Fuse Medical, Inc. Announces First Quarter 2021 Financial Results | Business

Fuse Medical, Inc. Announces First Quarter 2021 Financial Results | Business

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RICHARDSON, Texas–(BUSINESS WIRE)–Aug 12, 2021–

Fuse Medical, Inc. (OTCPINK: FZMD) (“Fuse” or the “Company”) an emerging manufacturer and distributor of innovative medical devices for the orthopedic and spine marketplace, announced that it has filed its quarterly report on Form 10-Q for the quarter ended June 30, 2021 with the Securities and Exchange Commission (“SEC”) on Thursday, August 12, 2021.

First Quarter 2021 Financial Highlights

  • Net revenues for the quarter ended June 30, 2021 were $5.7 million, compared to $4.0 million for the quarter ended June 30 2020 which was an increase of approximately 41%.
  • For the quarter ended June 30, 2021, gross profit was $3.4 million, or 61% of revenues, compared to $2.2 million, or 55% of revenues, for the quarter ended June 30, 2020 which was an increase of 56%.
  • Selling, general, administrative, and other expenses (“SG&A”) for the quarter ended June 30, 2021 was approximately $2.0 million compared to $1.1 million for the quarter ended June 30, 2020.
  • Commissions expense for the quarter ended June 30, 2021 increased to $1.8 million from $1.4 million for the quarter ended June 30, 2020, an increase of approximately $414,133.
  • For the quarter ended June 30, 2021, net loss was $85,481 compared to $423,431 for the quarter ended June 30, 2020, reflecting a reduction in our net loss of $337,950 or approximately 80%.

Christopher C. Reeg, Chief Executive Officer of Fuse Medical, commented “We are pleased with our second quarter performance, as highlighted by a 41% increase in revenue, and a 56% increase in gross profit over the prior-year period. Our implementation and achievement of strategic initiatives, which includes increasing our portfolio of manufactured products, continued research and development of unique intellectual property for commercialization, investing in our sales team, and expansion of our national distribution footprint are reflected in our second quarter results.”

“Our growth for the remainder of 2021 is focused on new product launches in the biologics, orthopedics, and spine marketplace. With the alpha launch and successful first surgical implantation of the Orbitum™ Compression Staple System in the second quarter, we expect this disruptive technology for the extremity market will drive growth in the near term, while increasing our visibility as an emerging manufacturer of relevant medical devices.”

About Fuse Medical, Inc.

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 [email protected] 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 Securities and Exchange Commission; the failure of the Company to close the transaction; and integration issues with the consolidated company. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events, or otherwise, except as required by law.

 

FUSE MEDICAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in dollars, except share data)

 

 

 

June 30,

2021

 

 

December 31,

2020

 

 

 

(Unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash

 

$

1,356,876

 

 

$

1,187,458

 

Accounts receivable, net of allowance of $941,283 and $787,766, respectively

 

 

3,051,935

 

 

 

4,427,896

 

Inventories, net of allowance of $2,644,223 and $3,077,728, respectively

 

 

8,312,711

 

 

 

6,981,413

 

Prepaid expenses and other current assets

 

 

61,098

 

 

 

24,203

 

Total current assets

 

 

12,782,620

 

 

 

12,620,970

 

Property and equipment, net

 

 

10,799

 

 

 

17,791

 

Long term accounts receivable, net of allowance of $3,275,276 and $2,615,834, respectively

 

 

2,129,026

 

 

 

1,669,510

 

Intangible assets, net

 

 

1,112,814

 

 

 

1,138,080

 

Goodwill

 

 

1,972,886

 

 

 

1,972,886

 

Total assets

 

$

18,008,145

 

 

$

17,419,237

 

Liabilities and Stockholders’ Equity (Accumulated Deficit)

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

4,304,891

 

 

$

3,236,592

 

Accrued expenses

 

 

2,819,523

 

 

 

2,584,734

 

Convertible notes payable – related parties

 

 

150,000

 

 

 

150,000

 

Paycheck Protection Program Loan

 

 

 

 

 

361,400

 

Economic Injury Disaster Loan – short term portion

 

 

4,459

 

 

 

2,241

 

Senior secured revolving credit facility

 

 

913,352

 

 

 

913,352

 

Total current liabilities

 

 

8,192,225

 

 

 

7,248,319

 

Notes payable – related parties

 

 

200,000

 

 

 

200,000

 

Economic Injury Disaster Loan – long term portion

 

 

145,541

 

 

 

147,759

 

Earn-out liability

 

 

11,936,000

 

 

 

11,936,000

 

Total liabilities

 

 

20,473,766

 

 

 

19,532,078

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity (accumulated deficit)

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 20,000,000 shares authorized, no shares issued and

outstanding

 

 

 

 

 

 

Common stock, $0.01 par value; 100,000,000 shares authorized, 73,124,458 shares issued and outstanding as of June 30, 2021 and December 31, 2020.

 

 

731,245

 

 

 

731,245

 

Additional paid-in capital

 

 

1,370,245

 

 

 

1,184,222

 

Accumulated deficit

 

 

(4,567,111

)

 

 

(4,028,308

)

Total stockholders’ equity (accumulated deficit)

 

 

(2,465,621

)

 

 

(2,112,841

)

Total liabilities and stockholders’ equity (accumulated deficit)

 

$

18,008,145

 

 

$

17,419,237

 

 

FUSE MEDICAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in dollars, except share data)

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net revenues

$

5,665,015

 

 

$

4,010,666

 

 

$

10,105,774

 

 

$

8,647,169

 

Cost of revenues

 

2,219,608

 

 

 

1,796,663

 

 

 

4,073,473

 

 

 

3,779,559

 

Gross profit

 

3,445,407

 

 

 

2,214,003

 

 

 

6,032,301

 

 

 

4,867,610

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, administrative and other

 

2,021,576

 

 

 

1,161,476

 

 

 

3,456,887

 

 

 

3,642,247

 

Commissions

 

1,834,372

 

 

 

1,420,239

 

 

 

3,399,125

 

 

 

2,811,356

 

Depreciation and amortization

 

15,465

 

 

 

30,752

 

 

 

32,258

 

 

 

60,735

 

Total operating expenses

 

3,871,413

 

 

 

2,612,467

 

 

 

6,888,270

 

 

 

6,514,338

 

Operating loss

 

(426,006

)

 

 

(398,464

)

 

 

(855,969

)

 

 

(1,646,728

)

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

16,048

 

 

 

24,021

 

 

 

35,048

 

 

 

55,022

 

Gain on Payroll Protection Loan extinguishment

 

(361,400

)

 

 

 

 

 

(361,400

)

 

 

 

Total other (income) expense

 

(345,352

)

 

 

24,021

 

 

 

(326,352

)

 

 

55,022

 

Net loss before tax

 

(80,654

)

 

 

(422,485

)

 

 

(529,617

)

 

 

(1,701,750

)

Income tax benefit

 

4,826

 

 

 

946

 

 

 

9,186

 

 

 

5,680

 

Net loss

$

(85,480

)

 

$

(423,431

)

 

$

(538,803

)

 

$

(1,707,430

)

Net loss per common share – basic

$

(0.00

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.02

)

Weighted average number of common shares outstanding – basic

 

70,221,566

 

 

 

70,221,566

 

 

 

70,221,566

 

 

 

70,221,566

 

 

 

FUSE MEDICAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

For the Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(538,803

)

 

$

(1,707,430

)

Adjustments to reconcile net loss to net cash provided by operating

activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

32,258

 

 

 

60,735

 

Stock based compensation

 

 

186,023

 

 

 

327,098

 

Provision for bad debts and discounts

 

 

153,517

 

 

 

186,359

 

Provision for long term accounts receivable

 

 

659,442

 

 

 

604,194

 

Provision for slow moving inventory

 

 

(433,505

)

 

 

(621,604

)

Gain on Payroll Protection Program Loan extinguishment

 

 

(361,400

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,222,444

 

 

 

2,076,373

 

Inventories

 

 

(897,793

)

 

 

1,425,600

 

Prepaid expenses and other current assets

 

 

(36,895

)

 

 

(47,902

)

Long term accounts receivable

 

 

(1,118,958

)

 

 

(1,510,486

)

Accounts payable

 

 

1,068,299

 

 

 

(513,268

)

Accrued expenses

 

 

234,789

 

 

 

(238,198

)

Net cash provided by operating activities

 

 

169,418

 

 

 

41,471

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

 

 

 

(20,757

)

Net cash (used in) investing activities

 

 

 

 

 

(20,757

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Payments on senior secured revolving credit facility, net

 

 

 

 

 

(664,149

)

Proceeds from Paycheck Protection Program

 

 

 

 

 

361,400

 

Proceeds from Economic Injury Disaster Loan

 

 

 

 

 

150,000

 

Proceeds from related party promissory notes

 

 

 

 

 

200,000

 

Net cash provided by (used in) financing activities

 

 

 

 

 

47,251

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

169,418

 

 

 

67,965

 

Cash and cash equivalents – beginning of period

 

 

1,187,458

 

 

 

1,099,310

 

Cash and cash equivalents – end of period

 

$

1,356,876

 

 

$

1,167,275

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

21,235

 

 

$

40,018

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210812005788/en/

CONTACT: Fuse Medical, Inc.

Devon Morgan, Sr. Investor Relations Analyst

Office (469) 862-3030

Facsimile (469) 862-3035

[email protected]

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: SCIENCE OTHER SCIENCE OTHER MANUFACTURING SURGERY HEALTH MEDICAL DEVICES MANUFACTURING OTHER HEALTH

SOURCE: Fuse Medical, Inc.

Copyright Business Wire 2021.

PUB: 08/12/2021 02:50 PM/DISC: 08/12/2021 02:51 PM

http://www.businesswire.com/news/home/20210812005788/en

Copyright Business Wire 2021.

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