Acutus Medical Announces Operational Downsizing
Acutus Medical (NASDAQ: AFIB) announced a significant operational downsizing, reducing its workforce by approximately 70%. The company will scale down operations to focus solely on manufacturing and distributing left-heart access products for Medtronic, as per their Asset Purchase Agreement and Distribution Agreement from 2022.
The restructuring will incur $1.4-1.8 million in pre-tax charges, including $0.3 million for severance, $1.2 million for retention bonuses, and up to $0.3 million for contract closing costs. Most expenses are expected in Q1 2025. As of September 30, 2024, Acutus had $12.6 million in cash and equivalents. The company will continue receiving revenue from Medtronic product sales and earnout payments until January 2027.
Acutus Medical (NASDAQ: AFIB) ha annunciato una significativa riduzione operativa, diminuendo la propria forza lavoro di circa 70%. L'azienda ridurrà le operazioni per concentrarsi esclusivamente sulla produzione e distribuzione di prodotti per l'accesso al cuore sinistro per Medtronic, in base al loro Accordo di Acquisto di Attivi e Accordo di Distribuzione del 2022.
La ristrutturazione comporterà $1,4-1,8 milioni in costi pre-tasse, inclusi $0,3 milioni per indennità di licenziamento, $1,2 milioni per bonus di retention e fino a $0,3 milioni per costi di chiusura dei contratti. La maggior parte delle spese è prevista nel primo trimestre del 2025. Al 30 settembre 2024, Acutus aveva $12,6 milioni in contante e equivalenti. L'azienda continuerà a ricevere entrate dalle vendite dei prodotti Medtronic e pagamenti da earnout fino a gennaio 2027.
Acutus Medical (NASDAQ: AFIB) anunció una reducción operativa significativa, disminuyendo su fuerza laboral en aproximadamente 70%. La compañía reducirá las operaciones para centrarse exclusivamente en la fabricación y distribución de productos de acceso al corazón izquierdo para Medtronic, según su Acuerdo de Compra de Activos y Acuerdo de Distribución de 2022.
La reestructuración incurrirá en $1.4-1.8 millones en cargos antes de impuestos, incluyendo $0.3 millones por indemnización por despido, $1.2 millones por bonos de retención y hasta $0.3 millones por costos de cierre de contratos. Se espera que la mayoría de los gastos ocurra en el primer trimestre de 2025. Al 30 de septiembre de 2024, Acutus tenía $12.6 millones en efectivo y equivalentes. La compañía continuará recibiendo ingresos por las ventas de productos de Medtronic y pagos por earnout hasta enero de 2027.
아큐투스 메디컬 (NASDAQ: AFIB)이 약 70%의 인력 감축을 발표했습니다. 이 회사는 2022년 자산 구매 계약 및 배급 계약에 따라 메드트로닉의 좌심실 접근 제품의 제조 및 유통에만 집중하기 위해 운영을 축소할 것입니다.
이번 구조조정으로 $1.4-1.8 백만의 세전 비용이 발생하며, 이에는 퇴직금으로 $0.3 백만, 유지 보수 보너스로 $1.2 백만, 계약 종료 비용으로 최대 $0.3 백만이 포함됩니다. 대부분의 비용은 2025년 1분기에 발생할 것으로 예상됩니다. 2024년 9월 30일 기준으로 아큐투스는 $12.6 백만의 현금 및 현금성 자산을 보유하고 있었습니다. 이 회사는 2027년 1월까지 메드트로닉 제품 판매 및 추가 수익으로부터 계속 수익을 받을 것입니다.
Acutus Medical (NASDAQ: AFIB) a annoncé une réduction opérationnelle significative, réduisant sa main-d'œuvre d'environ 70%. L'entreprise va réduire ses opérations pour se concentrer exclusivement sur la fabrication et la distribution de produits d'accès au cœur gauche pour Medtronic, conformément à leur Accord d'Achat d'Actifs et à leur Accord de Distribution de 2022.
La restructuration entraînera des charges imposables de $1,4-1,8 million, incluant $0,3 million pour les indemnités de licenciement, $1,2 million pour les primes de fidélité et jusqu'à $0,3 million pour les coûts de clôture de contrats. La plupart des dépenses sont prévues pour le premier trimestre de 2025. Au 30 septembre 2024, Acutus avait $12,6 millions en espèces et équivalents. L'entreprise continuera à percevoir des revenus des ventes de produits Medtronic et des paiements échelonnés jusqu'en janvier 2027.
Acutus Medical (NASDAQ: AFIB) hat eine signifikante betriebliche Reduzierung angekündigt und die Belegschaft um etwa 70% verringert. Das Unternehmen wird die Aktivitäten verringern, um sich ausschließlich auf die Herstellung und den Vertrieb von Produkten für den Zugang zum linken Herzen für Medtronic zu konzentrieren, gemäß ihrem Vertrag über den Kauf von Vermögenswerten und dem Vertriebsvertrag aus dem Jahr 2022.
Die Umstrukturierung wird $1,4-1,8 Millionen an Aufwendungen vor Steuern verursachen, einschließlich $0,3 Millionen für Abfindungen, $1,2 Millionen für Treueboni und bis zu $0,3 Millionen für Vertragsabschlusskosten. Die meisten Ausgaben werden im ersten Quartal 2025 erwartet. Zum 30. September 2024 hatte Acutus $12,6 Millionen in bar und Baräquivalenten. Das Unternehmen wird bis Januar 2027 weiterhin Einnahmen aus dem Verkauf von Medtronic-Produkten und Earnout-Zahlungen erhalten.
- Company expects current cash, distribution revenue, and future earnouts will be sufficient to service debt and fund remaining business
- Restructuring expected to meaningfully reduce cash burn and operating expenses
- Continues to receive earnout payments from Medtronic through January 2027
- 70% workforce reduction
- $1.4-1.8 million in restructuring charges
- Business operations significantly scaled down to only support Medtronic contract manufacturing
- Revenue source to only left-heart access products sales to Medtronic
CARLSBAD, Calif., Dec. 04, 2024 (GLOBE NEWSWIRE) -- Acutus Medical, Inc. (“Acutus” or the “Company”) (Nasdaq: AFIB), today announced a realignment of resources and operational downsizing.
Dr. Shaden Marzouk, Chairperson of the Board of Directors of Acutus, commented, “Following an extensive strategic review by the Company’s Board of Directors, we are taking the hard but necessary steps to reduce the size of our organization while complying with our remaining obligations to Medtronic for the production of left-heart access products.”
Takeo Mukai, CEO & CFO of Acutus, added, “The operational downsizing impacts our team, and it is difficult to part with our valued and highly talented colleagues who have made substantial contributions to our Company. I want to thank each one of them for their dedication to Acutus and our mission.”
Operational Downsizing
The Company will reduce operations to a scale designed solely to support the manufacturing and distribution of Medtronic’s left-heart access products through the transition of the production of these products to Medtronic pursuant to the terms of the Company’s Asset Purchase Agreement (the “Asset Purchase Agreement”) entered into with Medtronic in April 2022 and Distribution Agreement (the “Distribution Agreement”) entered into with Medtronic in June 2022.
Acutus has begun implementation of an operational downsizing to reduce resources supporting the left-heart access manufacturing and distribution business to the scale needed to meet its obligations to Medtronic, which will result in a reduction of the Company’s workforce by approximately
Acutus will continue contract manufacturing for Medtronic until it has fulfilled its obligations under the Asset Purchase Agreement and Distribution Agreement with Medtronic.
Financial Impact
The Company estimates it will incur approximately
The Company’s exclusive source of revenue will continue to come from the sale of left-heart access products at transfer prices specified in the Distribution Agreement with Medtronic and any fee-bearing transition services. The Company’s operating expenses and working capital will be utilized to support manufacturing, quality, and supply chain related activities as well as general and administrative functions. The Company expects to continue to minimize costs while capturing the value associated with potential earnout payments from Medtronic under the Asset Purchase Agreement with Medtronic for Medtronic’s sales of its left-heart access products.
Under the Asset Purchase Agreement with Medtronic, the Company has recorded net sales earnouts from January 30, 2023 through July 26, 2024, based on Medtronic’s sale of the left-heart access products Medtronic acquired from the Company pursuant to the Asset Purchase Agreement. The Company is eligible to receive additional net-sales earnouts from Medtronic based on a percentage of Medtronic’s total net end-user sales of these products for the remainder of the earn-out period, which is for a period of up to four years that ends in January 2027. The annual measurement period for net sales earnouts begins in February of each year, and such earnout payments, which began in April 2024, are made quarterly in arrears to the extent earned.
As of September 30, 2024, the Company had
WARN Act
The WARN Act requires employers to provide sixty days advance notice to employees and certain government entities before conducting any mass layoff, relocation, or termination that affects more than fifty full-time employees and equivalents. The Company has notified affected employees and required government authorities.
About Acutus Medical
Acutus is focused on the production of left-heart access products under its Distribution Agreement with Medtronic, Inc. and maximizing potential net sales earnouts from Medtronic under its Asset Purchase Agreement with Medtronic. Founded in 2011, Acutus is based in Carlsbad, California.
Caution Regarding Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements, usually containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company’s ability to continue to manage expenses and cash burn rate at sustainable levels, the risk that the Company may not be able to implement the downsizing as currently anticipated or within the timing currently anticipated; the impact of the workforce reduction on the Company’s reduced left-heart access manufacturing and distribution business; the possibility that executives or other employees may resign or be terminated; unexpected costs, charges or expenses that reduce the Company’s capital resources; the Company’s ability to continue to pay its obligations in the ordinary course of business as they come due; unanticipated difficulties in terminating certain contracts and arrangements; the risk that the Company may not be able to effectuate the transition of production of left heart access products to Medtronic pursuant to the terms of the Asset Purchase Agreement with Medtronic as currently anticipated or within the timing currently anticipated, and other risks discussed in the Company’s periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, Acutus undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
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Investor Contact:
Chad Hollister
Acutus Medical, Inc.
investors@acutus.com
FAQ
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