265% growth in unit sales through
direct-to-consumer channels, 97% overall revenue growth vs. Q2
2021
Tivic Health® Systems, Inc. (“Tivic Health”, Nasdaq: TIVC), a
commercial-phase health technology company that develops and
commercializes bioelectronic medicine, today announced its
financial results for the quarter ended June 30, 2022.
Jennifer Ernst, CEO of Tivic Health commented, “Our second
quarter results demonstrate clear traction on the three pillars of
the strategy we laid out last November – increasing
direct-to-consumer revenue, reducing cost of goods and seeding our
product pipeline.”
Q2 Financial Highlights
- 97% increase in revenue from $268 thousand in Q2 2021 to $528
thousand in Q2 2022.
- 265% increase in unit sales through our direct-to-consumer
channels from Q2 2021.
- Reduction in average per unit cost of sales from $97.18 to
$90.26, despite increased variable costs due to higher shipping,
fulfillment and transaction fees.
Corporate Highlights
- Significant progress made on elements of supply chain to
support cost improvements and scaling.
- The 60-person randomized sham-controlled clinical trial for
post-operative pain reduction is ongoing.
- Market studies on a promising new indication for migraines were
completed.
- New patent issued, bringing Tivic Health’s patent portfolio to
5 issued patents, 18 pending, and 96 claims.
Financial Review for the Three Months Ended June 30,
2022
- For the second quarter of 2022, revenue increased $260
thousand, or 97%, primarily due to a 44% increase in unit sales and
the optimization of existing sales channels. Units sold through our
direct-to-consumer channels increased 265% compared to the second
quarter of 2021.
- For the second quarter of 2022, cost of sales was $403 thousand
compared to $301 thousand for the same period in 2021, an increase
of $102 thousand, or 34%. The increase was primarily due to higher
sales volume.
- For the second quarter 2022, research and development expenses
were $497 thousand, a $305 thousand increase from $192 thousand for
the same period in 2021. This increase was primarily due to
increased headcount and increased costs for product research and
design.
- Sales and marketing expenses were $1.1 million for the three
months ended June 30, 2022, compared to $345 thousand for the same
period in 2021, representing an increase of $780 thousand. The
increase in sales and marketing expenses were due primarily to
upgrading and optimizing e-commerce infrastructure, testing new
advertising vehicles, expanding our co-operative marketing programs
with channel partners and other strategic marketing
investments.
- General and administrative expenses were $1.5 million for the
three months ended June 30, 2022, compared to $485 thousand for the
same period in 2021, representing an increase of $1.0 million. The
increase was primarily attributable to increased headcount, legal
and professional fees, D&O insurance costs and increased fees
and professional services that are required for public company
standards.
- These increases resulted in a net loss of $3.0 million for Q2
2022, compared to $1.1 million in Q2 2021.
- As of June 30, 2022, cash and short-term investments balance
was $9.0 million.
Financial Review for the Six Months Ended June 30,
2022
- For the six months ended June 30, 2022, revenue increased $365
thousand, or 62%, compared to the same period in 2021, primarily
due to a 36% increase in unit sales.
- For the six months ended June 30, 2022, cost of sales was $760
thousand compared to $602 thousand for the same period in 2021, an
increase of $158 thousand, or 26%. The increase was primarily
driven by higher sales volume in 2022.
- For the six months ended June 30, 2022, research and
development expenses were $898 thousand, a $508 thousand increase
from $390 thousand for the same period in 2021. The increase is
primarily due to increased headcount and costs related to
additional investments in product candidate research and
design.
- Sales and marketing expenses were $1.8 million for the six
months ended June 30, 2022, compared to $645 thousand for the same
period in 2021, representing an increase of $1.2 million. The
increase for the six-months ended June 30, 2022, was due primarily
to the expansion of our sales and marketing efforts.
- General and administrative expenses were $2.7 million for the
six months ended June 30, 2022, compared to $1.0 million for the
same period in 2021, representing an increase of $1.7 million. The
increase was primarily attributable to increased headcount, legal
and professional fees, D&O insurance costs, increased rent and
increased fees and professional services that are required for
public company standards.
Conference Call:
Management will host a conference call and
webcast on Monday, August 15, 2022, at 1:30 PM PT / 4:30 PM ET to
discuss the company’s second quarter 2022 financial results and
provide a business update.
The conference call will be available via telephone by dialing
toll free 877-545-0320 local callers; or 973-528-0002 for
international callers and using Participant Access Code:
492379.
The conference call will also be available via Webcast link:
https://www.webcaster4.com/Webcast/Page/2865/46308
An audio replay of the call will be available from the “Recent
Press” page on the Tivic Health website at
https://tivichealth.com/investor/.
About Tivic Health
Tivic Health Systems, Inc. is a commercial-phase health
technology company delivering non-invasive bioelectronic treatments
that provide consumers a choice in the treatment of inflammation
and related conditions. For more information visit
https://tivichealth.com @TivicHealth.
Forward-Looking Statements
This press release may contain “forward-looking statements” that
are subject to substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this press
release are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as “anticipate,” “believe,” “contemplate,” “could,”
“estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “target,” “aim,” “should,”
“will” “would,” or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on Tivic Health
Systems, Inc.’s current expectations and are subject to inherent
uncertainties, risks, and assumptions that are difficult to
predict. Further, certain forward-looking statements are based on
assumptions as to future events that may not prove to be accurate.
Additional information concerning Tivic Health and its business,
including a discussion of factors that could materially affect the
company operating results, is contained in the company’s Annual
Report on Form 10-K for the year ended December 31, 2021, filed
with the Securities and Exchange Commission on March 31, 2022,
under the heading “Risk Factors,” as well as the company’s
subsequent filings with the Securities and Exchange Commission.
Forward-looking statements contained in this press release are made
as of this date, and Tivic Health Systems, Inc. undertakes no duty
to update such information except as required by applicable
law.
Tivic Health Systems, Inc. Condensed
Balance Sheets (Unaudited) June 30, 2022 and December 31, 2021 (in
thousands, except share and per share data)
June 30,
December 31,
2022
2021
ASSETS
Current assets
Cash and cash equivalents
$
9,049
$
12,975
Accounts receivable, net
92
92
Inventory, net
833
429
Prepaid expenses and other
current assets
398
793
Total current assets
10,372
14,289
Property and equipment, net
13
11
Right-of-use assets, operating lease
607
687
Other assets
34
49
Total assets
$
11,026
$
15,036
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
1,915
$
789
Other accrued expenses
293
267
Operating lease liability,
current
170
163
Total current liabilities
2,378
1,219
Operating lease liability
461
545
Total liabilities
2,839
1,764
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par
value, 10,000,000 shares authorized; no shares issued and
outstanding at June 30, 2022 and December 31, 2021
—
—
Common stock, $0.0001 par
value, 200,000,000 shares authorized; 9,621,484 and 9,715,234
shares issued and outstanding at June 30, 2022 and December 31,
2021, respectively
1
1
Additional paid in capital
32,990
32,817
Accumulated deficit
(24,804
)
(19,546
)
Total stockholders’ equity
8,187
13,272
Total liabilities and stockholders’
equity
$
11,026
$
15,036
Tivic Health Systems, Inc. Condensed
Statements of Operations (Unaudited) Three and Six Months Ended
June 30, 2022 and 2021 (in thousands, except share and per share
data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2022
2021
2022
2021
Revenue
$
528
$
268
$
956
$
591
Cost of sales
403
301
760
602
Gross profit (loss)
125
(33
)
196
(11
)
Operating expenses:
Research and development
497
192
898
390
Sales and marketing
1,125
345
1,809
645
General and administrative
1,521
485
2,747
1,066
Total operating expenses
3,143
1,022
5,454
2,101
Loss from operations
(3,018
)
(1,055
)
(5,258
)
(2,112
)
Other income (expense):
Interest expense
—
(223
)
—
(497
)
Change in fair value of
derivative liabilities
—
28
—
1
Other income
—
156
—
158
Total other income (expense)
—
(39
)
—
(338
)
Net loss
$
(3,018
)
$
(1,094
)
$
(5,258
)
$
(2,450
)
Net loss per share - basic and diluted
$
(0.32
)
$
(0.46
)
$
(0.55
)
$
(1.04
)
Weighted-average number of shares - basic
and diluted
9,621,484
2,374,479
9,668,100
2,354,589
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220815005618/en/
Media Contact: Cheryl Delgreco
Cheryl.Delgreco@tivichealth.com 617-429-6749
Investor Contact: Hanover International, Inc.
ir@tivichealth.com
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