EXETER,
N.H., Nov. 8, 2023 /PRNewswire/ -- Vapotherm,
Inc. (NYSE: VAPO), ("Vapotherm" or the "Company"), today announced
third quarter 2023 financial results and related highlights.
Third Quarter 2023 Financial Results and Related
Highlights
- Net revenue for the third quarter of 2023 was $15.2 million, an increase of 12.0% as compared
to the third quarter of 2022
- Non-GAAP net revenue excluding the Vapotherm Access call center
business, which the Company exited in the fourth quarter of 2022,
increased by 17.6% as compared to the third quarter of 2022
- Disposables revenue increased by 18.0% as compared to the third
quarter of 2022
- Capital revenue increased by 24.7% as compared to the third
quarter of 2022 due to strong HVT 2.0 sales
- Gross margin in the third quarter of 2023 was 39.6%
- For the third quarter of 2023, GAAP operating expenses were
$16.3 million and non-GAAP cash
operating expenses were $12.3
million. Both decreased compared to the prior year period
and second quarter of 2023 as a result of the Company's Path to
Profitability initiatives:
- GAAP operating expenses decreased by $0.7 million from the second quarter of 2023 and
by $8.5 million from the third
quarter of 2022
- Non-GAAP cash operating expenses decreased by $1.9 million from the second quarter of 2023 and
by $7.2 million from the third
quarter of 2022
- The Company's unrestricted cash and cash equivalents was
$14.4 million at the end of the third
quarter of 2023, a decrease of $3.6
million from the Company's unrestricted cash and cash
equivalents balance of $18.0 million
at the end of the second quarter of 2023
- This decrease compares to a decrease of $7.7 million in the Company's unrestricted cash
and cash equivalents in the second quarter of 2023
- The Company met its 2023 one-time minimum net revenue covenant
requirement of $25 million for the
six month period ended September 30,
2023. The Company recorded net revenue of $31.2 million for this measurement period
- The Company's next minimum net revenue covenant test will begin
in 2024 with the minimum net revenue level set at a discount to the
Company's 2024 Annual Operating Plan
- The Company remains in compliance with its minimum unrestricted
cash and cash equivalents covenant of $5.0
million
- The HYPERACT clinical trial has been accepted for initial
presentation at the Society for Critical Care Medicine Congress in
January 2024. The trial was designed
to compare the ability of the Company's HVNI technology to treat
acute hypercapnic respiratory failure in the Emergency Department
compared to bi-level positive airway pressure, a form of
non-invasive ventilation delivered via a form-fitting face mask.
The trial focused on moderate to severe COPD patients with carbon
dioxide levels above 60 and pH levels below 7.35. While bi-level
pressure systems are the current standard of care, many patients
cannot tolerate the discomfort and complications associated with
the masks required for those systems. The primary endpoint of the
trial was non-inferiority of HVNI with additional measurements of
associated laboratory values, ease of use, and patient comfort.
There were no adverse events.
"We are pleased to deliver Non-GAAP net revenue growth in the
upper teens despite the significant reductions we have made in
operating expenses over the past 6 quarters," said Joseph Army, President and CEO. "In addition, we
have made significant progress in reducing our cash burn as we move
towards profitability and are excited to share the results of the
HYPERACT clinical trial with the medical community."
Results for the Three Months Ended September 30,
2023
The following table reflects the Company's net revenue for the
three months ended September 30, 2023 and 2022:
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
|
(in thousands, except
percentages)
|
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
$
|
|
|
%
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital (product &
lease revenue)
|
|
$
|
2,486
|
|
|
|
16.4
|
%
|
|
$
|
1,993
|
|
|
|
14.7
|
%
|
|
$
|
493
|
|
|
|
24.7
|
%
|
Disposables
|
|
|
11,170
|
|
|
|
73.6
|
%
|
|
|
9,463
|
|
|
|
69.9
|
%
|
|
|
1,707
|
|
|
|
18.0
|
%
|
Service and other
(1)
|
|
|
1,511
|
|
|
|
10.0
|
%
|
|
|
2,089
|
|
|
|
15.4
|
%
|
|
|
(578)
|
|
|
|
(27.7)
|
%
|
Total net revenue
|
|
$
|
15,167
|
|
|
|
100.0
|
%
|
|
$
|
13,545
|
|
|
|
100.0
|
%
|
|
$
|
1,622
|
|
|
|
12.0
|
%
|
|
|
(1)
|
Includes $653,000 in
revenue from Vapotherm Access in the third quarter of
2022
|
Net revenue for the third quarter of 2023 was $15.2 million and increased 12.0% over the third
quarter of 2022 due to an increase in capital and disposables
demand especially in the International markets. Excluding revenue
from Vapotherm Access, which the Company exited in the fourth
quarter of 2022, non-GAAP net revenue increased by 17.6% as
compared to the third quarter of 2022.
Revenue information by geography is summarized as follows:
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
|
(in thousands, except
percentages)
|
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
Amount
|
|
|
% of Revenue
|
|
|
$
|
|
|
%
|
|
United States
(1)
|
|
$
|
11,231
|
|
|
|
74.0
|
%
|
|
$
|
11,063
|
|
|
|
81.7
|
%
|
|
$
|
168
|
|
|
|
1.5
|
%
|
International
|
|
|
3,936
|
|
|
|
26.0
|
%
|
|
|
2,482
|
|
|
|
18.3
|
%
|
|
|
1,454
|
|
|
|
58.6
|
%
|
Total net revenue
|
|
$
|
15,167
|
|
|
|
100.0
|
%
|
|
$
|
13,545
|
|
|
|
100.0
|
%
|
|
$
|
1,622
|
|
|
|
12.0
|
%
|
|
|
(1)
|
Includes $653,000 in
revenue from Vapotherm Access in the third quarter of
2022
|
Gross profit and gross margin for the third quarter of 2023 was
$6.0 million and 39.6%, respectively,
as compared to gross profit of $1.9
million and gross margin of 13.8% for the third quarter of
2022. The increases in gross profit and gross margin were primarily
due to inventory reserves and write-offs recorded in the third
quarter of 2022 that did not recur in the current year period and
year over year revenue growth. In the third quarter of 2023, gross
margin decreased by 320 basis points versus gross margin of 42.8%
in the second quarter of 2023. Significantly increasing capacity at
the Company's Mexico facility in
advance of the RSV and flu seasons in the Northern Hemisphere
resulted in inefficiencies that the Company did not experience in
the second quarter of 2023.
Total operating expenses were $16.3
million in the third quarter of 2023, a decrease of
$8.5 million as compared to the third
quarter of 2022. Non-GAAP cash operating expenses, excluding
impairment charges, gain (loss) on disposal of property and
equipment, depreciation and amortization, stock-based compensation
expense, termination benefits, gain from deconsolidation, and
change in fair value of contingent consideration were $12.3 million in the third quarter of 2023
compared to $19.5 million in the
third quarter of 2022 and $14.2
million in the second quarter of 2023. The decreases in
operating expenses and non-GAAP cash operating expenses were
primarily due to the Company's Path-to-Profitability
initiatives.
Net loss for the third quarter of 2023 was $15.1 million, or $2.38 per share, compared to $26.2 million, or $7.85 per share, in the third quarter of 2022.
Net loss per share was based on 6,361,098 and 3,337,072 weighted
average shares outstanding for the third quarter of 2023 and 2022,
respectively.
Adjusted EBITDA was negative $6.1
million for the third quarter of 2023 as compared to
negative $17.7 million for the third
quarter of 2022. The improvement in Adjusted EBITDA was primarily
due to the Company's Path-to-Profitability initiatives.
Cash Position
Unrestricted cash and cash equivalents were $14.4 million as of September 30, 2023
compared to $18.0 million as of
June 30, 2023.
Fiscal 2023 Outlook
The Company now expects full year revenue to be between
$69 million and $71 million, a decrease from the Company's
previous fiscal outlook of $70
million to $73 million. The
Company now expects full year gross margins of 41% to 43%, a
decrease from the Company's previous fiscal outlook of 43% to 45%.
The Company now expects full year operating expenses of
$68 million to $70 million, a decrease from the Company's
previous fiscal outlook of $70
million to $72 million. Fiscal
2023, non-GAAP cash operating expenses excluding additional items
as detailed below, are now expected to be in the range of
$54 million to $56 million, a decrease from the Company's
previous fiscal outlook of $55
million to $57 million. The
Company continues to expect that it will exit 2023 with
unrestricted cash and cash equivalents of $10 million to $15
million. While the Company expects disposables revenue to
account for 75% of its total revenue over the long-term, the
Company anticipates that the contribution of disposables revenue as
a percentage of total revenue may be slightly lower than this in
2023 given the positive market receptivity to HVT 2.0.
Conference Call Information
Management will host a conference call at 4:30 p.m. Eastern Time on November 8, 2023 to discuss the results of the
quarter with a question and answer session. To listen to the
conference call on your telephone, please dial +1 (888) 390-0546
for North American callers approximately ten minutes prior to the
start time and reference conference code 32204171. To listen to a
live webcast, please visit the Investors section of the Vapotherm
website at: http://investors.vapotherm.com/events. The webcast
replay will be available on the Vapotherm website for 12 months
following completion of the call. A replay of this conference call
will be available by telephone through November 15, 2023 by dialing +1 (888) 390-0541 in
North America. The replay access
code is 204171.
Website Information
Vapotherm routinely posts important information for investors on
the Investor Relations section of its website, http://
investors.vapotherm.com/. Vapotherm intends to use this website as
a means of disclosing material, non-public information and for
complying with Vapotherm's disclosure obligations under Regulation
FD. Accordingly, investors should monitor the Investor Relations
section of Vapotherm's website, in addition to following
Vapotherm's press releases, Securities and Exchange Commission
("SEC") filings, public conference calls, presentations and
webcasts. The information contained on, or that may be accessed
through, Vapotherm's website is not incorporated by reference into,
and is not a part of, this document.
Non-GAAP Financial Measures
This press release includes non-GAAP financial measures,
including non-GAAP net revenue excluding Vapotherm Access, EBITDA,
Adjusted EBITDA, non-GAAP operating expenses excluding impairment
of goodwill, impairment of long-lived and intangible assets and
gain (loss) on disposal of property and equipment, and non-GAAP
cash operating expenses excluding additional items, including
stock-based compensation expense, depreciation and amortization,
termination benefits, gain from deconsolidation, and change in fair
value of contingent consideration, which differ from operating
expenses calculated in accordance with U.S. generally accepted
accounting principles ("GAAP"). Non-GAAP net revenue excluding
Vapotherm Access represents net revenue less net revenue of
Vapotherm Access, which the Company exited in the fourth quarter of
2022. EBITDA represents net loss less interest expense, net, income
tax provision or benefit, and depreciation and amortization, and
Adjusted EBITDA represents EBITDA as further adjusted for the
impact of foreign currency loss or gain, change in fair value of
contingent consideration, stock-based compensation expense,
impairment of goodwill, impairment of long-lived and intangible
assets, gain from deconsolidation, and gain on disposal of property
and equipment. Since these adjustments to the GAAP measures are
highly variable, difficult to predict and of a size that could have
substantial impact on Vapotherm's reported results of operations
for a period, Vapotherm cannot provide without unreasonable effort
a quantitative reconciliation to the most directly comparable GAAP
measures for its 2023 financial guidance regarding non-GAAP cash
operating expenses. The Company has reconciled all historical
non-GAAP financial measures with the most directly comparable GAAP
financial measures in tables accompanying this release.
These non-GAAP financial measures are presented because the
Company believes they are useful indicators of its operating
performance. Management uses these non-GAAP financial measures, as
measures of the Company's operating performance and for planning
purposes, including the preparation of the Company's annual
operating budget and financial projections. The Company believes
these measures are useful to investors as supplemental information
because they are frequently used by analysts, investors and other
interested parties to evaluate companies in its industry. The
Company believes Adjusted EBITDA is useful to its management and
investors as a measure of comparative operating performance from
period to period.
These non-GAAP financial measures should not be considered
alternatives to, or superior to, net income or loss as a measure of
financial performance or cash flows from operations as a measure of
liquidity, or any other performance measure derived in accordance
with GAAP. They should not be construed to imply that the Company's
future results will be unaffected by unusual or non-recurring
items. In addition, Adjusted EBITDA is not intended to be a measure
of free cash flow for management's discretionary use, as it does
not reflect certain cash requirements such as tax payments, debt
service requirements, capital expenditures and certain other cash
costs that may recur in the future. Adjusted EBITDA contains
certain other limitations, including the failure to reflect our
capital expenditures, cash requirements for working capital needs
and cash costs to replace assets being depreciated and amortized.
In evaluating Adjusted EBITDA, you should be aware that in the
future the Company may incur expenses that are the same as or
similar to some of the adjustments in the Adjusted EBITDA
presentation. The Company's presentation of Adjusted EBITDA should
not be construed to imply that its future results will be
unaffected by any such adjustments. Management compensates for
these limitations by primarily relying on the Company's GAAP
results in addition to using Adjusted EBITDA and other non-GAAP
financial measures on a supplemental basis. The Company's
definitions of Adjusted EBITDA and non-GAAP operating expenses
excluding impairment of long-lived and intangible assets and loss
on disposal of property and equipment and non-GAAP cash operating
expenses excluding the additional items detailed below, are not
necessarily comparable to other similarly titled captions of other
companies due to different methods of calculation.
About Vapotherm
Vapotherm, Inc. (NYSE: VAPO) is a publicly traded developer and
manufacturer of advanced respiratory technology based in
Exeter, New Hampshire, USA. The
Company develops innovative, comfortable, non-invasive technologies
for respiratory support of patients with chronic or acute breathing
disorders. Over 4.1 million patients have been treated with the use
of Vapotherm high velocity therapy® systems. For more information,
visit www.vapotherm.com.
Vapotherm high velocity therapy is mask-free non-invasive
respiratory support and is a front-line tool for relieving
respiratory distress—including hypercapnia, hypoxemia, and dyspnea.
It allows for the fast, safe treatment of undifferentiated
respiratory distress with one tool. The HVT 2.0 and Precision Flow
systems' mask-free interface delivers optimally conditioned
breathing gases, making it comfortable for patients and reducing
the risks and care complexities associated with mask therapies.
While being treated, patients can talk, eat, drink and take oral
medication.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements under the
Private Securities Litigation Reform Act of 1995, including
statements about the Company's expected net revenue, including
revenue breakdown, gross margin, operating expenses, non-GAAP cash
operating expenses and unrestricted cash and cash equivalents
balance as of the end of 2023. In some cases, you can identify
forward-looking statements by terms such as "expect," "continue,"
"plan," "intend," "will," "outlook," "guidance," or "typically," or
the negative of these terms or other similar expressions, although
not all forward-looking statements contain these words, and the use
of future dates. Each forward-looking statement is subject to risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied in such statement.
Applicable risks and uncertainties include, but are not limited to
the following: Vapotherm has incurred losses in the past and may be
unable to achieve or sustain profitability in the future or achieve
its 2023 financial guidance including anticipated unrestricted cash
and cash equivalents as of the end of 2023; risks associated with
its manufacturing operations in Mexico; Vapotherm's ability to raise
additional capital to fund its existing commercial operations,
develop and commercialize new products, and expand its operations;
Vapotherm's ability to comply with its financial covenants, execute
on its path-to-profitability initiative, convert excess inventory
into cash and fund its business through 2023; Vapotherm's
dependence on sales generated from its High Velocity Therapy
systems, competition from multi-national corporations who have
significantly greater resources than Vapotherm and are more
established in the respiratory market; the ability for High
Velocity Therapy systems to gain increased market acceptance;
Vapotherm's inexperience directly marketing and selling its
products; the potential loss of one or more suppliers and
dependence on its new third party manufacturer; Vapotherm's
susceptibility to seasonal fluctuations; Vapotherm's failure to
comply with applicable United
States and foreign regulatory requirements; the failure to
obtain U.S. Food and Drug Administration or other regulatory
authorization to market and sell future products or its inability
to secure, maintain or enforce patent or other intellectual
property protection for its products; the impact of COVID on its
business, including its supply chain, risks associated with the
reverse stock split, Vapotherm's ability to regain compliance with
the continued listing standards of the NYSE, market conditions and
the impact of the reverse stock split on the trading price of
Vapotherm's common stock, a possible delisting of Vapotherm's
common stock and the other risks and uncertainties included under
the heading "Risk Factors" in Vapotherm's Annual Report on Form
10-K for the fiscal year ended December 31,
2022, as filed with the SEC on February 23, 2023, and in its subsequent filings
with the SEC, including its Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2023. The forward-looking
statements contained in this press release reflect Vapotherm's
views as of the date hereof, and Vapotherm does not assume and
specifically disclaims any obligation to update any forward-looking
statements whether as a result of new information, future events or
otherwise, except as required by law.
Financial Statements:
VAPOTHERM,
INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(In thousands, except
share amounts)
|
|
|
|
|
|
September 30, 2023
|
|
|
December 31, 2022
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
14,418
|
|
|
$
|
15,738
|
|
Accounts receivable,
net of expected credit losses
of $162 and $227, respectively
|
|
|
7,441
|
|
|
|
9,102
|
|
Inventories,
net
|
|
|
23,093
|
|
|
|
32,980
|
|
Prepaid expenses and
other current assets
|
|
|
4,202
|
|
|
|
2,081
|
|
Total current
assets
|
|
|
49,154
|
|
|
|
59,901
|
|
Property and equipment,
net
|
|
|
23,908
|
|
|
|
26,636
|
|
Operating lease
right-of-use assets
|
|
|
3,556
|
|
|
|
5,805
|
|
Restricted
cash
|
|
|
1,109
|
|
|
|
1,109
|
|
Goodwill
|
|
|
541
|
|
|
|
536
|
|
Deferred income tax
assets
|
|
|
124
|
|
|
|
96
|
|
Other long-term
assets
|
|
|
2,212
|
|
|
|
2,112
|
|
Total
assets
|
|
$
|
80,604
|
|
|
$
|
96,195
|
|
Liabilities and Stockholders'
Deficit
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,951
|
|
|
$
|
2,739
|
|
Contract
liabilities
|
|
|
1,242
|
|
|
|
1,216
|
|
Accrued expenses and
other current liabilities
|
|
|
11,996
|
|
|
|
15,609
|
|
Total current
liabilities
|
|
|
16,189
|
|
|
|
19,564
|
|
Long-term loans
payable, net
|
|
|
104,425
|
|
|
|
96,994
|
|
Other long-term
liabilities
|
|
|
7,486
|
|
|
|
7,827
|
|
Total
liabilities
|
|
|
128,100
|
|
|
|
124,385
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Stockholders'
deficit
|
|
|
|
|
|
|
Preferred stock
($0.001 par value) 25,000,000 shares authorized; no shares
issued and outstanding as of September 30, 2023
and December 31, 2022
|
|
|
-
|
|
|
|
-
|
|
Common stock ($0.001
par value) 21,875,000 shares authorized as of
September 30, 2023 and December 31, 2022,
6,137,973 and 3,564,505
shares issued and outstanding as of September 30,
2023 and
December 31, 2022, respectively (1)
|
|
|
6
|
|
|
|
4
|
|
Additional paid-in
capital
|
|
|
490,697
|
|
|
|
461,965
|
|
Accumulated other
comprehensive loss
|
|
|
(189)
|
|
|
|
(157)
|
|
Accumulated
deficit
|
|
|
(538,010)
|
|
|
|
(490,002)
|
|
Total stockholders'
deficit
|
|
|
(47,496)
|
|
|
|
(28,190)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
80,604
|
|
|
$
|
96,195
|
|
|
(1) On August 18, 2023,
the Company effected a 1:8 reverse stock split for each share of
common stock issued
|
and outstanding. All
shares and associated amounts have been retroactively restated to
reflect the stock split.
|
VAPOTHERM,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except
share and per share amounts)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Net revenue
|
|
$
|
15,167
|
|
|
$
|
13,545
|
|
|
$
|
48,935
|
|
|
$
|
48,138
|
|
Cost of
revenue
|
|
|
9,154
|
|
|
|
11,682
|
|
|
|
29,850
|
|
|
|
36,018
|
|
Gross
profit
|
|
|
6,013
|
|
|
|
1,863
|
|
|
|
19,085
|
|
|
|
12,120
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
3,132
|
|
|
|
4,382
|
|
|
|
10,842
|
|
|
|
16,241
|
|
Sales and
marketing
|
|
|
7,967
|
|
|
|
11,460
|
|
|
|
25,835
|
|
|
|
36,615
|
|
General and
administrative
|
|
|
4,430
|
|
|
|
6,477
|
|
|
|
15,219
|
|
|
|
20,754
|
|
Impairment of
goodwill
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,701
|
|
Impairment of
right-of-use assets
|
|
|
755
|
|
|
|
2,139
|
|
|
|
1,187
|
|
|
|
6,175
|
|
Loss (gain) on
disposal of property and equipment
|
|
|
-
|
|
|
|
321
|
|
|
|
53
|
|
|
|
321
|
|
Total operating
expenses
|
|
|
16,284
|
|
|
|
24,779
|
|
|
|
53,136
|
|
|
|
94,807
|
|
Loss from
operations
|
|
|
(10,271)
|
|
|
|
(22,916)
|
|
|
|
(34,051)
|
|
|
|
(82,687)
|
|
Other (expense)
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(4,828)
|
|
|
|
(3,276)
|
|
|
|
(13,801)
|
|
|
|
(7,872)
|
|
Interest
income
|
|
|
16
|
|
|
|
56
|
|
|
|
70
|
|
|
|
113
|
|
Foreign currency
loss
|
|
|
(29)
|
|
|
|
(73)
|
|
|
|
(174)
|
|
|
|
(188)
|
|
Loss on extinguishment
of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,114)
|
|
Net loss before income
taxes
|
|
$
|
(15,112)
|
|
|
$
|
(26,209)
|
|
|
$
|
(47,956)
|
|
|
$
|
(91,748)
|
|
Provision (benefit)
for income taxes
|
|
|
18
|
|
|
|
(8)
|
|
|
|
52
|
|
|
|
74
|
|
Net loss
|
|
$
|
(15,130)
|
|
|
$
|
(26,201)
|
|
|
$
|
(48,008)
|
|
|
$
|
(91,822)
|
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
(145)
|
|
|
|
(172)
|
|
|
|
(32)
|
|
|
|
(412)
|
|
Total other
comprehensive loss
|
|
|
(145)
|
|
|
|
(172)
|
|
|
|
(32)
|
|
|
|
(412)
|
|
Total comprehensive
loss
|
|
$
|
(15,275)
|
|
|
$
|
(26,373)
|
|
|
$
|
(48,040)
|
|
|
$
|
(92,234)
|
|
Net loss per share
basic and diluted
|
|
$
|
(2.38)
|
|
|
$
|
(7.85)
|
|
|
$
|
(8.10)
|
|
|
$
|
(27.69)
|
|
Weighted-average number
of shares used in calculating net
loss per share, basic and diluted (1)
|
|
|
6,361,098
|
|
|
|
3,337,072
|
|
|
|
5,926,506
|
|
|
|
3,316,471
|
|
|
(1) On August 18, 2023,
the Company effected a 1:8 reverse stock split for each share of
common stock issued
|
and outstanding. All
shares and associated amounts have been retroactively restated to
reflect the stock split.
|
VAPOTHERM,
INC.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In
thousands)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
Cash flows from operating
activities
|
|
|
|
|
|
|
Net loss
|
|
$
|
(48,008)
|
|
|
$
|
(91,822)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
|
7,603
|
|
|
|
7,625
|
|
Depreciation and
amortization
|
|
|
3,687
|
|
|
|
4,006
|
|
Provision for
credit losses
|
|
|
(16)
|
|
|
|
346
|
|
Provision for
inventory valuation
|
|
|
760
|
|
|
|
2,655
|
|
Non-cash lease
expense
|
|
|
1,107
|
|
|
|
1,670
|
|
Change in fair
value of contingent consideration
|
|
|
-
|
|
|
|
(3,351)
|
|
Impairment of
goodwill
|
|
|
-
|
|
|
|
14,701
|
|
Impairment of
long-lived and intangible assets
|
|
|
1,187
|
|
|
|
6,175
|
|
Loss on disposal
of property and equipment
|
|
|
53
|
|
|
|
321
|
|
Placed units
reserve
|
|
|
588
|
|
|
|
225
|
|
Interest paid
in-kind
|
|
|
6,992
|
|
|
|
-
|
|
Amortization of
discount on debt
|
|
|
552
|
|
|
|
502
|
|
Deferred income
taxes
|
|
|
52
|
|
|
|
74
|
|
Loss on
extinguishment of debt
|
|
|
-
|
|
|
|
1,114
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
1,684
|
|
|
|
2,338
|
|
Inventories
|
|
|
9,182
|
|
|
|
(2,651)
|
|
Prepaid
expenses and other assets
|
|
|
(2,108)
|
|
|
|
(1,902)
|
|
Accounts
payable
|
|
|
243
|
|
|
|
(4,295)
|
|
Contract
liabilities
|
|
|
26
|
|
|
|
(562)
|
|
Accrued
expenses and other current liabilities
|
|
|
(2,047)
|
|
|
|
(4,853)
|
|
Operating lease
liabilities, current and long-term
|
|
|
(1,884)
|
|
|
|
(1,581)
|
|
Net cash used in
operating activities
|
|
|
(20,347)
|
|
|
|
(69,265)
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(1,962)
|
|
|
|
(8,266)
|
|
Net cash used in
investing activities
|
|
|
(1,962)
|
|
|
|
(8,266)
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
Proceeds from issuance
of common stock and pre-funded warrants and
accompanying warrants in private placement, net of
issuance costs
|
|
|
20,943
|
|
|
|
-
|
|
Proceeds from loans,
net of discount
|
|
|
-
|
|
|
|
99,094
|
|
Repayment of
loans
|
|
|
-
|
|
|
|
(40,000)
|
|
Payments of debt
extinguishment costs
|
|
|
-
|
|
|
|
(817)
|
|
Payment of debt
issuance costs
|
|
|
-
|
|
|
|
(1,567)
|
|
Repayments on revolving
loan facility
|
|
|
-
|
|
|
|
(6,608)
|
|
Payment of contingent
consideration
|
|
|
-
|
|
|
|
(135)
|
|
Proceeds from exercise
of stock options
|
|
|
-
|
|
|
|
65
|
|
Proceeds from exercise
of warrants
|
|
|
3
|
|
|
|
-
|
|
Proceeds from issuance
of common stock under Employee Stock Purchase Plan
|
|
|
77
|
|
|
|
135
|
|
Net cash provided
by financing activities
|
|
|
21,023
|
|
|
|
50,167
|
|
Effect of
exchange rate changes on cash, cash equivalents and
restricted cash
|
|
|
(34)
|
|
|
|
(142)
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
|
(1,320)
|
|
|
|
(27,506)
|
|
Cash, cash equivalents and restricted
cash
|
|
|
|
|
|
|
Beginning of
period
|
|
|
16,847
|
|
|
|
57,324
|
|
End of
period
|
|
$
|
15,527
|
|
|
$
|
29,818
|
|
Supplemental disclosures of cash flow
information
|
|
|
|
|
|
|
Interest paid during
the period
|
|
$
|
4,268
|
|
|
$
|
6,023
|
|
Property and equipment
purchases in accounts payable and accrued expenses
|
|
$
|
512
|
|
|
$
|
617
|
|
Issuance of common
stock to satisfy contingent consideration
|
|
$
|
-
|
|
|
$
|
5,630
|
|
Issuance of common
stock warrants in conjunction with long term debt
|
|
$
|
111
|
|
|
$
|
1,196
|
|
Issuance of common
stock upon settlement of restricted stock units
|
|
$
|
-
|
|
|
$
|
15
|
|
Non-GAAP Financial Measures
The following table contains a reconciliation of GAAP net
revenue to Non-GAAP net revenue excluding Vapotherm Access for the
three months ended September 30, 2023 and 2022, respectively,
and the growth of such GAAP net revenue and Non-GAAP net revenue
excluding Vapotherm Access over the prior year period.
|
|
Three Months Ended September
30,
|
|
|
Change
|
|
|
|
2023
|
|
|
2022
|
|
|
$
|
|
|
%
|
|
(Unaudited)
|
|
(in thousands, except
percentages)
|
|
GAAP net
revenue
|
|
$
|
15,167
|
|
|
$
|
13,545
|
|
|
$
|
1,622
|
|
|
|
12.0
|
%
|
Vapotherm Access net
revenue
|
|
|
-
|
|
|
|
(653)
|
|
|
|
653
|
|
|
|
(100.0)
|
%
|
Non-GAAP net revenue
excluding Vapotherm Access
|
|
$
|
15,167
|
|
|
$
|
12,892
|
|
|
$
|
2,275
|
|
|
|
17.6
|
%
|
The following table contains a reconciliation of net loss to
Adjusted EBITDA for the three months ended September 30, 2023 and 2022, respectively.
|
|
Three Months Ended
September 30,
|
|
|
|
2023
|
|
|
2022
|
|
(Unaudited)
|
|
(in thousands)
|
|
Net loss
|
|
$
|
(15,130)
|
|
|
$
|
(26,201)
|
|
Interest expense,
net
|
|
|
4,812
|
|
|
|
3,220
|
|
Provision (benefit)
for income taxes
|
|
|
18
|
|
|
|
(8)
|
|
Depreciation and
amortization
|
|
|
1,242
|
|
|
|
1,267
|
|
EBITDA
|
|
$
|
(9,058)
|
|
|
$
|
(21,722)
|
|
Stock-based
compensation
|
|
|
2,198
|
|
|
|
1,681
|
|
Impairment of
long-lived and intangible assets
|
|
|
755
|
|
|
|
2,139
|
|
Foreign
currency
|
|
|
29
|
|
|
|
73
|
|
Gain on disposal of
property and equipment
|
|
|
-
|
|
|
|
321
|
|
Change in fair value
of contingent consideration
|
|
|
-
|
|
|
|
(238)
|
|
Adjusted
EBITDA
|
|
$
|
(6,076)
|
|
|
$
|
(17,746)
|
|
The following table contains a reconciliation of operating
expenses to Non-GAAP operating expenses and Non-GAAP cash operating
expenses for the three months ended September 30, 2023,
June 30, 2023 and September 30,
2022, respectively.
|
|
Three Months Ended
|
|
|
|
September 30,
2023
|
|
|
June 30,
2023
|
|
|
September 30,
2022
|
|
(Unaudited)
|
|
(in thousands)
|
|
GAAP operating
expenses
|
|
$
|
16,284
|
|
|
$
|
17,016
|
|
|
$
|
24,779
|
|
Impairment of
goodwill
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Impairment of
long-lived and intangible assets
|
|
|
(755)
|
|
|
|
-
|
|
|
|
(2,139)
|
|
Gain (loss) on
disposal of property and equipment
|
|
|
-
|
|
|
|
2
|
|
|
|
(321)
|
|
Non-GAAP operating
expenses
|
|
|
15,529
|
|
|
|
17,018
|
|
|
|
22,319
|
|
Stock-based
compensation
|
|
|
(2,161)
|
|
|
|
(2,534)
|
|
|
|
(1,488)
|
|
Termination
benefits
|
|
|
(754)
|
|
|
|
-
|
|
|
|
(1,186)
|
|
Depreciation and
amortization
|
|
|
(312)
|
|
|
|
(293)
|
|
|
|
(395)
|
|
Gain from
deconsolidation
|
|
|
-
|
|
|
|
5
|
|
|
|
-
|
|
Change in fair value
of contingent consideration
|
|
|
-
|
|
|
|
-
|
|
|
|
238
|
|
Non-GAAP cash operating
expenses
|
|
$
|
12,302
|
|
|
$
|
14,196
|
|
|
$
|
19,488
|
|
Supplemental
Operating Metrics
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
Amount
|
|
|
Amount
|
|
|
Amount
|
|
|
%
|
|
HVT 2.0 and precision flow units installed
base
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
24,548
|
|
|
|
23,998
|
|
|
|
550
|
|
|
|
2.3
|
%
|
International
|
|
12,889
|
|
|
|
12,328
|
|
|
|
561
|
|
|
|
4.6
|
%
|
Total
|
|
37,437
|
|
|
|
36,326
|
|
|
|
1,111
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
|
|
|
2023
|
|
|
2022
|
|
|
Change
|
|
|
Amount
|
|
|
Amount
|
|
|
Amount
|
|
|
%
|
|
HVT 2.0 and precision flow units sold and
leased
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
147
|
|
|
|
123
|
|
|
|
24
|
|
|
|
19.5
|
%
|
International
|
|
128
|
|
|
|
51
|
|
|
|
77
|
|
|
|
151.0
|
%
|
Total
|
|
275
|
|
|
|
174
|
|
|
|
101
|
|
|
|
58.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposable patient circuits
sold
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
70,420
|
|
|
|
71,818
|
|
|
|
(1,398)
|
|
|
|
(1.9)
|
%
|
International
|
|
33,501
|
|
|
|
20,854
|
|
|
|
12,647
|
|
|
|
60.6
|
%
|
Total
|
|
103,921
|
|
|
|
92,672
|
|
|
|
11,249
|
|
|
|
12.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contacts:
John Landry, SVP
& CFO, ir@vtherm.com, +1 (603) 658-0011
View original content to download
multimedia:https://www.prnewswire.com/news-releases/vapotherm-reports-third-quarter-2023-financial-results-301982226.html
SOURCE Vapotherm, Inc.