Acutus Medical, Inc. (“Acutus” or the “Company”) (OTC: AFIB) today reported results for the first quarter of 2024.

Recent Highlights:

  • First quarter revenue from Continuing Operations of $3.6 million grew 192% year-over-year, from $1.2 million in the same quarter last year..
  • Operating expenses for continuing operations were $3.3 million, a reduction of 38% compared to the same period last year.
  • Recorded $2.8 million in gain on sale of business, an increase of 131% compared to the same period last year.
  • Cash, cash equivalents, marketable securities and restricted cash were $20.0 million as of March 31, 2024.

First Quarter 2024 Financial ResultsRevenue from Continuing Operations was $3.6 million for the first quarter of 2024, an increase of 192% compared to $1.2 million for the first quarter of 2023.

Gross margin on a GAAP basis for continuing operations was negative 1% for the first quarter of 2024 compared to negative 70% for the same quarter last year. The improvement was driven by higher production volumes related to left-heart access manufacturing and reduced manufacturing overhead expenses.

Operating expenses for continuing operations on a GAAP basis were $3.3 million for the first quarter of 2024 compared to $5.4 million for the same period last year. The decrease in operating expenses from reduced discretionary spend under this new business model.

Net loss on continuing operations on a GAAP basis was $2.1 million for the first quarter of 2024 and net loss per share was $0.07 on a weighted average basic and diluted outstanding share count of 29.7 million, compared to a net loss of $4.3 million and a net loss per share of $0.15 on a weighted average basic and diluted outstanding share count of 28.8 million for the same period last year.

Cash, cash equivalents, marketable securities and restricted cash were $20.0 million as of March 31, 2024.

Loss on Discontinued OperationsLoss on discontinued operations was $0.4 million for first quarter of 2024, compared to $12.0 million for the same period last year.

Outlook Due to the announced plan to realign resources to support the left-heart access distribution business and exit from the electrophysiology mapping and ablation businesses, the Company will no longer provide financial guidance.  

About AcutusAcutus is focused on the production of left-heart access products under its distribution agreement with Medtronic, Inc. Founded in 2011, Acutus is based in Carlsbad, California.

Caution Regarding Forward-Looking StatementsThis press release includes statements that may constitute “forward-looking” statements, usually containing the words 'believe", "estimate", "project", "expect" or similar expressions. Forward looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company’s ability to continue to manage expenses and cash burn rate at sustainable levels, successful completion of the Company’s restructuring plan, continued acceptance of the Company’s left-heart access products in the marketplace, the effect of global economic conditions on the ability and willingness of Medtronic to purchase the Company’s left-heart access products and the timing of such purchases, competitive factors, changes resulting from healthcare policy in the United States and globally including changes in government reimbursement of procedures, dependence upon third-party vendors and distributors, timing of regulatory approvals, the Company’s ability to maintain its listing on Nasdaq, and other risks discussed in the Company’s periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, Acutus undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Investor Contact:  
Chad Hollister  
Acutus Medical, Inc.  
investors@acutus.com  

Acutus Medical, Inc.
Consolidated Balance Sheets
 
  March 31, 2024   December 31, 2023
(in thousands, except share and per share amounts) (unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents $ 18,459     $ 19,170  
Marketable securities, short-term   1,495       3,233  
Restricted cash, short-term   —       7,030  
Accounts receivable   7,750       11,353  
Inventory   5,888       4,278  
Prepaid expenses and other current assets   572       678  
Current assets of discontinued operations   240       510  
Total current assets   34,404       46,252  
       
Property and equipment, net   844       825  
Right-of-use assets, net   3,011       3,189  
Other assets   94       94  
Noncurrent assets of discontinued operations   3,315       3,600  
Total assets $ 41,668     $ 53,960  
       
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY      
Current liabilities:      
Accounts payable   3,165       2,761  
Accrued liabilities   2,063       2,887  
Operating lease liabilities, short-term   835       718  
Long-term debt, current portion   1,819       1,864  
Warrant liability   692       409  
Current liabilities of discontinued operations   1,300       10,303  
Total current liabilities   9,874       18,942  
       
Operating lease liabilities, long-term   3,009       3,243  
Long-term debt   32,805       32,654  
Total liabilities   45,688       54,839  
       
Commitments and contingencies (Note 11)      
       
Stockholders' deficit      
Preferred stock, $0.001 par value; 5,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 5,000,000 shares of the preferred stock, designated as Series A Common Equivalent Preferred Stock, are issued and outstanding as of March 31, 2024 and December 31, 2023   —       —  
Common stock, $0.001 par value; 260,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 29,715.962 and 29,313,667 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively   30       29  
Additional paid-in capital   598,413       599,935  
Accumulated deficit   (601,597 )     (599,977 )
Accumulated other comprehensive loss   (866 )     (866 )
Total stockholders' deficit   (4,020 )     (879 )
Total liabilities and stockholders' deficit $ 41,668     $ 53,960  
               

Acutus Medical, Inc.
Consolidated Statements of Operations and Comprehensive Loss
 
  Three Months Ended March 31,
  2024   2023
(in thousands, except share and per share amounts) (unaudited)
       
Revenue $ 3,625     $ 1,242  
Cost of products sold   3,655       2,111  
Gross loss   (30 )     (869 )
       
Operating (income) expenses:      
Research and development   —       938  
Selling, general and administrative   3,337       4,472  
Change in fair value of contingent consideration   —       200  
Gain on sale of business   (2,792 )     (1,207 )
Total operating expenses   545       4,403  
Loss from operations   (575 )     (5,272 )
       
Other income (expense):      
Change in fair value of warrant liability   (283 )     1,446  
Interest income   281       853  
Interest expense   (1,478 )     (1,307 )
Total other (expense) income, net   (1,480 )     992  
Loss from continuing operations before income taxes   (2,055 )     (4,280 )
Income tax expense   —       —  
Net loss from continuing operations   (2,055 )     (4,280 )
Discontinued operations:      
Income (loss) from discontinued operations before taxes   445       (12,035 )
Income tax expense - discontinued operations   (10 )     —  
Income (loss) from discontinued operations   435       (12,035 )
Net loss   (1,620 )     (16,315 )
       
Other comprehensive income (loss)      
Unrealized gain on marketable securities   —       12  
Foreign currency translation adjustment   —       59  
Comprehensive loss $ (1,620 )   $ (16,244 )
       
Net (loss) earnings per share, basic and diluted      
Net loss - continuing operations $ (0.07 )   $ (0.15 )
Net income (loss)- discontinued operations $ 0.01     $ (0.42 )
Net loss per common share $ (0.06 )   $ (0.57 )
       
Weighted average number of common shares outstanding, basic and diluted   29,693,926       28,764,444  
               

  

Acutus Medical, Inc.
Consolidated Statements of Cash Flows
   
  Three Months Ended March 31,
  2024   2023
(in thousands) (unaudited)
Cash flows from operating activities      
Net loss $ (1,620 )   $ (16,315 )
Less: (Gain) Loss from discontinued operations   (435 )     12,035  
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation expense   86       93  
Non-cash stock-based compensation expense   202       586  
Accretion of discounts on marketable securities, net   (23 )     (527 )
Amortization of debt issuance costs   87       104  
Amortization of operating lease right-of-use assets   178       164  
Gain on sale of business, net   (2,792 )     (1,207 )
Change in fair value of warrant liability   283       (1,446 )
Change in fair value of contingent consideration   —       200  
Changes in operating assets and liabilities:      
Accounts receivable   (819 )     (429 )
Inventory   (1,610 )     (234 )
Employer retention credit receivable   —       2,141  
Prepaid expenses and other current assets   117       713  
Other assets   —       —  
Accounts payable   404       161  
Accrued liabilities   (891 )     (1,133 )
Operating lease liabilities   (117 )     (201 )
Other long-term liabilities   —       (1 )
Net cash used in operating activities - continuing operations   (6,950 )     (5,296 )
Net cash used in operating activities - discontinued operations   (9,979 )     (10,432 )
Net cash used in operating activities   (16,929 )     (15,728 )
       
Cash flows from investing activities      
Proceeds from sale of business   7,300       17,000  
Purchases of available-for-sale marketable securities   —       (28,019 )
Maturities of available-for-sale marketable securities   1,750       26,500  
Purchases of property and equipment   (105 )     (25 )
Net cash provided by investing activities - continuing operations   8,945       15,456  
Net cash provided by (used in) investing activities - discontinued operations   285       (207 )
Net cash provided by investing activities   9,230       15,249  
       
Cash flows from financing activities      
Proceeds from the exercise of stock options   —       4  
Net cash provided by financing activities - continuing operations   —       4  
Net cash used in financing activities - discontinued operations   (42 )     (217 )
Net cash used in financing activities   (42 )     (213 )
       
Effect of exchange rate changes on cash, cash equivalents and restricted cash   —       (779 )
       
Net change in cash, cash equivalents and restricted cash   (7,741 )     (1,471 )
Cash, cash equivalents and restricted cash, at the beginning of the period   26,200       31,348  
Cash, cash equivalents and restricted cash, at the end of the period $ 18,459     $ 29,877  
       
Supplemental disclosure of cash flow information:      
Cash paid for interest   1,267       1,207  
       
Supplemental disclosure of noncash investing and financing activities:      
Accounts receivable from sale of business   4,904       1,244  
Change in unrealized (gain) loss on marketable securities   (70 )     (12 )
Change in unpaid purchases of property and equipment   —       (25 )
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