Medigus Announces Third Quarter 2016 Financial Results

OMER, Israel, November 28, 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 third quarter ended September 30, 2016.
“This quarter, we have achieved a number of clinical and regulatory milestones in key target markets, further supporting our globally expanding footprint,” said Chris Rowland, CEO of Medigus.
“In addition to making headway in Europe, China, Israel and the U.S. to expand our commercial efforts, we have also made reductions in expenses and infrastructure. We believe our recent
decisions will serve as a foundation upon which we will continue to build our successes in 2017 and beyond.”

Recent Highlights:
· Completion of a registry study in which more than 70 patients have been enrolled in sites over the U.S., Italy and Germany.
· In November, the company entered into distribution agreement with Italy’s INNOVAMEDICA S.p.A, a leading national distributor of minimally-invasive medical devices, which requires
INNOVAMEDICA to purchase mimium annual quantities amounting to 1M+€ over a period of four years.
· The Company met regulatory milestones in China, having received ethics committee approvals in all sites participating in Medigus’ Chinese clinical trial, as part of the CFDA registration
process.
· Medigus received approval for its first clinical study in Israel.
· Recently, Medigus received a patent from the European Patent Office for its micro ScoutCam™ technology; the patent will remain effective until 2030.
Financial Results for the Third Quarter 2016:
· Revenues for the three months ended September 30, 2016, were $136,000, a decrease of 43%, compared to the three months ended September 30, 2015.
· Research and development expenses for the three months ended September 30, 2016, were $708,000, a decrease of 31%, compared to the three months ended September 30, 2015.
· Sales and marketing expenses for the three months ended September 30, 2016, were $349,000, a decrease of 51%, compared to the three months ended September 30, 2015.
· General and administrative expenses for the three months ended September 30, 2016, were $993,000, an increase of 39%, compared to the three months ended September 30, 2015. The
increase resulted primarily from an increase in professional expenses in connection with IP litigation (for more information see note 7a to our financial statements). On October 28, 2016
Medigus Ltd, Medigus USA LLC and EndoChoice Inc. settled all litigation and administrative proceedings between themselves.
· Operating loss for the three months ended September 30, 2016, was $1.9 million, compared to $2.3 million in the three months ended September 30, 2015.
· Net cash used in operating activities was $1.9 million for the three months ended September 30, 2016, compared to net cash used in operating activities of $2.0 million for the corresponding
2015 period.
· As of November 28, 2016, Medigus had approximately $3.1 million in cash and cash equivalents.
For detailed financial statements, please follow the link: http://www.medigus.com/investor-relations/financial-reports.