CARLSBAD, Calif., Aug. 11, 2022 (GLOBE NEWSWIRE) -- Acutus Medical, Inc. ("Acutus" or the "Company") (NASDAQ:AFIB), an arrhythmia management company focused on improving the way cardiac arrhythmias are diagnosed and treated, today reported results for the second quarter of 2022.

Recent Updates:

Reported revenue of $4.1 million in the second quarter of 2022, compared to $3.7 million in the first quarter of 2022, and $4.7 million in the same quarter last year.
Global mapping procedures volumes increased 20% from the same quarter last year.
Completed first closing of the left-heart access portfolio sale to Medtronic, Inc. and debt refinancing to fund strategic growth priorities on June 30, 2022.

"Our teams continued to execute our strategy in the second quarter, as we intensify focus on utilization and procedure volume as the key drivers of our business," said David Roman, President & CEO of Acutus. "We registered another quarter of record procedure volumes with year-over-year growth worldwide. Higher procedure volume was complemented by increased revenue share capture within our accounts, as electrophysiologists increase adoption of the Acutus product portfolio. In addition to positive trends in utilization, we made significant strides to strengthen our financial position, completing the first closing of our left-heart access portfolio sale to Medtronic, refinancing our debt, and implementing further cost reduction initiatives."

Second Quarter 2022 Financial Results

Revenue was $4.1 million for the second quarter of 2022, compared to $4.7 million in the second quarter last year. This decrease of $0.6 million, or 13%, was primarily attributable to a decrease of $0.5 million in capital revenue and $0.2 million in disposable revenue as stocking orders for AcQMap installs declined with the decrease in new customer accounts. Gross margin was negative 138% for the three months ended June 30, 2022 and negative 59% for the three months ended June 30, 2021. This decrease in gross margin was primarily attributable to excess and obsolescence charges to inventory, recognition of manufacturing variances, and idle capacity on console manufacturing.

Excluding the net gain on the sale of our left-heart access portfolio of $43.6 million, operating expenses on a GAAP basis were $23.0 million for the second quarter of 2022, compared with $24.5 million in the same quarter last year. The decrease of $1.5 million was primarily attributable to a decrease of $2.7 million related to headcount related expenses, offset by a change in fair value of $1.2 million for the contingent consideration related to the acquisition of Rhythm Xience, Inc.

Net income on a GAAP basis was $5.7 million for the second quarter of 2022 and net income per share was $0.16 on a weighted average basic and diluted outstanding share count of 28.3 million, compared to a net loss of $28.7 million and a net loss per share of $1.02 on a weighted average basic and diluted outstanding share count of 28.2 million in the same period of the prior year. Excluding amortization of acquired intangibles, non-cash stock-based compensation expense, goodwill impairment, gain on sale of business, debt refinancing charges, restructuring charges, the employee retention credit benefit and changes in the fair value of contingent consideration, the Company's non-GAAP net loss for the second quarter of 2022 was $26.2 million, or $0.93 per share, compared to a net loss of $25.0 million, or $0.89 per share in the same period of the prior year.

Total cash, cash equivalents, marketable securities and restricted cash was $93.1 million as of June 30, 2022.

Non-GAAP Financial Measures

This press release includes references to non-GAAP net loss and non-GAAP net loss per share, which are non-GAAP financial measures, to provide information that may assist investors in understanding the Company's financial results and assessing its prospects for future performance. The Company believes these non-GAAP financial measures are important indicators of its operating performance because they exclude items that are primarily non-cash accounting line items unrelated to, and may not be indicative of, the Company's core operating results. These non-GAAP financial measures, as Acutus calculates them, may not necessarily be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to the Company. These non-GAAP financial results are not intended to represent and should not be considered to be more meaningful measures than, or alternatives to, measures of operating performance as determined in accordance with GAAP. Non-GAAP net loss is defined as net income (loss) before income taxes, adjusted for stock-based compensation, amortization of acquisition-related intangibles, acquisition related costs, discontinued operations, asset/goodwill impairments, changes in the fair value of contingent consideration, restructuring charges, stock repurchases and other adjustments for non-operating items, such as gain on sale of business, debt financing charges, and employee retention credit benefits. To the extent such non-GAAP financial measures are used in the future, the Company expects to calculate them using a consistent method from period to period. A reconciliation of the most directly comparable GAAP financial measure to the non-GAAP financial measure has been provided under the heading "Reconciliation of GAAP Results to Non-GAAP Results" in the financial statement tables attached to this press release.

Webcast and Conference Call Information

Acutus will host a conference call to discuss the second quarter 2022 financial results after market close on Thursday, August 11, 2022 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. To access the live call via telephone, please register in advance using the link: https://register.vevent.com/register/BI91a149ee60de483ab484237f5ac7b27c. Upon registering, each participant will receive an email confirmation with dial-in numbers and a unique personal PIN that can be used to join the call. The live webinar of the call may be accessed by visiting the Events section of the Acutus investor relations website at ir.acutusmedical.com. A replay of the webinar will be available shortly after the conclusion of the call and will be archived on the company's website.

About Acutus Medical, Inc.

Acutus is an arrhythmia management company focused on improving the way cardiac arrhythmias are diagnosed and treated. Acutus is committed to advancing the field of electrophysiology with a unique array of products and technologies which will enable more physicians to treat more patients more efficiently and effectively. Through internal product development, acquisitions and global partnerships, Acutus has established a global sales presence delivering a broad portfolio of highly differentiated electrophysiology products that provide its customers with a complete solution for catheter-based treatment of cardiac arrhythmias. Founded in 2011, Acutus is headquartered in Carlsbad, California.

Caution Regarding Forward-Looking Statements

This 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 the 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, continued acceptance of its products in the marketplace, the effect of global economic conditions on the ability and willingness of customers to purchase the Company's systems 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 impact of the coronavirus (COVID-19) pandemic and Acutus' response to it, 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:	Media Contact:
Caroline Corner	Levitate
Westwicke ICR	M: 260-408-5383
D: 415-202-5678	acutus@levitatenow.com
caroline.corner@westwicke.com

Acutus Medical, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share amounts)	June 30, 2022			December 31, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	46,567		$	24,071
Marketable securities, short-term		42,400			76,702
Restricted cash, short-term		150			150
Accounts receivable		2,596			3,633
Inventory		15,307			16,408
Prepaid expenses and other current assets		9,030			5,326
Total current assets		116,050			126,290

Marketable securities, long-term		—			7,120
Restricted cash, long-term		4,000			—
Property and equipment, net		11,366			13,670
Right-of-use assets, net		4,191			4,521
Intangible assets, net		1,683			5,013
Goodwill		—			12,026
Other assets		1,040			1,152
Total assets	$	138,330		$	169,792

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,975		$	7,519
Accrued liabilities		9,138			9,096
Contingent consideration, short-term		1,800			1,500
Operating lease liabilities, short-term		437			395
Warrant liability		3,379			—
Total current liabilities		22,729			18,510

Operating lease liabilities, long-term		4,346			4,591
Long-term debt		34,199			40,415
Contingent consideration, long-term		400			500
Other long-term liabilities		5			50
Total liabilities		61,679			64,066

Stockholders' equity
Preferred stock, $0.001 par value		—			—
Common stock, $0.001 par value		28			28
Additional paid-in capital		590,429			584,613
Accumulated deficit		(512,997	)		(478,698	)
Accumulated other comprehensive loss		(809	)		(217	)
Total stockholders' equity		76,651			105,726
Total liabilities and stockholders' equity	$	138,330		$	169,792

Acutus Medical, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except share and per share amounts)		2022			2021			2022			2021

	(unaudited)						(unaudited)
Revenue	$	4,076		$	4,709		$	7,757		$	8,300

Costs and operating (income) expenses:
Cost of products sold		9,697			7,492			16,638			14,447
Research and development		7,935			9,174			15,938			18,544
Selling, general and administrative		14,143			15,601			28,528			31,853
Goodwill impairment		—			—			12,026			—
Restructuring		—			—			949			—
Change in fair value of contingent consideration		948			(258	)		955			(1,411	)
Gain on sale of business		(43,575	)		—			(43,575	)		—
Total costs and operating (income) expenses		(10,852	)		32,009			31,459			63,433
Income (loss) from operations		14,928			(27,300	)		(23,702	)		(55,133	)

Other income (expense):
Loss on debt extinguishment		(7,947	)		—			(7,947	)		—
Interest income		27			29			51			69
Interest expense		(1,290	)		(1,456	)		(2,701	)		(2,844	)
Total other expense, net		(9,210	)		(1,427	)		(10,597	)		(2,775	)
Income (loss) before income taxes		5,718			(28,727	)		(34,299	)		(57,908	)
Income tax benefit		—			—			—			—
Net income (loss)	$	5,718		$	(28,727	)	$	(34,299	)	$	(57,908	)

Other comprehensive income (loss)
Unrealized gain (loss) on marketable securities		18			4			(39	)		10
Foreign currency translation adjustment		(387	)		92			(553	)		(134	)
Comprehensive income (loss)	$	5,349		$	(28,631	)	$	(34,891	)	$	(58,032	)

Basic net income (loss) per common share	$	0.16		$	(1.02	)	$	(1.22	)	$	(2.06	)
Diluted net income (loss) per common share	$	0.16		$	(1.02	)	$	(1.22	)	$	(2.06	)

Basic weighted average shares outstanding		28,339,362			28,152,305			28,229,338			28,092,329
Diluted weighted average shares outstanding		28,349,429			28,152,305			28,229,338			28,092,329

Acutus Medical, Inc.

Condensed Consolidated Statements of Cash Flows

	Six Months Ended June 30,
(in thousands)		2022			2021

	(unaudited)
Cash flows from operating activities
Net loss	$	(34,299	)	$	(57,908	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense		3,145			2,747
AcQMap Systems converted to sales		110			—
Sales-type lease gain		(57	)		—
Amortization of intangible assets		320			320
Stock-based compensation expense		5,613			6,686
Amortization of premiums and accretion of discounts on marketable securities, net		264			797
Amortization of debt issuance costs		641			672
Amortization of right-of-use assets		321			343
Goodwill impairment		12,026			—
Loss on debt extinguishment		7,947			—
Gain on sale of business		(43,575	)		—
Change in fair value of contingent consideration		955			(1,411	)
Changes in operating assets and liabilities:
Accounts receivable		1,037			(1,199	)
Inventory		1,101			(1,705	)
Prepaid expenses and other current assets		(3,592	)		2,501
Other assets		223			(289	)
Accounts payable		236			(2,727	)
Accrued liabilities		(386	)		1,600
Operating lease liabilities		(203	)		(342	)
Other long-term liabilities		(45	)		—
Net cash used in operating activities		(48,218	)		(49,915	)

Cash flows from investing activities
Proceeds from sale of business		50,000			—
Direct costs paid related to sale of business		(2,488	)		—
Purchases of available-for-sale marketable securities		—			(9,134	)
Sales of available-for-sale marketable securities		13,099			4,590
Maturities of available-for-sale marketable securities		27,787			44,407
Purchases of property and equipment		(1,718	)		(5,841	)
Net cash provided by investing activities		86,680			34,022

Cash flows from financing activities
Repayment of debt		(44,550	)		—
Penalty fees paid for early prepayment of debt		(1,074	)		—
Borrowing under new debt		35,000			—
Payment of debt issuance costs		(624	)		—
Payment of deferred offering costs		—			(10	)
Payment of contingent consideration		(598	)		(2,758	)
Repurchase of common shares to pay employee withholding taxes		(45	)		—
Proceeds from stock options exercises		66			619
Proceeds from employee stock purchase plan		182			—
Net cash used in financing activities		(11,643	)		(2,149	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(323	)		(65	)
Net change in cash, cash equivalents and restricted cash		26,496			(18,107	)
Cash, cash equivalents and restricted cash, at the beginning of the period		24,221			25,384
Cash, cash equivalents and restricted cash, at the end of the period	$	50,717		$	7,277

Acutus Medical, Inc.

Reconciliation of GAAP Results to Non-GAAP Results

(Unaudited)

Three Months Ended June 30, 2022	Cost of products sold			Research and development			Selling, general and administrative			Income (loss) from operations			Other expenses, net			Net income (loss)			Net income allocated to common stockholders			Basic and diluted EPS
Reported	$	9,697		$	7,935		$	14,143		$	14,928		$	(9,210	)	$	5,718		$	4,521		$	0.16
Amortization of acquired intangibles		(155	)		—			(5	)		160			—			160			160			0.01
Stock-based compensation		(225	)		(554	)		(1,802	)		2,581			—			2,581			2,581			0.09
Change in fair value of contingent consideration		—			—			—			948			—			948			948			0.03
Gain on sale of business		—			—			—			(43,575	)		—			(43,575	)		(43,575	)		(1.54	)
Loss on debt extinguishment		—			—			—			—			7,947			7,947			7,947			0.28
Net income allocated to participating securities		—			—			—			—			—			—			1,197			0.04
Adjusted	$	9,317		$	7,381		$	12,336		$	(24,958	)	$	(1,263	)	$	(26,221	)	$	(26,221	)	$	(0.93	)

Three Months Ended June 30, 2021	Cost of products sold			Research and development			Selling, general and administrative			Loss from operations			Other expenses, net			Net loss			Basic and diluted EPS
Reported	$	7,492		$	9,174		$	15,601		$	(27,300	)	$	(1,427	)	$	(28,727	)	$	(1.02	)
Amortization of acquired intangibles		—			—			(160	)		160			—			160			0.01
Stock-based compensation		(223	)		(629	)		(2,924	)		3,776			—			3,776			0.13
Change in fair value of contingent consideration		—			—			—			(258	)		—			(258	)		(0.01	)
Adjusted	$	7,269		$	8,545		$	12,517		$	(23,622	)	$	(1,427	)	$	(25,049	)	$	(0.89	)

Acutus Medical, Inc.

Key Business Metrics

Installed Base & Procedure Volumes

Our total installed base as of June 30, 2022 and 2021 are set forth in the table below:

	June 30,
	2022	2021

Key Business Metrics	(unaudited)
Installed base⁽¹⁾	75	70

⁽¹⁾ Installed base includes AcQMap Systems.

Our total procedure volumes for the three and six months ended June 30, 2022 and 2021 is set forth in the table below:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021

Key Business Metrics	(unaudited)		(unaudited)
Procedure volumes	481	401	948	768

Revenue

The following table sets forth the Company's revenue for disposables, systems and service/other for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021

	(unaudited)				(unaudited)
Disposables	$	3,334	$	3,509	$	6,545	$	5,852
Systems		346		799		346		1,768
Service/Other		396		401		866		680
Total revenue	$	4,076	$	4,709	$	7,757	$	8,300

The following table provides revenue by geographic location for the three and six months ended June 30, 2022 and 2021 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021
	(unaudited)				(unaudited)
United States	$	2,037	$	2,486	$	4,060	$	4,068
Outside the United States		2,039		2,223		3,697		4,232
Total revenue	$	4,076	$	4,709	$	7,757	$	8,300

Acutus Medical Reports Second Quarter 2022 Financial Results