Asensus Surgical, Inc. (NYSE American: ASXC), a medical device
company that is digitizing the interface between the surgeon and
the patient to pioneer a new era of Performance-Guided
Surgery™(PGS), today announced its operating and financial results
for the fourth quarter and full year 2022.
As the Company hosted an Investor Day on Tuesday, February 21,
2023 during which an in-depth review of the business was provided,
the Company will not be hosting an earnings conference call in
conjunction with this earnings release.
Recent Highlights
- In February 2023,
unveiled plans for the LUNA™ Surgical System, its next generation
digital surgery platform
- In February 2023,
announced the intention to collaborate with KARL STORZ on
developing next-generation instrumentation and an agreement in
which KARL STORZ intends to sell the Company’s Intelligent Surgical
Unit™ (ISU™) as a standalone device
- In February 2023,
announced a multi-year collaboration with Google Cloud to further
expand the capabilities of the Company’s Performance-Guided Surgery
framework enabled through the ISU
- In January 2023,
received CE Mark for expanded machine vision capabilities within
the ISU, including 3D measurement, digital tagging, image
enhancement, and enhanced camera control
Fourth Quarter HighlightsIn line with the
preliminary results released on January 9, 2023, the Company
announced:
- Over 840 surgical
procedures were performed globally during the quarter, representing
growth of over 29% compared to the fourth quarter 2021
- Five Senhance®
Surgical Programs were initiated during the quarter, including two
in Germany, two in Japan, and one in the CIS region
- Fourth quarter
revenue of $2.5 million
Full Year Highlights
- Over 3,100 surgical
procedures were performed globally, representing growth of over 29%
compared to 2021
- In 2022, nine
Senhance Surgical Programs were initiated, in-line with guidance of
8-10 systems
- Full year 2022
revenue of $7.1 million
- The Company had
cash, cash equivalents, short-term and long-term investments,
excluding restricted cash, of approximately $74.4 million at
December 31, 2022
“2022 was an exciting year for the company. We continued to see
strong adoption and utilization trends as more surgeons across the
globe were performing procedures using Senhance, and we made
significant progress in the development and launch of cutting-edge
digital surgical capabilities to help surgeons perform better, more
consistent surgery,” said Anthony Fernando, Asensus Surgical
President and CEO. “As we look to the future, we are incredibly
excited about the opportunity we have to revolutionize patient care
through Performance-Guided Surgery. By introducing the most
advanced robotics platforms in combination with novel clinical
intelligence being bolstered by leading cloud computing power, we
believe we can reduce surgical variability and help surgeons
achieve better outcomes, regardless of their skill level or
geographic location.”
Upcoming 2023 MilestonesFor the full year 2023,
the Company expects to initiate 10 - 12 new Senhance programs.
During the first half of 2023, the Company expects to achieve
the following regulatory milestone:
- FDA clearance of
Senhance Surgical System for pediatric indication
During the second half of 2023, the Company expect to achieve
the following developmental milestones:
- Integrated system
testing for LUNA Surgical System
- Preclinical
evaluation for LUNA Surgical System
- Standalone ISU final
testing
2023 Investor DayOn February 21, 2023, the
Company hosted an Investor Day. Based on its clinical and
commercial experience to date, the Company introduced an integrated
Digital Surgery solution comprising a next generation surgical
platform and instruments, real-time intraoperative clinical
intelligence and a secure cloud platform to apply machine learning
to deliver clinical insights. This Digital Surgery solution will
enable the Company’s vision of Performance-Guided Surgery.
A link to a video replay of the event can be found HERE.
LUNA, the Company’s Next Generation Digital Surgery
PlatformDesigned based on the feedback received from over
10,000 digital laparoscopic procedures performed with the Senhance
System, the LUNA Surgical System is the Company’s next generation
digital surgery platform. Through a combination of advanced
minimally invasive instrumentation, the first ever digital
interface between the surgeon and the console, and industry-leading
clinical intelligence tools, we believe LUNA is poised to
revolutionize the way surgery is performed.
The LUNA Surgical System is under development, and not currently
available for use.
KARL STORZ Collaboration AgreementThe Company
previously announced that it had entered into a Memorandum of
Understanding with KARL STORZ VentureONE Pte. Ltd. (KARL STORZ), a
new wholly owned subsidiary of KARL STORZ SE & Co. KG. As part
of this agreement, KARL STORZ intends to market and sell Asensus’
Intelligent Surgical Unit as a standalone device together with
their IMAGE1 S™ Imaging system and OR1™ integration solution. The
companies also intend to work together on the integration of the
ISU into KARL STORZ's laparoscopic vision systems and jointly
collaborate on developing next-generation instrumentation to be
used with Asensus and KARL STORZ surgical platforms.
New Intelligent Surgical
Unit Capabilities AnnouncedIn
January 2023, the Company received CE Mark for an expansion of
machine vision capabilities on the previously cleared ISU. This
approval included a review of the Senhance Surgical System
platform, making Senhance one of the first robotic surgical systems
to be approved through the new, more rigorous EU Medical Device
Regulation, or MDR, process. These expanded ISU capabilities are
now commercially available across all of the Company’s key
geographies, including the European Union, Japan, and the U.S.
In February 2023, the Company announced incremental features
sets which are now under development, including an analytical
feature set, a safety feature set, and a training and education
set.
Google Cloud
CollaborationAsensus Surgical previously announced
that it agreed on a multi-year strategic collaboration with Google
Cloud to integrate Google Cloud’s secure cloud data architecture
and machine learning technologies to further expand the
capabilities of the Asensus Surgical’s Performance-Guided Surgery
framework enabled through the ISU. Google’s secure cloud data
architecture will capture this data and Asensus will enable
customer access portals and performance dashboards for surgeons and
hospitals. Google’s machine learning technologies will be utilized
to analyze the data and discern clinical intelligence that can be
utilized by surgeons and hospitals in addition to continuously
improving the software in the ISU to provide better intra-operative
clinical insight.
Articulating Instrument
LaunchThese instruments were commercially launched
in the U.S., Japan and Europe, in the fourth quarter of 2022.
Articulating Instruments offer better access to difficult-to-reach
areas of the anatomy by providing two additional degrees of
freedom.
U.S. Pediatric Regulatory SubmissionThe Company
submitted its U.S. FDA 510(k) application for pediatric clearance
in the U.S. during the third quarter of 2022. The Senhance System’s
unique combination of 3mm instrumentation with a 5mm camera scope
combined with haptic feedback make it a unique robotic assisted
laparoscopic solution for pediatric surgeries. The Company expects
to receive FDA 510(k) clearance during the first half of 2023.
Market Development2022 Senhance Program
InitiationsDuring the fourth quarter of 2022, the Company initiated
five new Senhance Surgical System placements, two in Germany, two
in Japan, and one in the CIS region, bringing the total number of
new Senhance Surgical System placements to nine in 2022.
Procedure VolumesPreviously, the Company has used the terms
“surgical procedure” and “surgical case” interchangeably to mean a
single surgery. Following an analysis of the growing collection of
Senhance surgical data, it was identified that it is becoming
increasingly common that multiple surgical procedures are being
performed during a single surgical case. As a result, the Company
will now report the number of total surgical procedures completed.
During 2023 we will provide data from similar periods in 2022 using
the same methodology. As an example, in previous quarters, a
surgical case where both a cholecystectomy (gallbladder removal)
and an umbilical hernia repair were completed, it would have been
counted as a single procedure. Under the revised definition, that
example would be counted as two procedures.
In 2022, surgeons performed over 3,100 surgical procedures
utilizing the Senhance System, representing a 29% increase over the
2,400 surgical procedures performed in the previous year. These
procedures included general surgery, gynecology, urology,
colorectal, pediatric, and bariatric surgical cases.
Fourth Quarter Financial Results
For the three months ended December 31, 2022, the Company
reported revenue of $2.5 million as compared to revenue of $2.5
million in the three months ended December 31, 2021. Revenue in the
fourth quarter of 2022 included $1.3 million in system revenue,
$0.4 million in lease revenue, $0.5 million in instruments and
accessories, and $0.3 million in services.
For the three months ended December 31, 2022, total operating
expenses were $18.3 million, as compared to $15.9 million, in the
three months ended December 31, 2021.
For the three months ended December 31, 2022, net loss was $17.9
million, or $0.08 per share, as compared to a net loss of $15.9
million, or $0.07 per share, in the three months ended December 31,
2021.
Adjusted net loss is a non-GAAP financial measure. See the
reconciliation of GAAP to Non-GAAP Measures below. For the three
months ended December 31, 2022, the adjusted net loss was $16.7
million, or $0.07 per share, as compared to an adjusted net loss of
$15.7 million, or $0.07 per share in the three months ended
December 31, 2021, after adjusting for the following charges:
amortization of intangible assets, change in fair value of
contingent consideration, and property and equipment impairment,
all of which are non-cash charges.
Balance Sheet Updates
The Company had cash, cash equivalents, short-term and long-term
investments, excluding restricted cash of approximately $74.4
million as of December 31, 2022.
The Company intends to file its Annual Report on Form 10-K for
the fiscal year ended December 31, 2022 on or about March 2, 2023,
with the Securities and Exchange Commission. The Company expects
that the audited financial statements that will be included in the
filing will contain statements regarding management’s assessment of
the Company’s ability to continue as a going concern, and a going
concern qualification in the audit opinion from its independent
registered public accounting firm. This announcement is made
pursuant to NYSE American Company Guide Sections 401(h) and 610(b),
which require public announcement of the receipt of an audit
opinion containing a going concern paragraph.
About Asensus Surgical, Inc.
Asensus Surgical, Inc. is digitizing the interface between the
surgeon and patient to pioneer a new era of Performance-Guided
Surgery by unlocking clinical intelligence for surgeons to enable
consistently superior outcomes and a new standard of surgery. Based
upon the foundations of Digital Laparoscopy and the Senhance
Surgical System, the Company is developing the LUNA Surgical
System, a next generation robotic and instrument system as a
foundation of its Digital Surgery solution. These systems will be
powered by the Intelligent Surgical Unit to increase surgeon
control and reduce surgical variability. With the addition of
machine vision, Augmented Intelligence, and deep learning
capabilities throughout the surgical experience, we intend to
holistically address the current clinical, cognitive and economic
shortcomings that drive surgical outcomes and value-based
healthcare. The Senhance Surgical System is now available for sale
in the US, EU, Japan, Russia, and select other countries. For a
complete list of indications for use, visit:
www.senhance.com/indications. To learn more about
Performance-Guided Surgery, Digital Laparoscopy with the Senhance
Surgical System and the new LUNA System visit www.asensus.com.
Follow Asensus
Email Alerts: https://ir.asensus.com/email-alerts
LinkedIn: https://www.linkedin.com/company/asensus-surgical-inc
Twitter: https://twitter.com/AsensusSurgical
YouTube: https://www.youtube.com/c/transenterix
Vimeo: https://vimeo.com/asxc
Forward-Looking Statements
This press release includes statements relating to Asensus
Surgical, the LUNA Surgical System, the Senhance Surgical System
and our 2022 results. These statements and other statements
regarding our future plans and goals constitute "forward looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934, and
are intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. Such statements are subject to risks and uncertainties that
are often difficult to predict, are beyond our control and which
may cause results to differ materially from expectations and
include whether we will be able to revolutionize patient care
through Performance-Guided Surgery, whether our robotics platforms
in combination with novel clinical intelligence can reduce surgical
variability and help surgeons achieve better outcomes, whether we
will be able to initiate 10-12 new Senhance Surgical Systems in
2023, whether, in the first half of 2023, we will be able to
achieve FDA clearance of the Senhance Surgical System for a
pediatric indication, whether, in the second half of 2023, we will
be able to achieve developmental milestones: integrating system
testing for the LUNA Surgical System, preclinical evaluation for
the LUNA Surgical System and standalone ISU final testing, whether
the LUNA Surgical System will revolutionize the way surgery in
performed, whether the collaboration between Asensus Surgical and
Google Cloud will be successful and whether definitive agreements
will be successfully negotiated and lead to a successful
collaboration between Asensus Surgical and Karl Storz. For a
discussion of the risks and uncertainties associated with the
Company’s business, please review our filings with the Securities
and Exchange Commission (SEC). You are cautioned not to place undue
reliance on these forward-looking statements, which are based on
our expectations as of the date of this press release and speak
only as of the origination date of this press release. We undertake
no obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
Asensus Surgical,
Inc.Consolidated Statements of Operations and
Comprehensive Loss(in thousands, except per share
amounts)(Unaudited)
|
Three Months Ended |
|
|
Years Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
$ |
1,762 |
|
|
$ |
1,748 |
|
|
$ |
4,327 |
|
|
$ |
5,399 |
|
Service |
|
306 |
|
|
|
340 |
|
|
|
1,373 |
|
|
|
1,520 |
|
Lease |
|
396 |
|
|
|
388 |
|
|
|
1,387 |
|
|
|
1,313 |
|
Total revenue |
|
2,464 |
|
|
|
2,476 |
|
|
|
7,087 |
|
|
|
8,232 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
987 |
|
|
|
1,070 |
|
|
|
5,303 |
|
|
|
5,741 |
|
Service |
|
668 |
|
|
|
453 |
|
|
|
2,174 |
|
|
|
1,799 |
|
Lease |
|
643 |
|
|
|
764 |
|
|
|
3,395 |
|
|
|
3,556 |
|
Total cost of revenue |
|
2,298 |
|
|
|
2,287 |
|
|
|
10,872 |
|
|
|
11,096 |
|
Gross loss |
|
166 |
|
|
|
189 |
|
|
|
(3,785 |
) |
|
|
(2,864 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
8,520 |
|
|
|
6,575 |
|
|
|
28,942 |
|
|
|
19,348 |
|
Sales and marketing |
|
3,820 |
|
|
|
3,229 |
|
|
|
14,756 |
|
|
|
13,395 |
|
General and administrative |
|
4,794 |
|
|
|
5,926 |
|
|
|
20,172 |
|
|
|
19,323 |
|
Amortization of intangible assets |
|
107 |
|
|
|
2,721 |
|
|
|
7,708 |
|
|
|
11,254 |
|
Change in fair value of contingent consideration |
|
53 |
|
|
|
(2,578 |
) |
|
|
(1,115 |
) |
|
|
(1,565 |
) |
Property and equipment impairment |
|
999 |
|
|
|
— |
|
|
|
1,431 |
|
|
|
— |
|
Total Operating Expenses |
|
18,293 |
|
|
|
15,873 |
|
|
|
71,894 |
|
|
|
61,755 |
|
Operating Loss |
|
(18,127 |
) |
|
|
(15,684 |
) |
|
|
(75,679 |
) |
|
|
(64,619 |
) |
Other Income (Expense),
net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,847 |
|
Change in fair value of warrant liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,981 |
) |
Interest income |
|
335 |
|
|
|
337 |
|
|
|
1,141 |
|
|
|
590 |
|
Interest expense |
|
30 |
|
|
|
(293 |
) |
|
|
(410 |
) |
|
|
(370 |
) |
Employee retention tax credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,311 |
|
Other expense, net |
|
(34 |
) |
|
|
(12 |
) |
|
|
(295 |
) |
|
|
(15 |
) |
Total Other Income (Expense),
net |
|
331 |
|
|
|
32 |
|
|
|
436 |
|
|
|
2,382 |
|
Loss before income taxes |
|
(17,796 |
) |
|
|
(15,652 |
) |
|
|
(75,243 |
) |
|
|
(62,237 |
) |
Income tax expense |
|
(94 |
) |
|
|
(229 |
) |
|
|
(318 |
) |
|
|
(225 |
) |
Net loss |
|
(17,890 |
) |
|
|
(15,881 |
) |
|
|
(75,561 |
) |
|
|
(62,462 |
) |
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
(17,890 |
) |
|
|
(15,881 |
) |
|
|
(75,561 |
) |
|
|
(62,462 |
) |
Foreign currency translation
loss |
|
2,151 |
|
|
|
(588 |
) |
|
|
(1,867 |
) |
|
|
(2,985 |
) |
Unrealized gain (loss) on
available-for-sale investments |
|
353 |
|
|
|
(194 |
) |
|
|
(257 |
) |
|
|
(247 |
) |
Comprehensive loss |
$ |
(15,386 |
) |
|
$ |
(16,663 |
) |
|
$ |
(77,685 |
) |
|
$ |
(65,694 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share
attributable to commonstockholders – basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
shares used in computingnet loss per common share – basic and
diluted |
|
236,843 |
|
|
|
234,851 |
|
|
|
236,492 |
|
|
|
226,960 |
|
Asensus Surgical,
Inc.Consolidated Balance
Sheets(in thousands, except share
amounts)(Unaudited)
|
December 31, |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
6,329 |
|
|
$ |
18,129 |
|
Short-term investments, available-for-sale |
|
64,195 |
|
|
|
80,262 |
|
Accounts receivable, net |
|
2,256 |
|
|
|
749 |
|
Inventories |
|
8,284 |
|
|
|
8,634 |
|
Prepaid expenses |
|
3,584 |
|
|
|
3,255 |
|
Employee retention tax credit receivable |
|
554 |
|
|
|
1,311 |
|
Other current assets |
|
1,671 |
|
|
|
957 |
|
Total Current Assets |
|
86,873 |
|
|
|
113,297 |
|
Restricted cash |
|
1,141 |
|
|
|
1,154 |
|
Long-term investments, available-for-sale |
|
3,865 |
|
|
|
37,435 |
|
Inventories, net of current portion |
|
5,469 |
|
|
|
7,074 |
|
Property and equipment, net |
|
9,542 |
|
|
|
10,971 |
|
Intellectual property, net |
|
1,576 |
|
|
|
9,892 |
|
Net deferred tax assets |
|
174 |
|
|
|
288 |
|
Operating lease right-of-use assets, net |
|
4,950 |
|
|
|
5,348 |
|
Other long-term assets |
|
2,463 |
|
|
|
1,014 |
|
Total Assets |
$ |
116,053 |
|
|
$ |
186,473 |
|
Liabilities and Stockholders’
Equity |
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
3,348 |
|
|
$ |
3,448 |
|
Accrued employee compensation and benefits |
|
4,508 |
|
|
|
3,559 |
|
Accrued expenses and other current liabilities |
|
1,293 |
|
|
|
1,617 |
|
Operating lease liabilities – current portion |
|
800 |
|
|
|
683 |
|
Deferred revenue |
|
465 |
|
|
|
543 |
|
Total Current Liabilities |
|
10,414 |
|
|
|
9,850 |
|
Long Term Liabilities: |
|
|
|
|
|
|
|
Contingent consideration |
|
1,256 |
|
|
|
2,371 |
|
Noncurrent operating lease liabilities |
|
4,738 |
|
|
|
5,006 |
|
Total Liabilities |
|
16,408 |
|
|
|
17,227 |
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
Common stock $0.001 par value, 750,000,000 shares authorized
atDecember 31, 2022 and December 31, 2021; 236,895,440
and235,218,552 shares issued and outstanding at December 31, 2022
andDecember 31, 2021, respectively |
|
237 |
|
|
|
235 |
|
Preferred stock, $0.01 par value, 25,000,000 shares authorized, no
sharesissued and outstanding at December 31, 2022 and December 31,
2021,respectively |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
962,731 |
|
|
|
954,649 |
|
Accumulated deficit |
|
(860,935 |
) |
|
|
(785,374 |
) |
Accumulated other comprehensive loss |
|
(2,388 |
) |
|
|
(264 |
) |
Total Stockholders’
Equity |
|
99,645 |
|
|
|
169,246 |
|
Total Liabilities and
Stockholders’ Equity |
$ |
116,053 |
|
|
$ |
186,473 |
|
Asensus Surgical,
Inc.Consolidated Statements of Cash
Flows(in
thousands)(Unaudited)
|
Years Ended |
|
|
December 31, |
|
|
2022 |
|
|
2021 |
|
Operating Activities: |
|
|
|
|
|
|
|
Net loss |
$ |
(75,561 |
) |
|
$ |
(62,462 |
) |
Adjustments to reconcile net loss to net cash and cash equivalents
used in operating activities: |
|
|
|
|
|
|
|
Depreciation |
|
3,368 |
|
|
|
2,857 |
|
Amortization of intangible assets |
|
7,708 |
|
|
|
11,254 |
|
Amortization of discounts and premiums on investments, net |
|
565 |
|
|
|
409 |
|
Stock-based compensation |
|
8,416 |
|
|
|
9,429 |
|
Gain on extinguishment of debt |
|
— |
|
|
|
(2,847 |
) |
Deferred tax expense |
|
318 |
|
|
|
225 |
|
Change in inventory reserves |
|
620 |
|
|
|
(492 |
) |
Bad debt expense |
|
9 |
|
|
|
144 |
|
Property and equipment impairment |
|
1,431 |
|
|
|
— |
|
Loss on disposal of property and equipment |
|
122 |
|
|
|
— |
|
Change in fair value of warrant liabilities |
|
— |
|
|
|
1,981 |
|
Change in fair value of contingent consideration |
|
(1,115 |
) |
|
|
(1,565 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
(1,528 |
) |
|
|
174 |
|
Inventories |
|
(2,302 |
) |
|
|
(611 |
) |
Operating lease right-of-use assets |
|
232 |
|
|
|
(4,254 |
) |
Prepaid expenses |
|
(450 |
) |
|
|
146 |
|
Employee retention tax credit receivable |
|
757 |
|
|
|
(1,311 |
) |
Other current and long-term assets |
|
(2,101 |
) |
|
|
902 |
|
Accounts payable |
|
35 |
|
|
|
1,614 |
|
Accrued employee compensation and benefits |
|
4,523 |
|
|
|
(859 |
) |
Accrued expenses |
|
(3,955 |
) |
|
|
384 |
|
Deferred revenue |
|
(55 |
) |
|
|
(229 |
) |
Operating lease liabilities |
|
26 |
|
|
|
4,452 |
|
Net cash and cash equivalents
used in operating activities |
|
(58,937 |
) |
|
|
(40,659 |
) |
Investing Activities: |
|
|
|
|
|
|
|
Purchase of available-for-sale investments |
|
(33,886 |
) |
|
|
(122,330 |
) |
Proceeds from maturities of available-for-sale investments |
|
82,702 |
|
|
|
4,030 |
|
Purchase of property and equipment |
|
(1,279 |
) |
|
|
(1,368 |
) |
Net cash and cash equivalents
provided by (used in) investing activities |
|
47,537 |
|
|
|
(119,668 |
) |
Financing Activities: |
|
|
|
|
|
|
|
Proceeds from issuance of common stock and warrants, net of
issuance costs |
|
— |
|
|
|
131,929 |
|
Taxes paid related to net share settlement of vesting of restricted
stock units |
|
(350 |
) |
|
|
(1,063 |
) |
Proceeds from exercise of stock options and warrants |
|
18 |
|
|
|
30,839 |
|
Net cash and cash equivalents
(used in) provided by financing activities |
|
(332 |
) |
|
|
161,705 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(81 |
) |
|
|
376 |
|
Net (decrease) increase in
cash, cash equivalents and restricted cash |
|
(11,813 |
) |
|
|
1,754 |
|
Cash, cash equivalents and
restricted cash, beginning of period |
|
19,283 |
|
|
|
17,529 |
|
Cash, cash equivalents and
restricted cash, end of period |
$ |
7,470 |
|
|
$ |
19,283 |
|
|
|
|
|
|
|
|
|
Supplemental Disclosure for
Cash Flow Information: |
|
|
|
|
|
|
|
Cash paid for leases |
$ |
984 |
|
|
$ |
1,490 |
|
Cash paid for taxes |
$ |
165 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
Supplemental Schedule of
Non-cash Investing and Financing Activities: |
|
|
|
|
|
|
|
Transfer of inventories to property and equipment |
$ |
2,693 |
|
|
$ |
3,244 |
|
Reclass of warrant liability to common stock and additional
paid-in-capital |
$ |
— |
|
|
$ |
2,236 |
|
Lease liabilities arising from obtaining right-of-use assets |
$ |
577 |
|
|
$ |
5,119 |
|
Asensus Surgical,
Inc.Reconciliation of Non-GAAP
MeasuresAdjusted Net Loss and Adjusted Net Loss
per Share(in thousands except per share
amounts)(Unaudited)
|
|
Three Months Ended |
|
|
Years Ended |
|
|
December 31, |
|
|
December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders
(GAAP) |
$ |
(17,890 |
) |
|
$ |
(15,881 |
) |
|
$ |
(75,561 |
) |
|
$ |
(62,462 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
107 |
|
|
|
2,721 |
|
|
|
7,708 |
|
|
|
11,254 |
|
Change in fair value of contingent consideration |
|
53 |
|
|
|
(2,578 |
) |
|
|
(1,115 |
) |
|
|
(1,565 |
) |
Property and equipment impairment |
|
999 |
|
|
|
— |
|
|
|
1,431 |
|
|
|
— |
|
Gain on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,847 |
) |
Change in fair value of warrant liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,981 |
|
Employee retention tax credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,311 |
) |
Adjusted
net loss attributable to common stockholders
(Non-GAAP) |
$ |
(16,731 |
) |
|
$ |
(15,738 |
) |
|
$ |
(67,537 |
) |
|
$ |
(54,950 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Years Ended |
|
|
December 31, |
|
|
December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Net loss
per share attributable to common stockholders (GAAP) |
$ |
(0.08 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
— |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.05 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Property and equipment impairment |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Gain on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.01 |
) |
Change in fair value of warrant liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Employee retention tax credit |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted
net loss per share attributable to common stockholders
(Non-GAAP) |
$ |
(0.07 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.24 |
) |
The non-GAAP financial measures for the three
months and years ended December 31, 2022 and 2021, which provide
management with additional insight into the Company’s results of
operations from period to period without non-cash charges and are
calculated using the following adjustments:
a) Intangible assets that are amortized consist
of developed technology and purchased patent rights recorded at
cost and amortized over 5 to 10 years.
b) Contingent consideration in connection with
the acquisition of the Senhance System in 2015 is recorded as a
liability and is the estimate of the fair value of potential
milestone payments related to business acquisitions. Contingent
consideration is measured at fair value using a Monte-Carlo
simulation utilizing significant unobservable inputs including the
probability of achieving each of the potential milestones, revenue
volatility, EURO to USD exchange rate, and an estimated discount
rate associated with the risks of the expected cash flows
attributable to the various milestones. Significant increases or
decreases in any of the probabilities of success or changes in
expected timelines for achievement of any of these milestones would
result in a significantly higher or lower fair value of these
milestones, respectively, and commensurate changes to the
associated liability. The contingent consideration is revalued at
each reporting period and changes in fair value are recognized in
the consolidated statements of operations and comprehensive
loss.
c) Property and equipment impairment associated
with returned Senhance Systems under operating leases and Senhance
Systems currently under operating leases that are not expected to
generate future cash flows sufficient to recover their net book
value.
d) During 2021, the Company received
notification from the U.S. Small Business Administration that the
principal amount of its Paycheck Protection Program loan of $2.8
million and related interest had been forgiven. Gain on
extinguishment of debt of $2.8 million was recognized for the year
ended December 31, 2021, in the consolidated statement of
operations and comprehensive loss.
e) The Company’s Series B Warrants were measured
at fair value using a simulation model which took into account, as
of the valuation date, factors including the current exercise
price, the expected life of the warrant, the current price of the
underlying stock, its expected volatility, holding cost and the
risk-free interest rate for the term of the warrant. The warrant
liability was revalued upon exercise and the final change in fair
value was recognized in the first quarter of 2021.
f) During 2021, the Company submitted a refund
for incurred employee payroll taxes of $1.3 million under the
Employee Retention Tax Credit provision as part of the Coronavirus
Aid, Relief, and Economic Security Act (the “CARES Act”).
INVESTOR CONTACT:
Mark Klausner or Mike Vallie, 443-213-0499
invest@asensus.com
MEDIA CONTACT:
Isabella Rodriguez, 708-833-1572
CG Life
irodriguez@cglife.com
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