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
second quarter ended June 30, 2023.
Financial
Highlights*
- Net revenue from continuing
operations of $3.5 million, an increase of 24%
- Net loss from continuing operations
of $0.4 million, compared to $0.7 million
- Adjusted EBITDA from continuing
operations of ($0.2 million), compared to ($0.4 million)
*Stated performance is relative to same period
prior year (second quarter of 2022)
“Last quarter, Nephros achieved two significant
milestones: positive cash flow and record quarterly revenue,
representing a 71% year-over-year increase,” said Robert Banks,
President and Chief Executive Officer. “I am pleased to report that
in our second quarter, we maintained positive cash flow and
delivered 24% revenue growth year-over-year. I credit much of our
success to the implementation of focused sales strategies and solid
execution by our dedicated team. Moving into the second half of the
year, I look forward to continuing high growth rates.”
Andy Astor, Interim Chief Financial Officer,
commented, “I am also pleased with our second-quarter financial
results. Our core business is stronger than ever, and – coupled
with our recent expense reductions – has kept us at cash flow
positive status for another quarter. Additionally, gross margins
continued to improve in Q2, increasing from 57% in the first
quarter to 59% in the second quarter; and Active Customer Sites
(ACS) increased to 1,427, a 6% year-over-year increase. We expect
that net cash flow will remain strong, although it may fluctuate
somewhat, due to working capital usage associated with high revenue
growth. Overall, we are confident that the fundamentals of our
business continue to improve, and that our increasing cash balances
will be sufficient to fund the company for the foreseeable
future.”
Financial
Performance for the Quarter Ended
June 30, 2023Net revenue from
continuing operations for the quarter ended June 30, 2023 was $3.5
million, compared to $2.9 million in the corresponding period in
2022, an increase of 24%.
Net loss from continuing operations for the
quarter ended June 30, 2023 was $0.4 million, compared to $0.7
million during the same period in 2022. The decrease in net loss
from continuing operations was driven by increased revenue and
gross margins and decreased research and development costs due to
the sale and cessation of our pathogen detection and HDF business
areas, respectively.
Adjusted EBITDA from continuing operations for
the quarter ended June 30, 2023 was ($0.2 million), compared to
($0.4 million) during the same period in 2022.
Cost of goods sold for the quarters ended June
30, 2023 and June 30, 2022 was $1.5 million. Gross margins for the
quarter ended June 30, 2023 were 59%, compared with 49% during the
same period in 2022.
Research and development expenses for the
quarter ended June 30, 2023 were $0.2 million, compared with $0.3
million during the quarter ended June 30, 2022. The decrease in net
loss from continuing operations was driven by increased revenue and
gross margins and decreased research and development costs due to
the sale and cessation of our pathogen detection and HDF business
areas, respectively.
Depreciation and amortization expenses for the
quarter ended June 30, 2023 were approximately $54,000, compared
with approximately $51,000 for the corresponding period in
2022.
Selling, general and administrative expenses for
the quarter ended June 30, 2023 were approximately $2.2 million
compared with approximately $1.9 million for the corresponding
period in 2022.
As of June 30, 2023, Nephros had cash and cash
equivalents of $4.1 million.
Adjusted EBITDA Definition and
Reconciliation to GAAP Financial MeasuresAdjusted EBITDA
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
from continuing operations to net loss from continuing operations,
the most directly comparable GAAP financial measure, for the second
quarter of the 2023 and 2022 fiscal years:
|
|
|
|
|
|
|
|
Three Months
Ended June 30, |
|
|
2023 |
|
2022 |
|
|
|
|
(in $
thousands) |
|
Reconciliation of net loss from continuing
operations: |
|
|
|
Net loss
from continuing operations |
|
(433 |
) |
(747 |
) |
|
|
|
|
|
|
Adjustments: |
|
|
|
|
Depreciation of property and equipment |
|
10 |
|
20 |
|
|
Amortization of other assets |
|
44 |
|
41 |
|
|
Interest expense |
|
- |
|
6 |
|
|
Interest income |
|
(13 |
) |
(1 |
) |
|
Non-cash stock-based compensation |
|
194 |
|
258 |
|
|
|
|
|
|
|
Adjusted EBITDA loss from continuing
operations |
(198 |
) |
(423 |
) |
|
Nephros believes that Adjusted EBITDA 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 from continuing
operations in isolation or as an alternative to financial measures
determined in accordance with GAAP. The principal limitation of
Adjusted EBITDA from continuing operations is that it excludes
significant expenses and income that are required by GAAP to be
recognized in Nephros’ financial statements. In addition, Adjusted
EBITDA 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 from continuing operations. To
compensate for these limitations, management presents Adjusted
EBITDA from continuing operations in connection with net income
loss from continuing operations, the most directly comparable GAAP
financial measure. Nephros urges investors to review the
reconciliation of Adjusted EBITDA from continuing operations to net
income loss from continuing operations and not to rely on any
single financial measure to evaluate the business.
Conference Call Today
at 4:30pm ETNephros 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) 808-7106International 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 August 16, 2023 at 1 (877) 344-7529 or 1 (412) 317-0088 for
international callers and entering replay access code: 1827043.
About
NephrosNephros 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
nephros.com.
Forward-Looking StatementsThis
release contains forward-looking statements that are subject to
various risks and uncertainties. Such statements include statements
regarding Nephros’ expected future revenue, gross margins, cash
flows and expectations on achieving and maintaining positive cash
flow and profitability, including the timing thereof, and other
future financial performance, 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
inflationary factors and general economic conditions, changes in
business and competitive conditions, the availability of capital
when needed, dependence on third-party manufacturers, distributors
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 it may update
in Part II, Item 1A – Risk Factors in its Quarterly Reports on Form
10-Q that it has filed or will file hereafter. 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
Robert Banks, CEONephros, Inc.(201) 343-5202
x110robert.banks@nephros.com
Andy Astor, Interim CFONephros, 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 |
|
June 30, 2023 |
|
December 31, 2022 |
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,060 |
|
|
$ |
3,634 |
|
|
|
Accounts receivable, net |
|
|
1,576 |
|
|
|
1,286 |
|
|
|
Inventory |
|
|
2,126 |
|
|
|
3,153 |
|
|
|
Prepaid expenses and other current assets |
|
|
152 |
|
|
|
188 |
|
|
|
Total current assets |
|
|
7,914 |
|
|
|
8,261 |
|
|
|
Property and
equipment, net |
|
|
98 |
|
|
|
116 |
|
|
|
Lease
right-use-of assets |
|
|
824 |
|
|
|
984 |
|
|
|
Intangible
assets, net |
|
|
402 |
|
|
|
423 |
|
|
|
Goodwill |
|
|
759 |
|
|
|
759 |
|
|
|
License and
supply agreement, net |
|
|
335 |
|
|
|
402 |
|
|
|
Other
assets |
|
|
54 |
|
|
|
54 |
|
|
|
TOTAL
ASSETS |
|
$ |
10,386 |
|
|
$ |
10,999 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Current portion of secured note payable |
|
$ |
- |
|
|
$ |
71 |
|
|
|
Accounts payable |
|
|
302 |
|
|
|
740 |
|
|
|
Accrued expenses |
|
|
572 |
|
|
|
285 |
|
|
|
Current portion of lease liabilities |
|
|
323 |
|
|
|
316 |
|
|
|
Total current liabilities |
|
|
1,197 |
|
|
|
1,412 |
|
|
|
Equipment
financing, net of current portion |
|
|
- |
|
|
|
1 |
|
|
|
Lease
liabilities, net of current portion |
|
|
534 |
|
|
|
705 |
|
|
|
TOTAL
LIABILITIES |
|
|
1,731 |
|
|
|
2,118 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS
AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY: |
|
|
|
|
|
|
Preferred stock, $.001 par value; 5,000,000 shares authorized at
June 30, 2023 and December 31, 2022; no shares issued and
outstanding at June 30, 2023 and December 31, 2022 |
|
|
- |
|
|
|
- |
|
|
|
Common stock, $.001 par value; 40,000,000 shares authorized at June
30, 2023 and December 31, 2022; 10,484,932 and 10,297,429 shares
issued and outstanding at June 30, 2023 and December 31, 2022,
respectively |
|
|
10 |
|
|
|
10 |
|
|
|
Additional paid-in capital |
|
|
152,215 |
|
|
|
148,413 |
|
|
|
Accumulated deficit |
|
|
(143,570 |
) |
|
|
(142,831 |
) |
|
|
Subtotal |
|
|
8,655 |
|
|
|
5,592 |
|
|
|
Noncontrolling interest |
|
|
- |
|
|
|
3,289 |
|
|
|
TOTAL
STOCKHOLDERS' EQUITY |
|
|
8,655 |
|
|
|
8,881 |
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
10,386 |
|
|
$ |
10,999 |
|
|
|
|
|
|
|
|
|
|
NEPHROS,
INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS |
(In thousands,
except share and per share amounts) |
(Unaudited) |
|
|
Three Months
Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
Net
revenue: |
|
|
|
|
|
|
Product revenues |
|
$ |
3,537 |
|
|
$ |
2,837 |
|
Royalty and other revenues |
|
|
8 |
|
|
|
13 |
|
Total net revenues |
|
|
3,545 |
|
|
|
2,850 |
|
Cost of
goods sold |
|
|
1,466 |
|
|
|
1,455 |
|
Gross margin |
|
|
2,079 |
|
|
|
1,395 |
|
Operating
expenses: |
|
|
|
|
|
|
Selling, general and administrative |
|
|
2,239 |
|
|
|
1,885 |
|
Research and development |
|
|
221 |
|
|
|
273 |
|
Depreciation and amortization |
|
|
54 |
|
|
|
51 |
|
Total operating expenses |
|
|
2,514 |
|
|
|
2,209 |
|
Operating
loss from continuing operations |
|
|
(435 |
) |
|
|
(814 |
) |
Other
(expense) income: |
|
|
|
|
|
|
Interest expense |
|
|
- |
|
|
|
(6 |
) |
Interest income |
|
|
13 |
|
|
|
1 |
|
Other (expense) net |
|
|
(11 |
) |
|
|
72 |
|
Total other expense: |
|
|
2 |
|
|
|
67 |
|
Loss from
continuing operations |
|
|
(433 |
) |
|
|
(747 |
) |
Net loss
from discontinued operations |
|
|
- |
|
|
|
(390 |
) |
Net
loss |
|
|
(433 |
) |
|
|
(1,137 |
) |
Less:
Undeclared deemed dividend attributable to noncontrolling
interest |
|
|
- |
|
|
|
(66 |
) |
Net loss
attributable to Nephros Inc. shareholders |
|
$ |
(433 |
) |
|
$ |
(1,203 |
) |
|
|
|
|
|
|
|
Net loss per
common share, basic and diluted from continuing operations |
|
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
Net loss per
common share, basic and diluted from discontinued operations |
|
|
- |
|
|
|
(0.04 |
) |
Net loss per
common share, basic and diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.11 |
) |
Net loss per
common share, basic and diluted, attributable to continuing
noncontrolling interest |
|
|
- |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
Net loss per
common share, basic and diluted, attributable to Nephros, Inc,
shareholders |
|
$ |
(0.04 |
) |
|
$ |
(0.12 |
) |
Weighted
average common shares outstanding, basic and diluted |
|
|
10,297,429 |
|
|
|
10,299,148 |
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
Net
loss |
|
$ |
(433 |
) |
|
$ |
(1,137 |
) |
Other
comprehensive loss, foreign currency translation adjustments, net
of tax |
|
|
- |
|
|
|
- |
|
Comprehensive loss |
|
|
(433 |
) |
|
|
(1,137 |
) |
Comprehensive loss attributable to continuing noncontrolling
interest |
|
|
- |
|
|
|
(66 |
) |
Comprehensive loss attributable to Nephros, Inc. shareholders |
|
$ |
(433 |
) |
|
$ |
(1,203 |
) |
|
|
|
|
|
|
|
Nephros (NASDAQ:NEPH)
Gráfica de Acción Histórica
De Sep 2024 a Oct 2024
Nephros (NASDAQ:NEPH)
Gráfica de Acción Histórica
De Oct 2023 a Oct 2024