Motus GI Reports Fourth Quarter and Full Year 2023 Financial Results and Provides Corporate Update
- Successful U.S. commercial launch of Pure-Vu® EVS Gastro and Gen 4 Colon system
- Strategic partnerships sought for commercialization
- Infusion of $2.7M extended cash runway till Q4 2024
- Revenue declined from $109,000 in Q4 2022 to $64,000 in Q4 2023
- Net loss of $2.8 million in Q4 2023
- Cash and cash equivalents of $5.0 million as of December 31, 2023
- Revenue decline from $592,000 in 2022 to $319,000 in 2023
- Net loss of $12.9 million for the year ended December 31, 2023
- Net cash used in operating activities and for fixed assets purchase
- Approximately $2.3 million due and outstanding to Kreos Capital
Insights
The introduction of the Pure-Vu® EVS Gastro and Gen 4 Colon system by Motus GI represents a significant advancement in the field of endoscopic procedures. The system's sleeveless Flex-Channel design, which has been well-received by early adopters, indicates a potential shift in the industry towards more efficient and user-friendly endoscopic equipment. The positive feedback and successful procedures, especially in the high acuity setting of upper GI bleeding, suggest that the system could see increased adoption, which may lead to revenue growth for the company.
Furthermore, the reported financial results show a decrease in net loss from the previous year, which could be indicative of a positive trajectory in cost management and operational efficiency. The infusion of $2.7M in gross proceeds, extending the company's cash runway, provides Motus GI with more time to pursue strategic partnerships and commercialization efforts without immediate financial pressure. This financial breathing room is critical for investors to monitor as it could influence the company's stock performance in the medium term.
From a financial perspective, Motus GI's reported revenue decline from $592,000 in 2022 to $319,000 in 2023 raises concerns about the company's market penetration and sales execution. However, the reduction in net loss and the decrease in cash used for operating activities suggest improved financial discipline. The strategic focus on forming partnerships could be a catalyst for growth and may mitigate the impact of the revenue dip. Investors should consider the potential for these partnerships to unlock new markets and drive future revenue streams.
The issuance of a new patent adds to the company's intellectual property portfolio, potentially increasing its valuation and serving as a deterrent to competitors. This strategic intellectual property management can be a lever for negotiating partnerships and could impact the company's long-term market position. The balance sheet improvements and extended cash runway are positive signals, but the company's ability to convert these into sustainable growth remains to be seen.
The new patent for the 'Colon Cleaning System with Automatic Self-Purging Feature' enhances Motus GI's competitive edge within the medical device sector. The protection of innovative features, such as the use of sensors to detect and purge blockages, is important for maintaining a unique market position and can be leveraged during strategic partnership discussions. For stakeholders, patents are tangible assets that can contribute to a company's valuation. The implications of such intellectual property developments are twofold: they serve to attract potential investors and partners while also providing a moat against competitive pressures. The timing of this patent issuance aligns with the company's current commercial and strategic initiatives, potentially increasing the attractiveness of Motus GI to collaborators and investors alike.
- Initiated limited U.S. commercial launch of the Pure-Vu® EVS Gastro and Gen 4 Colon system, including successful UGI procedures at several leading hospital systems
- The Company is engaged in the process to seek strategic partnerships aimed at accelerating commercialization of the Pure-Vu System and maximizing stockholder value
- Recent exercise of certain outstanding warrants provided infusion of
$2.7M in gross proceeds to the Company, which extended its cash runway into the fourth quarter of 2024
FORT LAUDERDALE, Fla., March 18, 2024 (GLOBE NEWSWIRE) -- Motus GI Holdings, Inc., (NASDAQ: MOTS) (“Motus GI” or the “Company”), a medical technology company focused on improving endoscopic outcomes and experiences, today reported its financial results for the fourth quarter and year ended December 31, 2023, and provided a corporate update.
“During the past year, we achieved several key milestones that we believe strengthen our position operationally and subsequently initiated a limited U.S. commercial launch of the Pure-Vu® EVS Gastro and Gen 4 Colon system. The new indication for the Upper GI space, along with several technological advancements in both devices are expected to strengthen our ability to penetrate the endoscopy market,” commented Mark Pomeranz, Chief Executive Officer. “We believe the EVS Gastro system opens up significant new market opportunities for our technology, especially in the emergent setting of upper GI bleeding. We have already seen positive results in this high acuity population. Following its initial launch, we received positive feedback on these latest devices in terms of easy of setup and better handling with our Flex Channel technology that has no oversleeve in both the upper and lower GI tract. We are in the process of moving existing accounts over to these new devices, which is expected to be completed by end of the first quarter of 2024 and will move on to targeting new accounts in the second quarter.”
“Over the last six months, we have been able to improve our balance sheet by reducing our debt, eliminating a historical royalty commitment and receiving an infusion of capital. We believe our ability to achieve all these milestones over the past year has created significant value in our business and put us in a strong position to seek strategic partnerships,” concluded Mr. Pomeranz.
Fourth Quarter and Recent Business Highlights
- Initiated over the last quarter, a limited U.S. commercial launch of the Pure-Vu® EVS Gastro and Gen 4 Colon system. This initial phase of the rollout is targeting existing customers, which is currently on track to be completed by end of the first quarter of 2024. The new device, which features a sleeveless Flex-Channel design, has been well received by early-adopters, who have commented on the system’s improved handling and easy setup. The Company also received positive feedback from customers using the EVS Gastro with patients presenting with a UGI bleed. Also, the system has been used successfully removed stomach contents to support therapeutic upper GI treatments that typically would have otherwise been canceled due to poor visualization.
- The Company announced positive data from an international, multicenter colonoscopy study that evaluated if an adequate level of bowel cleansing could be achieved with the Pure-Vu System in patients with previous poor bowel preparation (Boston Bowel Preparation Scale (BBPS)<6). Results from the study met the primary endpoint, showing a median BBPS increase from 1-2-2 (IQR 1–2) to 3-3-3 (IQR) (p < 0.0001), with
31.8% and88.6% of patients adequately prepared before and after using the Pure-Vu System, respectively (p < 0.0001). The study also met its key secondary endpoints and no serious adverse events occurred. These data were published in a manuscript titled, “An intraprocedural bowel cleansing system for difficult-to-prepare patients—A multicenter prospective feasibility study,” in the peer-reviewed journal, United European Gastroenterology (UGE). - In February 2024, the United States Patent and Trademark Office (USPTO) issued the Company a new patent (patent # 11904085) titled, “Colon Cleaning System with Automatic Self-Purging Feature.” The new patent covers systems and methods for cleaning a colon or other portion of the GI tract include optional use of sensors to detect conditions of blockage of flow of materials within an evacuation channel used to remove debris from the body; and devices and methods for purging such blockages from the evacuation channel. This latest patent application is a continuation of U.S. patent applications Ser. No. 16/389,955 filed on April 21, 2019.
- The Company continues its process to seek strategic partnerships aimed at accelerating commercialization of the Pure-Vu System and maximizing stockholder value.
Financial Results for the Quarter and Year Ended December 31, 2023
The Company reported revenue of
For the three months ended December 31, 2023, the Company reported a net loss attributable to common shareholders of
For the year ended December 31, 2023, the Company reported a net loss attributable to common shareholders of
During the fourth quarter 2023, net cash used in operating activities and for the purchase of fixed assets was
Net cash used in operating activities and for the purchase of fixed assets during the year ended December 31, 2023 totaled
The Company reported
About Motus GI
Motus GI Holdings, Inc. is a medical technology company, with subsidiaries in the U.S. and Israel, providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions.
For more information, visit www.motusgi.com and connect with the Company on Twitter, LinkedIn and Facebook.
Forward-Looking Statements
This press release contains certain forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms, including without limitation, risks related to the continued impact of the COVID-19 pandemic, risks inherent in the development and commercialization of potential products, possible or assumed future results of operations, business strategies, potential grow opportunities, uncertainty in the timing and results of clinical trials or regulatory approvals, maintenance of intellectual property rights or other risks discussed in the Company’s quarterly and annual reports filed with the Securities and Exchange Commission, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Investor Contact:
Troy Williams
LifeSci Advisors
(518) 221-0106
twilliams@lifesciadvisors.com
| Motus GI Holdings, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited, in thousands, except share and per share amounts) | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,958 | $ | 14,042 | ||||
| Accounts receivable | 76 | 59 | ||||||
| Inventory, current | 245 | 488 | ||||||
| Prepaid expenses and other current assets | 478 | 781 | ||||||
| Total current assets | 5,757 | 15,370 | ||||||
| Fixed assets, net | 992 | 1,325 | ||||||
| Inventory, non-current | 251 | 511 | ||||||
| Right-of-use assets | 210 | 428 | ||||||
| Other non-current assets | 13 | 13 | ||||||
| Total assets | $ | 7,223 | $ | 17,647 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 1,842 | $ | 1,969 | ||||
| Operating lease liabilities - current | 169 | 245 | ||||||
| Other current liabilities | 226 | 53 | ||||||
| Current portion of long-term debt, net of unamortized debt discount of | 1,033 | 2,532 | ||||||
| Total current liabilities | 3,270 | 4,799 | ||||||
| Contingent royalty obligation | - | 1,212 | ||||||
| Operating lease liabilities - non-current | 27 | 178 | ||||||
| Convertible note, net of unamortized debt discount of | - | 3,892 | ||||||
| Long-term debt, net of unamortized debt discount of | 1,239 | 4,589 | ||||||
| Total liabilities | 4,536 | 14,670 | ||||||
| Commitments and contingent liabilities (Note 9) | ||||||||
| Shareholders’ equity | ||||||||
| Preferred stock | - | - | ||||||
| Common stock | - | - | ||||||
| Additional paid-in capital | 156,905 | 144,328 | ||||||
| Accumulated deficit | (154,218 | ) | (141,351 | ) | ||||
| Total shareholders’ equity | 2,687 | 2,977 | ||||||
| Total liabilities and shareholders’ equity | $ | 7,223 | $ | 17,647 | ||||
| Motus GI Holdings, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Loss (Unaudited, in thousands, except share and per share amounts) | ||||||||||||||||
| Three Months Ended December 31, | Twelve months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | $ | 64 | $ | 109 | $ | 319 | $ | 592 | ||||||||
| Operating expenses: | ||||||||||||||||
| Cost of revenue - sales | 19 | 32 | 81 | 198 | ||||||||||||
| Cost of revenue - impairment of inventory | 267 | 439 | 488 | 598 | ||||||||||||
| Research and development | 561 | 1,350 | 3,467 | 5,611 | ||||||||||||
| Sales and marketing | 244 | 871 | 1,611 | 4,425 | ||||||||||||
| General and administrative | 1,445 | 1,444 | 6,579 | 7,611 | ||||||||||||
| Total costs and expenses | 2,536 | 4,136 | 12,226 | 18,443 | ||||||||||||
| Operating loss | (2,472 | ) | (4,027 | ) | (11,907 | ) | (17,851 | ) | ||||||||
| Gain on change in estimated fair value of contingent royalty obligation | - | 577 | 103 | 548 | ||||||||||||
| Loss on extinguishment of debt | (284 | ) | - | (284 | ) | - | ||||||||||
| Finance expense, net | (54 | ) | (251 | ) | (761 | ) | (1,252 | ) | ||||||||
| Foreign currency gain (loss) | 5 | 19 | (18 | ) | (42 | ) | ||||||||||
| Net loss | $ | (2,805 | ) | $ | (3,682 | ) | $ | (12,867 | ) | $ | (18,597 | ) | ||||
| Basic and diluted loss per common share: | $ | (4.48 | ) | $ | (11.89 | ) | $ | (15.89 | ) | $ | (86.15 | ) | ||||
| Weighted average number of common shares outstanding, basic and diluted | 626,313 | 309,788 | 809,506 | 215,863 | ||||||||||||
FAQ
What is the ticker symbol for Motus GI Holdings, Inc.?
What recent commercial launch did Motus GI Holdings, Inc. initiate?
What was the revenue for the fourth quarter of 2023 for Motus GI Holdings, Inc.?
What was the net loss attributable to common shareholders for the year ended December 31, 2023?
What is the cash and cash equivalents balance as of December 31, 2023, for Motus GI Holdings, Inc.?
