| ITAMAR MEDICAL LTD. | |
|
By:
/s/ Shy Basson
Shy Basson
Chief Financial Officer |
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Page
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Interim Unaudited Consolidated Financial Statements as of September 30, 2020 and for the Three and Nine Months Ended September 30, 2020 and 2019
|
| | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| | |
September 30,
2020 |
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December 31,
2019 |
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| | |
U.S. dollars in thousands
|
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Assets | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 25,153 | | | | | $ | 15,115 | | |
Short-term bank deposits
|
| | | | 16,000 | | | | | | — | | |
Trade receivables
|
| | | | 8,363 | | | | | | 8,384 | | |
Other receivables
|
| | | | 1,944 | | | | | | 1,404 | | |
Inventories
|
| | | | 6,476 | | | | | | 3,363 | | |
Total current assets
|
| | | | 57,936 | | | | | | 28,266 | | |
Non-current assets | | | | | | | | | | | | | |
Long-term restricted deposits and prepaid expenses
|
| | | | 531 | | | | | | 476 | | |
Long-term trade receivables
|
| | | | 381 | | | | | | 156 | | |
Property and equipment
|
| | | | 2,625 | | | | | | 1,472 | | |
Intangible assets
|
| | | | 855 | | | | | | 395 | | |
Right-of-use assets
|
| | | | 1,740 | | | | | | 2,442 | | |
Total non-current assets
|
| | | | 6,132 | | | | | | 4,941 | | |
Total assets
|
| | | $ | 64,068 | | | | | $ | 33,207 | | |
Liabilities | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Short-term bank loan
|
| | | $ | 5,000 | | | | | $ | 5,000 | | |
Current maturities of lease liabilities
|
| | | | 786 | | | | | | 890 | | |
Trade payables
|
| | | | 3,389 | | | | | | 2,028 | | |
Other accounts payable
|
| | | | 3,513 | | | | | | 3,455 | | |
Accrued expenses
|
| | | | 1,682 | | | | | | 1,317 | | |
Provisions
|
| | | | 383 | | | | | | 273 | | |
Short-term employee benefits
|
| | | | 657 | | | | | | 352 | | |
Total current liabilities
|
| | | | 15,410 | | | | | | 13,315 | | |
Non-current liabilities | | | | | | | | | | | | | |
Lease liabilities, net of current maturities
|
| | | | 1,144 | | | | | | 1,708 | | |
Recognized liability for defined benefit plan, net
|
| | | | 216 | | | | | | 260 | | |
Other long-term liabilities
|
| | | | 1,262 | | | | | | 1,260 | | |
Total non-current liabilities
|
| | | | 2,622 | | | | | | 3,228 | | |
Total liabilities
|
| | | | 18,032 | | | | | | 16,543 | | |
Equity | | | | | | | | | | | | | |
Ordinary share capital
|
| | | | 1,136 | | | | | | 878 | | |
Additional paid-in capital
|
| | | | 161,456 | | | | | | 125,435 | | |
Accumulated deficit
|
| | | | (116,556) | | | | | | (109,649) | | |
Total equity
|
| | | | 46,036 | | | | | | 16,664 | | |
Total liabilities and equity
|
| | | $ | 64,068 | | | | | $ | 33,207 | | |
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2020
|
| |
2019
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2020
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2019
|
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U.S. dollars in thousands (except per share data)
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Revenues
|
| | | $ | 10,999 | | | | | $ | 8,084 | | | | | $ | 28,262 | | | | | $ | 21,493 | | |
Cost of revenues
|
| | | | 3,471 | | | | | | 1,840 | | | | | | 8,390 | | | | | | 4,869 | | |
Gross profit
|
| | | | 7,528 | | | | | | 6,244 | | | | | | 19,872 | | | | | | 16,624 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling and marketing
|
| | | | 6,240 | | | | | | 4,717 | | | | | | 17,446 | | | | | | 12,985 | | |
Research and development
|
| | | | 1,385 | | | | | | 1,095 | | | | | | 4,064 | | | | | | 3,165 | | |
General and administrative
|
| | | | 2,417 | | | | | | 1,411 | | | | | | 6,051 | | | | | | 4,491 | | |
Total operating expenses
|
| | | | 10,042 | | | | | | 7,223 | | | | | | 27,561 | | | | | | 20,641 | | |
Operating loss
|
| | | | (2,514) | | | | | | (979) | | | | | | (7,689) | | | | | | (4,017) | | |
Financial income (expenses): | | | | | | | | | | | | | | | | | | | | | | | | | |
Financial income
|
| | | | 143 | | | | | | 143 | | | | | | 530 | | | | | | 336 | | |
Financial expenses
|
| | | | (293) | | | | | | (299) | | | | | | (693) | | | | | | (895) | | |
Gain from derivative instruments, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 442 | | |
Financial expenses, net
|
| | | | (150) | | | | | | (156) | | | | | | (163) | | | | | | (117) | | |
Loss before taxes on income
|
| | | | (2,664) | | | | | | (1,135) | | | | | | (7,852) | | | | | | (4,134) | | |
Taxes on Income
|
| | | | (95) | | | | | | (12) | | | | | | (147) | | | | | | (135) | | |
Net loss
|
| | | $ | (2,759) | | | | | $ | (1,147) | | | | | $ | (7,999) | | | | | $ | (4,269) | | |
Loss per share – basic and diluted (in U.S. dollars)
|
| | | $ | (0.01) | | | | | $ | (0.00) | | | | | $ | (0.02) | | | | | $ | (0.01) | | |
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2020
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2019
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2020
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2019
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U.S. dollars in thousands
|
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Net loss
|
| | | $ | (2,759) | | | | | $ | (1,147) | | | | | $ | (7,999) | | | | | $ | (4,269) | | |
Other comprehensive income items that after initial recognition
in comprehensive loss, were or will be carried to the statement of operations: |
| | | | | | | | | | | | | | | | | | | | | | | | |
Actuarial gains of defined benefit plan, net of tax
|
| | | | — | | | | | | — | | | | | | 49 | | | | | | — | | |
Total other comprehensive income items that after initial recognition in comprehensive loss, were or will be carried to the statement of operations, net of tax
|
| | |
|
—
|
| | | |
|
—
|
| | | |
|
49
|
| | | |
|
—
|
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Other total comprehensive income
|
| | | | — | | | | | | — | | | | | | 49 | | | | | | — | | |
Total comprehensive loss
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| | | $ | (2,759) | | | | | $ | (1,147) | | | | | $ | (7,950) | | | | | $ | (4,269) | | |
| | |
Ordinary
Share capital |
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Additional
paid-in capital |
| |
Accumulated
deficit |
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Total
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U.S. dollars in thousands
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For the nine months ended September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2020
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| | | $ | 878 | | | | | $ | 125,435 | | | | | $ | (109,649) | | | | | $ | 16,664 | | |
Total comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | — | | | | | | — | | | | | | (7,999) | | | | | | (7,999) | | |
Other comprehensive income, net of tax
|
| | | | — | | | | | | — | | | | | | 49 | | | | | | 49 | | |
Total comprehensive loss
|
| | | | — | | | | | | — | | | | | | (7,950) | | | | | | (7,950) | | |
Transactions carried directly to equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of shares due to the exercise of stock options
|
| | | | 3 | | | | | | 129 | | | | | | — | | | | | | 132 | | |
Issuance of shares in a public offering, net of issuance costs of
$4,103 thousand |
| | | | 255 | | | | | | 35,892 | | | | | | — | | | | | | 36,147 | | |
Share-based payment
|
| | | | — | | | | | | — | | | | | | 1,043 | | | | | | 1,043 | | |
Balance as of September 30, 2020
|
| | | $ | 1,136 | | | | | $ | 161,456 | | | | | $ | (116,556) | | | | | $ | 46,036 | | |
For the nine months ended September 30, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of January 1, 2019
|
| | | $ | 748 | | | | | $ | 111,486 | | | | | $ | (105,546) | | | | | $ | 6,688 | | |
Total comprehensive loss: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss – total comprehensive loss
|
| | | | — | | | | | | — | | | | | | (4,269) | | | | | | (4,269) | | |
Transactions carried directly to equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of shares due to the exercise of stock options
|
| | | | 1 | | | | | | 24 | | | | | | — | | | | | | 25 | | |
Issuance of shares in a private offering, net of share issuance costs of $716 thousand
|
| | | | 125 | | | | | | 13,841 | | | | | | — | | | | | | 13,966 | | |
Share-based payment
|
| | | | — | | | | | | — | | | | | | 886 | | | | | | 886 | | |
Balance as of September 30, 2019
|
| | | $ | 874 | | | | | $ | 125,351 | | | | | $ | (108,929) | | | | | $ | 17,296 | | |
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Nine Months Ended
September 30, |
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2020
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2019
|
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U.S. dollars in thousands)
|
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Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (7,999) | | | | | $ | (4,269) | | |
Adjustments for: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 1,345 | | | | | | 1,059 | | |
Share-based payment
|
| | | | 1,043 | | | | | | 886 | | |
Change in provision for doubtful and bad debt
|
| | | | 206 | | | | | | 192 | | |
Net financial cost (income)
|
| | | | (217) | | | | | | 169 | | |
Gain from revaluation of derivatives
|
| | | | — | | | | | | (442) | | |
Decrease (increase) in trade receivables
|
| | | | (411) | | | | | | 329 | | |
Increase in other accounts receivable
|
| | | | (541) | | | | | | (249) | | |
Increase in inventories
|
| | | | (3,773) | | | | | | (1,153) | | |
Increase in trade payables
|
| | | | 1,362 | | | | | | 724 | | |
Increase in other accounts payable and accrued expenses
|
| | | | 328 | | | | | | 584 | | |
Increase in employee benefits
|
| | | | 310 | | | | | | 102 | | |
Increase in provisions
|
| | | | 110 | | | | | | 17 | | |
Income tax expenses
|
| | | | 147 | | | | | | 135 | | |
Taxes paid during the period
|
| | | | (49) | | | | | | (44) | | |
Net interest received (paid) during the period
|
| | | | 83 | | | | | | (197) | | |
Net cash used in operating activities
|
| | | | (8,056) | | | | | | (2,157) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Investment in short-term bank deposits
|
| | | | (16,000) | | | | | | (9,000) | | |
Increase in restricted long-term deposits
|
| | | | (50) | | | | | | (68) | | |
Purchase of property and equipment, intangible assets and capitalization of development expenses
|
| | | | (1,604) | | | | | | (406) | | |
Net cash used in investing activities
|
| | | | (17,654) | | | | | | (9,474) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from issuance of shares, net of share issuance costs
|
| | | | 36,147 | | | | | | 13,966 | | |
Repayment of principal of lease liabilities
|
| | | | (665) | | | | | | (583) | | |
Issuance of shares due to the exercise of stock options
|
| | | | 132 | | | | | | 25 | | |
Net cash provided by financing activities
|
| | | | 35,614 | | | | | | 13,408 | | |
Increase in cash and cash equivalents
|
| | | | 9,904 | | | | | | 1,777 | | |
Cash and cash equivalents at beginning of period
|
| | | | 15,115 | | | | | | 6,471 | | |
Effect of exchange rate fluctuations on balances of cash and cash equivalents
|
| | | | 134 | | | | | | 178 | | |
Cash and cash equivalents at end of period
|
| | | $ | 25,153 | | | | | $ | 8,426 | | |
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Three Months Ended
September 30, |
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Nine Months
Ended September 30, |
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2020
|
| |
2019
|
| |
2020
|
| |
2019
|
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U.S. dollars in thousands
|
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WatchPAT and other related services
|
| | | $ | 10,535 | | | | | $ | 7,589 | | | | | $ | 26,601 | | | | | $ | 19,906 | | |
EndoPAT and related services
|
| | | | 464 | | | | | | 495 | | | | | | 1,661 | | | | | | 1,587 | | |
| | | | $ | 10,999 | | | | | $ | 8,084 | | | | | $ | 28,262 | | | | | $ | 21,493 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months
Ended September 30, |
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| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
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| | |
U.S. dollars in thousands
|
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United States and Canada
|
| | | $ | 8,951 | | | | | $ | 5,814 | | | | | $ | 21,786 | | | | | $ | 15,461 | | |
Japan
|
| | | | 901 | | | | | | 1,127 | | | | | | 3,027 | | | | | | 2,595 | | |
Europe
|
| | | | 944 | | | | | | 800 | | | | | | 2,930 | | | | | | 2,367 | | |
Asia Pacific (excluding Japan)
|
| | | | 101 | | | | | | 139 | | | | | | 212 | | | | | | 643 | | |
Israel
|
| | | | 95 | | | | | | 83 | | | | | | 215 | | | | | | 204 | | |
Others
|
| | | | 7 | | | | | | 121 | | | | | | 92 | | | | | | 223 | | |
| | | | $ | 10,999 | | | | | $ | 8,084 | | | | | $ | 28,262 | | | | | $ | 21,493 | | |
| | |
Nine Months Ended
September 30, |
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| | |
2020
|
| |
2019
|
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| | |
(in thousands, except
per share data) (Unaudited) |
| |||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | |
Revenues
|
| | | $ | 28,262 | | | | | $ | 21,493 | | |
Cost of revenues
|
| | | | 8,390 | | | | | | 4,869 | | |
Gross profit
|
| | | | 19,872 | | | | | | 16,624 | | |
Operating expenses: | | | | | | | | | | | | | |
Selling and marketing
|
| | | | 17,446 | | | | | | 12,985 | | |
Research and development
|
| | | | 4,064 | | | | | | 3,165 | | |
General and administrative
|
| | | | 6,051 | | | | | | 4,491 | | |
Total operating expenses
|
| | | | 27,561 | | | | | | 20,641 | | |
Operating loss
|
| | | | (7,689) | | | | | | (4,017) | | |
Financial income (expenses): | | | | | | | | | | | | | |
Financial income
|
| | | | 530 | | | | | | 336 | | |
Financial expenses
|
| | | | (693) | | | | | | (895) | | |
Gain from derivative instruments, net
|
| | | | — | | | | | | 442 | | |
Financial expenses, net
|
| | | | (163) | | | | | | (117) | | |
Loss before taxes on income
|
| | | | (7,852) | | | | | | (4,134) | | |
Taxes on income
|
| | | | (147) | | | | | | (135) | | |
Net loss
|
| | | $ | (7,999) | | | | | $ | (4,269) | | |
Loss per share — basic and diluted (in U.S. dollars)
|
| | | $ | (0.02) | | | | | $ | (0.01) | | |
|
| | |
Nine Months Ended
September 30, |
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| | |
2020
|
| |
2019
|
| ||||||
| | |
(Unaudited)
|
| |||||||||
Consolidated Statements of Operations Data: | | | | | | | | | | | | | |
Revenues
|
| | | | 100.0% | | | | | | 100.0% | | |
Cost of revenues
|
| | | | 29.7 | | | | | | 22.7 | | |
Gross profit
|
| | | | 70.3 | | | | | | 77.3 | | |
Operating expenses: | | | | | | | | | | | | | |
Selling and marketing expenses
|
| | | | 61.7 | | | | | | 60.4 | | |
Research and development expenses
|
| | | | 14.4 | | | | | | 14.7 | | |
General and administrative expenses
|
| | | | 21.4 | | | | | | 20.9 | | |
Total operating expenses
|
| | | | 97.5 | | | | | | 96.0 | | |
Operating loss
|
| | | | (27.2) | | | | | | (18.7) | | |
Financial income (expenses): | | | | | | | | | | | | | |
Financial income
|
| | | | 1.9 | | | | | | 1.6 | | |
Financial expenses
|
| | | | (2.5) | | | | | | (4.2) | | |
Gain from derivative instruments, net
|
| | | | 0.0 | | | | | | 2.1 | | |
Financial income (expenses), net
|
| | | | (0.6) | | | | | | (0.5) | | |
Loss before taxes on income
|
| | | | (27.8) | | | | | | (19.2) | | |
Taxes on income
|
| | | | (0.5) | | | | | | (0.7) | | |
Net loss
|
| | | | (28.3)% | | | | | | (19.9)% | | |
| | |
Nine months Ended
September 30, |
| |
Increase
% |
| ||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
(Unaudited) |
| | ||||||||||||||
WatchPAT and other related services
|
| | | $ | 26,601 | | | | | $ | 19,906 | | | | | | 33.6 | | |
EndoPAT and other related services
|
| | | | 1,661 | | | | | | 1,587 | | | | | | 4.7 | | |
Total
|
| | | $ | 28,262 | | | | | $ | 21,493 | | | | | | 31.5 | | |
|
| | |
Nine months Ended
September 30, |
| |
Increase
(decrease) % |
| ||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
(Unaudited) |
| | ||||||||||||||
United States and Canada
|
| | | $ | 21,786 | | | | | $ | 15,461 | | | | | | 40.9 | | |
Japan
|
| | | | 3,027 | | | | | | 2,595 | | | | | | 16.6 | | |
Europe
|
| | | | 2,930 | | | | | | 2,367 | | | | | | 23.8 | | |
Asia Pacific (excluding Japan)
|
| | | | 212 | | | | | | 643 | | | | | | (67.0) | | |
Other
|
| | | | 307 | | | | | | 427 | | | | | | (28.1) | | |
Total
|
| | | $ | 28,262 | | | | | $ | 21,493 | | | | | | 31.5 | | |
|
| | |
Nine months Ended
September 30, |
| |
Increase
% |
| ||||||||||||
| | |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
(Unaudited) |
| | | | | | | |||||||||
Selling and marketing
|
| | | $ | 17,446 | | | | | $ | 12,985 | | | | | | 34.4 | | |
Research and development
|
| | | | 4,064 | | | | | | 3,165 | | | | | | 28.4 | | |
General and administrative
|
| | | | 6,051 | | | | | | 4,491 | | | | | | 34.7 | | |
Total
|
| | | $ | 27,561 | | | | | $ | 20,641 | | | | | | 33.5 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(in thousands)
(Unaudited) |
| |||||||||
Net cash used in operating activities
|
| | | $ | (8,056) | | | | | $ | (2,157) | | |
Net cash used in investing activities
|
| | | | (17,654) | | | | | | (9,474) | | |
Net cash provided by financing activities
|
| | | | 35,614 | | | | | | 13,408 | | |
Increase in cash and cash equivalents
|
| | | $ | 9,904 | | | | | $ | 1,777 | | |