Fuse Medical, Inc. Announces Third Quarter 2021 Financial Results

11 Nov 2021
www.biospace.com
Financial Statement
RICHARDSON, Texas--(BUSINESS WIRE)-- Fuse Medical Inc. (OTCPINK: FZMD) (“Fuse” or the “Company”) an emerging manufacturer and distributor of innovative medical devices for the orthopedic and spine marketplace, announced that it has filed its quarterly report on Form 10-Q for the quarter ended September 30, 2021 with the Securities and Exchange Commission (“SEC”) on Wednesday, November 10, 2021. Third Quarter 2021 Financial Highlights Net revenues for the nine months ended September 30, 2021 were $14.35 million, compared to $14.38 million for the nine months ended September 30, 2020, which was a decrease of approximately $29,503. For the nine months ended September 30, 2021, gross profit was $5.9 million, or 59% of revenues, compared to $5.8 million, or 60% of revenues, for the nine months ended September 30, 2020, which was an increase of 2%. Selling, general, administrative, and other expenses (“SG&A”) for the nine months ended September 30, 2021 was approximately $5.01 million compared to $5.02 million for the nine months ended September 30, 2020. Commissions expense for the nine months ended September 30, 2021 decreased to $4.89 million from $5.0 million for the nine months ended September 30, 2020, a decrease of approximately $101,998. For the nine months ended September 30, 2021, net loss was $1.24 million compared to $1.63 for the nine months ended September 30, 2020, reflecting a reduction in our net loss of $391,107 or approximately 24%. “The unexpected emergence of the COVID -19 Delta variant impacted our third quarter results, primarily from restrictions on inpatient elective surgeries in multiple markets we service in the US, as well as surgical cases canceling due to patients testing positive for the COVID -19 virus,” said Christopher C. Reeg, Chief Executive Officer of Fuse Medical, “As the rates for infection, hospitalizations, and deaths from COVID -19 now appear to be on the decline, we are confident that the investment into our product portfolio development and launches of unique and clinically differentiated products in spine, biologics, orthopedics, and the foot and ankle markets will prove to be instrumental in securing our position as an emerging, relevant manufacturer of medical devices.” About Fuse Medical, Inc. Fuse is an emerging manufacturer and distributor of innovative medical devices for the orthopedic and spine marketplace. We provide a comprehensive portfolio of products in the orthopedic total joints, sports medicine, trauma, foot and ankle space, as well as, degenerative and deformity spine, osteobiologics, wound care, and regenerative products. For more information about the Company, or if you’re interested in becoming a distributor of any Fuse’s products, please contact us at info@fusemedical.com or visit: . Forward Looking Statements Certain statements in this press release, constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend,” or similar expressions or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based only on information available to the Company as of the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in the Company’s filings with the Securities and Exchange Commission; the failure of the Company to close the transaction; and integration issues with the consolidated company. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events, or otherwise, except as required by law. FUSE MEDICAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in dollars, except share data) September 30, 2021 December 31, 2020 (Unaudited) Assets Current assets: Cash $ 1,765,282 $ 1,187,458 Accounts receivable, net of allowance of $883,655 and $787,766, respectively 2,459,071 4,427,896 Inventories, net of allowance of $2,591,117 and $3,077,728, respectively 8,567,852 6,981,413 Prepaid expenses and other current assets 66,461 24,203 Total current assets 12,858,666 12,620,970 Property and equipment, net 8,938 17,791 Long term accounts receivable, net of allowance of $3,194,336 and $2,615,834, respectively 2,075,066 1,669,510 Intangible assets, net 1,100,181 1,138,080 Goodwill 1,972,886 1,972,886 Total assets $ 18,015,737 $ 17,419,237 Liabilities and Stockholders' Equity (Accumulated Deficit) Current liabilities: Accounts payable $ 4,408,853 $ 3,236,592 Accrued expenses 3,037,899 2,584,734 Convertible notes payable - related parties 150,000 150,000 Paycheck Protection Program Loan - 361,400 Economic Injury Disaster Loan - short term portion - 2,241 Senior secured revolving credit facility 913,352 913,352 Total current liabilities 8,510,104 7,248,319 Notes payable - related parties 200,000 200,000 Economic Injury Disaster Loan - long term portion 496,345 147,759 Earn-out liability 11,936,000 11,936,000 Total long term liabilities 12,632,345 12,283,759 Total liabilities 21,142,449 19,532,078 Commitments and contingencies — — Stockholders' equity (accumulated deficit) Preferred stock, $0.01 par value; 20,000,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value; 100,000,000 shares authorized, 73,124,458 shares issued and outstanding as of September 30, 2021 and December 31, 2020. 731,245 731,245 Additional paid-in capital 1,406,190 1,184,222 Accumulated deficit (5,264,147 ) (4,028,308 ) Total stockholders' equity (accumulated deficit) (3,126,712 ) (2,112,841 ) Total liabilities and stockholders' equity (accumulated deficit) $ 18,015,737 $ 17,419,237 FUSE MEDICAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in dollars, except share data) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2021 2020 2021 2020 Net revenues $ 4,250,554 $ 5,738,662 $ 14,356,328 $ 14,385,831 Cost of revenues 1,861,620 2,043,722 5,935,093 5,823,281 Gross profit 2,388,934 3,694,940 8,421,235 8,562,550 Operating expenses: Selling, general, administrative and other 1,609,739 2,185,487 5,016,594 5,021,632 Commissions 1,445,689 1,379,385 4,894,845 4,996,843 Depreciation and amortization 14,493 23,312 46,751 84,047 Total operating expenses 3,069,921 3,588,184 9,958,190 10,102,522 Operating loss (680,987 ) 106,756 (1,536,955 ) (1,539,972 ) Other (income) expense: Interest expense 8,578 20,611 47,561 75,633 Gain on Payroll Protection Loan extinguishment 3,934 - (361,400 ) - Total other (income) expense 12,512 20,611 (313,839 ) 75,633 Net loss before tax (693,499 ) 86,145 (1,223,116 ) (1,615,605 ) Income tax benefit 3,537 5,661 12,723 11,341 Net loss $ (697,036 ) $ 80,484 $ (1,235,839 ) $ (1,626,946 ) Net loss per common share - basic $ (0.01 ) $ 0.00 $ (0.02 ) $ (0.02 ) Weighted average number of common shares outstanding - basic 70,221,566 70,221,566 70,221,566 70,221,566 FUSE MEDICAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the Nine Months Ended September 30, 2021 2020 Cash flows from operating activities Net loss $ (1,235,839 ) $ (1,626,946 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 46,752 84,047 Stock based compensation 221,968 428,915 Provision for bad debts and discounts 95,889 186,407 Provision for long term accounts receivable 578,502 763,361 Provision for slow moving inventory (486,611 ) - Gain on Payroll Protection Program Loan extinguishment (361,400 ) - Changes in operating assets and liabilities: Accounts receivable 1,872,936 1,848,177 Inventories (1,099,828 ) 872,971 Prepaid expenses and other current assets (42,258 ) 4,891 Long term accounts receivable (984,058 ) (1,908,403 ) Accounts payable 1,172,261 (409,371 ) Accrued expenses 453,165 219,035 Net cash provided by operating activities 231,479 463,084 Cash flows from investing activities Purchase of property and equipment - (20,757 ) Net cash (used in) investing activities - (20,757 ) Cash flows from financing activities Payments on senior secured revolving credit facility, net - (714,149 ) Proceeds from Paycheck Protection Program - 361,400 Payments from Economic Injury Disaster Loan, net (3,655 ) 200,000 Proceeds on Economic Injury Disaster Loan 350,000 Proceeds from related party promissory notes - 150,000 Net cash provided by (used in) financing activities 346,345 (2,749 ) Net increase (decrease) in cash 577,824 439,578 Cash and cash equivalents - beginning of period 1,187,458 1,099,310 Cash and cash equivalents - end of period $ 1,765,282 $ 1,538,888 Supplemental disclosure of cash flow information: Cash paid for interest $ 32,091 $ 52,188
Organizations
Indications
Targets
-
Drugs
-
Chat with Hiro
Get started for free today!
Accelerate Strategic R&D decision making with Synapse, PatSnap’s AI-powered Connected Innovation Intelligence Platform Built for Life Sciences Professionals.
Start your data trial now!
Synapse data is also accessible to external entities via APIs or data packages. Empower better decisions with the latest in pharmaceutical intelligence.