Venus Concept Inc. (“Venus Concept” or the “Company”) (NASDAQ:
VERO), a global medical aesthetic technology leader, announced
financial results for the three and twelve months ended December
31, 2023.
Fourth Quarter and Fiscal Year 2023
Summary & Recent Progress:
- Company continues to execute
against Transformational Plan and achieved primary objective of
reducing cash burn by over 50% vs. prior year
- Cash used in operations for fiscal
year 2023 of $12.9 million, down 52% year-over-year, from $27.0
million in the prior year period
- Cash system revenue for fiscal year
2023 represented approximately 67% of total systems and
subscriptions revenue, compared to 58% in the prior year
period
- Macroeconomic headwinds and
accelerated restructuring in international markets resulted in
softer-than-expected system sales; total revenue of $18.1 million,
down $6.2 million, or 25%, year-over-year; up $0.5 million, or 3%,
quarter-over-quarter
- Operating expenses of $19.7
million, including approximately $0.3 million of costs related to
restructuring activities, down $5.0 million, or 20%,
year-over-year
- GAAP net loss attributable to
stockholders of $11.1 million, up $1.2 million, or 12%
year-over-year
- Adjusted EBITDA loss of $5.9
million, down $0.4 million, or 7% year-over-year
- On October 5, 2023, the Company
announced that it finalized an agreement with its lenders to
restructure its existing debt obligations, improving the Company's
overall financial position by deferring certain principal and
interest payments under its senior debt and exchanging a portion of
its convertible notes for preferred stock.
- On October 17, 2023, the Company
announced a company-wide rebranding initiative, introducing Venus
Aesthetic Intelligence (or "Venus AI") to reflect the new strategic
vision for the Company and an enhanced focus on emerging
technologies in aesthetics.
- On November 1, 2023, the Company
announced the commercial launch of its new multi-application
platform Venus Versa Pro in the United States.
- On January 24, 2024, the Company
announced that its Board of Directors is evaluating potential
strategic alternatives to maximize shareholder value. As part of
the process, the Board is considering a full range of strategic
alternatives, which may include one or more financings, mergers,
reverse mergers, other business combinations, sales of assets,
licensing or other transactions.
- On March 25, 2024, announced that
it received a decision from the Nasdaq Hearings Panel granting its
request for continued listing on the Nasdaq Capital Market, subject
to the Company demonstrating compliance with Nasdaq Listing Rule
5550(b) on or before May 28, 2024, and certain other
conditions.
Management Commentary:
“Our fourth quarter revenue results reflect
softer-than-expected system sales in the U.S. due to macroeconomic
conditions and tighter credit markets, and by the impact of our
accelerated restructuring activities in certain international
markets,” said Rajiv De Silva, Chief Executive Officer of Venus
Concept. “We have successfully executed our strategic turnaround
plan, and our efforts to reposition and restructure the business
resulted in a 20% reduction in operating expenses. Importantly, we
delivered on our primary objective for 2023 to reduce cash burn by
50% or more year over year. We remain in active dialogue with our
lenders and investors to find ways to best enable Venus Concept to
achieve our strategic objectives and to accelerate the path to
long-term, sustainable, profitability and growth. We also continue
to explore strategic alternatives with various interested parties
to maximize shareholder value.”
Fourth
Quarter and Twelve Months of 2023 Revenue by Region and by Product
Type: |
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(dollars in thousands) |
|
|
(dollars in thousands) |
|
Revenues by
region: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
$ |
11,789 |
|
|
$ |
13,782 |
|
|
$ |
43,454 |
|
|
$ |
52,101 |
|
International |
|
|
6,343 |
|
|
|
10,504 |
|
|
|
32,900 |
|
|
|
47,396 |
|
Total revenue |
|
$ |
18,132 |
|
|
$ |
24,286 |
|
|
$ |
76,354 |
|
|
$ |
99,497 |
|
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
(dollars in thousands) |
|
|
(dollars in thousands) |
|
Revenues by
product: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription—Systems |
|
$ |
6,064 |
|
|
$ |
5,777 |
|
|
$ |
20,504 |
|
|
$ |
35,267 |
|
Products—Systems |
|
|
8,662 |
|
|
|
14,068 |
|
|
|
41,874 |
|
|
|
47,906 |
|
Products—Other (1) |
|
|
2,544 |
|
|
|
3,614 |
|
|
|
10,563 |
|
|
|
13,316 |
|
Services |
|
|
862 |
|
|
|
827 |
|
|
|
3,413 |
|
|
|
3,008 |
|
Total revenue |
|
$ |
18,132 |
|
|
$ |
24,286 |
|
|
$ |
76,354 |
|
|
$ |
99,497 |
|
(1) Products-Other include ARTAS
procedure kits, Viva tips, Glide and other consumables. |
Fourth
Quarter 2023 Financial Results: |
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Change |
|
(in thousands, except
percentages) |
|
$ |
|
|
% of Total |
|
|
$ |
|
|
% of Total |
|
|
$ |
|
|
% |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription—Systems |
|
$ |
6,064 |
|
|
33.4 |
|
|
$ |
5,777 |
|
|
|
23.8 |
|
|
$ |
287 |
|
|
|
|
5.0 |
|
|
Products—Systems |
|
|
8,662 |
|
|
47.8 |
|
|
|
14,068 |
|
|
|
57.9 |
|
|
|
(5,406 |
) |
|
|
|
(38.4 |
) |
|
Products—Other |
|
|
2,544 |
|
|
14.0 |
|
|
|
3,614 |
|
|
|
14.9 |
|
|
|
(1,070 |
) |
|
|
|
(29.6 |
) |
|
Services |
|
|
862 |
|
|
4.8 |
|
|
|
827 |
|
|
|
3.4 |
|
|
|
35 |
|
|
|
|
4.2 |
|
|
Total |
|
$ |
18,132 |
|
|
100.0 |
|
|
$ |
24,286 |
|
|
|
100.0 |
|
|
$ |
(6,154 |
) |
|
|
|
(25.3 |
) |
|
Total revenue for the fourth quarter of 2023
decreased $6.1 million, or 25%, to $18.1 million, compared to the
fourth quarter of 2022. The decrease in total revenue, by region,
was driven by a 40% decrease year-over-year in international
revenue and a 14% decrease year-over-year in United States revenue.
Our international business was impacted by the Company's decision
to exit three unprofitable direct markets in the past year, as well
as general macroeconomic headwinds that impacted customer access to
capital. The decrease in total revenue, by product category, was
driven by a 38% decrease in products – systems revenue and a 30%
decrease in products - other revenue, partially offset by a 5%
increase in lease revenue and a 4% increase in services revenue.
The percentage of total systems revenue derived from the Company’s
subscription model was approximately 41% in the fourth quarter of
2023, compared to 29% in the prior year period and 31% in the third
quarter of 2023.
Gross profit for the fourth quarter of 2023
decreased $3.7 million, or 24%, to $12.1 million compared to the
fourth quarter of 2022. The change in gross profit was primarily
due to a decrease in revenue in our international markets driven by
the accelerated exit from unprofitable direct markets. Gross margin
was 66.5% of revenue, compared to 65.0% of revenue for the fourth
quarter of 2022. The change in gross margin was primarily due to
improved margin management, and reduced inventory write-offs when
compared to the previous period.
Operating expenses for the fourth quarter of
2023 decreased $5.0 million, or 20%, to $19.7 million, compared to
the fourth quarter of 2022. The change in total operating expenses
was driven by a decrease of $2.7 million, or 21%, in general and
administrative expenses, a decrease of $1.4 million, or 15%, in
selling and marketing expenses and a decrease of $0.9 million, or
35%, in research and development expenses. Fourth quarter of 2023
general and administrative expenses included approximately $0.3
million of costs related to restructuring activities designed to
improve the Company's operations and cost structure.
Operating loss for the fourth quarter of 2023
was $7.6 million, compared to operating loss of $8.9 million for
the fourth quarter of 2022.
Net loss attributable to stockholders for the
fourth quarter of 2023 was $11.1 million, or $2.01 per share,
compared to net loss of $9.9 million, or $2.11 per share for the
fourth quarter of 2022. Adjusted EBITDA loss for the fourth quarter
of 2023 was $5.9 million, compared to adjusted EBITDA loss of $6.3
million for the fourth quarter of 2022.
As of December 31, 2023, the Company had cash
and cash equivalents of $5.4 million and total debt obligations of
approximately $74.9 million, compared to $11.6 million and $77.7
million, respectively, as of December 31, 2022.
Fiscal
Year 2023 Financial Results: |
|
|
Twelve Months Ended December 31, |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
Change |
|
(in thousands, except
percentages) |
|
$ |
|
|
% of Total |
|
|
$ |
|
|
% of Total |
|
|
$ |
|
|
% |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription—Systems |
|
$ |
20,504 |
|
|
|
26.9 |
|
|
$ |
35,267 |
|
|
|
35.5 |
|
|
$ |
(14,763 |
) |
|
|
|
(41.9 |
) |
|
Products—Systems |
|
|
41,874 |
|
|
|
54.8 |
|
|
|
47,906 |
|
|
|
48.1 |
|
|
|
(6,032 |
) |
|
|
|
(12.6 |
) |
|
Products—Other |
|
|
10,563 |
|
|
|
13.8 |
|
|
|
13,316 |
|
|
|
13.4 |
|
|
|
(2,753 |
) |
|
|
|
(20.7 |
) |
|
Services |
|
|
3,413 |
|
|
|
4.5 |
|
|
|
3,008 |
|
|
|
3.0 |
|
|
|
405 |
|
|
|
|
13.5 |
|
|
Total |
|
$ |
76,354 |
|
|
|
100.0 |
|
|
$ |
99,497 |
|
|
|
100.0 |
|
|
$ |
(23,143 |
) |
|
|
|
(23.3 |
) |
|
Total revenue decreased by $23.1 million, or
23.3%, to $76.4 million for the year ended December 31, 2023 from
$99.5 million for the year ended December 31, 2022. The decrease in
total revenue, by region, was driven by an 31% decrease in
international revenue and a 17% decrease in United States revenue.
The decrease in total revenue, by product category, was driven by a
42% decrease in lease revenue, a 13% decrease in systems revenue
and a 21% decrease in products revenue, offset partially by a 14%
increase in services revenue. The percentage of total systems
revenue derived from our subscription model was approximately 29%,
compared to approximately 42% for the twelve months ended December
31, 2022.
Net loss attributable to stockholders for the
twelve months ended December 31, 2023 decreased $6.5 million, or
15%, to $37.3 million, or $6.84 per share. Adjusted EBITDA loss for
the twelve months ended December 31, 2023 decreased $5.1 million,
or 20%, to $20.3 million.
Fiscal Year 2024 Financial Outlook:
Given the Company’s active dialogue with
existing lenders and investors and the ongoing evaluation of
strategic alternatives with various interested parties to maximize
shareholder value, the Company is not providing full year 2024
financial guidance at this time. The Company expects total revenue
for the three months ending March 31, 2024 of at least $16.5
million.
Conference Call Details:
Management will host a conference call at 8:00
a.m. Eastern Time on April 1, 2024 to discuss the results of the
quarter and fiscal year with a question-and-answer session. Those
who would like to participate may dial 877-407-2991 (201-389-0925
for international callers) and provide access code 13744647. A live
webcast of the call will also be provided on the investor relations
section of the Company's website at ir.venusconcept.com.
For those unable to participate, a replay of the
call will be available for two weeks at: 877-660-6853 (201-612-7415
for international callers); access code 13744647.
About Venus Concept
Venus Concept is an innovative global medical
aesthetic technology leader with a broad product portfolio of
minimally invasive and non-invasive medical aesthetic and hair
restoration technologies and reaches over 60 countries and 12
direct markets. Venus Concept’s product portfolio consists of
aesthetic device platforms, including Venus Versa, Venus Versa Pro,
Venus Legacy, Venus Velocity, Venus Viva, Venus Glow, Venus Bliss,
Venus BlissMAX, Venus Epileve, Venus Viva MD and AI.ME. Venus
Concept’s hair restoration systems include NeoGraft® and the ARTAS
iX® Robotic Hair Restoration system. Venus Concept has been backed
by leading healthcare industry growth equity investors including EW
Healthcare Partners (formerly Essex Woodlands), HealthQuest
Capital, Longitude Capital Management, Aperture Venture Partners,
and Masters Special Situations.
Cautionary Statement Regarding
Forward-Looking Statements
This communication contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as
amended. Any statements contained herein that are not of historical
facts may be deemed to be forward-looking statements. In some
cases, you can identify these statements by words such as such as
“anticipates,” “believes,” “plans,” “expects,” “projects,”
“future,” “intends,” “may,” “should,” “could,” “estimates,”
“predicts,” “potential,” “continue,” “guidance,” and other similar
expressions that are predictions of or indicate future events and
future trends. These forward-looking statements include, but are
not limited to, but are not limited to, statements about our
financial performance and metrics; the growth in demand for our
systems and other products; the efficacy of the Venus Versa Pro;
the contribution of the Venus Versa Pro to our revenue; the
efficacy of the restructuring plan; the identification and efficacy
of strategic alternatives to maximize shareholder value; the
reduction in our cash burn; and our ability to regain compliance
with the continued listing rules of the Nasdaq Capital Market.
These forward-looking statements are based on current expectations,
estimates, forecasts, and projections about our business and the
industry in which the Company operates and management's beliefs and
assumptions and are not guarantees of future performance or
developments and involve known and unknown risks, uncertainties,
and other factors that are in some cases beyond our control. As a
result, any or all of our forward-looking statements in this
communication may turn out to be inaccurate. Factors that could
materially affect our business operations and financial performance
and condition include, but are not limited to, those risks and
uncertainties described under Part II Item 1A—“Risk Factors” in our
Quarterly Reports on Form 10-Q and Part I Item 1A—“Risk Factors” in
our Annual Report on Form 10-K for the fiscal year ended December
31, 2023. You are urged to consider these factors carefully in
evaluating the forward-looking statements and are cautioned not to
place undue reliance on the forward-looking statements. The
forward-looking statements are based on information available to us
as of the date of this communication. Unless required by law, the
Company does not intend to publicly update or revise any
forward-looking statements to reflect new information or future
events or otherwise.
Venus Concept Inc.Condensed Consolidated Balance
Sheets(In thousands of U.S. dollars, except share and per
share data) |
|
|
Year Ended, December 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,396 |
|
|
$ |
11,569 |
|
Accounts receivable, net of allowance of $7,415 and $13,619 as of
December 31, 2023, and 2022 |
|
|
29,151 |
|
|
|
37,262 |
|
Inventories |
|
|
23,072 |
|
|
|
23,906 |
|
Prepaid expenses |
|
|
1,298 |
|
|
|
1,688 |
|
Advances to suppliers |
|
|
5,604 |
|
|
|
5,881 |
|
Other current assets |
|
|
1,925 |
|
|
|
3,702 |
|
Total current assets |
|
|
66,446 |
|
|
|
84,008 |
|
LONG-TERM ASSETS: |
|
|
|
|
|
|
|
|
Long-term receivables, net |
|
|
11,318 |
|
|
|
20,044 |
|
Deferred tax assets |
|
|
1,032 |
|
|
|
947 |
|
Severance pay funds |
|
|
573 |
|
|
|
741 |
|
Property and equipment, net |
|
|
1,322 |
|
|
|
1,857 |
|
Operating right-of-use assets, net |
|
|
4,517 |
|
|
|
5,862 |
|
Intangible assets |
|
|
8,446 |
|
|
|
11,919 |
|
Total long-term assets |
|
|
27,208 |
|
|
|
41,370 |
|
TOTAL ASSETS |
|
$ |
93,654 |
|
|
$ |
125,378 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Trade payables |
|
$ |
9,038 |
|
|
$ |
8,033 |
|
Accrued expenses and other current liabilities |
|
|
12,437 |
|
|
|
16,667 |
|
Current portion of long-term debt |
|
|
4,155 |
|
|
|
7,735 |
|
Income taxes payable |
|
|
366 |
|
|
|
117 |
|
Unearned interest income |
|
|
1,468 |
|
|
|
2,397 |
|
Warranty accrual |
|
|
1,029 |
|
|
|
1,074 |
|
Deferred revenues |
|
|
1,076 |
|
|
|
1,765 |
|
Operating lease liabilities |
|
|
1,590 |
|
|
|
1,807 |
|
Total current liabilities |
|
|
31,159 |
|
|
|
39,595 |
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
70,790 |
|
|
|
70,003 |
|
Income tax payable |
|
|
— |
|
|
|
374 |
|
Accrued severance pay |
|
|
634 |
|
|
|
867 |
|
Deferred tax liabilities |
|
|
15 |
|
|
|
— |
|
Unearned interest revenue |
|
|
671 |
|
|
|
957 |
|
Warranty accrual |
|
|
334 |
|
|
|
408 |
|
Operating lease liabilities |
|
|
3,162 |
|
|
|
4,221 |
|
Other long-term liabilities |
|
|
338 |
|
|
|
215 |
|
Total long-term liabilities |
|
|
75,944 |
|
|
|
77,045 |
|
TOTAL LIABILITIES |
|
|
107,103 |
|
|
|
116,640 |
|
Commitments and Contingencies
(Note 9) |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY (DEFICIT)
(Note 14): |
|
|
|
|
|
|
|
|
Common Stock, $0.0001 par
value: 300,000,000 shares authorized as of December 31, 2023 and
2022; 5,529,149 and 5,161,374 issued and outstanding as of December
31, 2023 and 2022, respectively |
|
|
30 |
|
|
|
29 |
|
Additional paid-in
capital |
|
|
247,854 |
|
|
|
232,169 |
|
Accumulated deficit |
|
|
(261,903 |
) |
|
|
(224,105 |
) |
TOTAL STOCKHOLDERS’ EQUITY
(DEFICIT) |
|
|
(14,019 |
) |
|
|
8,093 |
|
Non-controlling interests |
|
|
570 |
|
|
|
645 |
|
|
|
|
(13,449 |
) |
|
|
8,738 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY (DEFICIT) |
|
$ |
93,654 |
|
|
$ |
125,378 |
|
Venus Concept Inc.Condensed Consolidated
Statements of Operations(In thousands of U.S. dollars,
except per share data) |
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leases |
|
$ |
6,064 |
|
|
|
$ |
5,777 |
|
|
$ |
20,504 |
|
|
$ |
35,267 |
|
Products and services |
|
|
12,068 |
|
|
|
|
18,509 |
|
|
|
55,850 |
|
|
|
64,230 |
|
|
|
|
18,132 |
|
|
|
|
24,286 |
|
|
|
76,354 |
|
|
|
99,497 |
|
Cost of goods sold: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leases |
|
|
679 |
|
|
|
|
1,366 |
|
|
|
4,312 |
|
|
|
9,435 |
|
Products and services |
|
|
5,390 |
|
|
|
|
7,131 |
|
|
|
19,875 |
|
|
|
24,091 |
|
|
|
|
6,069 |
|
|
|
|
8,497 |
|
|
|
24,187 |
|
|
|
33,526 |
|
Gross profit |
|
|
12,063 |
|
|
|
|
15,879 |
|
|
|
52,167 |
|
|
|
65,971 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing |
|
|
7,912 |
|
|
|
|
9,300 |
|
|
|
31,213 |
|
|
|
40,276 |
|
General and administrative |
|
|
10,115 |
|
|
|
|
12,804 |
|
|
|
41,048 |
|
|
|
49,618 |
|
Research and development |
|
|
1,670 |
|
|
|
|
2,573 |
|
|
|
8,197 |
|
|
|
10,953 |
|
Total operating expenses |
|
|
19,697 |
|
|
|
|
24,678 |
|
|
|
80,476 |
|
|
|
100,847 |
|
Loss from operations |
|
|
(7,634) |
|
|
|
|
(8,889 |
) |
|
|
(28,309 |
) |
|
|
(34,876 |
) |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange loss |
|
|
(674 |
) |
|
|
|
(1,002 |
) |
|
|
(295 |
) |
|
|
3,387 |
|
Finance expenses |
|
|
2,227 |
|
|
|
|
1,385 |
|
|
|
6,893 |
|
|
|
4,561 |
|
Loss on disposal of subsidiaries |
|
|
97 |
|
|
|
|
1,482 |
|
|
|
174 |
|
|
|
1,482 |
|
Loss on debt extinguishment |
|
|
2,040 |
|
|
|
|
— |
|
|
|
2,040 |
|
|
|
— |
|
Loss before income taxes |
|
|
(11,324) |
|
|
|
|
(10,754 |
) |
|
|
(37,121 |
) |
|
|
(44,306 |
) |
Income tax (benefit)
expense |
|
|
(174) |
|
|
|
|
(814 |
) |
|
|
(71 |
) |
|
|
(722 |
) |
Net loss |
|
|
(11,150) |
|
|
|
|
(9,940 |
) |
|
|
(37,050 |
) |
|
|
(43,584 |
) |
Net loss attributable to
stockholders of the Company |
|
|
(11,116) |
|
|
|
|
(9,917 |
) |
|
|
(37,250 |
) |
|
|
(43,700 |
) |
Net income attributable to
non-controlling interest |
|
|
(34) |
|
|
|
|
(23 |
) |
|
|
200 |
|
|
|
116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(2.01) |
|
|
|
$ |
(2.11 |
) |
|
$ |
(6.84 |
) |
|
$ |
(9.94 |
) |
Diluted |
|
$ |
(2.01) |
|
|
|
$ |
(2.11 |
) |
|
$ |
(6.84 |
) |
|
$ |
(9.94 |
) |
Weighted-average number of
shares used in per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
5,529 |
|
|
|
|
4,694 |
|
|
|
5,442 |
|
|
|
4,398 |
|
Diluted |
|
|
5,529 |
|
|
|
|
4,694 |
|
|
|
5,442 |
|
|
|
4,398 |
|
Venus Concept Inc.Condensed Consolidated
Statements of Cash Flows(in
thousands) |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
CASH FLOWS FROM (USED
IN) OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(37,050 |
) |
|
$ |
(43,584 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
4,115 |
|
|
|
4,463 |
|
Stock-based compensation |
|
|
1,569 |
|
|
|
2,104 |
|
Provision for bad debt |
|
|
1,350 |
|
|
|
7,337 |
|
Provision for inventory obsolescence |
|
|
1,158 |
|
|
|
2,420 |
|
Finance expenses and accretion |
|
|
2,206 |
|
|
|
414 |
|
Deferred tax recovery |
|
|
(69 |
) |
|
|
(709 |
) |
Loss on sale of subsidiary |
|
|
174 |
|
|
|
- |
|
Loss on disposal of property and equipment |
|
|
10 |
|
|
|
158 |
|
Loss on debt extinguishment |
|
|
2,040 |
|
|
|
- |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable short- and long-term |
|
|
14,891 |
|
|
|
9,855 |
|
Inventories |
|
|
(324 |
) |
|
|
(5,783 |
) |
Prepaid expenses |
|
|
390 |
|
|
|
1,049 |
|
Advances to suppliers |
|
|
277 |
|
|
|
(214 |
) |
Other current assets |
|
|
1,603 |
|
|
|
56 |
|
Operating right-of-use assets, net |
|
|
1,345 |
|
|
|
(5,862 |
) |
Other long-term assets |
|
|
47 |
|
|
|
200 |
|
Trade payables |
|
|
1,005 |
|
|
|
(385 |
) |
Accrued expenses and other current liabilities |
|
|
(5,089 |
) |
|
|
(3,647 |
) |
Current operating lease liabilities |
|
|
(217 |
) |
|
|
1,807 |
|
Severance pay funds |
|
|
168 |
|
|
|
76 |
|
Unearned interest income |
|
|
(1,215 |
) |
|
|
(679 |
) |
Long-term operating lease liabilities |
|
|
(1,059 |
) |
|
|
4,221 |
|
Other long-term liabilities |
|
|
(184 |
) |
|
|
(277 |
) |
Net cash used in operating activities |
|
|
(12,859 |
) |
|
|
(26,980 |
) |
CASH FLOWS FROM (USED
IN) INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(116 |
) |
|
|
(336 |
) |
Net cash used in investing activities |
|
|
(116 |
) |
|
|
(336 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
2022 Private Placement, net of costs of $202 |
|
|
- |
|
|
|
6,518 |
|
2023 Private Placement, net of costs of $739 |
|
|
6,261 |
|
|
|
- |
|
Proceeds from issuance of common stock |
|
|
816 |
|
|
|
2,135 |
|
Repayment of government assistance loans |
|
|
- |
|
|
|
(543 |
) |
Dividends from subsidiaries paid to non-controlling interest |
|
|
(275 |
) |
|
|
(124 |
) |
Proceeds from exercise of options |
|
|
- |
|
|
|
23 |
|
Net cash provided by financing activities |
|
|
6,802 |
|
|
|
8,009 |
|
NET (DECREASE) INCREASE IN
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
|
(6,173 |
) |
|
|
(19,307 |
) |
CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH — Beginning of year |
|
|
11,569 |
|
|
|
30,876 |
|
CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH — End of year |
|
$ |
5,396 |
|
|
$ |
11,569 |
|
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid for income
taxes |
|
$ |
124 |
|
|
$ |
329 |
|
Cash paid for interest |
|
$ |
4,473 |
|
|
$ |
4,147 |
|
Use of Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP measure defined as
net income (loss) before foreign exchange loss, financial expenses,
income tax expense (benefit), depreciation and amortization,
stock-based compensation and non-recurring items for a given
period. Adjusted EBITDA is not a measure of our financial
performance under U.S. GAAP and should not be considered an
alternative to net income or any other performance measures derived
in accordance with U.S. GAAP. Accordingly, you should consider
Adjusted EBITDA along with other financial performance measures,
including net income, and our financial results presented in
accordance with U.S. GAAP. Other companies, including companies in
our industry, may calculate Adjusted EBITDA differently or not at
all, which reduces its usefulness as a comparative measure. We
understand that although Adjusted EBITDA is frequently used by
securities analysts, lenders and others in their evaluation of
companies, Adjusted EBITDA has limitations as an analytical tool,
and you should not consider it in isolation, or as a substitute for
analysis of our results as reported under U.S. GAAP. Some of these
limitations are: Adjusted EBITDA does not reflect our cash
expenditures or future requirements for capital expenditures or
contractual commitments; Adjusted EBITDA does not reflect changes
in, or cash requirements for, our working capital needs; and
although depreciation and amortization are non-cash charges, the
assets being depreciated will often have to be replaced in the
future, and Adjusted EBITDA does not reflect any cash requirements
for such replacements.
We believe that Adjusted EBITDA is a useful
measure for analyzing the performance of our core business because
it facilitates operating performance comparisons from period to
period and company to company by backing out potential differences
caused by changes in foreign exchange rates that impact financial
assets and liabilities denominated in currencies other than the
U.S. dollar, tax positions (such as the impact on periods or
companies of changes in effective tax rates), the age and book
depreciation of fixed assets (affecting relative depreciation
expense), amortization of intangible assets, stock-based
compensation expense (because it is a non-cash expense) and
non-recurring items as explained below.
The following reconciliation of net (loss)
income to Adjusted EBITDA for the periods presented:
Venus Concept Inc.Reconciliation of Net
loss to Non-GAAP Adjusted EBITDA |
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Reconciliation of net
loss to adjusted EBITDA |
|
(in thousands) |
|
|
(in thousands) |
|
Net loss |
|
$ |
(11,150 |
) |
|
|
$ |
(9,937 |
) |
|
|
$ |
(37,050 |
) |
|
|
$ |
(43,584 |
) |
|
Foreign exchange loss |
|
|
(674 |
) |
|
|
|
(1,002 |
) |
|
|
|
(295 |
) |
|
|
|
3,387 |
|
|
Loss on disposal of
subsidiaries |
|
|
97 |
|
|
|
|
1,482 |
|
|
|
|
174 |
|
|
|
|
1,482 |
|
|
Loss on debt
extinguishment |
|
|
2,040 |
|
|
|
|
— |
|
|
|
|
2,040 |
|
|
|
|
— |
|
|
Finance expenses |
|
|
2,227 |
|
|
|
|
1,385 |
|
|
|
|
6,893 |
|
|
|
|
4,561 |
|
|
Income tax (benefit)
expense |
|
|
(174 |
) |
|
|
|
(814 |
) |
|
|
|
(71 |
) |
|
|
|
(722 |
) |
|
Depreciation and
amortization |
|
|
1,073 |
|
|
|
|
1,070 |
|
|
|
|
4,115 |
|
|
|
|
4,463 |
|
|
Stock-based compensation
expense |
|
|
355 |
|
|
|
|
552 |
|
|
|
|
1,569 |
|
|
|
|
2,104 |
|
|
Inventory Provision (1) |
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
1,388 |
|
|
Other
adjustments (2) |
|
|
280 |
|
|
|
|
818 |
|
|
|
|
2,362 |
|
|
|
|
1,544 |
|
|
Adjusted EBITDA |
|
$ |
(5,926 |
) |
|
|
$ |
(6,347 |
) |
|
|
$ |
(20,263 |
) |
|
|
$ |
(25,377 |
) |
|
(1) For the year ended December 31, 2022, the
inventory provision represents a strategic review of our product
offerings which culminated in a decision to discontinue production
and sale of certain models and component parts, resulting in an
inventory adjustment of $1.4 million.
(2) For the year ended December 31, 2023, the
other adjustments of $2.4 million primarily represent restructuring
activities designed to improve the Company's operations and cost
structure. For the year ended December 31, 2022, the other
adjustments are represented by severance payments associated with a
workforce reduction in Venus Spain and Venus Canada of $0.8 million
and restructuring plan payments of $0.7 million.
Investor Relations Contact:
ICR Westwicke on behalf of Venus Concept:
Mike Piccinino, CFA
VenusConceptIR@westwicke.com
Venus Concept (NASDAQ:VERO)
過去 株価チャート
から 4 2024 まで 5 2024
Venus Concept (NASDAQ:VERO)
過去 株価チャート
から 5 2023 まで 5 2024