UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On August 10, 2021, Inari Medical, Inc. (the “Company”) issued a press release announcing financial results for its second fiscal quarter ended June 30, 2021. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
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Description |
99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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INARI MEDICAL, INC. |
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Date: |
August 10, 2021 |
By: |
/s/ William Hoffman |
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William Hoffman |
Exhibit 99.1
Inari Medical Reports Second Quarter 2021 Financial Results
IRVINE, CALIFORNIA – August 10, 2021 (GLOBE NEWSWIRE) -- Inari Medical, Inc. (NASDAQ: NARI) (“Inari”) a commercial-stage medical device company focused on developing products to treat and transform the lives of patients suffering from venous diseases, today reported financial results for its second quarter ended June 30, 2021.
Second Quarter Revenue and Business Highlights:
“Our second quarter was highly successful, especially in ways most important to our mission to treat and transform the lives of our patients,” said Bill Hoffman, CEO of Inari Medical. “We treated a record number of patients, reported best in class data from our CLOUT registry, and announced FDA clearance of FlowSaver, making bloodless thrombectomy a reality across the entire Inari portfolio. We continue to invest aggressively to expand our capabilities to treat even more patients and address more unmet needs. We love every second of this work, and we are so thankful to all of you for believing and committing along with us in this mission.”
Second Quarter 2021 Financial Results
Revenue was $63.5 million for the second quarter of 2021, compared to $57.4 million for the prior quarter and $25.4 million for the second quarter of 2020. The increase over prior year was driven by continued U.S. commercial expansion and new product introductions.
Gross profit was $58.6 million for the second quarter of 2021, compared to $21.9 million for the same period of 2020. Gross margin was 92.4% for the second quarter of 2021, up from 86.3% for the same period in the prior year, due primarily to the impact of an idle capacity charge in the second quarter of 2020 of $1.1 million, combined with current quarter product mix and manufacturing efficiencies.
Operating expenses for the second quarter of 2021 were $54.5 million, compared to $22.5 million for the second quarter of 2020. The increase was mainly driven by an increase in personnel-related expenses to fund the expansion of the commercial, research and development, clinical and support organization.
Net income was $4.1 million for the second quarter of 2021 and net income per share was $0.08 on a weighted-average basic share count of 49.7 million and $0.07 on a diluted share count of 55.6 million, compared to a net loss of $3.8 million and a net loss per share of $0.16 on a weighted-average basic and diluted share count of 24.3 million in the same period of the prior year.
Our cash, cash equivalents and short-term investments were $176.1 million as of June 30, 2021.
COVID-19 and Guidance
Despite ongoing challenges and uncertainties in its operating environment, Inari Medical is updating financial guidance as follows:
Webcast and Conference Call Information
Inari Medical will host a conference call to discuss the second quarter 2021 financial results after market close on Tuesday, August 10, 2021 at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. The conference call can be accessed live over the phone (833) 519-1265 for U.S. callers or (914) 800-3838 for international callers, using conference ID: 1160795. The live webinar can be accessed at https://ir.inarimedical.com.
About Inari Medical, Inc.
Inari Medical, Inc. is a commercial-stage medical device company focused on developing products to treat and transform the lives of patients suffering from venous diseases. Inari has developed two minimally-invasive, novel catheter-based mechanical thrombectomy devices that are designed to remove large clots from large vessels and eliminate the need for thrombolytic drugs. The company purpose-built its products for the specific characteristics of the venous system and the treatment of the two distinct manifestations of venous thromboembolism, or VTE: deep vein thrombosis and pulmonary embolism. The ClotTriever system is 510(k)-cleared by the FDA and CE Mark approved for the treatment of deep vein thrombosis. The FlowTriever system is 510(k)-cleared by the FDA and CE Mark approved for the treatment of pulmonary embolism and clot in transit in the right atrium.
Forward Looking Statements
Statements in this press release may contain “forward-looking statements” that are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements include financial guidance regarding second quarter and full year 2021 revenue and the potential impact of COVID-19 on the business, and are based on Inari’s current expectations, forecasts and assumptions, are subject to inherent uncertainties, risks and assumptions that are difficult to predict, and actual outcomes and results could differ materially due to a number of factors. These and other risks and uncertainties include those described more fully in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the period ended December 31, 2020 and in its other reports filed with the U.S. Securities and Exchange Commission. Forward-looking statements contained in this announcement are based on information available to Inari as of the date hereof and are made only as of the date of this
release. Inari undertakes no obligation to update such information except as required under applicable law. These forward-looking statements should not be relied upon as representing Inari’s views as of any date subsequent to the date of this press release. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Inari.
Investor Contact:
Westwicke Partners
Caroline Corner
Phone +1-415-202-5678
caroline.corner@westwicke.com
INARI MEDICAL, INC.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except share and per share data)
(unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2021 |
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2020 |
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2021 |
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2020 |
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Revenue |
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$ |
63,453 |
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$ |
25,392 |
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$ |
120,850 |
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$ |
52,345 |
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Cost of goods sold |
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4,814 |
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3,487 |
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9,437 |
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6,193 |
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Gross profit |
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58,639 |
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21,905 |
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111,413 |
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46,152 |
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Operating expenses |
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Research and development |
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11,630 |
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3,628 |
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19,793 |
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6,646 |
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Selling, general and administrative |
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42,897 |
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18,880 |
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79,795 |
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35,273 |
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Total operating expenses |
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54,527 |
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22,508 |
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99,588 |
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41,919 |
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Income (loss) from operations |
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4,112 |
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(603 |
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11,825 |
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4,233 |
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Other income (expense) |
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Interest income |
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35 |
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146 |
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103 |
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201 |
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Interest expense |
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(74 |
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(463 |
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(147 |
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(809 |
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Change in fair value of warrant liabilities |
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— |
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(2,884 |
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— |
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(3,317 |
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Other income (expense) |
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7 |
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— |
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(34 |
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— |
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Total other expenses |
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(32 |
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(3,201 |
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(78 |
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(3,925 |
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Income (loss) before income taxes |
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4,080 |
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(3,804 |
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11,747 |
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308 |
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Provision for income taxes |
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12 |
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— |
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210 |
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— |
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Net income (loss) |
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$ |
4,068 |
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$ |
(3,804 |
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$ |
11,537 |
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$ |
308 |
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Other comprehensive income (loss) |
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Foreign currency translation adjustments |
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57 |
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— |
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(123 |
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— |
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Unrealized (loss) gain on available-for-sale securities |
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(6 |
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— |
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12 |
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— |
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Total other comprehensive income (loss) |
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51 |
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— |
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(111 |
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— |
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Comprehensive income (loss) |
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$ |
4,119 |
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$ |
(3,804 |
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$ |
11,426 |
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$ |
308 |
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Net income (loss) per share |
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Basic |
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$ |
0.08 |
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$ |
(0.16 |
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$ |
0.23 |
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$ |
0.02 |
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Diluted |
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$ |
0.07 |
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$ |
(0.16 |
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$ |
0.21 |
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$ |
0.01 |
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Weighted average common shares used to compute net income (loss) per share |
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Basic |
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49,669,652 |
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24,295,900 |
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49,512,800 |
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15,339,755 |
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Diluted |
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55,595,016 |
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24,295,900 |
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55,665,193 |
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47,362,292 |
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INARI MEDICAL, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share data and par value)
(unaudited)
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June 30, |
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December 31, |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
91,322 |
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$ |
114,229 |
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Restricted cash |
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— |
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50 |
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Short-term investments |
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84,744 |
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49,981 |
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Accounts receivable, net |
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31,497 |
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28,008 |
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Inventories |
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18,112 |
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10,597 |
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Prepaid expenses and other current assets |
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2,497 |
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2,808 |
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Total current assets |
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228,172 |
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205,673 |
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Property and equipment, net |
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10,827 |
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7,498 |
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Restricted cash |
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— |
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338 |
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Operating lease right-of-use assets |
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868 |
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— |
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Deposits and other assets |
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13,692 |
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583 |
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Total assets |
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$ |
253,559 |
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$ |
214,092 |
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Liabilities and Stockholders' Equity |
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Current liabilities |
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Accounts payable |
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10,319 |
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3,047 |
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Payroll-related accruals |
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16,041 |
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8,198 |
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Accrued expenses and other current liabilities |
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4,429 |
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2,593 |
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Operating lease liabilities, current portion |
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793 |
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— |
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Total current liabilities |
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31,582 |
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13,838 |
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Operating lease liabilities, noncurrent portion |
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156 |
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— |
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Total liabilities |
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31,738 |
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13,838 |
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Commitments and contingencies (Note 7) |
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Stockholders' equity |
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Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares |
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— |
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— |
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Common stock, $0.001 par value, 300,000,000 shares |
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50 |
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49 |
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Additional paid in capital |
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237,764 |
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227,624 |
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Accumulated other comprehensive (loss) income |
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(107 |
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4 |
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Accumulated deficit |
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(15,886 |
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(27,423 |
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Total stockholders' equity |
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221,821 |
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200,254 |
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Total liabilities and stockholders' equity |
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$ |
253,559 |
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$ |
214,092 |
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