Medigus Announces Second Quarter Financial Results
OMER, Israel, September 9, 2015 — 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 its fiscal Year 2015 second quarter ended June 30, 2015.
Revenues for the second quarter were NIS 0.3 million (approximately $89,000), a 34% decrease vs. Q2 2014. Research and development expenses were up 13% to NIS 4.2 million vs. Q2 2014. Sales and marketing expenses were NIS 3.1 million, approximately flat compared to the same period in 2014. General and administrative expenses increased by 35% to NIS 2.5 million at end of second quarter compared to the same period in Q2 2014, largely reflecting costs associated with the listing of the company's American Depositary Receipts (ADRs) on the Nasdaq exchange.
“Our focus during the first half of this year has been to complete key operating milestones that will position us for a strong second half of 2015," said Chris Rowland, Chief Executive Officer of Medigus. “In addition to hiring a world class CFO, our strategic investments include hiring a new sales team in the U.S., commencing trade on the Nasdaq through the issuance of ADRs and forming a sales and marketing partnership with China’s leading medical device distributor. Furthermore, the industry has made recent changes with the American Medical Association recently publishing a new Category I CPT code. The new code will take effect January 1st, 2016.”
Net non-operating expenses amounted to NIS 0.2 million, primarily relating to fair-value adjustments of liabilities on account of the warrants issued to investors, which were highly influenced by the Company’s share price at each revaluation date. Net financial expense amounted to NIS 1 million this quarter, which includes banking fees offset by income from bank deposits and losses from exchange rates.
The company’s net loss for second quarter 2015 amounted to NIS 10.8 million (roughly $2.9 million).
As of June 30, 2015, Medigus holds NIS 32.9 million in cash and cash equivalents.
Recent Highlights include:
• The American Medical Association (AMA) published a new Category I Current Procedural Terminology (CPT®) code, 43210, for esophagogastric fundoplasty procedures, which the company expects will allow for reimbursement for procedures performed with its MUSE™ system; the new code will take effect January 1st, 2016
• The company raised funds of NIS 26.8 million (roughly $7.1 million)
• Medigus commenced trading on the Nasdaq in May through ADRs
• The company received advance payment from Shanghai Golden Grand-Medical Instruments Ltd., China’s leading medical device distributor, towards the initial purchase of MUSE systems
• Medigus brought on board industry veterans - Gilad Mamlok as the Chief Financial Officer and Jeremy Starkweather as the VP, Sales & Marketing in the U.S.
Medigus’ plans for the second half of 2015 center on leveraging resources to strengthen commercialization of the MUSE system in the U.S.
For full second quarter financial results, please visit: Latest financial report - Medigus.