Medigus Announces First Quarter 2016 Financial Results
OMER, Israel, May 31, 2016 — Medigus Ltd. (NASDAQ: MDGS) (TASE: MDGS), a medical device company developing minimally invasive endosurgical tools and a leader in direct visualization technology, today announced financial results for the first quarter ended March 31, 2016.
“In the first quarter of 2016, Medigus continued to execute on its goal of increasing the number of transoral fundoplication procedures conducted with our flagship device, the Medigus Ultrasonic Surgical Endostapler, or MUSE system. We are pleased with our progress so far this year and are on track to achieve our goal of expanding our commercial footprint in both the U.S. and Europe,” said Chris Rowland, CEO of Medigus.
• In January, the company received a commercial order from one of Israel’s leading industrial companies for a customized version of its micro ScoutCam™ technology.
• In February, Medigus further progressed on its plan to drive the commercial availability of MUSE™ in China by receiving the initial purchase order from Shanghai Golden Grand-Medical Instruments Ltd. towards purchase of system components for use in an upcoming clinical trial in China.
• Earlier this year, Medigus announced that more than 200 transoral fundoplication procedures using the MUSE system have been completed since the product’s introduction.
• New clinical data presented last week at Digestive Disease Week (DDW®) concluded that Ultrasound Assisted Endoscopic Full Thickness Fundoplasty (EFTF) with MUSE™ is a safe and promising alternative to surgical fundoplication for treatment of GERD. The poster presentation, entitled Ultrasonic Assisted Endoscopic Full Thickness Fundoplasty, Single Center Experience in the First 14 U.S. Patients, was presented by Dr. Ali Lankarani, Board member of the Advanced Therapeutic Endoscopy Center (ATEC) at the Borland-Groover Clinic.
Financial Results for the First Quarter Ended March 31, 2016:
• Revenues for the three months ended March 31, 2016, were $262,000, a 274% increase compared to the three months ended March 31, 2015. The increase was primarily due to development services provided to third party companies.
• Research and development expenses for the three months ended March 31, 2016, were $1.2 million, an increase of 31%, compared to the three months ended March 31, 2015. The increase was due to the acquisition of materials and services for training and registry activities, and the recruitment of additional human resources.
• Sales and marketing expenses for the three months ended March 31, 2016, were $748,000, an increase of 71% compared to the three months ended March 31, 2015, mainly due to an increase in recruitment costs for additional human resources in the U.S.
• General and administrative expenses for the three months ended March 31, 2016, were $1.1 million compared to $600,000 million in the three months ended March 31, 2015. The increase was due to an increase in professional expenses in connection with IP litigation, as well as an increase in salary costs attributed to the recruitment of additional human resources.
• Operating loss for the three months ended March 31, 2016, were $2.9 million compared to $1.9 million in the three months ended March 31, 2015.
• Medigus had $7.5 million in cash and cash equivalents as of March 31, 2016.
• Net cash used in operating activities was $2.9 million for the three months ended March 31, 2016, compared to net cash generated from operating activities of $300,000 million for the corresponding 2015 period. The increase was primarily the result of sales of tradeable securities ("financial assets at fair value through profit or loss") of approximately $2.1 million in the first quarter of 2015 compared to no tradeable securities sales in the first quarter of 2016.
For detailed financial statements, please follow the link: http://www.medigus.com/investor-relations/financial-reports.