EDEN PRAIRIE, Minn., May 08, 2018 (GLOBE NEWSWIRE) -- CHF Solutions, Inc. (Nasdaq:CHFS) announced today its
results for the first quarter ended March 31, 2018, which included the following highlights:
- Revenue for first quarter ended March 31, 2018 increased 24.8 percent compared to the previous quarter and 15.1 percent
compared to the same period during the prior year.
- Strategic expansion of field clinical specialist team with the addition of three experienced heart failure nurses, for a
total of five.
- Addition of a seasoned vice president of marketing and additional marketing team members.
- Continued international expansion and announced new agreements with distributors in Spain and Italy and initial commercial
orders for Singapore and Hong Kong.
- Launched new marketing initiatives and sales tools to continue education and awareness campaigns to support field team.
“We began the year strong with continued double-digit increase in our revenues over the previous quarter and we believe we are
well-poised to continue to grow in the quarters to come,” said John Erb, Chairman and CEO of CHF Solutions. “We will continue to
develop and refine our strategic focus toward driving revenue, which is the key metric our employees, shareholders and potential
investors use to measure performance.”
FINANCIALS
CHF SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited and in thousands, except per share amounts)
| |
Three months
ended
March 31,
|
| |
2018 |
|
2017 |
| Net sales |
$ |
1,037 |
|
|
$ |
901 |
|
| Costs and Expenses: |
|
|
|
|
|
|
|
| Cost of goods sold |
|
901 |
|
|
|
514 |
|
| Selling, general and administrative |
|
4,011 |
|
|
|
2,387 |
|
| Research and development |
|
479 |
|
|
|
308 |
|
| Total costs and expenses |
|
5,391 |
|
|
|
3,209 |
|
| Loss from operations |
|
(4,354 |
) |
|
|
(2,308 |
) |
| Other income (expense): |
|
|
|
|
|
|
|
| Other income, net |
|
— |
|
|
|
6 |
|
| Warrant valuation expense |
|
— |
|
|
|
(67 |
) |
| Change in fair value of warrant liability |
|
— |
|
|
|
1,429 |
|
| Total other income (expense) |
|
— |
|
|
|
1,368 |
|
| Loss before income taxes |
|
(4,354 |
) |
|
|
(940 |
) |
| Income tax expense |
|
— |
|
|
|
— |
|
| Net loss |
$ |
(4,354 |
) |
|
$ |
(940 |
) |
| |
|
|
|
|
|
|
|
| Basic and diluted loss per share |
$ |
(1.08 |
) |
|
$ |
(35.05 |
) |
| |
|
|
|
|
|
|
|
| Weighted average shares outstanding – basic and diluted |
|
4,031 |
|
|
|
79 |
|
| |
|
|
|
|
|
|
|
| Other comprehensive income (loss): |
|
|
|
|
|
|
|
| Foreign currency translation adjustments |
|
1 |
|
|
|
(1 |
) |
| Total comprehensive loss |
$ |
(4,353 |
) |
|
$ |
(941 |
) |
CHF Solutions, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
| |
|
March 31,
2018 |
|
|
December 31,
2017 |
|
| ASSETS |
|
(unaudited) |
|
|
|
|
| Current assets |
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
10,504 |
|
$ |
15,595 |
|
| Accounts receivable |
|
658 |
|
|
545 |
|
| Inventory |
|
2,525 |
|
|
1,588 |
|
| Other current assets |
|
130 |
|
|
136 |
|
| Total current assets |
|
13,817 |
|
|
17,864 |
|
| Property, plant and equipment, net |
|
573 |
|
|
570 |
|
| Other assets |
|
21 |
|
|
21 |
|
| TOTAL ASSETS |
$ |
14,411 |
|
$ |
18,455 |
|
| |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| Accounts payable |
$ |
1,051 |
|
$ |
862 |
|
| Accrued compensation |
|
650 |
|
|
1,021 |
|
| Other current liabilities |
|
198 |
|
|
208 |
|
| Total current liabilities |
|
1,899 |
|
|
2,091 |
|
| Other liabilities |
|
126 |
|
|
126 |
|
| Total liabilities |
|
2,025 |
|
|
2,217 |
|
| |
|
|
|
|
|
|
| Commitments and contingencies |
|
— |
|
|
— |
|
| |
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
|
|
|
Series A junior participating preferred stock as of March 31, 2018 and December 31,
2017,
par value $0.0001 per share; authorized 30,000 shares, none outstanding |
|
— |
|
|
— |
|
Series F convertible preferred stock as of March 31, 2018 and December 31, 2017,
par
value $0.0001 per share; authorized 1,748 and 3,780 shares, respectively, issued and
outstanding 1,748 and 3,780, respectively |
|
— |
|
|
— |
|
Preferred stock as of March 31, 2018 and December 31, 2017, par value
$0.0001 per share; authorized 39,968,252 and 39,966,220 shares, none outstanding |
|
— |
|
|
— |
|
Common stock as of March 31, 2018 and December 31, 2017, par value
$0.0001 per share; authorized 100,000,000 shares, issued and outstanding
4,252,134 and 3,798,929, respectively |
|
— |
|
|
— |
|
| Additional paid‑in capital |
|
197,868 |
|
|
197,367 |
|
| Accumulated other comprehensive income: |
|
|
|
|
|
|
| Foreign currency translation adjustment |
|
1,228 |
|
|
1,227 |
|
| Accumulated deficit |
|
(186,710 |
) |
|
(182,356 |
) |
| Total stockholders’ equity |
|
12,386 |
|
|
16,238 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
14,411 |
|
$ |
18,455 |
|
CHF SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited and in thousands)
| |
|
Three months ended
March 31, |
| |
|
2018 |
|
|
2017 |
|
| Operating Activities: |
|
|
|
|
|
|
| Net loss |
$ |
(4,354 |
) |
|
$ |
(940 |
) |
| Adjustments to reconcile net loss to cash flows from operating activities: |
|
|
|
|
|
|
|
| Depreciation and amortization |
|
54 |
|
|
|
215 |
|
| Stock-based compensation expense, net |
|
500 |
|
|
|
166 |
|
| Change in fair value of warrant liability |
|
— |
|
|
|
(1,429 |
) |
| Warrant valuation expense |
|
— |
|
|
|
67 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
| Accounts receivable |
|
(113 |
) |
|
|
(124 |
) |
| Inventory |
|
(937 |
) |
|
|
(153 |
) |
| Other current assets |
|
6 |
|
|
|
49 |
|
| Accounts payable and accrued expenses |
|
(192 |
) |
|
|
535 |
|
| Net cash used in operations |
|
(5,036 |
) |
|
|
(1,614 |
) |
| |
|
|
|
|
|
|
|
| Investing Activities: |
|
|
|
|
|
|
|
| Purchases of property and equipment |
|
(57 |
) |
|
|
— |
|
| Net cash used in investing activities |
|
(57 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
| Financing Activities: |
|
|
|
|
|
|
|
| Net proceeds from the sale of preferred stock and warrants |
|
— |
|
|
|
184 |
|
| Net proceeds from exercise of warrants |
|
— |
|
|
|
1,768 |
|
| Net cash provided by financing activities |
|
— |
|
|
|
1,952 |
|
| |
|
|
|
|
|
|
|
| Effect of exchange rate changes on cash |
|
2 |
|
|
|
— |
|
| Net increase (decrease) in cash and cash equivalents |
|
(5,091 |
) |
|
|
338 |
|
| Cash and cash equivalents - beginning of period |
|
15,595 |
|
|
|
1,323 |
|
| Cash and cash equivalents - end of period |
$ |
10,504 |
|
|
$ |
1,661 |
|
| |
|
|
|
|
|
|
|
| Supplement schedule of non-cash activities |
|
|
|
|
|
|
|
| Warrants issued as inducement to warrant exercise |
$ |
— |
|
|
$ |
509 |
|
| Conversion of temporary equity to permanent equity |
$ |
— |
|
|
$ |
485 |
|
| |
|
|
|
|
|
|
|
| Supplemental cash flow information |
|
|
|
|
|
|
|
| Cash paid for income taxes |
$ |
— |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
The Company will host a conference call and webcast at 9:00 AM ET today to discuss its financial results and provide an update
on the Company’s performance.
To access the live webcast, please visit the CHF Solutions website at http://ir.chf-solutions.com/events. Alternatively, investors may access
the live conference call by dialing (877) 303-9826 (U.S.) or (224) 357-2194 (international) and using conference ID 8694787.
An audio archive of the webcast and the call script will be available following the call on the Investor page at www.chf-solutions.com.
About CHF Solutions
CHF Solutions, Inc. (NASDAQ:CHFS) is a medical device company focused on commercializing the Aquadex FlexFlow system for
Aquapheresis® therapy. The Aquadex FlexFlow system is indicated for temporary (up to eight hours) ultrafiltration treatment of
patients with fluid overload who have failed diuretic therapy, and extended (longer than 8 hours) ultrafiltration treatment of
patients with fluid overload who have failed diuretic therapy and require hospitalization. All treatments must be administered by a
healthcare provider, under physician prescription, both of whom having received training in extracorporeal therapies. The company's
mission is to predict, measure, and control patient fluid balance through science, collaboration, and innovative medical
technology. CHF Solutions is a Delaware corporation headquartered in Minneapolis, Minnesota with wholly
owned subsidiaries in Australia and Ireland. The company has been listed on the NASDAQ Capital Market
since February 2012.
Forward-Looking Statements
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995, including without limitation, statements regarding the Company’s ability to grow revenue in future quarters.
Forward-looking statements are predictions, projections and other statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future
events to differ materially from the forward-looking statements in this release, including, without limitation, those risk
associated with our ability to execute on our commercialization strategy, the possibility that we may be unable to raise sufficient
funds necessary for our anticipated operations, our post-market clinical data collection activities, benefits of our products to
patients, our expectations with respect to product development and commercialization efforts, our ability to increase market and
physician acceptance of our products, potentially competitive product offerings, intellectual property protection, our ability to
integrate acquired businesses, our expectations regarding anticipated synergies with and benefits from acquired businesses, and
other risks and uncertainties described in our filings with the SEC. Forward-looking statements speak only as of the date when
made. CHF Solutions does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
CONTACTS:
INVESTORS:
Claudia Napal Drayton
Chief Financial Officer
CHF Solutions, Inc.
952-345-4205
ir@chf-solutions.com
-or-
Bret Shapiro
Managing Partner
CORE IR
516-222-2560
brets@coreir.com
www.coreir.com
MEDIA
Jules Abraham
JQA Partners, Inc.
917-885-7378
jabraham@jqapartners.com
