in thousands, except share and per share
amounts)
|
|
June 30, 2020 |
|
|
December 31,2019 |
|
ASSETS |
|
(unaudited) |
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash
equivalents |
$ |
7,821 |
|
$ |
1,279 |
|
Accounts
receivable |
|
978 |
|
|
799 |
|
Inventory |
|
2,789 |
|
|
1,797 |
|
Other
current assets |
|
141 |
|
|
161 |
|
Total current
assets |
|
11,729 |
|
|
4,036 |
|
Property, plant and
equipment, net |
|
1,042 |
|
|
991 |
|
Operating lease
right-of-use asset |
|
351 |
|
|
442 |
|
Other assets |
|
21 |
|
|
133 |
|
TOTAL
ASSETS |
$ |
13,143 |
|
$ |
5,602 |
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
$ |
1,387 |
|
$ |
1,488 |
|
Accrued
compensation |
|
1,695 |
|
|
1,592 |
|
Current portion of
operating lease liability |
|
196 |
|
|
186 |
|
Current portion of
finance lease liability |
|
17 |
|
|
— |
|
Other current
liabilities |
|
40 |
|
|
85 |
|
Total current
liabilities |
|
3,335 |
|
|
3,351 |
|
Operating lease
liability |
|
160 |
|
|
261 |
|
Finance lease
liability |
|
46 |
|
|
— |
|
Total
liabilities |
|
3,541 |
|
|
3,612 |
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
Series A junior participating
preferred stock as of June 30, 2020 and December 31, 2019, par
value $0.0001 per share; authorized 30,000 shares, none
outstanding |
|
— |
|
|
— |
|
Series F convertible preferred
stock as of June 30, 2020 and December 31, 2019, par value $0.0001
per share; authorized 435 and 535 shares, respectively, issued and
outstanding 435 and 535, respectively |
|
— |
|
|
— |
|
Preferred stock as of June 30,
2020 and December 31, 2019, par value$0.0001 per share; authorized
39,969,565 and 39,969,465 shares, none outstanding |
|
— |
|
|
— |
|
Common stock as of June 30,
2020 and December 31, 2019, par value$0.0001 per share; authorized
100,000,000 shares, issued and outstanding43,196,813 and 4,674,068,
respectively |
|
4 |
|
|
— |
|
Additional paid‑in
capital |
|
234,381 |
|
|
218,278 |
|
Accumulated other
comprehensive income: |
|
|
|
|
|
|
Foreign currency
translation adjustment |
|
1,209 |
|
|
1,214 |
|
Accumulated deficit |
|
(225,992 |
) |
|
(217,502 |
) |
Total stockholders’
equity |
|
9,602 |
|
|
1,990 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
13,143 |
|
$ |
5,602 |
|
CHF SOLUTIONS, INC. AND
SUBSIDIARIESCondensed Consolidated Statements of
Cash Flows(unaudited, in thousands)
|
|
Six months endedJune 30, |
|
|
2020 |
|
2019 |
|
Operating Activities: |
|
|
|
|
|
|
Net loss |
$ |
(8,490 |
) |
$ |
(9,157 |
) |
Adjustments to reconcile net
loss to cash flows used in operating activities: |
|
|
|
|
|
|
Depreciation and
amortization |
|
151 |
|
|
120 |
|
Stock-based
compensation expense, net |
|
727 |
|
|
701 |
|
Loss on disposal of
property and equipment |
|
46 |
|
|
— |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
(179 |
) |
|
(146 |
) |
Inventory |
|
(1,104 |
) |
|
(32 |
) |
Other current
assets |
|
20 |
|
|
(75 |
) |
Other assets and
liabilities |
|
112 |
|
|
(18 |
) |
Accounts payable and
accrued expenses |
|
(43 |
) |
|
(267 |
) |
Net cash used in
operating activities |
|
(8,760 |
) |
|
(8,874 |
) |
|
|
|
|
|
|
|
Investing
Activities: |
|
|
|
|
|
|
Purchases of property
and equipment |
|
(69 |
) |
|
(158 |
) |
Net cash used in
investing activities |
|
(69 |
) |
|
(158 |
) |
|
|
|
|
|
|
|
Financing
Activities: |
|
|
|
|
|
|
Proceeds from public stock offerings, net |
|
13,040 |
|
|
10,959 |
|
Proceeds from warrant exercises |
|
2,340 |
|
|
— |
|
Payments on finance lease liability |
|
(4 |
) |
|
— |
|
Net cash provided by
financing activities |
|
15,376 |
|
|
10,959 |
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
(5 |
) |
|
(5 |
) |
Net increase in cash and cash
equivalents |
|
6,542 |
|
|
1,922 |
|
Cash and cash equivalents -
beginning of period |
|
1,279 |
|
|
5,480 |
|
Cash and cash
equivalents - end of period |
$ |
7,821 |
|
$ |
7,402 |
|
|
|
|
|
|
|
|
Supplemental cash flow
information |
|
|
|
|
|
|
Cash paid for income
taxes |
$ |
— |
|
$ |
— |
|
Inventory transferred
to property, plant and equipment |
$ |
112 |
|
$ |
— |
|
Equipment acquired
through finance lease liability |
$ |
67 |
|
$ |
— |
|
CONTACTS:
INVESTORS:
Claudia Napal Drayton
Chief Financial Officer
CHF Solutions, Inc.
952-345-4205
ir@chf-solutions.com
MEDIA:
Jessica Stebing
Health+Commerce
260-336-6202
jstebing@healthandcommerce.com
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