Axogen, Inc. (NASDAQ: AXGN), a global leader in developing and
marketing innovative surgical solutions for peripheral nerve
injuries, today reported financial results and business highlights
for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial Results and
Recent Business Highlights
- Net revenue was $31.2 million during
the quarter, a 7% decrease compared to third quarter 2020 revenue
of $33.4 million. Prior-year revenue included approximately $3.3
million from procedures deferred from the first half of 2020 as a
result of the initial impact of the COVID-19 pandemic, and
approximately $1.5 million from the sale of Avive® Soft Tissue
Membrane, for which the company voluntarily suspended market
availability on June 1, 2021.
- Gross margin was 83.2% for the
quarter, compared to 83.0% one year ago.
- Net loss for the quarter was $7.1
million, or $0.17 per share, compared to a net loss of $1.5
million, or $0.04 per share, in the third quarter of 2020.
- Adjusted net loss was $3.6 million for
the quarter, or $0.09 per share, compared with adjusted net income
of $1.5 million, or $0.04 per share, in the third quarter of
2020.
- Adjusted EBITDA loss was $2.5 million
for the quarter, compared to an adjusted EBITDA of $2.3 million in
the third quarter of 2020.
- The balance of cash, cash equivalents,
and investments on September 30, 2021 was $98.1 million, compared
to a balance of $106.2 million on June 30, 2021. The net change
includes capital expenditures of $8.0 million related to
construction of our new processing facility in Dayton and $0.2
million of operating cash burn in the quarter.
- RANGER® neuroma publication noted that
80% of subjects who had their neuromas resected and the resulting
gap reconstructed with Avance® Nerve Graft reported an improvement
in their pain, and 88% of subjects reported meaningful return of
sensory function.1
“Our third quarter results were negatively impacted
by lower-than-expected procedure volumes as hospitals addressed an
increase in COVID cases and staffing challenges,” commented Karen
Zaderej, chairman, CEO, and president of Axogen, Inc. “We view
these lower procedure volumes in the third quarter as transitory in
nature, and we are confident in the underlying strength of our
business as well as our ability to support our customers as
surgical schedules and staffing challenges improve.”
Additional Operational and Business
Highlights
- Core accounts in the third quarter
were 292, an 18% increase compared to 248 in the third quarter of
2020 and continue to represent approximately 60% of total
revenue.
- Active accounts were 954, a 9%
increase compared to 875 in the third quarter a year ago. Revenue
from the top 10% of our active accounts continued to represent
approximately 35% of total revenue in the quarter.
- Ended the quarter with 109 direct
sales representatives, consistent with prior quarter and compared
to 110 one year ago.
- Ended the quarter with 169
peer-reviewed clinical publications featuring Axogen’s nerve repair
product portfolio.
- Axogen’s peripheral nerve repair
portfolio was featured throughout the clinical and scientific
sessions of the 76th Annual Meeting of the American Society for
Surgery of the Hand (ASSH) held in-person and online from September
30 to October 2, 2021.
- Specific data read out from the
RANGER registry on over 600 upper extremity nerve repairs
demonstrated meaningful recovery in 82% of sensory and mixed/motor
repairs.2
Updating 2021 Financial Guidance
Management is revising financial guidance, expecting full-year 2021
revenue will be in the range of $127.0 million to $129.0 million
versus the prior range of $134.5 million to $137.5 million.
Additionally, management continues to expect full-year 2021 gross
margin to remain above 80%.
Conference CallThe Company will
host a conference call and webcast for the investment community
today at 4:30 p.m. ET. Investors interested in participating by
phone are invited to call toll free at 1-877-407-0993 or use the
direct dial-in number 1-201-689-8795. Those interested in listening
to the conference call live via the Internet can do so by visiting
the Investors page of the Company’s website at www.axogeninc.com
and clicking on the webcast link on the Investors home page.
Following the conference call, a replay will be
available on the Company’s website at www.axogeninc.com under
Investors.
About the RANGER RegistryThe
RANGER Registry, a multicenter Registry of Avance Nerve Graft’s
Utilization and Recovery Outcomes Post Peripheral Nerve
Reconstruction, is an active multicenter clinical registry designed
to continuously monitor and collect injury, repair, safety, and
outcomes data for peripheral nerve injuries repaired with processed
nerve allograft (Avance Nerve Graft), nerve autograft, and
manufactured conduits. The study, launched in 2008, includes more
than 30 centers. RANGER is an Axogen sponsored ongoing open label
registry study. Each patient outcome is dependent upon the nature
and extent of nerve loss or damage, timing between nerve loss and
repair, and the natural course of the patient’s recovery.
About AxogenAxogen (AXGN) is
the leading company focused specifically on the science,
development, and commercialization of technologies for peripheral
nerve regeneration and repair. Axogen employees are passionate
about helping to restore peripheral nerve function and quality of
life to patients with physical damage or transection to peripheral
nerves by providing innovative, clinically proven, and economically
effective repair solutions for surgeons and health care providers.
Peripheral nerves provide the pathways for both motor and sensory
signals throughout the body. Every day, people suffer traumatic
injuries or undergo surgical procedures that impact the function of
their peripheral nerves. Physical damage to a peripheral
nerve, or the inability to properly reconnect peripheral nerves,
can result in the loss of muscle or organ function, the loss of
sensory feeling, or the initiation of pain.
Axogen's platform for peripheral nerve repair
features a comprehensive portfolio of products, including Avance®
Nerve Graft, a biologically active off-the-shelf processed human
nerve allograft for bridging severed peripheral nerves without the
comorbidities associated with a second surgical site; Axoguard
Nerve Connector®, a porcine submucosa extracellular matrix (ECM)
coaptation aid for tensionless repair of severed peripheral nerves;
Axoguard Nerve Protector®, a porcine submucosa ECM product used to
wrap and protect damaged peripheral nerves and reinforce the nerve
reconstruction while preventing soft tissue attachments; and
Axoguard Nerve Cap®, a porcine submucosa ECM product used to
protect a peripheral nerve end and separate the nerve from the
surrounding environment to reduce the development of symptomatic or
painful neuroma. The Axogen portfolio of products is available in
the United States, Canada, the United Kingdom, South Korea, and
several other European and international countries.
Cautionary Statements Concerning
Forward-Looking StatementsThis press release contains
“forward-looking” statements as defined in the Private Securities
Litigation Reform Act of 1995. These statements are based on
management's current expectations or predictions of future
conditions, events, or results based on various assumptions and
management's estimates of trends and economic factors in the
markets in which we are active, as well as our business plans.
Words such as “expects,” “anticipates,” “intends,” “plans,”
“believes,” “seeks,” “estimates,” “projects,” “forecasts,”
“continue,” “may,” “should,” “will,” “goals,” and variations of
such words and similar expressions are intended to identify such
forward-looking statements. The forward-looking statements may
include, without limitation, statements related to the
expected impact of COVID-19 on our business, statements regarding
our growth, our 2021 financial guidance, product development,
product potential, regulatory process and approvals, APC renovation
timing and expense, financial performance, sales growth, product
adoption, market awareness of our products, data validation, our
assessment of our internal controls over financial reporting, our
visibility at and sponsorship of conferences and educational
events. The forward-looking statements are and will be subject to
risks and uncertainties, which may cause actual results to differ
materially from those expressed or implied in such forward-looking
statements. Forward-looking statements contained in this press
release should be evaluated together with the many uncertainties
that affect our business and our market, particularly those
discussed under Part I, Item 1A., “Risk Factors,” of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2020, as
well as other risks and cautionary statements set forth in our
filings with the U.S. Securities and Exchange Commission.
Forward-looking statements are not a guarantee of future
performance, and actual results may differ materially from those
projected. The forward-looking statements are representative only
as of the date they are made and, except as required by applicable
law, we assume no responsibility to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, changed circumstances, or otherwise.
About Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, we
use the non-GAAP financial measures of EBITDA, which measures
earnings before interest, income taxes, depreciation and
amortization, and Adjusted EBITDA which further excludes non-cash
stock compensation expense and litigation and related expenses. We
also use the non-GAAP financial measures of Adjusted Net Income or
Loss and Adjusted Net Income or Loss Per Common Share - basic and
diluted which excludes non-cash stock compensation expense and
litigation and related expenses from Net Loss and Net Loss Per
Common Share - basic and diluted, respectively. These non-GAAP
measures are not based on any comprehensive set of accounting rules
or principles and should not be considered a substitute for, or
superior to, financial measures calculated in accordance with GAAP,
and may be different from non-GAAP measures used by other
companies. In addition, these non-GAAP measures should be read in
conjunction with our financial statements prepared in accordance
with GAAP. The reconciliations of Axogen’s GAAP financial measures
to the corresponding non-GAAP measures should be carefully
evaluated.
We use these non-GAAP financial measures for
financial and operational decision-making and as a means to
evaluate period-to-period comparisons. We believe that these
non-GAAP financial measures provide meaningful supplemental
information regarding our performance and that both management and
investors benefit from referring to these non-GAAP financial
measures in assessing our performance and when planning,
forecasting, and analyzing future periods. We believe these
non-GAAP financial measures are useful to investors because (1)
they allow for greater transparency with respect to key metrics
used by management in its financial and operational decision-making
and (2) they are used by our institutional investors and the
analyst community to help them analyze the performance of our
business.
1Clinical Outcomes of Symptomatic Neuroma Resection
and Reconstruction with Processed Nerve Allograft. Plast Reconstr
Surg Glob Open. 2021 Oct 4;9(10):e3832. Jain SA, Nydick J,
Leversedge F, Power D, Styron J, Safa B, Buncke G.
2Axogen Data on file.
Contact:Axogen,
Inc.Peter J. Mariani, Executive Vice President and Chief
Financial OfficerInvestorRelations@AxogenInc.com
AXOGEN,
INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(unaudited) |
(In
Thousands, Except Share and Per Share Amounts) |
|
|
|
|
|
|
|
|
September
30, |
December 31, |
|
|
|
|
2021 |
|
|
2020 |
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
46,730 |
|
|
$ |
48,767 |
|
Restricted cash |
|
|
6,333 |
|
|
|
6,842 |
|
Investments |
|
|
44,989 |
|
|
|
55,199 |
|
Accounts receivable, net |
|
|
18,567 |
|
|
|
17,618 |
|
Inventory |
|
|
15,453 |
|
|
|
12,529 |
|
Prepaid expenses and other |
|
|
2,896 |
|
|
|
4,296 |
|
Total current assets |
|
|
134,968 |
|
|
|
145,251 |
|
Property and equipment, net |
|
|
56,328 |
|
|
|
38,398 |
|
Operating lease right-of-use assets |
|
|
15,588 |
|
|
|
15,614 |
|
Finance lease right-of-use assets |
|
|
47 |
|
|
|
64 |
|
Intangible assets |
|
|
2,701 |
|
|
|
2,054 |
|
Other long-term assets |
|
|
339 |
|
|
|
— |
|
Total assets |
|
$ |
209,971 |
|
|
$ |
201,381 |
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable and accrued expenses |
|
$ |
21,685 |
|
|
$ |
21,968 |
|
Current maturities of long-term lease obligations |
|
|
1,674 |
|
|
|
863 |
|
Total current liabilities |
|
|
23,359 |
|
|
|
22,831 |
|
Long-term debt, net of financing fees |
|
|
46,238 |
|
|
|
32,027 |
|
Debt derivative liabilities |
|
|
3,822 |
|
|
|
2,497 |
|
Long-term lease obligations |
|
|
21,271 |
|
|
|
20,874 |
|
Other long-term liabilities |
|
|
— |
|
|
|
3 |
|
Total liabilities |
|
|
94,690 |
|
|
|
78,232 |
|
Shareholders’ equity: |
|
|
|
|
|
Common stock, $.01 par value per share; 100,000,000 shares
authorized |
|
|
415 |
|
|
|
406 |
|
Additional paid-in capital |
|
|
340,212 |
|
|
|
326,390 |
|
Accumulated deficit |
|
|
(225,346 |
) |
|
|
(203,647 |
) |
Total shareholders’ equity |
|
|
115,281 |
|
|
|
123,149 |
|
Total liabilities and shareholders' equity |
|
$ |
209,971 |
|
|
$ |
201,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AXOGEN,
INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
Three and
Nine Months Ended September 30, 2021 and 2020 |
(unaudited) |
(In
Thousands, Except Per Share Amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September
30, |
|
September
30, |
|
September
30, |
|
September
30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Revenues |
|
$ |
31,204 |
|
|
|
$ |
33,428 |
|
|
|
$ |
95,821 |
|
|
|
$ |
79,805 |
|
Cost of goods sold |
|
|
5,239 |
|
|
|
5,697 |
|
|
|
17,503 |
|
|
|
16,118 |
|
Gross profit |
|
|
25,965 |
|
|
|
27,731 |
|
|
|
78,318 |
|
|
|
63,687 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
18,370 |
|
|
|
17,726 |
|
|
|
55,594 |
|
|
|
49,854 |
|
Research and development |
|
|
6,404 |
|
|
|
4,230 |
|
|
|
17,875 |
|
|
|
12,915 |
|
General and administrative |
|
|
7,880 |
|
|
|
6,820 |
|
|
|
24,912 |
|
|
|
18,726 |
|
Total costs and expenses |
|
|
32,654 |
|
|
|
28,776 |
|
|
|
98,381 |
|
|
|
81,495 |
|
Loss
from operations |
|
|
(6,689 |
) |
|
|
(1,045 |
) |
|
|
(20,063 |
) |
|
|
(17,808 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
|
Investment income |
|
|
17 |
|
|
|
28 |
|
|
|
80 |
|
|
|
576 |
|
Interest expense |
|
|
(417 |
) |
|
|
(397 |
) |
|
|
(1,427 |
) |
|
|
(459 |
) |
Change in fair value of derivatives |
|
|
(46 |
) |
|
|
(71 |
) |
|
|
(152 |
) |
|
|
(71 |
) |
Other expense |
|
|
(6 |
) |
|
|
6 |
|
|
|
(137 |
) |
|
|
(14 |
) |
Total other (expense) income, net |
|
|
(452 |
) |
|
|
(434 |
) |
|
|
(1,636 |
) |
|
|
32 |
|
Net
loss |
|
$ |
(7,141 |
) |
|
$ |
(1,479 |
) |
|
$ |
(21,699 |
) |
|
$ |
(17,776 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding – basic and diluted |
|
|
41,468 |
|
|
|
40,094 |
|
|
|
41,088 |
|
|
|
39,873 |
|
Loss per common share – basic and diluted |
|
$ |
(0.17 |
) |
|
|
$ |
(0.04 |
) |
|
|
$ |
(0.53 |
) |
|
|
$ |
(0.45 |
) |
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) - non GAAP |
|
$ |
(3,602 |
) |
|
$ |
1,468 |
|
|
$ |
(10,425 |
) |
|
$ |
(12,016 |
) |
Adjusted net income (loss) per common share – basic and
diluted |
|
$ |
(0.09 |
) |
|
$ |
0.04 |
|
|
$ |
(0.25 |
) |
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AXOGEN,
INC. |
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP
FINANCIAL MEASURES |
Three and
Nine Months Ended September 30, 2021 and 2020 |
(unaudited) |
(In
Thousands, Except Per Share Amounts) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September
30, |
|
September
30, |
|
September
30, |
|
September
30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
25,965 |
|
|
$ |
27,731 |
|
|
$ |
78,318 |
|
|
$ |
63,687 |
|
Avive inventory write-down and production
costs |
|
|
- |
|
|
|
- |
|
|
|
1,429 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Adjusted
gross profit |
|
$ |
25,965 |
|
|
$ |
27,731 |
|
|
$ |
79,747 |
|
|
$ |
63,687 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,141 |
) |
|
$ |
(1,479 |
) |
|
|
$ |
(21,699 |
) |
|
$ |
(17,776 |
) |
Depreciation and amortization expense |
|
|
706 |
|
|
|
439 |
|
|
|
2,207 |
|
|
|
1,104 |
|
Investment income |
|
|
(17 |
) |
|
|
(28 |
) |
|
|
(80 |
) |
|
|
(576 |
) |
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
67 |
|
|
|
— |
|
Interest expense |
|
|
417 |
|
|
|
397 |
|
|
|
1,427 |
|
|
|
459 |
|
EBITDA - non GAAP |
|
$ |
(6,035 |
) |
|
$ |
(671 |
) |
|
$ |
(18,078 |
) |
|
$ |
(16,789 |
) |
|
|
|
|
|
|
|
|
|
Non cash stock compensation expense |
|
|
2,911 |
|
|
|
2,947 |
|
|
|
9,410 |
|
|
|
5,725 |
|
Litigation and related costs |
|
|
628 |
|
|
|
— |
|
|
|
1,864 |
|
|
|
35 |
|
Adjusted EBITDA - non GAAP |
|
$ |
(2,496 |
) |
|
|
$ |
2,276 |
|
|
$ |
(6,804 |
) |
|
|
$ |
(11,029 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,141 |
) |
|
|
$ |
(1,479 |
) |
|
|
$ |
(21,699 |
) |
|
|
$ |
(17,776 |
) |
Non cash stock compensation expense |
|
|
2,911 |
|
|
|
|
2,947 |
|
|
|
9,410 |
|
|
|
5,725 |
|
Litigation and related costs |
|
|
628 |
|
|
|
|
— |
|
|
|
1,864 |
|
|
|
35 |
|
Adjusted Net Income (Loss) - non
GAAP |
|
$ |
(3,602 |
) |
|
|
$ |
1,468 |
|
|
$ |
(10,425 |
) |
|
$ |
(12,016 |
) |
Weighted average common shares outstanding – basic and diluted |
|
|
41,468 |
|
|
|
|
40,094 |
|
|
|
41,088 |
|
|
|
39,873 |
|
Adjusted net income (loss) per common share – basic and
diluted |
|
$ |
(0.09 |
) |
|
|
$ |
0.04 |
|
|
$ |
(0.25 |
) |
|
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
AXOGEN,
INC. |
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
EQUITY |
|
|
Three and
Nine Months Ended September 30, 2021 and 2020 |
|
|
(unaudited) |
|
|
(In
Thousands, Except Share Amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
Additional Paid-in Capital |
|
|
|
Total |
|
|
Shares |
|
Amount |
|
|
Accumulated Deficit |
|
Shareholders' Equity |
For the Three Months Ended September 30,
2021: |
|
|
|
|
|
Balance at June 30, 2021 |
|
41,337,108 |
|
|
$ |
413 |
|
|
$ |
336,495 |
|
|
$ |
(218,205 |
) |
|
|
$ |
118,703 |
|
Net
loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7,141 |
) |
|
|
|
(7,141 |
) |
Stock-based
compensation |
|
- |
|
|
|
- |
|
|
|
2,911 |
|
|
|
- |
|
|
|
|
2,911 |
|
Issuance of
restricted and performance stock units |
|
67,249 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
|
- |
|
Exercise of
stock options and employee stock purchase plan |
|
154,572 |
|
|
|
1 |
|
|
|
807 |
|
|
|
- |
|
|
|
|
808 |
|
Balance at September 30, 2021 |
|
41,558,929 |
|
|
$ |
415 |
|
|
$ |
340,212 |
|
|
$ |
(225,346 |
) |
|
|
$ |
115,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2021: |
|
|
|
|
|
Balance at December 31, 2020 |
|
40,618,766 |
|
|
$ |
406 |
|
|
$ |
326,390 |
|
|
$ |
(203,647 |
) |
|
|
$ |
123,149 |
|
Net
loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(21,699 |
) |
|
|
|
(21,699 |
) |
Stock-based
compensation |
|
- |
|
|
|
- |
|
|
|
9,410 |
|
|
|
- |
|
|
|
|
9,410 |
|
Issuance of
restricted and performance stock units |
|
206,193 |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
- |
|
|
|
|
- |
|
Exercise of
stock options and employee stock purchase plan |
|
733,970 |
|
|
|
7 |
|
|
|
4,414 |
|
|
|
- |
|
|
|
|
4,421 |
|
Balance at September 30, 2021 |
|
41,558,929 |
|
|
$ |
415 |
|
|
$ |
340,212 |
|
|
$ |
(225,346 |
) |
|
|
$ |
115,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
2020: |
|
|
|
|
|
Balance at June 30, 2020 |
|
40,022,499 |
|
|
$ |
400 |
|
|
$ |
315,518 |
|
|
$ |
(196,158 |
) |
|
|
$ |
119,760 |
|
Net
loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,479 |
) |
|
|
|
(1,479 |
) |
Stock-based
compensation |
|
- |
|
|
|
- |
|
|
|
2,947 |
|
|
|
- |
|
|
|
|
2,947 |
|
Issuance of
restricted and performance stock units |
|
22,529 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
Shares
surrendered by employees to pay tax withholdings |
|
(1,230 |
) |
|
|
- |
|
|
|
(8 |
) |
|
|
- |
|
|
|
|
(8 |
) |
Exercise of
stock options and employee stock purchase plan |
|
80,043 |
|
|
|
1 |
|
|
|
492 |
|
|
|
- |
|
|
|
|
493 |
|
Balance at September 30, 2020 |
|
40,123,841 |
|
|
$ |
401 |
|
|
$ |
318,949 |
|
|
$ |
(197,637 |
) |
|
|
$ |
121,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2020: |
|
|
|
|
|
Balance at December 31, 2019 |
|
39,589,755 |
|
|
$ |
396 |
|
|
$ |
311,618 |
|
|
$ |
(179,861 |
) |
|
|
$ |
132,153 |
|
Net
loss |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(17,776 |
) |
|
|
|
(17,776 |
) |
Stock-based
compensation |
|
- |
|
|
|
- |
|
|
|
5,725 |
|
|
|
- |
|
|
|
|
5,725 |
|
Issuance of
restricted and performance stock units |
|
168,311 |
|
|
|
2 |
|
|
|
(2 |
) |
|
|
- |
|
|
|
|
- |
|
Shares
surrendered by employees to pay tax withholdings |
|
(38,086 |
) |
|
|
(1 |
) |
|
|
(664 |
) |
|
|
- |
|
|
|
|
(665 |
) |
Exercise of
stock options and employee stock purchase plan |
|
403,861 |
|
|
|
4 |
|
|
|
2,272 |
|
|
|
- |
|
|
|
|
2,276 |
|
Balance at September 30, 2020 |
|
40,123,841 |
|
|
$ |
401 |
|
|
$ |
318,949 |
|
|
$ |
(197,637 |
) |
|
|
$ |
121,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AXOGEN,
INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
Nine Months
Ended September 30, 2021 and 2020 |
(unaudited) |
(In
Thousands) |
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September
30, |
|
September
30, |
|
|
|
2021 |
|
|
|
2020 |
|
Cash
flows from operating activities: |
|
|
|
|
Net
loss |
|
$ |
(21,699 |
) |
|
$ |
(17,776 |
) |
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation |
|
|
2,059 |
|
|
|
993 |
|
Amortization
of right-of-use assets |
|
|
1,418 |
|
|
|
1,282 |
|
Amortization
of intangible assets |
|
|
148 |
|
|
|
111 |
|
Amortization
of deferred financing fees |
|
|
384 |
|
|
|
22 |
|
Provision
for bad debt |
|
|
(145 |
) |
|
|
(115 |
) |
Provision
for inventory write-down |
|
|
2,850 |
|
|
|
2,108 |
|
Change in
fair value of derivatives |
|
|
152 |
|
|
|
71 |
|
Change in
investment gains and losses |
|
|
49 |
|
|
|
(29 |
) |
Share-based
compensation |
|
|
9,410 |
|
|
|
5,725 |
|
Change in
operating assets and liabilities: |
|
|
|
|
Accounts
receivable |
|
|
(804 |
) |
|
|
(1,700 |
) |
Inventory |
|
|
(5,774 |
) |
|
|
(176 |
) |
Prepaid
expenses and other |
|
|
1,146 |
|
|
|
(844 |
) |
Accounts
payable and accrued expenses |
|
|
(927 |
) |
|
|
(911 |
) |
Operating
lease obligations |
|
|
(154 |
) |
|
|
(1,213 |
) |
Cash paid
for interest portion of finance leases |
|
|
(1 |
) |
|
|
(2 |
) |
Contract and
other liabilities |
|
|
(3 |
) |
|
|
(9 |
) |
Net
cash used in operating activities |
|
|
(11,891 |
) |
|
|
(12,463 |
) |
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
Purchase of
property and equipment |
|
|
(20,641 |
) |
|
|
(18,907 |
) |
Economic
development grant proceeds |
|
|
950 |
|
|
|
— |
|
Purchase of
investments |
|
|
(39,139 |
) |
|
|
(41,794 |
) |
Proceeds
from sale of investments |
|
|
49,300 |
|
|
|
63,483 |
|
Cash
payments for intangible assets |
|
|
(534 |
) |
|
|
(393 |
) |
Net
cash (used in) provided by investing activities |
|
|
(10,064 |
) |
|
|
2,389 |
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
Proceeds
from the issuance of long-term debt |
|
|
15,000 |
|
|
|
35,000 |
|
Proceeds
from the paycheck protection program |
|
|
— |
|
|
|
7,820 |
|
Repayment of
paycheck protection program |
|
|
— |
|
|
|
(7,820 |
) |
Payments for
debt issuance costs |
|
|
— |
|
|
|
(642 |
) |
Payments of
employee tax withholding in exchange of common stock awards |
|
|
— |
|
|
|
(665 |
) |
Cash paid
for debt portion of finance leases |
|
|
(12 |
) |
|
|
(10 |
) |
Proceeds
from exercise of stock options |
|
|
4,421 |
|
|
|
2,276 |
|
Net
cash provided by financing activities |
|
|
19,409 |
|
|
|
35,959 |
|
|
|
|
|
|
Net
(decrease) increase in cash, cash equivalents and restricted
cash |
|
|
(2,546 |
) |
|
|
25,885 |
|
Cash, cash equivalents and restricted cash,
beginning of period |
|
|
55,609 |
|
|
|
41,724 |
|
Cash, cash equivalents and restricted cash, end of
period |
|
$ |
53,063 |
|
|
$ |
67,609 |
|
|
|
|
|
|
Supplemental disclosures of cash flow
activity: |
|
|
|
|
Cash paid
for interest |
|
$ |
646 |
|
|
$ |
379 |
|
Supplemental
disclosure of non-cash investing and financing
activities |
Acquisition
of fixed assets in accounts payable and accrued expenses |
|
$ |
1,460 |
|
|
$ |
1,271 |
|
Obtaining a
right-of-use asset in exchange for a lease liability |
|
$ |
1,375 |
|
|
$ |
14,119 |
|
Embedded
derivative associated with the long-term debt |
|
$ |
1,173 |
|
|
$ |
2,562 |
|
Acquisition
of intangible assets in accounts payable and accrued expenses |
|
$ |
261 |
|
|
$ |
- |
|
|
|
|
|
|
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