airs-20230630

000187094012-312023Q2falseP5Y.33.33.33

NOTE 11 – SUBSEQUENT EVENTS

[Open]

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Delaware						87-1471855
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


1111 Lincoln Road, Suite 802
Miami Beach, FL						33139
(Address of principal executive offices)						(Zip Code)


		Page
PART I FINANCIAL INFORMATION

Item 1.	Financial Statements	2





	Condensed Consolidated Balance Sheets as of June 30, 2023 (Unaudited) and December 31, 2022	2
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)	3
	Condensed Consolidated Statements of Other Comprehensive Income/(Loss) for the Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)	4
	Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three and Six Months Ended June 30, 2023 and 2022 (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	22

PART II OTHER INFORMATION
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25

Signatures		26


($000s)	June 30, 2023		December 31, 2022
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	20,779	$	9,616
Taxes receivable	2,743		2,831
Prepaid expenses and other current assets	3,307		4,229
Total current assets	26,829		16,676
Property and equipment, net	28,917		24,206
Other long-term assets	3,359		3,280
Right of use operating lease assets	27,723		23,764
Intangible assets, net	48,722		51,099
Goodwill	81,734		81,734
Total assets	$	217,284	$	200,759
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	4,176	$	3,844
Accrued payroll and benefits	3,269		2,991
Current portion of long-term debt	2,125		2,125
Deferred revenue and patient deposits	4,271		2,358
Accrued and other current liabilities	5,162		6,644
Current operating lease liabilities	4,945		4,356
Total current liabilities	23,948		22,318
Long-term debt, net	80,875		81,420
Deferred tax liability, net	5,485		5,485
Long-term operating lease liabilities	24,479		19,745
Other long-term liabilities	1,025		1,025
Total liabilities	135,812		129,993
Commitments and contingent liabilities (Note 9)
Stockholders' equity
Common stock, $0.001 par value; shares authorized - 450,000,000; shares issued and outstanding - 56,784,968 and 56,181,689, respectively	57		56
Additional paid-in capital	94,836		85,858
Accumulated other comprehensive loss	(111)		(76)
Accumulated deficit	(13,310)		(15,072)
Total stockholders' equity	81,472		70,766
Total liabilities and stockholders' equity	$	217,284	$	200,759


	Three Months Ended June 30,				Six Months Ended June 30,
(in $000s, except for shares and per share figures)	2023		2022		2023		2022
Revenue	$	55,703	$	49,654	$	101,516	$	89,198
Operating expenses:
Cost of service (exclusive of depreciation and amortization)	19,952		17,492		37,969		32,154
Selling, general and administrative	27,893		26,010		51,775		50,177

Depreciation and amortization	2,514		1,962		4,850		3,848
Loss/(gain) on disposal of long-lived assets	(18)		227		(202)		227
Total operating expenses	50,341		45,691		94,392		86,406
Income from operations	5,362		3,963		7,124		2,792
Interest expense, net	1,891		1,559		3,626		3,051
Pre-tax net income/(loss)	3,471		2,404		3,498		(259)
Income tax expense/(benefit)	1,695		1,821		1,736		(149)
Net income/(loss)	$	1,776	$	583	$	1,762	$	(110)

Income per share of common stock
Basic	$	0.03	$	0.01	$	0.03	$	(0.00)
Diluted	$	0.03	$	0.01	$	0.03	$	(0.00)
Weighted average shares outstanding
Basic	56,753,498		55,640,154		56,599,291		55,640,154
Diluted	58,511,766		58,360,685		58,095,736		55,640,154


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income
($000s)	Shares	Amount						Accumulated Deficit		Total
Balance at December 31, 2021	55,640,154	$	56	$	83,865	$	—	$	(393)	$	83,528
Distributions	—	—		(282)		—		—		(282)
Equity-based compensation	—	—		7,316		—		—		7,316
Net loss	—	—		—		—		(693)		(693)
Balance at March 31, 2022	55,640,154	56		90,899		—		(1,086)		89,869
Distributions	—	—		(294)		—		—		(294)
Equity-based compensation	—	—		7,275		—		—		7,275
Net income	—	—		—		—		583		583
Balance at June 30, 2022	55,640,154	$	56	$	97,880	$	—	$	(503)	$	97,433

Balance at December 31, 2022	56,181,689	$	56	$	85,858	$	(76)	$	(15,072)	$	70,766
Issuance of common stock through unit vesting	529,571	—		—		—		—		—

Dividends	—	—		66		—		—		66
Equity-based compensation	—	—		4,388		—		—		4,388

Net loss	—	—		—		—		(14)		(14)
Other comprehensive income	—	—		—		22		—		22
Balance at March 31, 2023	56,711,260	56		90,312		(54)		(15,086)		75,228
Issuance of common stock through unit vesting	73,708	1		—		—		—		1
Distributions	—	—		(79)		—		—		(79)
Equity-based compensation	—	—		4,603		—		—		4,603
Net income	—	—		—		—		1,776		1,776
Other comprehensive loss	—	—		—		(57)		—		(57)
Balance at June 30, 2023	56,784,968	$	57	$	94,836	$	(111)	$	(13,310)	$	81,472


	June 30, 2023		December 31, 2022		Useful Life
Technology and know-how	$	53,600	$	53,600	15 years
Trademarks and tradenames	17,700		17,700		15 years
	71,300		71,300
Accumulated amortization of technology and know-how	(16,973)		(15,186)
Accumulated amortization of tradenames and trademarks	(5,605)		(5,015)
Total intangible assets	$	48,722	$	51,099


	June 30, 2023		December 31, 2022
Medical equipment	$	10,088	$	8,906
Office and computer equipment	789		551
Furniture and fixtures	3,755		3,457
Leasehold improvements	20,286		14,614
Construction in progress	2,653		2,854
Less: Accumulated depreciation	(8,654)		(6,176)
Property and equipment, net	$	28,917	$	24,206


	June 30, 2023		December 31, 2022
Term loan	$	83,937	$	85,000
Unamortized debt discounts and issuance costs	(937)		(1,455)
Total debt, net	83,000		83,545
Less: Current portion	(2,125)		(2,125)
Long-term debt, net	$	80,875	$	81,420


2023 (excluding the six months ended June 30, 2023)	$	1,062
2024	2,125
2025	4,250
2026	6,375
2027	70,125
Total maturities	$	83,937


	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
Cases	4,186			3,691		7,826			6,847
Case growth	13.4		%	N/A		14.3		%	N/A
Revenue per case	$	13,307		$	13,453	$	12,972		$	13,027
Revenue per case growth	(1.1)		%	N/A		(0.4)		%	N/A
Number of facilities	25			19		25			19
Number of total procedure rooms	53			38		53			38


	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023			2022
Cases	3,589			3,691		6,638			6,724
Case growth	(2.8)		%	N/A		(1.3)		%	N/A
Revenue per case	$	13,249		$	13,452	$	13,005		$	12,994
Revenue per case growth	(1.5)		%	N/A		0.1		%	N/A
Number of facilities	19			19		18			18
Number of total procedure rooms	40			38		38			35


	Six Months Ended June 30,
($ in thousands)	2023		2022
Cash Flows Provided By (Used For):
Operating activities	$	18,455	$	17,478
Investing activities	(5,976)		(6,139)
Financing activities	(1,316)		(1,433)
Net increase in cash and cash equivalents	11,163		9,906


Exhibit Number			Description of Exhibit
3.1			Amended and Restated Certificate of Incorporation
31.1*			Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*			Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*†			Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*†			Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS			Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document
101.SCH*			Inline XBRL Taxonomy Extension Schema Document
101.CAL*			Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*			Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*			Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE*			Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*			Cover Page Interactive Data File (embedded within the Inline XBRL document)


	June 30, 2023		June 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	2,544	$	2,026
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	8,991	$	6,138


Year ended December 31,

2023 (excluding the six months ended June 30, 2023)	$	2,696
2024	6,240
2025	6,413
2026	6,043
2027	5,441
Thereafter	12,273
Total lease payments	39,106
Less: imputed interest	(9,683)
Total lease obligations	$	29,423


			AIRSCULPT TECHNOLOGIES, INC.

			By:			/s/ Dennis Dean
						Dennis Dean
						Chief Financial Officer
						(Principal Accounting and Financial Officer)

SEC Form 10-Q filed by AirSculpt Technologies Inc.