aort-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________ to ________________

Commission file number: 1-13165

ARTIVION, INC.

(Exact name of registrant as specified in its charter)


Delaware						59-2417093
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1655 Roberts Boulevard, NW, Kennesaw, Georgia						30144
(Address of principal executive offices)						(Zip Code)

(770) 419-3355

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	AORT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class						Outstanding at April 28, 2023
Common Stock, $0.01 par value						40,875,444

Table of Contents

TABLE OF CONTENTS


Part I – FINANCIAL INFORMATION

Item 1. Financial Statements.			3
Condensed Consolidated Statements of Operations and Comprehensive Loss			3
Condensed Consolidated Balance Sheets			4
Condensed Consolidated Statements of Cash Flows			5
Condensed Consolidated Statements of Shareholders’ Equity			6
Notes to Condensed Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.			22
Item 3. Quantitative and Qualitative Disclosures About Market Risk.			33
Item 4. Controls and Procedures.			34

Part II - OTHER INFORMATION			36

Item 1. Legal Proceedings.			36
Item 1A. Risk Factors.			36
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.			51
Item 3. Defaults Upon Senior Securities.			51
Item 4. Mine Safety Disclosures.			51
Item 5. Other Information.			51
Item 6. Exhibits.			52
Signatures			53

Table of Contents

Part I – FINANCIAL INFORMATION

Item 1. Financial Statements.

Artivion, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive Loss

In Thousands, Except Per Share Data

(Unaudited)


	Three Months Ended March 31,
	2023		2022
Revenues:
Products	$	62,291	$	57,542
Preservation services	20,938		19,671
Total revenues	83,229		77,213

Cost of products and preservation services:
Products	19,533		17,408
Preservation services	9,969		9,086
Total cost of products and preservation services	29,502		26,494

Gross margin	53,727		50,719

Operating expenses:
General, administrative, and marketing	50,365		38,955
Research and development	7,223		10,128
Total operating expenses	57,588		49,083

Operating (loss) income	(3,861)		1,636

Interest expense	6,096		3,948
Interest income	(75)		(16)
Other (income) expense, net	(963)		133

Loss before income taxes	(8,919)		(2,429)
Income tax expense	4,613		960

Net loss	$	(13,532)	$	(3,389)

Loss per share:
Basic	$	(0.33)	$	(0.08)
Diluted	$	(0.33)	$	(0.08)

Weighted-average common shares outstanding:
Basic	40,432		39,850
Diluted	40,432		39,850

Net loss	$	(13,532)	$	(3,389)
Other comprehensive loss:
Foreign currency translation adjustments	3,616		(3,775)
Comprehensive loss	$	(9,916)	$	(7,164)

See accompanying Notes to Condensed Consolidated Financial Statements

Table of Contents

Artivion, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

In Thousands


	March 31, 2023		December 31, 2022
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	30,773	$	39,351
Trade receivables, net	62,760		61,820
Other receivables	3,952		7,764
Inventories, net	76,273		74,478
Deferred preservation costs, net	47,415		46,371
Prepaid expenses and other	19,508		17,550
Total current assets	240,681

SEC Form 10-Q filed by Artivion Inc.