Second Quarter 2023 Financial Highlights
- Net revenues for the quarter ended
June 30, 2023 were $5.0 million, compared to $4.7 million for the quarter endedJune 30, 2022 , which was an increase of approximately 7%. - For the quarter ended
June 30, 2023 , gross profit was$3.5 million , or 69% of revenues, compared to$2.6 million , or 57% of revenues, for the quarter endedJune 30, 2022 , which was an increase of 31%. - Selling, general, administrative, and other expenses (“SG&A”) for the quarter ended
June 30, 2023 was approximately$1.6 million compared to$1.4 million for the quarter endedJune 30, 2022 . - Commissions expense for the quarter ended
June 30, 2023 decreased to$1.4 million from$1.5 million for the quarter endedJune 30, 2022 , a decrease of approximately$14,702 . - For the quarter ended
June 30, 2023 , net income was $307,588 compared to a loss of$322,936 for the quarter endedJune 30, 2022 , reflecting an increase in net income of$630,524 . - For the quarter ended
June 30, 2023 , EBITDA was $401,574 compared to an EBITDA loss of$246,834 for the quarter endedJune 30, 2022 , reflecting an increase in EBITDA income of$648,408 .
About
Fuse is an emerging manufacturer and distributor of innovative medical devices for the orthopedic and spine marketplace. We provide a comprehensive portfolio of products in the orthopedic total joints, sports medicine, trauma, foot and ankle space, as well as, degenerative and deformity spine, osteobiologics, wound care, and regenerative products. For more information about the Company, or if you’re interested in becoming a distributor of any Fuse’s products, please contact us at info@fusemedical.com or visit: www.fusemedical.com.
Forward Looking Statements
Certain statements in this press release, constitute “forward-looking statements” within the meaning of the federal securities laws. Words such as “may,” “might,” “will,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “continue,” “predict,” “forecast,” “project,” “plan,” “intend,” or similar expressions or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based only on information available to the Company as of the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in the Company’s filings with the
Note Regarding Use of Non-GAAP Financial Measurements:
The financial data contained in this press release includes certain non-GAAP financial measures as defined by the
However, EBITDA is not a measure of financial performance under generally accepted accounting principles in
- EBITDA does not reflect the Company's interest expense;
- EBITDA does not reflect the Company's tax expense or the cash requirements to pay its taxes; and
- Although depreciation and amortization are non-cash expenses in the period recorded, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect the cash requirements for such replacement.
The Company compensates for these limitations by relying primarily on its GAAP financial measures and by using EBITDA only as supplemental information. The Company believes that consideration of EBITDA, together with a careful review of its GAAP financial measures, is the most informed method of analyzing
The Company reconciles EBITDA to net income, and that reconciliation is set forth below. Because EBITDA is not a measurement determined in accordance with GAAP and is susceptible to varying calculations, EBITDA, as presented, may not be comparable to other similarly titled measures of other companies. Revenues and expenses are measured in accordance with the policies and procedures described in the Company's Annual Report on Form 10-K for the year ended
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(in dollars, except share data) | ||||||||
2023 | 2022 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 253,378 | $ | 147,854 | ||||
Accounts receivable, net of allowance of | 3,433,900 | 3,996,860 | ||||||
Inventories, net of allowance of | 9,026,923 | 9,494,506 | ||||||
Prepaid expenses and other current assets | 104,363 | 126,022 | ||||||
Total current assets | 12,818,564 | 13,765,242 | ||||||
Property and equipment, net | - | 709 | ||||||
Long term accounts receivable, net of allowance of | 3,401,297 | 2,832,764 | ||||||
Intangible assets, net | 1,125,549 | 1,190,980 | ||||||
1,972,886 | 1,972,886 | |||||||
Total assets | $ | 19,318,296 | $ | 19,762,581 | ||||
Liabilities and Stockholders' Equity (Accumulated Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,238,209 | $ | 5,700,236 | ||||
Accrued expenses | 5,605,104 | 4,540,366 | ||||||
Notes payable - related parties | 350,000 | 150,000 | ||||||
Senior secured revolving credit facility | 1,870,912 | 1,997,135 | ||||||
Total current liabilities | 12,064,225 | 12,387,737 | ||||||
Notes payable - related parties | - | 200,000 | ||||||
Earn-out liability | 7,485,698 | 7,485,698 | ||||||
Total liabilities | 19,549,923 | 20,073,435 | ||||||
Commitments and contingencies | - | - | ||||||
Stockholders' equity (accumulated deficit) | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 738,958 | 738,958 | ||||||
Additional paid-in capital | 1,468,274 | 1,468,274 | ||||||
Accumulated deficit | (2,438,859 | ) | (2,518,086 | ) | ||||
Total stockholders' equity (accumulated deficit) | (231,627 | ) | (310,854 | ) | ||||
Total liabilities and stockholders' equity (accumulated deficit) | $ | 19,318,296 | $ | 19,762,581 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(unaudited) | ||||||||||||||||
(in dollars, except share data) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
2023 | 2022 Revised | 2023 | 2022 Revised | |||||||||||||
Net revenues | $ | 4,997,212 | $ | 4,668,290 | $ | 8,981,667 | $ | 9,222,628 | ||||||||
Cost of revenues | 1,528,321 | 2,028,497 | 2,696,723 | 3,771,806 | ||||||||||||
Gross profit | 3,468,891 | 2,639,793 | 6,284,944 | 5,450,822 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general, administrative and other | 1,618,160 | 1,422,768 | 3,324,487 | 3,132,309 | ||||||||||||
Commissions | 1,449,157 | 1,463,859 | 2,691,034 | 2,969,530 | ||||||||||||
Depreciation and amortization | 32,715 | 34,404 | 66,140 | 68,806 | ||||||||||||
Total operating expenses | 3,100,032 | 2,921,031 | 6,081,661 | 6,170,645 | ||||||||||||
Operating (loss) profit | 368,859 | (281,238 | ) | 203,283 | (719,823 | ) | ||||||||||
Other (income) expense: | ||||||||||||||||
Interest expense | 54,024 | 36,527 | 111,217 | 69,485 | ||||||||||||
Total other (income) expense | 54,024 | 36,527 | 111,217 | 69,485 | ||||||||||||
Net income (loss) before income tax | 314,835 | (317,765 | ) | 92,066 | (789,308 | ) | ||||||||||
Income tax expense | 7,247 | 5,171 | 12,839 | 10,027 | ||||||||||||
Net income (loss) | $ | 307,588 | $ | (322,936 | ) | $ | 79,227 | $ | (799,335 | ) | ||||||
Net income (loss) per common share - basic and diluted | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | $ | (0.01 | ) | ||||||
Weighted average number of common shares outstanding - basic | 70,321,566 | 70,321,566 | 70,321,566 | 70,321,566 | ||||||||||||
Weighted average number of common shares outstanding - diluted | 75,976,582 | 70,321,566 | 75,976,582 | 70,321,566 |
Supplemental Non-GAAP Disclosure | |||||||||||||||
EBITDA | |||||||||||||||
(unaudited) | |||||||||||||||
Three Months Ended | For the Six Months Ended | ||||||||||||||
2023 | 2022 Revised | 2023 | 2022 Revised | ||||||||||||
Net income (loss) | $ | 307,588 | $ | (322,936 | ) | $ | 79,227 | $ | (799,335 | ) | |||||
Add (Deduct): | |||||||||||||||
Income tax expense (benefit) | 7,247 | 5,171 | 12,839 | 10,027 | |||||||||||
Interest expense | 54,024 | 36,527 | 111,217 | 69,485 | |||||||||||
Depreciation and amortization | 32,715 | 14,493 | 66,140 | 68,806 | |||||||||||
EBITDA | $ | 401,574 | $ | (266,745 | ) | $ | 269,423 | $ | (651,017 | ) | |||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(unaudited) | ||||||||
For the Six Months Ended | ||||||||
2023 | 2022 Revised | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 79,227 | $ | (799,335 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 66,140 | 68,806 | ||||||
Stock based compensation | - | 16,946 | ||||||
Provision for bad debts and discounts | (89,703 | ) | (102,595 | ) | ||||
Provision for long term accounts receivable | 841,975 | 402,200 | ||||||
Provision for slow moving inventory | (256,752 | ) | (94,595 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 652,663 | 666,843 | ||||||
Inventories | 724,335 | (526,213 | ) | |||||
Prepaid expenses and other current assets | 21,659 | (89,410 | ) | |||||
Long term accounts receivable | (1,410,508 | ) | (670,332 | ) | ||||
Accounts payable | (1,462,027 | ) | 320,071 | |||||
Accrued expenses | 1,064,738 | 1,055,519 | ||||||
Net cash provided by operating activities | 231,747 | 247,905 | ||||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | - | - | ||||||
Net cash (used in) investing activities | - | - | ||||||
Cash flows from financing activities | ||||||||
Net payments on senior secured revolving credit facility | (126,223 | ) | (197,099 | ) | ||||
Net cash (used in) financing activities | (126,223 | ) | (197,099 | ) | ||||
Net increase (decrease) in cash | 105,524 | 50,806 | ||||||
Cash and cash equivalents - beginning of period | 147,854 | 553,190 | ||||||
Cash and cash equivalents - end of period | $ | 253,378 | $ | 603,996 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid for interest | $ | 92,833 | $ | 50,796 | ||||
Contact:
Attention:
Office (469) 862-3030
Facsimile (469) 862-3035
info@Fusemedical.com
Source:
2023 GlobeNewswire, Inc., source