Tivic Health® Systems, Inc. (“Tivic Health”, Nasdaq: TIVC), a
commercial-phase health technology company that develops and
commercializes bioelectronic medicine, today announced its
financial results for the year ending December 31, 2022.
Year over Year Highlights
- 46% growth in revenue
- 114% growth in direct to consumer channels
- 9X improvement in gross margin
Jennifer Ernst, CEO of Tivic Health, commented, “We executed our
2022 strategy of increasing our direct-to-consumer sales, reducing
the overall manufacturing costs of ClearUP, and seeding our product
pipeline. However, supply chain shortages, market volatility and
economic uncertainty left us, along with others, with challenges to
overcome. With the changes we are making to improve product
economics and streamline operations, as well as partnerships under
development, I believe that Tivic is positioned to manage the
challenges and deliver growth in 2023.”
Comparison of the Years Ended December 31, 2022 and
2021
Revenue
- Revenue (net of return reserve) increased $583 thousand (46%)
to $1.8 million for the year ended December 31, 2022 from $1.3
million for the year ended December 31, 2021, primarily
attributable to increased unit sales of 22% and a moderate price
increase late in the third quarter.
- Direct-to-consumer product revenue increased $871 thousand
(114%) to $1.6 million for the year ended December 31, 2022 from
$764 thousand for the year ended December 31, 2021, primarily
attributable to increased unit sales (104%) and average selling
price increase (6%) over the prior year.
- Reseller channel product revenue decreased $194 thousand (32%)
to $416 thousand for the year ended December 31, 2022 from $610
thousand for the year ended December 31, 2021, primarily
attributable to decreased unit sales of 43%, offset by increased
average selling price of 19%. The decrease in unit sales and the
increase in average selling price were due to the termination of
less profitable reseller channels in 2022.
Cost of Sales
- Cost of sales for the year ended December 31, 2022 was $1.5
million compared to $1.3 million for the year ended December 31,
2021, an increase of $246 thousand, or 19%. The increase was
primarily attributable to the 22% increase in overall unit
sales.
- Variable cost of goods sold was $1.3 million, or $87.04 per
unit, for the year ended December 31, 2022, as compared to $1.0
million, or $82.46 per unit, for the year ended December 31, 2021.
The increase in variable costs of goods sold was primarily due to
dramatic price increases in several electronic components, during
the summer of 2022, due to the global supply chain shortage
phenomenon.
- Fixed cost of goods sold decreased to $203 thousand for the
year ended December 31, 2022, as compared to $256 thousand for the
year ended December 31, 2021, primarily due to lower indirect
overhead costs as the Company refined its production management
process.
- Gross profit for the year ended December 31, 2022 was $299
thousand compared to a gross loss of $38 thousand for the year
ended December 31, 2021.
Research and Development Expenses
- Research and development expenses increased by $852 thousand to
$1.7 million for the year ended December 31, 2022 from $878
thousand for the year ended December 31, 2021. The emphasis of
research and development activities in 2022 was primarily related
to product research and design in the migraine therapeutic area,
initiation of a double-blind randomized controlled trial for
post-operative pain relief following sinus surgery, and enhancement
of our intellectual property protection. Activities in 2021 were
primarily focused on seeking FDA approval for a second indication
for our ClearUP product line.
Sales and Marketing Expenses
- Sales and marketing expenses increased to $2.8 million for the
year ended December 31, 2022, compared to $1.8 million for the year
ended December 31, 2021. The increase is primarily related to the
expansion of sales and marketing efforts, including (i) expanding
advertising platforms, (ii) upgrading and optimizing ecommerce
infrastructure, online/website design, and (iii) other marketing
initiatives.
General and Administrative Expenses
- General and administrative expenses increased to $5.9 million
for the year ended December 31, 2022, compared to $2.9 million for
the year ended December 31, 2021, primarily due to increases in
D&O insurance, professional fees, salaries and regulatory and
filing fees that are required for public companies and legal and
professional fees associated with the attempted acquisition of
Reliefband Technologies.
As of December 31, 2022, we had cash and cash equivalents of
$3.5 million, with no debt on the balance sheet.
Conference Call: Update
Management will host a pre-recorded
conference call and webcast on Friday, March 31, 2023 at 1:30 PM PT
/ 4:30 PM ET to discuss the Company’s year-end financial results
and provide a business update.
The conference call will be available via telephone by dialing
toll-free 888-506-0062 for local callers; or 973-528-0011 for
international callers; using Participant Access Code: 990339 to
access the call.
The conference call will also be available via Webcast link:
https://www.webcaster4.com/Webcast/Page/2865/47805
An audio replay of the call will be available from the “Recent
Press” page on the Tivic Health website at
https://tivichealth.com/investor/.
About Tivic Health
Tivic Health Systems, Inc. is a commercial-phase health
technology company delivering non-invasive bioelectronic treatments
that provide consumers with a choice in the treatment of
inflammation and related conditions. For more information visit
https://tivichealth.com @TivicHealth.
Forward-Looking Statements
This press release may contain “forward-looking statements” that
are subject to substantial risks and uncertainties. All statements,
other than statements of historical fact, contained in this press
release are forward-looking statements. Forward-looking statements
contained in this press release may be identified by the use of
words such as “anticipate,” “believe,” “contemplate,” “could,”
“estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,”
“potential,” “predict,” “project,” “target,” “aim,” “should,”
“will” “would,” or the negative of these words or other similar
expressions, although not all forward-looking statements contain
these words. Forward-looking statements are based on Tivic Health
Systems, Inc.’s current expectations and are subject to inherent
uncertainties, risks, and assumptions that are difficult to
predict. Further, certain forward-looking statements are based on
assumptions as to future events that may not prove to be accurate.
Actual results could differ materially from those contained in any
forward-looking statement as a result of various factors,
including, without limitation: market, economic and other
conditions; supply chain constraints; macroeconomic factors,
including inflation; the company’s ability to raise additional
capital on favorable terms; changes in regulatory requirements; and
unexpected costs, charges or expenses that reduce Tivic’s capital
resources. Given these risks and uncertainties, you are cautioned
not to place undue reliance on such forward-looking statements. For
a discussion of other risks and uncertainties, and other important
factors, any of which could cause Tivic’s actual results to differ
from those contained in the forward-looking statements, see Tivic’s
filings with the SEC, including its Annual Report on Form 10-K for
the year ended December 31, 2022, filed with the SEC on March 31,
2023, under the heading “Risk Factors”; as well as the company’s
subsequent filings with the SEC. Forward-looking statements
contained in this press release are made as of this date, and Tivic
Health Systems, Inc. undertakes no duty to update such information
except as required by applicable law.
Tivic Health Systems, Inc.
Balance Sheets
December 31, 2022 and 2021
(in thousands, except share and per
share data)
December 31, 2022
December 31, 2021
ASSETS
Current assets
Cash and cash equivalents
$
3,517
$
12,975
Accounts receivable, net
88
92
Inventory, net
863
429
Deferred offering costs
584
—
Prepaid expenses and other current
assets
235
793
Total current assets
5,287
14,289
Property and equipment, net
12
11
Right-of-use assets, operating lease
523
687
Other assets
34
49
Total assets
$
5,856
$
15,036
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities
Accounts payable
$
1,323
$
789
Other accrued expenses
373
267
Operating lease liability, current
163
163
Total current liabilities
1,859
1,219
Operating lease liability
367
545
Total liabilities
2,226
1,764
Commitments and contingencies (Note 6)
Stockholders’ equity
Preferred stock, $0.0001 par value,
10,000,000 shares authorized, no shares issued and outstanding at
December 31, 2022 and 2021, respectively
—
—
Common stock, $0.0001 par value,
200,000,000 shares authorized; 9,677,734 and 9,715,234 shares
issued and outstanding at December 31, 2022 and 2021,
respectively
1
1
Additional paid in capital
33,271
32,817
Accumulated deficit
(29,642
)
(19,546
)
Total stockholders’ equity
3,630
13,272
Total liabilities and stockholders’
equity
$
5,856
$
15,036
Tivic Health Systems, Inc.
Statements of Operations
Years Ended December 31, 2022 and
2021
(in thousands, except share and per
share data)
Years Ended December
31,
2022
2021
Revenue
$
1,840
$
1,257
Cost of sales
1,541
1,295
Gross profit (loss)
299
(38
)
Operating expenses:
Research and development
1,730
878
Sales and marketing
2,792
1,787
General and administrative
5,875
2,930
Total operating expenses
10,397
5,595
Loss from operations
(10,098
)
(5,633
)
Other income (expense):
Interest income (expense)
2
(1,823
)
Change in fair value of derivative
liabilities
—
436
Loss on extinguishment of debt
—
(1,636
)
Other income (expense)
—
162
Total other income (expense)
2
(2,861
)
Net loss
$
(10,096
)
$
(8,494
)
Net loss per share - basic and diluted
$
(1.04
)
$
(2.43
)
Weighted-average number of shares - basic
and diluted
9,672,957
3,493,267
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230331005117/en/
Investor Contact: Hanover International, Inc.
ir@tivichealth.com
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