Misonix, Inc. (Nasdaq: MSON) (“Misonix” or the “Company”), a
provider of minimally invasive therapeutic ultrasonic medical
devices and regenerative products that enhance clinical outcomes,
today reported unaudited financial results for the fiscal 2021
fourth quarter and full fiscal year ended June 30, 2021 as
summarized below:
|
Three Months
Ended |
|
Years Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
19,685,141 |
|
|
$ |
13,713,231 |
|
|
$ |
74,024,073 |
|
$ |
62,483,651 |
|
|
Gross
profit |
$ |
14,075,377 |
|
|
$ |
9,432,383 |
|
|
$ |
52,636,255 |
|
$ |
43,709,483 |
|
|
Gross profit
percentage |
|
71.5 |
% |
|
|
68.8 |
% |
|
|
71.1 |
% |
|
70.0 |
% |
|
Pretax
loss |
$ |
(4,341,201 |
) |
|
$ |
(8,495,994 |
) |
|
$ |
(14,341,254 |
) |
$ |
(21,916,952 |
) |
|
Income tax
expense (benefit) |
$ |
132,071 |
|
|
$ |
41,422 |
|
|
$ |
132,071 |
|
$ |
(4,498,578 |
) |
|
Net
loss |
$ |
(4,473,272 |
) |
|
$ |
(8,537,416 |
) |
|
$ |
(14,473,325 |
) |
$ |
(17,418,374 |
) |
|
|
|
|
|
|
|
|
|
EBITDA
(1) |
$ |
(2,275,464 |
) |
|
$ |
(6,415,808 |
) |
|
$ |
(6,148,968 |
) |
$ |
(15,770,303 |
) |
|
Adjusted
EBITDA (1) |
$ |
(1,595,087 |
) |
|
$ |
(5,885,119 |
) |
|
$ |
(3,204,455 |
) |
$ |
(12,254,291 |
) |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
31,045,935 |
|
|
$ |
37,978,809 |
|
|
|
|
|
Current and
Long Term Debt |
$ |
45,795,248 |
|
|
$ |
43,695,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Definitions and disclosures regarding
non-GAAP financial information including reconciliations are
included at the end of this press release.
Fourth Quarter and Full Year 2021
Operational Highlights:
- On July 29, 2021, the Company
pre-announced its fourth quarter and fiscal full year 2021 revenue
results for the three-month and twelve-month periods ended June 30,
2021.
- Fiscal 2021 fourth quarter revenue
of $19.7 million increased 43.5%, compared to $13.7 million in the
fiscal 2020 fourth quarter.
- Domestic surgical revenue increased
97.0%
- Domestic wound revenue increased
7.7%
- International revenue increased
95.7%
- Full year fiscal 2021 revenue of
$74.0 million increased 18.5%, compared to $62.5 million in full
year fiscal 2020. On a pro forma basis, assuming that the Company
had acquired Solsys Medical for the full year of fiscal 2020,
revenue increased 4.5%.
- Domestic surgical revenue increased
31.2%
- Domestic wound revenue increased
20.2%. On a pro forma basis, assuming that the Company had acquired
Solsys Medical for the full year of fiscal 2020, the domestic wound
business declined 7.7%.
- International revenue declined
4.0%
- Gross profit percentage on sales
for the fiscal fourth quarter improved to 71.5%, compared with
68.8% in the fiscal 2020 fourth quarter, while full year fiscal
2021 gross margin improved to 71.1%, compared to 70.0% for the
prior full year period.
- Operating expenses increased 5.2%
during the fiscal 2021 fourth quarter as compared with the fiscal
2020 fourth quarter and increased 0.9% for full fiscal 2021 year,
compared to the prior full year period.
- Net loss for the fiscal 2021 fourth
quarter narrowed to $4.5 million, or a loss of $0.26 per diluted
share, compared to a net loss of $8.5 million, or a loss of $0.50
per diluted share, in the fiscal 2020 fourth quarter. On a full
year basis, net loss was $14.5 million for fiscal 2021, or a loss
of $0.84 per diluted share, compared to a net loss of $17.4
million, or a loss of $1.19 per diluted share for fiscal 2020.
- Fiscal 2021 fourth quarter Adjusted
EBITDA improved to a loss of $1.6 million, compared to an Adjusted
EBITDA loss of $5.9 million in the fiscal 2020 fourth quarter. On a
full year basis, Adjusted EBITDA improved to a loss of $3.2 million
for fiscal 2021, compared to an Adjusted EBITDA loss of $12.3
million for fiscal 2020.
- Following the successful launch of
the neXus Ultrasonic Surgical System in select international
markets and continued strong demand domestically, Misonix placed or
sold over 250 neXus units in fiscal 2021, exceeding its full year
guidance of 200 units.
Bioventus and Misonix Definitive Merger
Agreement:
- On July 29, 2021, Bioventus Inc.
(NASDAQ: BVS) (“Bioventus”), a global leader in innovations for
active healing, and Misonix entered into a definitive merger
agreement by which Bioventus will acquire Misonix in a
cash-and-stock transaction for total consideration of approximately
$518 million. The transaction will position the combined entity as
a leading, pure-play regenerative medicine and orthopedics company
serving a $15 billion total addressable market with significant
growth opportunities and scale across a range of care settings,
geographies, and product categories.
- Under the terms of the agreement,
Misonix stockholders will have the right to elect to receive for
each share of Misonix common stock they hold either (i) 1.6839
shares of Bioventus class A common stock or (ii) $28.00 in cash,
subject to proration such that the cash amount payable by Bioventus
in the transaction will be equal to $10.50 per share of Misonix
common stock outstanding shortly prior to the completion of the
transaction. The $28.00 per-share value for Misonix represents a
25% premium to Misonix’s 30-day volume weighted average share price
as of the close of trading on July 27, 2021. Upon completion of the
transaction, Misonix stockholders will own an approximately 25%
stake in the combined company, and Bioventus stockholders will own
an approximately 75% stake in the combined company, each on a fully
diluted basis.
- The transaction, which has been
unanimously approved by the boards of directors of Bioventus and
Misonix, is expected to close in late 2021, subject to the receipt
of regulatory and shareholder approvals and other customary closing
conditions. Additional information regarding the proposed
transaction may be found in the “Investor Relations” section of
Misonix’s website and in subsequent Company filings with the
Securities and Exchange Commission (the “SEC”) at www.sec.gov.
“Misonix concluded fiscal 2021 with an
outstanding fourth quarter, which enabled us to deliver all-time
record annual product revenue that exceeded the high-end of our
guidance range for the fiscal year,” stated Stavros Vizirgianakis,
Chief Executive Officer of Misonix. “The continued recovery of the
global healthcare industry, combined with the success of our teams
in capitalizing on accelerating demand for our proprietary
ultrasonic products and procedural solutions, resulted in
year-over-year revenue growth of 43.5% in the fourth quarter and
18.5% for the full year. In addition, the meaningful actions we
have taken over the last twenty-four months to strengthen our
supply chain enabled us to successfully navigate near-term
pressures impacting companies worldwide, while maintaining our
attractive gross margin above 70%.”
Mr. Vizirgianakis continued, “During the fiscal
2021 fourth quarter, a significant rebound in elective procedural
volumes from the pandemic peak last June drove a 97.0% increase in
total surgical revenue compared with last year’s fourth quarter,
including 97.0% growth domestically and 97.2% growth
internationally. Reflecting the continued strong adoption of our
neXus Ultrasonic Surgical System, Misonix placed or sold over 250
neXus units in fiscal 2021, well ahead of our guidance of 200-unit
placements.
“Though our wound business remained challenged
throughout most of fiscal 2021, we believe that the value
proposition of our ultrasonic wound debridement technology and
wound care solutions remains strong and we expect to see a gradual
improvement in this business over the coming quarters. We are
pleased with the stronger-than-anticipated recovery in our wound
business in the fiscal 2021 fourth quarter, with total wound
revenue rising 7.9% for the quarter.
“In closing, I am extraordinarily proud of our
talented Misonix team and what we have accomplished over the past
five-plus years. Together, we have transformed Misonix from an
under-appreciated company with valuable, yet ineffectively
utilized, proprietary technology, into a rapidly-growing, world
class organization with a leading portfolio of ultrasonic medical
devices and regenerative products. The proposed merger with
Bioventus is a transformational step for Misonix in our evolution,
and one that we believe creates significant value for the
shareholders, employees and patients of both companies. Together,
we will have the scale and financial flexibility to accelerate our
growth and maximize the many significant opportunities we see
across the business over the near- and long-term to disrupt large
markets and expand share.”
Sales Performance Supplemental Data
(Unaudited)
|
|
For the three months
ended |
|
|
|
|
|
June 30, |
Net change |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
$ |
% |
|
Total |
|
|
|
|
|
|
|
|
Surgical |
|
$ |
10,809,974 |
|
|
$ |
5,486,045 |
|
|
$ |
5,323,929 |
97.0 |
% |
|
Wound |
|
|
8,875,167 |
|
|
|
8,227,186 |
|
|
|
647,981 |
7.9 |
% |
|
Total |
|
$ |
19,685,141 |
|
|
$ |
13,713,231 |
|
|
$ |
5,971,910 |
43.5 |
% |
|
|
|
|
|
|
|
|
|
|
Domestic: |
|
|
|
|
|
|
|
|
Surgical |
|
$ |
7,456,815 |
|
|
$ |
3,785,450 |
|
|
$ |
3,671,365 |
97.0 |
% |
|
Wound |
|
|
8,818,578 |
|
|
|
8,185,465 |
|
|
|
633,113 |
7.7 |
% |
|
Total |
|
$ |
16,275,393 |
|
|
$ |
11,970,915 |
|
|
$ |
4,304,478 |
36.0 |
% |
|
|
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
|
Surgical |
|
$ |
3,353,159 |
|
|
$ |
1,700,595 |
|
|
$ |
1,652,564 |
97.2 |
% |
|
Wound |
|
|
56,589 |
|
|
|
41,721 |
|
|
|
14,868 |
35.6 |
% |
|
Total |
|
$ |
3,409,748 |
|
|
$ |
1,742,316 |
|
|
$ |
1,667,432 |
95.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
For the years
ended |
|
|
|
|
|
June 30, |
|
Net change |
|
|
|
2021 |
|
|
|
2020 |
|
|
$ |
% |
Total |
|
|
|
|
|
|
|
Surgical |
|
$ |
40,379,693 |
|
|
$ |
34,457,631 |
|
|
$ |
5,922,062 |
|
17.2 |
% |
Wound |
|
|
33,644,380 |
|
|
|
28,026,020 |
|
|
|
5,618,360 |
|
20.0 |
% |
Total |
|
$ |
74,024,073 |
|
|
$ |
62,483,651 |
|
|
$ |
11,540,422 |
|
18.5 |
% |
|
|
|
|
|
|
|
|
Domestic: |
|
|
|
|
|
|
|
Surgical |
|
$ |
27,384,277 |
|
|
$ |
20,874,419 |
|
|
$ |
6,509,858 |
|
31.2 |
% |
Wound |
|
|
33,272,947 |
|
|
|
27,678,534 |
|
|
|
5,594,413 |
|
20.2 |
% |
Total |
|
$ |
60,657,224 |
|
|
$ |
48,552,953 |
|
|
$ |
12,104,271 |
|
24.9 |
% |
|
|
|
|
|
|
|
|
International: |
|
|
|
|
|
|
|
Surgical |
|
$ |
12,995,416 |
|
|
$ |
13,583,212 |
|
|
$ |
(587,796 |
) |
-4.3 |
% |
Wound |
|
|
371,433 |
|
|
|
347,486 |
|
|
|
23,947 |
|
6.9 |
% |
Total |
|
$ |
13,366,849 |
|
|
$ |
13,930,698 |
|
|
$ |
(563,849 |
) |
-4.0 |
% |
|
|
|
|
|
|
|
|
Joe Dwyer, Chief Financial Officer, added, “We
are very pleased with our team’s success in delivering strong
fiscal 2021 fourth quarter and full year financial results.
Misonix’s fiscal 2021 full year revenue increased 18.5%
year-over-year to a record $74.0 million, while full year operating
expenses were essentially flat, compared to the prior year period,
reflecting the success of the various initiatives we implemented
over the last year to streamline our cost structure and improve
efficiencies. On a pro forma basis, assuming that we had completed
the acquisition of Solsys Medical at the beginning of fiscal 2020,
revenue growth was still positive at a 4.5% growth rate for fiscal
2021 versus fiscal 2020, despite the impact of COVID-19. Top line
growth, combined with healthy gross margins of over 70% and lower
operating expenses, resulted in a 74% year-over-year improvement in
Adjusted EBITDA to a loss of $3.2 million in fiscal 2021, compared
to a loss of $12.3 million in fiscal 2020. We continue to have a
strong balance sheet with approximately $31 million in cash at June
30, 2021. Looking ahead, we look forward to our pending merger with
Bioventus and continue to work with their team to seamlessly bring
our companies together and to deliver on the value of this
transformative combination.”
In light of the Company’s proposed transaction
with Bioventus, Misonix will not be conducting a conference call
and webcast to review its fiscal 2021 fourth quarter and full year
financial results, nor is the Company providing financial guidance
for fiscal year 2022.
About Misonix, Inc.Misonix,
Inc. (Nasdaq: MSON) is a provider of minimally invasive therapeutic
ultrasonic medical devices and regenerative tissue products. Its
surgical team markets and sells BoneScalpel and SonaStar, which
facilitate precise bone sculpting and removal of soft and hard
tumors and tissue, primarily in the areas of neurosurgery,
orthopedic, plastic and maxillo-facial surgery. The Company's wound
team markets and sells TheraSkin, Therion, TheraGenesis and
SonicOne to debride, treat and heal chronic and traumatic wounds in
inpatient, outpatient and physician office sites of service. At
Misonix, Better Matters! That is why throughout the Company’s
history, Misonix has maintained its commitment to medical
technology innovation and the development of products that
radically improve outcomes for patients. Additional information is
available on the Company's web site at www.misonix.com.
Safe Harbor Statement With the
exception of historical information contained in this press
release, content herein may contain “forward looking statements”
that are made pursuant to the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995. These statements include
projections regarding Misonix’s future operating results, ability
to grow revenue, and ability to maintain gross profit margins.
These statements are based on management’s current expectations and
are subject to uncertainty and changes in circumstances. Investors
are cautioned that forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from the statements made. These factors include general economic
conditions, the impact of COVID-19, or other pandemics, including
the potential effects of new strains of the virus and any increased
rates of infection, vaccine roll-out globally and the efficacy of
such vaccines, and the impact of related governmental, individual
and business responses. This includes our ability to obtain or
forecast accurate surgical procedure volume in the midst of the
COVID-19 pandemic; the risk that the COVID-19 pandemic could lead
to further material delays and cancellations of, or reduced demand
for, surgical or wound care procedures; curtailed or delayed
capital spending by hospitals and surgical centers; potential
closures of our facilities; delays in gathering clinical evidence;
diversion of management and other resources to respond to the
COVID-19 outbreak; the impact of global and regional economic and
credit market conditions on healthcare spending; the risk that the
COVID-19 virus disrupts local economies and causes economies in our
key markets to enter prolonged recessions; the ability of our staff
to travel to work; our ability to maintain adequate inventories and
delivery capabilities; the impact on our customers and supply
chain, and the impact on demand in general. These forward-looking
statements are also subject to uncertainties and change resulting
from delays and risks associated with the performance of contracts;
risks associated with international sales and currency
fluctuations; uncertainties as a result of research and
development; acceptable results from clinical studies, including
publication of results and patient/procedure data with varying
levels of statistical relevancy; risks involved in introducing and
marketing new products; potential acquisitions; the entry of
competitive products into the marketplace; consumer and industry
acceptance; litigation and/or court proceedings, including the
timing and monetary requirements of such activities; the timing of
finding strategic partners and implementing such relationships;
regulatory risks including clearance of pending and/or contemplated
510(k) filings; our ability to achieve and maintain profitability
in our business lines; access to capital; and other factors
described from time to time in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the fiscal year ended June 30, 2021, subsequent Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K. The Company disclaims
any obligation to update its forward-looking statements.
Forward-Looking Statements and
InformationCertain statements contained in this
communication may be considered forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding the agreement to combine with
Bioventus. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements, including projections regarding Misonix’s future
operating results, ability to grow revenue, and ability to maintain
gross profit margins, the anticipated timing of and ability of
Misonix and Bioventus to complete, the proposed merger, and the
potential benefits to be derived from the proposed merger.
Forward-looking statements are based on current beliefs and
assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and Misonix undertakes no obligation to update any of them publicly
in light of new information or future events. Actual results could
differ materially from those contained in any forward-looking
statement as a result of various factors, including, without
limitation: (1) Misonix’s ability to obtain or forecast accurate
surgical procedure volume in the midst of the COVID-19 pandemic;
(2) the risk that the COVID-19 pandemic could lead to further
material delays and cancellations of, or reduced demand for,
surgical or wound care procedures, including curtailed or delayed
capital spending by hospitals and surgical centers, potential
closures of Misonix’s facilities, delays in gathering clinical
evidence, diversion of Misonix management and other resources to
respond to the COVID-19 outbreak, the impact of global and regional
economic and credit market conditions on healthcare spending, the
risk that the COVID-19 virus, including new variants thereof,
disrupts local economies and causes economies in Misonix’s key
markets to enter prolonged recessions, the ability of Misonix staff
to travel to work, Misonix’s ability to maintain adequate
inventories and delivery capabilities, the impact on Misonix
customers and supply chain, and the impact on demand in general;
(3) uncertainties and change resulting from delays and risks
associated with the performance of contracts; (4) risks associated
with international sales and currency fluctuations; (5)
uncertainties as a result of research and development; (4)
acceptable results from clinical studies, including publication of
results and patient/procedure data with varying levels of
statistical relevancy; (6) risks involved in introducing and
marketing new products; (7) the entry of competitive products into
the marketplace; (7) consumer and industry acceptance; (8)
litigation and/or court proceedings, including the timing and
monetary requirements of such activities; (9) the timing of finding
strategic partners and implementing such relationships; (10)
regulatory risks including clearance of pending and/or contemplated
510(k) filings; (11) Misonix’s ability to achieve and maintain
profitability in its business lines; (12) access to capital; (13)
Bioventus and Misonix may be unable to obtain their respective
requisite stockholder approvals as required for the proposed
transaction; (14) conditions to the closing of the transaction may
not be satisfied; (15) the transaction may involve unexpected
costs, liabilities or delays; (16) the respective businesses of
Bioventus and Misonix may suffer as a result of uncertainty
surrounding the transaction; (17) the outcome of any legal
proceedings related to the transaction; (18) Bioventus and Misonix
may be adversely affected by other economic, business, and/or
competitive factors; (19) the occurrence of any event, change or
other circumstances that could give rise to the termination of the
Merger Agreement; (20) the effect of the announcement of the
transaction on the ability of Bioventus or Misonix to retain and
hire key personnel and maintain relationships with customers,
suppliers and others with whom Bioventus or Misonix does business,
or on Bioventus’ or Misonix’s operating results and business
generally; and (21) other risks to consummation of the transaction,
including the risk that the transaction will not be consummated
within the expected time period or at all. Additional factors that
may affect the future results of Bioventus and Misonix are set
forth in their respective filings with the SEC, including each of
Bioventus’ and Misonix’s most recently filed Annual Report on Form
10-K, subsequent Quarterly Reports on Form 10-Q, Current Reports on
Form 8-K and other filings with the SEC, which are available on the
SEC’s website at www.sec.gov, specifically under the heading “Risk
Factors.” The risks and uncertainties described above and in
Bioventus’ most recent Quarterly Report on Form 10-Q and Misonix’s
most recent Quarterly Report on Form 10-Q are not exclusive and
further information concerning Bioventus and Misonix and their
respective businesses, including factors that potentially could
materially affect their respective businesses, financial condition
or operating results, may emerge from time to time. Readers are
urged to consider these factors carefully in evaluating these
forward-looking statements, and not to place undue reliance on any
forward-looking statements. Readers should also carefully review
the risk factors described in other documents that Bioventus and
Misonix file from time to time with the SEC. The forward-looking
statements in these materials speak only as of the date of these
materials. Except as required by law, Bioventus and Misonix assume
no obligation to update or revise these forward-looking statements
for any reason, even if new information becomes available in the
future.
Participants in the Solicitation of
ProxiesMisonix and certain of its directors, executive
officers and employees may be deemed participants in the
solicitation of proxies from Misonix stockholders in connection
with the proposed transaction. Information regarding the persons
who may, under the rules of the SEC, be considered to be
participants in the solicitation of Misonix’s stockholders in
connection with the proposed transaction will be set forth in a
joint proxy statement/prospectus if and when it is filed with the
SEC by Bioventus and Misonix. Stockholders may obtain information
regarding the names, affiliations and interests of Misonix’s
directors and officers in Misonix’s Annual Report on Form 10-K for
the fiscal year ended June 30, 2020, which was filed with the SEC
on September 3, 2020 and its definitive proxy statement for its
2021 annual meeting of stockholders, which was filed with the SEC
on May 14, 2021. To the extent the holdings of Misonix’s securities
by Misonix’s directors and executive officers have changed since
the amounts set forth in Misonix’s proxy statement for its 2021
annual meeting of stockholders, such changes have been or will be
reflected on Statements of Change in Ownership on Form 4 filed with
the SEC. Additional information regarding these individuals and any
direct or indirect interests they may have in the proposed
transaction will be set forth in the joint proxy
statement/prospectus when and if it is filed with the SEC in
connection with the proposed transaction, at Misonix’s website at
www.misonix.com.
Non-SolicitationThis
communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended.
Contact: |
|
Joe Dwyer |
Norberto Aja, Jennifer
Neuman |
Chief Financial Officer |
JCIR |
Misonix, Inc. |
212-835-8500 or
mson@jcir.com |
631-927-9113 |
|
Misonix, Inc. and
SubsidiariesConsolidated Statements of
Operations(Unaudited)
|
|
For the three months
ended |
|
For the years
ended |
|
|
June 30, |
|
June 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
19,685,141 |
|
|
$ |
13,713,231 |
|
|
$ |
74,024,073 |
|
|
$ |
62,483,651 |
|
Cost of
revenue |
|
|
5,609,764 |
|
|
|
4,280,848 |
|
|
|
21,387,818 |
|
|
|
18,774,168 |
|
Gross
profit |
|
|
14,075,377 |
|
|
|
9,432,383 |
|
|
|
52,636,255 |
|
|
|
43,709,483 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling expenses |
|
|
11,802,796 |
|
|
|
11,621,461 |
|
|
|
42,086,841 |
|
|
|
40,232,551 |
|
General and administrative expenses |
|
|
4,553,015 |
|
|
|
4,133,578 |
|
|
|
16,555,468 |
|
|
|
17,954,567 |
|
Research and development expenses |
|
|
1,493,871 |
|
|
|
1,214,246 |
|
|
|
5,029,458 |
|
|
|
4,915,943 |
|
Total
operating expenses |
|
|
17,849,682 |
|
|
|
16,969,285 |
|
|
|
63,671,767 |
|
|
|
63,103,061 |
|
Loss from
operations |
|
|
(3,774,305 |
) |
|
|
(7,536,902 |
) |
|
|
(11,035,512 |
) |
|
|
(19,393,578 |
) |
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest income |
|
|
1,821 |
|
|
|
28,830 |
|
|
|
10,352 |
|
|
|
90,785 |
|
Interest expense |
|
|
(870,439 |
) |
|
|
(995,630 |
) |
|
|
(3,619,730 |
) |
|
|
(2,620,290 |
) |
Other |
|
|
301,722 |
|
|
|
7,708 |
|
|
|
303,636 |
|
|
|
6,131 |
|
Total other
expense |
|
|
(566,896 |
) |
|
|
(959,092 |
) |
|
|
(3,305,742 |
) |
|
|
(2,523,374 |
) |
|
|
|
|
|
|
|
|
|
Loss from operations before income taxes |
|
(4,341,201 |
) |
|
|
(8,495,994 |
) |
|
|
(14,341,254 |
) |
|
|
(21,916,952 |
) |
|
|
|
|
|
|
|
|
|
Income tax
(expense) benefit |
|
|
(132,071 |
) |
|
|
(41,422 |
) |
|
|
(132,071 |
) |
|
|
4,498,578 |
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(4,473,272 |
) |
|
$ |
(8,537,416 |
) |
|
$ |
(14,473,325 |
) |
|
$ |
(17,418,374 |
) |
|
|
|
|
|
|
|
|
|
Net loss per
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.26 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.84 |
) |
|
$ |
(1.19 |
) |
Diluted |
|
$ |
(0.26 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.84 |
) |
|
$ |
(1.19 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average shares - Basic |
|
|
17,247,172 |
|
|
|
17,177,791 |
|
|
|
17,226,190 |
|
|
|
14,670,663 |
|
Weighted
average shares - Diluted |
|
|
17,247,172 |
|
|
|
17,177,791 |
|
|
|
17,226,190 |
|
|
|
14,670,663 |
|
|
|
|
|
|
|
|
|
|
Misonix, Inc. and
SubsidiariesConsolidated Balance
Sheets(Unaudited)
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and
cash equivalents |
$ |
31,045,935 |
|
|
$ |
37,978,809 |
|
Accounts
receivable, less allowance for doubtful accounts of $2,147,841 and
$2,573,968, respectively |
|
11,349,976 |
|
|
|
11,064,768 |
|
Inventories,
net |
|
15,752,155 |
|
|
|
14,010,684 |
|
Prepaid
expenses and other current assets |
|
1,118,492 |
|
|
|
1,668,244 |
|
Total
current assets |
|
59,266,558 |
|
|
|
64,722,505 |
|
|
|
|
|
|
|
Property,
plant and equipment, net of accumulated amortization and
depreciation of $15,501,673 and $12,715,917, respectively |
|
9,253,479 |
|
|
|
7,304,258 |
|
Patents, net
of accumulated amortization of $1,499,812 and $1,341,976,
respectively |
|
789,800 |
|
|
|
784,318 |
|
Goodwill |
|
108,234,664 |
|
|
|
108,310,350 |
|
Intangible
assets |
|
19,740,492 |
|
|
|
21,281,136 |
|
Lease
right-of-use assets |
|
1,288,812 |
|
|
|
1,098,830 |
|
Other
assets |
|
286,413 |
|
|
|
322,310 |
|
Total
assets |
$ |
198,860,218 |
|
|
$ |
203,823,707 |
|
|
|
|
|
|
|
Liabilities and shareholders' equity |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
$ |
4,486,737 |
|
|
$ |
4,273,568 |
|
Accrued
expenses and other current liabilities |
|
11,184,656 |
|
|
|
7,515,751 |
|
Current
portion of lease liabilities |
|
571,227 |
|
|
|
414,058 |
|
Current
portion of notes payable |
|
6,449,487 |
|
|
|
5,099,744 |
|
Total
current liabilities |
|
22,692,107 |
|
|
|
17,303,121 |
|
|
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
|
Notes
payable |
|
39,345,761 |
|
|
|
38,595,505 |
|
Lease
liabilities |
|
762,894 |
|
|
|
723,553 |
|
Deferred tax
liabilities |
|
72,812 |
|
|
|
33,293 |
|
Other
non-current liabilities |
|
787,015 |
|
|
|
516,665 |
|
Total
liabilities |
|
63,660,589 |
|
|
|
57,172,137 |
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
Common
stock, $.0001 par value; shares authorized 40,000,000; 17,410,045
and 17,369,435 shares issued and outstanding in each period |
|
1,741 |
|
|
|
1,737 |
|
Additional
paid-in capital |
|
188,982,484 |
|
|
|
185,961,104 |
|
Accumulated
deficit |
|
(53,784,596 |
) |
|
|
(39,311,271 |
) |
Total
shareholders' equity |
|
135,199,629 |
|
|
|
146,651,570 |
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
198,860,218 |
|
|
$ |
203,823,707 |
|
|
|
|
|
|
|
Use of Non-GAAP Financial
MeasuresThe Company has presented the following non-GAAP
financial measures in this press release: EBITDA and Adjusted
EBITDA. The Company defines EBITDA as the net income (loss) as
reported under GAAP, plus depreciation and amortization expense,
interest expense and income tax expense (benefit). The Company
defines Adjusted EBITDA as EBITDA plus non-cash stock compensation
expense and M&A transaction fees. Historically, the Company
excluded bad debt expense from its calculation of Adjusted EBITDA
by adding bad debt expense to EBITDA. Beginning with the quarter
ended September 30, 2020, the Company will no longer exclude bad
debt expense from the calculation of Adjusted EBITDA, and prior
comparative periods will be adjusted accordingly.
The Company has also provided below pro-forma
revenue, which is also a non-GAAP financial measurement. The
Company acquired the operations of Solsys Medical at the end of its
first fiscal quarter ended September 30, 2019. The Company has
presented pro forma revenue to show revenue on a comparable basis
as if Solsys had been acquired at the beginning of the comparative
periods presented.
We present these non-GAAP measures because we
believe these measures are useful indicators of our operating
performance. Our management uses these non-GAAP measures
principally as a measure of our operating performance and believes
that these measures are useful to investors because they are
frequently used by analysts, investors and other interested parties
to evaluate the operating performance of companies in our industry.
We also believe that these measures are useful to our management
and investors as a measure of comparative operating performance
from period to period.
Misonix, Inc. and
SubsidiariesReconciliation of GAAP Results to
Non-GAAP Measures(Unaudited)
|
Three Months
Ended |
|
Years Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
EBITDA: |
|
|
|
|
|
|
|
Net
loss |
$ |
(4,473,272 |
) |
|
$ |
(8,537,416 |
) |
|
$ |
(14,473,325 |
) |
$ |
(17,418,374 |
) |
|
Income tax
expense (benefit) |
|
132,071 |
|
|
|
41,422 |
|
|
|
132,071 |
|
|
(4,498,578 |
) |
|
Depreciation
and amortization |
|
1,195,298 |
|
|
|
1,084,556 |
|
|
|
4,572,556 |
|
|
3,526,359 |
|
|
Interest
expense |
|
870,439 |
|
|
|
995,630 |
|
|
|
3,619,730 |
|
|
2,620,290 |
|
|
EBITDA |
|
(2,275,464 |
) |
|
|
(6,415,808 |
) |
|
|
(6,148,968 |
) |
|
(15,770,303 |
) |
|
|
|
|
|
|
|
|
|
Non-cash
stock compensation |
|
646,541 |
|
|
|
530,689 |
|
|
|
2,910,677 |
|
|
1,762,628 |
|
|
M&A
transaction fees |
|
33,836 |
|
|
|
- |
|
|
|
33,836 |
|
|
1,753,384 |
|
|
Adjusted
EBITDA |
$ |
(1,595,087 |
) |
|
$ |
(5,885,119 |
) |
|
$ |
(3,204,455 |
) |
$ |
(12,254,291 |
) |
|
|
|
|
|
|
|
|
|
|
Years Ended |
|
|
|
|
|
June 30, |
|
Net Change |
|
|
|
2021 |
|
|
|
2020 |
|
|
$ |
% |
|
|
|
|
|
|
|
|
|
Revenue as reported |
$ |
74,024,073 |
|
|
$ |
62,483,651 |
|
|
$ |
11,540,422 |
|
|
18.5 |
% |
|
Solsys
revenue |
|
- |
|
|
|
8,381,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
revenue |
$ |
74,024,073 |
|
|
$ |
70,864,847 |
|
|
$ |
3,159,226 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
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