Motus GI Amends Royalty Agreement
FORT LAUDERDALE, Fla., Aug. 11, 2022 (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 ended June 30, 2022, and provided a corporate update.
“The second quarter marks the first full quarter we’ve completed since the launch of our Pure-Vu EVS in March 2022. The ease-of-use enhancements incorporated into Pure-VU EVS, coupled with the rebuild of our sales organization following the pandemic, is allowing us to execute quickly on our commercial strategy. Our growth for the second quarter was driven by an expanding base of U.S. hospitals approved to use Pure-Vu EVS with a growing number of physicians performing procedures. We currently have our system placed at 18 hospitals, which are comprised of a healthy blend between prior and new users,” commented Tim Moran, Chief Executive Officer.”
“We are excited to announce today the design of a planned large, multi-center trial which is expected to support our strategy to secure potential reimbursement for the Pure-Vu EVS System when used in certain outpatient colonoscopies. The study will use an adaptive statistical plan with the primary endpoint designed to show a significant reduction in the number of aborted or poor-quality exams that lead to an early repeat procedure as defined by the Gastroenterology Tri-Society guidelines. We are planning for this study to be initiated before the end of 2022, signaling an exciting next step in our strategy to expand the addressable market for our Pure-Vu system,” commented Mr. Moran.
Second Quarter and Recent Business Highlights
Financial Results for the Second Quarter Ended June 30, 2022
The Company reported revenue of $185,000 for the second quarter 2022, compared to $100,000 for the same period last year. Revenues for this past quarter were primarily derived from disposable sleeve sales and were made up of a mix between reorders from existing sites and new customer orders.
For the three months ended June 30, 2022, the Company reported a net loss attributable to common shareholders of $5.1 million, or $1.86 per basic and diluted share, compared to a net loss attributable to common shareholders of $4.7 million, or $1.99 per basic and diluted share, for the same period last year. Per share data is on a split adjusted basis resulting from the Company’s reverse stock split effective as of July 25, 2022.
During the second quarter 2022, net cash used in operating activities and for the purchase of fixed assets was $4.6 million as compared to $3.2 million for the same period of 2021.
The Company reported $15.8 million in cash and cash equivalents as of June 30, 2022. This balance included the fully funded credit facility with Kreos Capital. The Company’s current cash balance allows it to continue executing on its upcoming catalysts and is expected to meet overall anticipated cash needs into Q1 2023.
Motus GI Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets Highlights
(unaudited, in thousands)
|June 30, 2022||December 31, 2021|
|Total shareholders’ equity||3,972||9,657|
The Motus GI management team has scheduled a conference call for today, August 11th, 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 13730467. A live audio webcast can be accessed by visiting the investor relations section of the Company’s website, www.motusgi.com or (click here). 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.
For more information, visit www.motusgi.com and connect with the Company on Twitter, LinkedIn and Facebook.
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 continued impact of the COVID-19 pandemic, risks inherent in the development and commercialization of potential products, possible or assumed future results of operations, business strategies, potential grow opportunities, 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 quarterly and annual reports filed with the Securities and Exchange Commission, 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||$||15,757||$||22,563|
|Prepaid expenses and other current assets||1,317||793|
|Total current assets||18,193||23,961|
|Fixed assets, net||1,329||1,428|
|Other non-current assets||13||13|
|Liabilities and Shareholders’ Equity|
|Accounts payable and accrued expenses||$||2,212||$||2,584|
|Operating lease liabilities - current||266||307|
|Other current liabilities||18||10|
|Current portion of long-term debt, net of unamortized debt discount of $270 and $271, respectively||1,757||431|
|Total current liabilities||4,253||3,332|
|Contingent royalty obligation||1,823||1,760|
|Operating lease liabilities - non-current||280||385|
|Convertible note, net of unamortized debt discount of $138 and $166, respectively||3,862||3,834|
|Long-term debt, net of unamortized debt discount of $221 and $317, respectively||5,892||7,121|
|Commitments and contingent liabilities (Note 9)|
|Common stock $0.0001 par value; 5,750,000 shares authorized; 2,765,287 and 2,416,049 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively||-||-|
|Additional paid-in capital||136,677||132,411|
|Total shareholders’ equity||3,973||9,657|
|Total liabilities and shareholders’ equity||$||20,082||$||26,089|
(*) Derived from audited consolidated financial statements
Motus GI Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Loss
(unaudited, in thousands, except share and per share amounts)
|Three Months Ended
|Six Months Ended
|Cost of revenue - sales||68||42||83||70|
|Cost of revenue - impairment of inventory||-||-||159||-|
|Research and development||1,413||1,508||2,688||2,853|
|Sales and marketing||1,222||795||2,205||1,471|
|General and administrative||2,075||2,345||4,189||4,789|
|Total costs and expenses||4,778||4,690||9,324||9,183|
|Loss on change in estimated fair value of contingent royalty obligation||(92||)||(37||)||(63||)||(117||)|
|Finance expense, net||(359||)||(117||)||(691||)||(234||)|
|Foreign currency loss||(96||)||2||(78||)||(8||)|
|Deemed dividends from warrant issuance||-||-||-||(6,145||)|
|Net loss attributable to common shareholders||$||(5,140||)||$||(4,742||)||$||(9,951||)||$||(15,536||)|
|Basic and diluted loss per common share:|
|Net loss attributable to common shareholders||$||(1.86||)||$||(1.99||)||$||(3.72||)||$||(6.83||)|
|Weighted average number of common shares outstanding, basic and diluted||2,758,457||2,386,633||2,674,536||2,274,688|
Released August 11, 2022