Venus cept (VERO) - 2024 Q3 - Quarterly Results

Revenue Performance - Total revenue for Q3 2024 was $15.0 million, a decrease of 15% year-over-year, and below the estimate of at least$ 17.0 million[2]. - Revenue from the United States decreased by 23% year-over-year, while international revenue remained relatively stable[5]. - Revenue for Q3 2024 was $15,007,000, down 14.8% from$ 17,616,000 in Q3 2023, while year-to-date revenue decreased from $58,222,000 in 2023 to$ 49,068,000 in 2024, a decline of 15.7%[17]. Profitability and Losses - Gross profit for Q3 2024 decreased by $2.3 million, or 19%, to$ 9.9 million, with a gross margin of 66.1% compared to 69.2% in Q3 2023[6]. - Adjusted EBITDA loss for Q3 2024 was $5.9 million, compared to an adjusted EBITDA loss of$ 4.6 million for Q3 2023[9]. - The net loss attributable to stockholders for Q3 2024 was $9.3 million, or$ 1.28 per share, compared to a net loss of $9.1 million, or$ 1.64 per share in Q3 2023[9]. - The net loss for Q3 2024 was $9,302,000, compared to a net loss of$ 8,956,000 in Q3 2023, indicating a 3.9% increase in losses year-over-year[17]. - Net loss for the nine months ended September 30, 2024, was $38,955,000, compared to a net loss of$ 25,900,000 for the same period in 2023, representing a 50.5% increase in losses[18]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $(15,134,000), compared to$ (14,337,000) for the same period in 2023, indicating a 5.6% increase in losses[21]. Operating Expenses - Operating expenses for Q3 2024 decreased by $1.9 million, or 10%, to$ 17.1 million, driven by reductions in general and administrative, selling and marketing, and research and development expenses[7]. - Operating expenses for Q3 2024 totaled $17,078,000, down from$ 18,947,000 in Q3 2023, reflecting a reduction of 9.9%[17]. Cash Flow and Liquidity - Cash used in operations for the first nine months of 2024 was $7.3 million, down 40% year-over-year[2]. - Cash and cash equivalents decreased from$ 5,396,000 as of December 31, 2023, to $4,489,000 as of September 30, 2024, a decline of 16.8%[16]. - Total cash and cash equivalents at the end of the period were$ 4,489,000, down from $4,926,000 at the end of September 30, 2023, showing a decrease of 8.9%[18]. - Cash used in operating activities for the nine months ended September 30, 2024, was$ (7,259,000), an improvement from $(12,085,000) in the same period of 2023, reflecting a 40.5% reduction in cash outflow[18]. Debt and Financing - Total debt obligations decreased to approximately$ 34.6 million, down 25% from $46.0 million as of June 30, 2024, and down 54% from$ 74.9 million as of December 31, 2023[2]. - Long-term debt significantly decreased from $70,790,000 to$ 30,025,000, a reduction of approximately 57.6%[16]. - The company raised $3,928,000 from short-term bridge financing in 2024, with net proceeds after costs of$ 310,000[18]. - Finance expenses for the nine months ended September 30, 2024, were $5,785,000, compared to$ 4,666,000 in 2023, representing a 24% increase[21]. - The company reported a loss on debt extinguishment of $11,355,000 for the nine months ended September 30, 2024, with no comparable loss in the previous year[18]. Assets and Capital - Total assets decreased from$ 93,654,000 as of December 31, 2023, to $72,276,000 as of September 30, 2024, representing a decline of approximately 22.8%[16]. - Additional paid-in capital increased from$ 247,854,000 to $311,012,000, reflecting a growth of 25.5%[16]. - Accounts receivable decreased from$ 29,151,000 to $21,102,000, a reduction of 27.7%[16]. Regulatory and Compliance - The Venus Bliss MAX system received medical device licenses in Canada and clearance from the Therapeutic Goods Administration in Australia[2]. - The company is currently disputing a CRA assessment regarding the repayment of$ 418,000 related to the Canada Emergency Wage Subsidy Claim[22]. Other Expenses - Stock-based compensation expense for the nine months ended September 30, 2024, was $817,000, down from$ 1,214,000 in 2023, indicating a 32.6% decrease[21]. - The company incurred a provision for expected credit losses of $869,000 for the nine months ended September 30, 2024, compared to$ 1,263,000 in 2023, reflecting a 31.2% decrease[18].