via NewMediaWire – Nephros, Inc. (Nasdaq: NEPH), a leading water
technology company providing filtration solutions to the medical
and commercial markets, today announced financial results for the
fourth quarter and fiscal year ended December 31, 2022.
Financial Highlights
Fourth Quarter Ended December 31, 2022 – Consolidated
- Net revenue from continuing
operations was $2.6 million, compared to $2.7 million in the fourth
quarter of 2021, down 6%
- Net loss from continuing
operations was ($0.7 million), approximately equal to the same
period in 2021
- Adjusted EBITDA from continuing
operations was ($0.5 million), compared to ($0.1 million) in the
fourth quarter of 2021
Year-End 2022 – Consolidated
- Net revenue from continuing
operations was $10.0 million, compared with $10.2 million in 2021,
down 2%
- Net loss from continuing
operations was ($4.3 million), compared with ($2.8 million) in
2021
- Adjusted EBITDA from continuing
operations was ($2.4 million), compared with ($1.6 million) in
2021
“2022 was a year of refocusing and rebuilding for Nephros,” said
Andy Astor, President and Chief Executive Officer. “After a
challenging first half of the year, we established a target of cash
flow breakeven (“CFBE”) by mid-year 2023, coupled with significant
revenue growth by that same time. We have made good progress on
both fronts.”
“In our efforts to achieve CFBE, we took multiple actions,
including broad headcount and expense reductions, the disposition
of our Pathogen Detection Systems (“PDS”) business segment, and two
price increases during the year, which were intended to return us
to target gross margins of 55-60%. I am pleased to report that our
fourth-quarter gross margins were 59%. Additionally, our net cash
usage for the first half of the year was $2.8 million, compared to
$0.5 million in the second half of the year, an 80%
improvement.”
Mr. Astor continued, “In an effort to set the company up for
future revenue growth, we took several actions, including a
restructuring of our sales organization, the doubling of our sales
team, and the relaunch of our commercial filtration business, which
included a rebrand of our commercial filter products from Aether to
Nephros. Of further note, we established a strategic partnership
with Donastar Enterprises, LLC as the exclusive master distributor
of our commercial filters in the food & beverage and
hospitality markets.”
Nephros anticipates further cost reductions in the second
quarter of this year, due to the planned cessation of operations by
our majority-owned subsidiary, Specialty Renal Products, Inc.
(“SRP”). In February 2023, SRP management unsuccessfully concluded
its efforts to identify a strategic partner to support a commercial
launch of SRP’s second-generation HDF product. SRP’s capital
resources are nearly exhausted and it has been unable to procure
additional financing. Accordingly, the SRP board of directors
recently resolved, subject to approval of SRP’s stockholders, to
wind down SRP’s operations and liquidate its remaining assets.
Nephros expects to re-evaluate opportunities for HDF in the future
but has no immediate plans to do so.
Financial Performance for the Fourth Quarter and Year Ended
December 31, 2022
Net revenue from continuing operations for the year ended
December 31, 2022 was $10 million, compared with $10.2 million in
2021, a decrease of 2%. Net revenues for the fourth quarter of 2022
were $2.6 million, compared with $2.7 million in the fourth quarter
of 2021, a decrease of 6%.
Cost of goods sold for the year ended December 31, 2022 was $5.2
million, compared with $4.6 million in 2021, an increase of 14%.
Cost of goods sold for the fourth quarter of 2022 was $1.0 million,
compared with $1.2 million in the fourth quarter of 2021, a
decrease of 16%.
Gross margins for the year ended December 31, 2022 were 47%,
compared with 55% in 2021. Gross margins for the fourth quarter of
2022 were 59%, compared with 54% in the fourth quarter of 2021.
Selling, general and administrative expenses for the year ended
December 31, 2022 were $7.6 million, compared with $7.2 million in
2021, an increase of 6%. Selling, general and administrative
expenses for the fourth quarter of 2022 and 2021 were approximately
$1.8 million.
Research and development expenses for the year ended December
31, 2022 were $1.3 million, compared with $1.5 million in 2021 a
decrease of 16%. Research and development expenses for the fourth
quarter of 2022 were $0.4 million, compared with $0.3 million in
the fourth quarter of 2021, a decrease of 9%.
Depreciation and amortization expenses for the year ended
December 31, 2022 were approximately $218,000, compared with
approximately $192,000 in 2021, an increase of 14%. Depreciation
and amortization expenses for the fourth quarter of 2022 were
approximately $56,000, compared with approximately $42,000 in the
fourth quarter of 2021, an increase of 33%.
Net loss from continuing operations for the year ended December
31, 2022 was ($4.3 million), compared with a net loss of ($2.8
million) in 2021, a 54% increase in loss. Net loss from continuing
operations for the fourth quarter of 2022 and 2021 was
approximately ($0.7 million) respectively.
Adjusted EBITDA loss from continuing operations for the year
ended December 31, 2022 was ($2.4 million), compared with ($1.6
million) in 2021. Adjusted EBITDA loss from continuing operations
for the fourth quarter 2022 was approximately ($0.5 million),
compared with approximately ($0.1 million) in the fourth quarter of
2021.
As of December 31, 2022, Nephros had cash and cash equivalents
of approximately $3.6 million.
Consolidated Adjusted EBITDA Definition and Reconciliation to
GAAP Financial Measures
Adjusted EBITDA loss from continuing operations is calculated by
taking net loss from continuing operations calculated in accordance
with generally accepted accounting principles (“GAAP”) and
excluding all interest-related expenses and income, tax-related
expenses and income, non-recurring expenses and income, and
non-cash items, including depreciation, amortization and non-cash
compensation. The following table presents a reconciliation of
Adjusted EBITDA loss from continuing operations to net loss from
continuing operations, the most directly comparable GAAP financial
measure, for the fourth quarter of the 2022 and 2021 fiscal
years:
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|
|
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|
|
|
2022 |
|
Three Month
Period Ended |
Annual |
|
|
|
|
Consolidated |
|
3/31/22 |
6/30/22 |
9/30/22 |
12/31/22 |
Totals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income - from continuing operations |
(1,561 |
) |
(747 |
) |
(1,250 |
) |
(719 |
) |
(4,277 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation of property and equipment |
|
8 |
|
20 |
|
12 |
|
12 |
|
52 |
|
|
|
|
|
Amortization of other assets |
|
47 |
|
41 |
|
44 |
|
44 |
|
176 |
|
|
|
|
|
Interest expense |
|
7 |
|
6 |
|
4 |
|
3 |
|
20 |
|
|
|
|
|
Interest income |
|
(2 |
) |
(1 |
) |
(4 |
) |
(7 |
) |
(14 |
) |
|
|
|
|
Non-cash stock-based compensation |
|
254 |
|
258 |
|
225 |
|
207 |
|
944 |
|
|
|
|
|
Other non-cash items |
|
49 |
|
21 |
|
665 |
|
- |
|
735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
(1,198 |
) |
(402 |
) |
(304 |
) |
(460 |
) |
(2,364 |
) |
|
|
|
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
|
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|
|
|
|
|
|
2021 |
|
Three Month
Period Ended |
Annual |
|
|
|
|
Consolidated |
|
3/31/21 |
6/30/21 |
9/30/21 |
12/31/21 |
Totals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income - from continuing operations |
(317 |
) |
(940 |
) |
(802 |
) |
(725 |
) |
(2,784 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
Depreciation of property and equipment |
|
7 |
|
7 |
|
7 |
|
16 |
|
38 |
|
|
|
|
|
Amortization of other assets |
|
46 |
|
48 |
|
46 |
|
74 |
|
214 |
|
|
|
|
|
Interest expense |
|
13 |
|
11 |
|
10 |
|
7 |
|
41 |
|
|
|
|
|
Interest income |
|
(3 |
) |
(3 |
) |
(2 |
) |
(2 |
) |
(10 |
) |
|
|
|
|
PPP Loan Forgiveness |
|
(482 |
) |
- |
|
- |
|
- |
|
(482 |
) |
|
|
|
|
Non-cash stock-based compensation |
|
267 |
|
270 |
|
257 |
|
422 |
|
1,216 |
|
|
|
|
|
Other non-cash items |
|
5 |
|
24 |
|
90 |
|
97 |
|
216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
(464 |
) |
(583 |
) |
(394 |
) |
(111 |
) |
(1,552 |
) |
|
|
|
|
|
|
- |
|
- |
|
- |
|
- |
|
- |
|
|
|
|
|
|
|
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Nephros believes that Adjusted EBITDA loss from continuing
operations provides useful information to management and investors
regarding certain financial and business trends relating to
Nephros’ financial condition and results of operations. Management
does not consider Adjusted EBITDA loss from continuing operations
in isolation or as an alternative to financial measures determined
in accordance with GAAP. The principal limitation of Adjusted
EBITDA loss from continuing operations is that it excludes
significant expenses and income that are required by GAAP to be
recognized in Nephros’ consolidated financial statements. In
addition, Adjusted EBITDA loss from continuing operations is
subject to inherent limitations as it reflects the exercise of
judgments by management about which expenses and income are
excluded or included in determining Adjusted EBITDA loss from
continuing operations. In order to compensate for these
limitations, management presents Adjusted EBITDA loss from
continuing operations in connection with net loss from continuing
operations, the most directly comparable GAAP financial measure.
Nephros urges investors to review the reconciliation of Adjusted
EBITDA loss from continuing operations to net loss from continuing
operations and not to rely on any single financial measure to
evaluate the business.
Conference Call Today at 4:30pm Eastern Time
Nephros will host a conference call today at 4:30pm ET, during
which management will discuss Nephros’ financial results and
provide a general business overview.
Participants may dial into the call as follows:
Domestic access: 1 (844) 808-7106
International access: 1 (412) 317-5285
Upon joining, please ask to be joined into the Nephros
conference call.
An audio archive of the call will be available shortly after the
call on the Nephros Investor Relations page.
Alternatively, a replay of the call may be accessed until March
15th, 2023 at 1 (877) 344-7529 or 1 (412) 317-0088 for
international callers and entering replay access code: 9907282.
About Nephros
Nephros is committed to improving the human relationship with
water through leading, accessible technology. We provide innovative
water filtration products and services, along with water-quality
education, as part of an integrated approach to water safety.
Nephros goods serve the needs of customers within the healthcare
and commercial markets, offering both proactive and emergency
solutions for water management.
For more information about Nephros, please visit
www.nephros.com.
Forward-Looking Statements
This release contains forward-looking statements that are
subject to various risks and uncertainties. Such statements include
statements regarding Nephros’ expected revenue and cash flows for
the quarter and year ended December 31, 2022, expected future
revenue growth and the timing of such growth, expectations
regarding achieving cash flow breakeven and the timing thereof, and
other statements that are not historical facts, including
statements that may be accompanied by the words “intends,” “may,”
“will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,”
“estimates,” “aims,” “believes,” “hopes,” “potential” or similar
words. Actual results could differ materially from those described
in these forward-looking statements due to certain factors,
including the impact of the ongoing COVID-19 pandemic, changes in
business, Nephros’ ability to further develop its sales
organization and realize increased revenues, inflationary factors
and other economic and competitive conditions, the availability of
capital when needed, dependence on third-party manufacturers and
researchers, and regulatory reforms. These and other risks and
uncertainties are detailed in Nephros’ reports filed with the U.S.
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the year ended December 31, 2022, which is expected
to be filed on or before March 31, 2023. Nephros does not undertake
any responsibility to update the forward-looking statements in this
release.
Investor Relations Contacts:Kirin Smith, PresidentPCG
Advisory, Inc.(646) 823-8656ksmith@pcgadvisory.com
Andy Astor, CEONephros, Inc.(201) 343-5202
x120andy.astor@nephros.com
NEPHROS,
INC. AND SUBSIDIARIES |
|
|
CONSOLIDATED
BALANCE SHEETS |
|
|
(In thousands,
except share and per share amounts) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
ASSETS |
|
December 31, 2022 |
December 31, 2021 |
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,634 |
|
|
$ |
6,973 |
|
|
|
Accounts receivable, net |
|
|
1,286 |
|
|
|
1,641 |
|
|
|
Inventory |
|
|
3,153 |
|
|
|
4,462 |
|
|
|
Prepaid expenses and other current assets |
|
|
188 |
|
|
|
207 |
|
|
|
Current assets held for sale |
|
|
- |
|
|
|
351 |
|
|
|
Total current assets |
|
|
8,261 |
|
|
|
13,634 |
|
|
|
Property and
equipment, net |
|
|
116 |
|
|
|
72 |
|
|
|
Lease
right-use-of assets |
|
|
984 |
|
|
|
614 |
|
|
|
Intangible
assets, net |
|
|
423 |
|
|
|
465 |
|
|
|
Goodwill |
|
|
759 |
|
|
|
759 |
|
|
|
License and
supply agreement, net |
|
|
402 |
|
|
|
536 |
|
|
|
Other
assets |
|
|
54 |
|
|
|
84 |
|
|
|
Non-current
assets associated with discontinued operations |
|
|
- |
|
|
|
1,486 |
|
|
|
TOTAL
ASSETS |
|
$ |
10,999 |
|
|
$ |
17,650 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Current portion of secured note payable |
|
|
71 |
|
|
|
248 |
|
|
|
Accounts payable |
|
|
740 |
|
|
|
1,334 |
|
|
|
Accrued expenses |
|
|
285 |
|
|
|
444 |
|
|
|
Current portion of lease liabilities |
|
|
316 |
|
|
|
313 |
|
|
|
Current liabilities associated with assets held-for-sale |
|
|
- |
|
|
|
51 |
|
|
|
Total current liabilities |
|
|
1,412 |
|
|
|
2,390 |
|
|
|
Secured note
payable, net of current portion |
|
|
- |
|
|
|
95 |
|
|
|
Equipment
financing, net of current portion |
|
|
1 |
|
|
|
4 |
|
|
|
Lease
liabilities, net of current portion |
|
|
705 |
|
|
|
340 |
|
|
|
Non-current
liabilities associated with discontinued operations |
|
|
- |
|
|
|
72 |
|
|
|
TOTAL
LIABILITIES |
|
|
2,118 |
|
|
|
2,901 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS
AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
Preferred stock, $.001 par value; 5,000,000 shares authorized at
December 31, 2022 and 2021; no shares issued and outstanding at
December 31, 2022 and 2021 |
|
|
- |
|
|
|
- |
|
|
|
Common stock, $.001 par value; 40,000,000 shares authorized at
December 31, 2022 and 2021; 10,297,429 and 10,258,444 shares issued
and outstanding at December 31, 2022 and 2021, respectively |
|
|
10 |
|
|
|
10 |
|
|
|
Additional paid-in capital |
|
|
148,413 |
|
|
|
147,346 |
|
|
|
Accumulated other comprehensive income |
|
|
- |
|
|
|
64 |
|
|
|
Accumulated deficit |
|
|
(142,831 |
) |
|
|
(135,725 |
) |
|
|
Subtotal |
|
|
5,592 |
|
|
|
11,695 |
|
|
|
Noncontrolling interest |
|
|
3,289 |
|
|
|
3,054 |
|
|
|
TOTAL
STOCKHOLDERS' EQUITY |
|
|
8,881 |
|
|
|
14,749 |
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
10,999 |
|
|
$ |
17,650 |
|
|
|
|
|
|
|
|
|
|
NEPHROS,
INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS |
(In thousands,
except share and per share amounts) |
(Unaudited) |
|
|
Twelve
Months Ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
Net
revenue: |
|
|
|
|
|
|
Product
revenues |
|
$ |
9,929 |
|
|
$ |
10,065 |
|
Royalty and
other revenues |
|
|
46 |
|
|
|
152 |
|
Total net
revenues |
|
|
9,975 |
|
|
|
10,217 |
|
Cost of
goods sold |
|
|
5,244 |
|
|
|
4,584 |
|
Gross
margin |
|
|
4,731 |
|
|
|
5,633 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
Research and
development |
|
|
1,255 |
|
|
|
1,498 |
|
Depreciation
and amortization |
|
|
218 |
|
|
|
192 |
|
Selling,
general and administrative |
|
|
7,593 |
|
|
|
7,195 |
|
Total
operating expenses |
|
|
9,066 |
|
|
|
8,885 |
|
Loss from
continuing operations |
|
|
(4,335 |
) |
|
|
(3,252 |
) |
Other
(expense) income: |
|
|
|
|
|
|
Interest
expense |
|
|
(20 |
) |
|
|
(41 |
) |
Interest
income |
|
|
14 |
|
|
|
10 |
|
Extinguishment of PPP Loan |
|
|
- |
|
|
|
482 |
|
Other
income, net |
|
|
64 |
|
|
|
17 |
|
Total other
income: |
|
|
58 |
|
|
|
468 |
|
Loss from
continuing operations |
|
|
(4,277 |
) |
|
|
(2,784 |
) |
Net loss
from discontinued operations |
|
|
(2,829 |
) |
|
|
(1,083 |
) |
Net
loss |
|
|
(7,106 |
) |
|
|
(3,867 |
) |
Less:
undeclared deemed dividend attributable to continuing
noncontrolling interest |
|
|
(276 |
) |
|
|
(240 |
) |
Net loss
attributable to Nephros Inc. shareholders |
|
|
(7,382 |
) |
|
|
(4,107 |
) |
|
|
|
|
|
|
|
Net loss per
common share , basic and diluted from continuing operations |
|
|
(0.42 |
) |
|
|
(0.28 |
) |
Net loss per
common share, basic and diluted, from discontinued operations |
|
|
(0.28 |
) |
|
|
(0.11 |
) |
Net loss per
common share, basic and diluted |
|
$ |
(0.70 |
) |
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
Net loss per
common share, basic and diluted, attributable to continuing
noncontrolling interest |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
|
|
|
|
|
Net loss per
common share, basic and diluted attributable to Nephros Inc.
shareholders |
|
$ |
(0.73 |
) |
|
$ |
(0.41 |
) |
|
|
|
|
|
|
|
Weighted
average common shares outstanding, basic and diluted |
|
|
10,297,134 |
|
|
|
10,017,830 |
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
Net
loss |
|
$ |
(7,106 |
) |
|
$ |
(3,867 |
) |
Other
comprehensive income, foreign currency translation adjustments, net
of tax |
|
|
(14 |
) |
|
|
(10 |
) |
Comprehensive loss |
|
|
(7,120 |
) |
|
|
(3,877 |
) |
Comprehensive loss attributable to continuing noncontrolling
interest |
|
|
(276 |
) |
|
|
(240 |
) |
Comprehensive loss attributable to Nephros, Inc. shareholders |
|
$ |
(7,396 |
) |
|
$ |
(4,117 |
) |
|
|
|
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Nephros (NASDAQ:NEPH)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Nephros (NASDAQ:NEPH)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024