CHF Solutions, Inc. Announces 17 Percent Increase in Revenues for First Quarter 2019 Over Previous Year and Provides Company ...

Date : 05/07/2019 @ 1:00PM
Source : GlobeNewswire Inc.
Stock : Chf Solutions, Inc. (CHFS)
Quote : 2.66  -0.07 (-2.56%) @ 11:27PM

CHF Solutions, Inc. Announces 17 Percent Increase in Revenues for First Quarter 2019 Over Previous Year and Provides Company ...

CHF Solutions, Inc. (NASDAQ:CHFS)
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3 Months : From Apr 2019 to Jul 2019

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CHF Solutions, Inc. (Nasdaq: CHFS) announced today its results for the first quarter ended March 31, 2019, which included the following highlights:

  • Revenue for first quarter ended March 31, 2019 was $1.2 million, an increase of 17 percent compared to the same period of the prior year. Gross margin percentages increased to 50 percent from 13 percent from the same period a year ago, after transition to in-house manufactured inventory.
  • Continued progress towards obtaining regulatory clearance for an expanded label in pediatrics. Pre-submission meeting with the FDA scheduled for May 2019.
  • Continued expansion into cardiovascular surgery and announced the launch of two new accounts with surgery focus.
  • Exhibited at three cardiovascular surgery conferences: Society of Thoracic Surgeons in January 2019, International Conference of Heart and Lung Transplantation in March 2019, and the American Association for Thoracic Surgery conference in May 2019. Sponsored seminar led by renowned cardiothoracic surgeon, Dr. Daniel Beckles, MD, PhD.
  • Announced the publication of an article in the Journal of Medical Economics, a peer reviewed journal that evaluated the cost saving benefits of the Aquadex FlexFlow® system in the hospital setting.
  • Closed on an underwritten public offering of stock, for net proceeds of $11.0 million. Ended quarter with $11.5 million in cash and no debt.

“We began the year strong with continued double-digit increase in our revenues over the previous year and we believe we are well-poised to continue to grow in the quarters to come,” said John Erb, chairman and CEO of CHF Solutions. “We will continue to develop and refine our strategic focus toward driving revenue, which is the key metric our employees, shareholders and potential investors use to measure performance.”

FINANCIALS

CHF SOLUTIONS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited and in thousands, except per share amounts)

  Three months ended March 31,
  2019   2018  
Net sales$1,215 $1,037 
Costs and Expenses:      
Cost of goods sold 612  901 
Selling, general and administrative 4,018  4,011 
Research and development 1,310  479 
Total costs and expenses 5,940  5,391 
Loss from operations (4,725) (4,354)
Loss before income taxes (4,725) (4,354)
Income tax expense (2)  
Net loss$(4,727)$(4,354)
       
Basic and diluted loss per share$(11.47)$(15.12)
       
Weighted average shares outstanding – basic and diluted 805  288 
       
Other comprehensive income:      
Foreign currency translation adjustments$(2)$1 
Total comprehensive loss$(4,729)$(4,353)

CHF SOLUTIONS, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands, except share and per share amounts)

  March 31, 2019  December 31, 2018 
ASSETS (unaudited)    
Current assets      
Cash and cash equivalents$11,489 $5,480 
Accounts receivable 622  786 
Inventory 1,790  1,658 
Other current assets 350  203 
Total current assets 14,251  8,127 
Property, plant and equipment, net 518  536 
Operating lease right-of-use asset 574   
Other assets 20  113 
TOTAL ASSETS$15,363 $8,776 
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities      
Accounts payable$1,202 $1,133 
Accrued compensation 831  1,498 
Current portion of operating lease liability 171   
Other current liabilities 228  209 
Total current liabilities 2,432  2,840 
Operating lease liability 403  - 
Total liabilities 2,835  2,840 
       
Commitments and contingencies    
       
Stockholders’ equity      
Series A junior participating preferred stock as of March 31, 2019 and December 31, 2018, par value $0.0001 per share; authorized 30,000 shares, none outstanding    
Series F convertible preferred stock as of March 31, 2019 and December 31, 2018, par value $0.0001 per share; authorized 535 and 535 shares, respectively, issued and outstanding 535 and 535, respectively    
Series G convertible preferred stock as of March 31, 2019 and December 31, 2018, par value $0.0001 per share; authorized 810,142 and 0 shares, respectively, issued and outstanding 810,142 and 0, respectively      
Preferred stock as of March 31, 2019 and December 31, 2018, par value$0.0001 per share; authorized 39,159,323 and 39,969,465 shares, none outstanding    
Common stock as of March 31, 2019 and December 31, 2018, par value$0.0001 per share; authorized 100,000,000 shares, issued and outstanding2,069,020 and 513,445, respectively    
Additional paid‑in capital 215,422  204,101 
Accumulated other comprehensive income:      
Foreign currency translation adjustment 1,221  1,223 
Accumulated deficit (204,115) (199,388)
Total stockholders’ equity 12,528  5,936 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$15,363 $8,776 

CHF SOLUTIONS, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Stockholders’ Equity(Unaudited, In thousands, except share amounts)

  Outstanding Shares of Common Stock Common Stock Additional Paid in Capital Accumulated Other Comprehensive Income Accumulated Deficit Stockholders’ Equity 
Balance December 31, 2017 271,357 $ $197,367 $1,227 $(182,356)$16,238 
Net loss     (4,354)(4,354 )
Foreign currency translation adjustment    1  1 
Stock-based compensation and stock awards, net 3  501   501 
Conversion of preferred stock into common stock 32,365      
Balance March 31, 2018 303,725 $ $197,868 $1,228 $(186,710)$12,386 
                   
  Outstanding Shares of Common Stock Common Stock Additional Paid in Capital Accumulated Other Comprehensive Income Accumulated Deficit Stockholders’ Equity 
Balance December 31, 2018 513,445 $ $204,101 $1,223 $(199,388)$5,936 
Net loss     (4,727)(4,727 )
Foreign currency translation adjustment    (2) (2 )
Stock-based compensation, net 3  362   362 
Issuance of common and preferred stock, net 455,178  10,959   10,959 
Conversion of preferred stock into common stock 1,100,394      
Balance March 31, 2019 2,069,020 $ $215,422 $1,221 $(204,115)$12,528 

CHF SOLUTIONS, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Cash Flows(Unaudited and in thousands)

   Three months endedMarch 31, 
    2019 2018 
       
Operating Activities:    
Net loss $(4,727)$(4,354)
Adjustments to reconcile net loss to cash flows used in operating activities:       
Depreciation and amortization  59  54 
Stock-based compensation expense, net  362  500 
Changes in operating assets and liabilities:       
Accounts receivable  164  (113)
Inventory  (132) (937)
Other current assets  (147) 6 
Other assets and liabilities  112   
Accounts payable and accrued expenses  (598) (192)
Net cash used in operating activities  (4,907) (5,036)
        
Investing Activities:       
Purchases of property and equipment  (41) (57)
Net cash used in investing activities  (41) (57)
        
Financing Activities:       
Net proceeds from public stock offering, net  10,959   
Net cash provided by financing activities  10,959   
        
Effect of exchange rate changes on cash  (2) 2 
Net increase (decrease) in cash and cash equivalents  6,009  (5,091)
Cash and cash equivalents - beginning of period  5,480  15,595 
Cash and cash equivalents - end of period $11,489 $10,504 
        
Supplemental cash flow information       
Cash paid for income taxes $ $ 
        

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 CHF Solutions website at http://ir.chf-solutions.com or access the webcast directly at 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: 7369669.  An audio archive of the webcast will be available following the call on the Investor page at http://ir.chf-solutions.com/events.

About CHF Solutions

CHF Solutions, Inc. (NASDAQ:CHFS) is a medical device company focused on commercializing the Aquadex FlexFlow system for Aquapheresis therapy. The Aquadex FlexFlow system is indicated for temporary (up to eight hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy, and extended (longer than 8 hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy and require hospitalization. All treatments must be administered by a healthcare provider, under physician prescription, both of whom having received training in extracorporeal therapies. The company's mission is to predict, measure, and control patient fluid balance through science, collaboration, and innovative medical technology. CHF Solutions is a Delaware corporation headquartered in Minneapolis, Minnesota with wholly owned subsidiaries in Australia and Ireland. The company has been listed on the NASDAQ Capital Market since February 2012.

Forward-Looking Statements

Certain 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 Company’s ability to grow revenue in future quarters. 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 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.

CONTACTS:

INVESTORS: Claudia Napal Drayton Chief Financial Officer CHF Solutions, Inc. 952-345-4205 ir@chf-solutions.com

-or- Bret Shapiro Managing Partner CORE IR 516-222-2560 brets@coreir.com www.coreir.com

MEDIA Jules Abraham JQA Partners, Inc. 917-885-7378 jabraham@jqapartners.com

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