- Posted by Dextera MIS
- On August 15, 2017
REDWOOD CITY, Calif. – August 8, 2017 – Dextera Surgical Inc today announced financial results for its fiscal fourth quarter and full year ended June 30, 2017. Management will hold a conference call at 4:30 p.m. Eastern Time to discuss financial results and provide an update on the company’s business.
“We have identified and addressed the cause for the premature lock out of the MicroCutter 5/80 surgical stapler announced on July 6th, and after extensive in-house testing of the modification, we resumed shipping to our customers,” said Julian Nikolchev, president and CEO of Dextera Surgical Inc. “Simultaneously, after appropriate testing, we have implemented production changes for the reloads, allowing us to resume shipping, with expectations of fulfilling all backorders before the end of the quarter. We are excited to have the MicroCutter 5/80 back in the hands of surgeons to help enable less invasive surgical procedures.”
Recent Highlights and Accomplishments:
- Implemented a solution for the premature lockout of the MicroCutter 5/80 Stapler and resumed shipping the stapler.
- Implemented product changes for the reloads and shipped reloads to customers, eliminating a significant portion of the backorder.
- Completed an underwritten public equity offering of 8,000 shares of the company’s Series B convertible preferred stock and related
warrants resulting in net proceeds to Dextera Surgical of $6.7 million.
- The MicroCutter 5/80 was highlighted for its ability to help enable less invasive video-assisted thoracic surgery (VATS) in three
sessions during the 25th European Conference on General Thoracic Surgery (ESTS).
- Filed a 510(k) with the U.S. Food and Drug Administration to expand the indications for use of the MicroCutter 5/80 to include
liver, pancreas, kidney and spleen surgery.
- The roles of the MicroCutter 5/80 and Dextera’s C-Port® Distal and PAS-Port® Proximal Anastomosis Systems were highlighted in a
variety of less invasive surgical procedures at the 14th Annual International Society for Minimally Invasive Cardiothoracic Surgery
(ISMICS) meeting in Rome, Italy.
Fiscal 2017 Fourth Quarter Financial Results
Total product sales were approximately $1.0 million for the fiscal 2017 fourth quarter compared with $0.7 million for the same quarter of fiscal 2016. MicroCutter sales were approximately $359,000 in the fiscal 2017 fourth quarter with $75,000 in backorders compared to $516,000 of sales in the third quarter of fiscal 2017. The sequential decrease in MicroCutter product sales is due to a backorder for the blue reload cartridges for a portion of the fourth quarter and a shipping hold at the end of the fourth quarter of fiscal 2017. Total revenue was approximately $1.1 million for the fiscal 2017 fourth quarter compared with approximately $0.7 million for the fiscal 2016 fourth quarter.
Total operating costs and expenses for the fiscal 2017 fourth quarter were $4.0 million, compared with $4.8 million for the same period of fiscal 2016. Cost of product sales was approximately $1.0 million for the fourth quarter of fiscal 2017 compared with $1.1 million for the same period of 2016. Research and development expenses were $1.4 million for the fiscal 2017 fourth quarter, compared with $1.5 million for the fiscal 2016 fourth quarter. Selling, general and administrative expenses were $1.5 million for the fiscal 2017 fourth quarter compared with $2.2 million for the comparable period of fiscal 2016. Total Operating cost and expenses in the fourth quarter included a reversal of accrued incentive compensation expense of approximately $0.5 million.
The net loss for the fiscal 2017 fourth quarter before the deemed preferred stock dividend was approximately $3.1 million. Additionally, net loss applicable to common stockholders included a deemed (non-cash) preferred stock dividend of $4.0 million, representing the value of beneficial conversion rights embedded in the preferred shares issued in the company’s recently completed convertible preferred stock public offering. This amount was determined as the difference between fair value of common stock into which preferred shares are convertible and the proceeds of the financing allocated to the preferred shares. The total net loss attributable to common stockholders for the fiscal 2017 fourth quarter was $7.0 million, or $0.40 per share. Net loss attributable to common stockholders for the fiscal 2016 fourth quarter was approximately $4.2 million, or $0.47 per share.
Cash, cash equivalents and investments, as of June 30, 2017, were approximately $6.0 million, compared with approximately $2.5 million at March 31, 2017. This includes $6.7 million in net proceeds raised through a public equity offering in May 2017. As of June 30, 2017, there were approximately 40.3 million shares of common stock outstanding, which includes the conversion of all previously outstanding Series A convertible preferred stock and all but 273 shares of the Series B convertible preferred stock.
Management’s key objectives in the near term are as follows:
- Execute a strategic partnership with B. Braun by the end of the third quarter of calendar year 2017;
- Continue optimizing supply chain and establish production capacity of 120 MicroCutters per week by the end of the calendar year 2017;
- Complete enrollment of patients in the MATCH Registry Trial by the end of the third quarter of calendar 2017;
- Expand MicroCutter 5/80 indication for use in the U.S. to include liver, pancreas, kidney and spleen surgery by the end of calendar year 2017;
- Demonstrate success in Spain with the B. Braun collaboration throughout calendar year 2017;
- Continue advancement of co-development project with Intuitive Surgical to develop new robotic stapler based on MicroCutter technology
- Evaluate and execute initiatives to reduce cost structure and improve long-term gross margins