Continued momentum in the US and strengthened financing in place
We are pleased with the Q3 revenue growth in the US, where we are making significant investments to grow sales via our relatively low-cost hybrid sales model. To further increase the US growth rate, changes are planned in the sales organization. We are currently focused on the 2 Veterans Affairs (VA) accounts in the State of Louisiana, who already purchased CADScor systems, while some other VA’s are seeking approvals for an additional budget for CADScor use. We are also making tangible progress with a specific, large IDN while we continue to make progress with developing additional other leads.
Extract from Acting CEO Fred Colen’s message to the Interim Report.
Third quarter 2023 compared to the same period 2022
- Revenue in the third quarter amounted to SEK 1,573 thousand (1,164). Gross profit amounted to SEK 1,292 thousand (921), corresponding to a gross margin of 82% (79%) and an improvement of 3% points compared to the same period in 2022
- During the quarter, 14 (14) CADScor®Systems and 1,903 (1,812) patches were sold
- Operating expenses amounted to SEK 18,517 thousand (21,653)
- Earnings before tax amounted to SEK -17,291 thousand (-21,106)
- Net cash flow for the period amounted to SEK -16,705 thousand (-21,218)
- Earnings per share amounted to SEK -0.04 (-0.08)
First nine months 2023 compared to the same period in 2022
- Revenue during the first nine months of the year amounted to SEK 5,067 thousand (4,169). Gross profit amounted to SEK 4,270 thousand (3,292), corresponding to a gross margin of 84% (79%) and an improvement of 5% points compared to the same period in 2022
- During the period, 36 (48) CADScor®Systems and 7,120 (6,252) patches were sold
- Operating expenses amounted to SEK 59,825 thousand (57,153)
- Earnings before tax amounted to SEK –55,775 thousand (–54,372)
- Net cash flow amounted to SEK -2,453 thousand (12,372)
- Cash and cash equivalents amounted to SEK 9,246 thousand (29,409)
- Earnings per share amounted to SEK –0.13 (–0.22). No dilutive effects occurred.
- The number of shares on the balance sheet date amounts to 452,868,010 (251,972,194)
Events during the third quarter, 2023
- On August 28, the company announced the appointment of Dr. Deepak R. Talreja, MD, as new Medical Advisor. With an impressive background in cardiology, Dr. Talreja brings a wealth of knowledge and expertise to Acarix, further strengthening the company’s commitment to transforming early cardiac diagnostics through cutting-edge acoustic and AI-based technology.
- On August 29, the company announced significant progress in the use of the CADScor System by the Veterans Administration (VA), the largest healthcare provider in the United States. VA Healthcare System in southeastern Louisiana has now approved the inclusion of the CADScor System in its Standard Operating Procedure (SOP) for risk stratification of symptomatic patients with suspected coronary artery disease (CAD). Furthermore, another VA hospital – Biloxi VA Medical Center (VA Gulf Coast Veterans Healthcare System) has placed first order for CADScor System with associated patches.
- On September 4, the company announced the collaboration with Maeva Health, led by Dr. Peter Svalander, CEO, for the launch of the CADScor system in Mauritius and further into the expansive East African market with a population of over 485 million. The partnership with Maeva resulted in a first order for three CADScor systems.
- On September 11, the company announced a decision on a rights issue of approximately SEK 54 million, fully guaranteed by, among others, a Danish life science fund.
- On September 27, the company announced the first deal in osteopathic medicine in the US market. The initial order for CADScor®System from Legacy Medical LLC, located in the state of Georgia, is another important milestone in the company’s ongoing commercialization efforts in the US market.
Events after September 30, 2023
- On October 10, the company announced that CEO Helen Ljungdahl Round had been on sick leave for treatment of cancer for an expected period of approximately six months. The Board of Directors has appointed Fred Colen as acting CEO with immediate effect during Helen’s sick leave.
- On October 20, the company announced the final outcome of the Rights Issue of units, consisting of shares and warrants of series 2024:U1 (TO2) and series 2024:U2 (TO3), with preferential rights for existing shareholders (the ”Rights Issue”), which was completed on October 18, 2023. A total of 67,126,093 units, corresponding to approximately 74.1 percent of the Rights Issue, were subscribed for with and without unit rights. Thus, the guarantors who have provided top guarantees are allotted a total of 23,447,509 units, corresponding to approximately 25.9 percent of the Rights Issue. Through the Rights Issue, Acarix will receive a total of approximately SEK 54.3 million before deduction of costs attributable to the Rights Issue.
Link to the report: https://www.acarix.com/for-investors/financial-reports-and-calendar