Motus GI Amends Royalty Agreement
FORT LAUDERDALE, Fla., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Motus GI Holdings, Inc., (NASDAQ: MOTS) ("Motus GI" or the "Company"), a medical technology company providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions, today reported its financial results for the second quarter and six months ended June 30, 2021, and provided a corporate update.
“Our team continues to execute our commercial strategy, as we build steady momentum by converting targeted U.S. hospitals into active Pure-Vu customers,” commented Tim Moran, Chief Executive Officer at Motus GI. “The second quarter represented our fourth consecutive quarter of incremental revenue growth and a ~95% increase in revenue compared to the first quarter of 2021. This trend is being driven in part by Pure-Vu disposable sleeve sales as existing customers increase their usage of the Pure-Vu System and we sign additional customers to volume commitment agreements.”
“In addition to our commercial progress, we are executing against our plans to expand our Pure-Vu portfolio through innovative new product launches, seeking to gain reimbursement coverage, generating additional compelling clinical data, and advancing discussions with several potential strategic partners. We believe each of these catalysts have the potential to enhance the enterprise value of the Company,” continued Mr. Moran. “We’ve now commenced initial pilot patient cases of our disposable sleeve for upper GI procedures, which allows for expanded utility of the Pure-Vu System in the GI Lab. This launch is synergistic to the work we are already doing in colonoscopy and will feed right into the upcoming introduction of our third generation Pure-Vu System, which offers even greater ease of use and will support both upper and lower GI procedures. We believe this is an exciting period in our company’s history, and we look forward to keeping everyone updated on our progress.”
Second Quarter and Recent Business Highlights
Financial Results for the Quarter Ended June 30, 2021
The Company reported revenue of approximately $100,000 for the second quarter of 2021, compared to approximately $1,000 for the same period last year, and approximately $51,000 for the first quarter of 2021.
For the three months ended June 30, 2021, we reported a net loss of $4.7 million, or $0.10 per basic and diluted share, compared to a net loss of $4.4 million, or $0.15 per basic and diluted share, for the same period last year.
During the second quarter 2021, net cash used in operating activities and for the purchase of fixed assets was $3.2 million as compared to $4.3 million for the same period of 2020, a reduction of approximately 26% year-over-year.
The Company reported $26.4 million in cash and cash equivalents as of June 30, 2021. This balance includes $8 million from our 2019 term loan agreement with Silicon Valley Bank. In July 2021, we refinanced this loan and increased our credit facility by 50% up to $12 million through the execution of a new loan agreement with Kreos Capital. Our current cash balance allows us to continue executing on our value creation drivers and is expected to meet our overall anticipated cash needs through 2022.
The Motus GI management team has scheduled a conference call for today, August 12th, at 4:30 p.m. ET to discuss these results. To access the conference call, investors are invited to dial (877) 407-0792 (U.S. and Canada) or (201) 689-8263 (International). The conference ID number is 13720949. A live audio webcast can be accessed by visiting the investor relations section of the Company’s website, www.motusgi.com or http://public.viavid.com/index.php?id=145456. A replay of the webcast will be archived on the Motus GI website for 90 days following the event.
About Motus GI
Motus GI Holdings, Inc. is a medical technology company, with subsidiaries in the U.S. and Israel, providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions.
This press release contains certain forward-looking statements. Forward-looking statements are based on the Company's current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," "predict," "project," "should," "would" and similar expressions and the negatives of those terms, including without limitation, risks related to the Company’s cost reduction plan, the cost savings and the cash expenses related to the implementation of the plan, risks related to the continued impact of the COVID-19 pandemic, risks inherent in the development and commercialization of potential products, uncertainty in the timing and results of clinical trials or regulatory approvals, maintenance of intellectual property rights or other risks discussed in the Company’s Form 10-K filed on March 16, 2021, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Motus GI Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
|June 30,||December 31,|
|Cash and cash equivalents||$||26,379||$||20,819|
|Prepaid expenses and other current assets||859||448|
|Total current assets||28,017||22,107|
|Fixed assets, net||1,451||1,178|
|Other non-current assets||13||13|
|Liabilities and Shareholders’ Equity|
|Accounts payable and accrued expenses||$||2,150||$||2,333|
|Operating lease liabilities – current||261||238|
|Other current liabilities||7||60|
|Term debt, net of debt discount of $17 and $21, respectively||7,983||7,979|
|Total current liabilities||10,401||10,610|
|Contingent royalty obligation||1,734||1,617|
|Operating lease liabilities - non-current||467||547|
|Commitments and contingent liabilities (Note 9)|
|Preferred Stock $0.0001 par value; 10,000,000 shares authorized; zero shares issued and outstanding||-||-|
|Common Stock $0.0001 par value; 115,000,000 shares authorized; 48,241,188 and 32,272,309 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively||5||3|
|Additional paid-in capital||130,698||115,008|
|Total shareholders’ equity||17,591||11,290|
|Total liabilities and shareholders’ equity||$||30,193||$||24,064|
Motus GI Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Loss
(unaudited, in thousands, except share and per share amounts)
Three Months Ended
Six Months Ended
|Cost of revenue - sales||42||10||70||40|
|Research and development||1,508||1,264||2,853||3,199|
|Sales and marketing||795||582||1,471||2,445|
|General and administrative||2,345||2,365||4,789||5,277|
|Total costs and expenses||4,690||4,221||9,183||10,961|
|Gain (loss) on change in estimated fair value of contingent royalty obligation||(37||)||(76||)||(117||)||245|
|Finance expense, net||(117||)||(119||)||(234||)||(231||)|
|Foreign currency gain (loss)||2||5||(8||)||(3||)|
|Deemed dividends from warrant issuance||-||-||(6,145||)||-|
|Net loss attributable to common shareholders||$||(4,742||)||$||(4,410||)||$||(15,536||)||$||(10,921||)|
|Basic and diluted loss per common share:|
|Net loss attributable to common shareholders||$||(0.10||)||$||(0.15||)||$||(0.34||)||$||(0.38||)|
|Weighted average number of common shares outstanding, basic and diluted||47,732,674||28,846,881||45,493,776||28,832,296|
Released August 12, 2021