Regulatory News:
SpineGuard (FR0011464452 – ALSGD), an innovative company that
deploys its DSG® (Dynamic Surgical Guidance) sensing technology to
secure and streamline the placement of bone implants, announced
today financial results for the half year ending June 30, 2023, as
approved by the Board of Directors on September 12, 2023.
Pierre JEROME, cofounder, Chairman & CEO of SpineGuard,
said: “These half year results reflect our willingness to
quickly get back to growth and reach breakeven with four great
additions recently recruited to bolster our US commercial team, and
sustained investment in R&D and marketing. The strong and
steady increase of our sales in Europe and Latin America for more
than ten quarters in a row, the traction in the field of our new
products DSG Connect and PediGuard Threaded, as well as the great
short-term potential of our innovation pipeline prompt us to pursue
our investment strategy while carefully listening to our
shareholders. With this in mind, we are currently exploring other
financing possibilities, including a capital increase with
retention of preferential subscription rights, instead of drawing
on our equity line.”
€ thousands – IFRS
H1 2023
H1 2022
Revenue
2,234
2,546
Gross margin
1,768
2,161
Gross margin (% of revenue)
79.1%
84.9%
Sales, distribution,
marketing
- 2,072
- 1,827
Administrative costs
- 996
- 835
Research & Development
- 580
- 463
Recurring operating profit /
(loss)
- 1,880
- 964
Non-recurring operating costs
- 87
- 40
Operating profit / (loss)
- 1,967
- 1,004
Financial result
- 32
- 147
Income tax
- 9
- 26
Net profit / (loss)
- 2,009
- 1,175
EBITDA
- 1,805
- 561
NB: unaudited
H1 2023 Key Financial Points
3,029 DSG units were sold in H1 2023 vs. 2,848 in H1 2022,
representing an overall growth of +6%.
Sales for H1 2023 decreased to €2,234k vs. €2,546k for the same
period in 2022, down 12% due to the temporary setback in the
United-States and the interruption of royalty income related to the
dental project. However, the product sales outside the United
States are growing 37%.
Gross margin stood at 79.1% at June 30, 2023, compared with
84.9% at June 30, 2022. This change is mainly due to a lower
contribution to sales from the United States, the market with the
highest selling prices, and to a lesser extent to the higher cost
of certain components supplied in 2022.
The Company's current operating expenses amounted to €3,734k for
the first 6 months of 2023, compared with €3,131k for the first
half of 2022, representing an increase of €604k, corresponding
to:
- the recognition of impairment losses on
trade receivables and related legal costs in connection with the
unilateral decision by Adin Dental Implant Systems, parent company
of ConfiDent ABC, for financial reasons of their own, to terminate
their DSG dental application project, - investments in sales and
marketing expenditure in the United States where the team was
strengthened by four new recruits in the first half of 2023, and -
the company's investment in Research and Development to pursue its
technological innovations.
As a result, operating income before non-recurring items came to
-€1,880k, compared with a loss of -€964k at June 30, 2022.
Working capital requirement at June 30, 2023 stood at €228k
compared with €452k at December 31, 2022, mainly due to the
decrease in trade receivables (-€290k) and trade payables (-€285k),
despite the increase in inventories (+€151k) and other receivables
(+€141k).
The company's cash and cash equivalents, classified as current
financial assets at June 30, 2023, amounted to €4,588k, compared
with €4,116k at December 31, 2022. Following the end of the
‘sauvegarde’ procedure in France and the agreement reached with
creditors, repayment of bond principal amounted to €371k for the
half-year, compared with €336k for the first half of 2022. Interest
paid to Norgine Venture and Harbert European Growth amounted to
€123k. In view of its cash position and expected recurring business
volume, SpineGuard estimates that it will be able to cover its 2024
financing needs. Including the availability of the equity line with
Nice & Green, this extends beyond 2025.
To continue to bolstering its equity, the company is currently
considering other funding opportunities, including a capital
increase with retention of preferential subscription rights, rather
than to use the Horizon equity line put in place on May 31, 2023
with Nice & Green's for an amount of €7.5 million, remained
undrawn at the date of this press release.
Post-closing events
SpineGuard has announced a large order for 448 PediGuard
Straight units from XinRong Medical Group (one of China's leading
medtech companies). At the same time, SpineGuard appointed an
independent regulatory agent, chosen in consultation with XinRong,
to complete the registration of the other versions of PediGuard not
yet registered in China: PediGuard Curved, XS, Canulated and
Threaded, all incorporating DSG (Dynamic Surgical Guidance)
technology for real-time, X-ray-free surgical guidance. To finance
this product registration effort, XinRong invested in SpineGuard's
capital, under the terms announced on May 16, 2023, by issuing
500,000 shares at a unit price of €1.00, representing a capital
contribution of €500,000, with an 18-month lock-up period.
SpineGuard’s Priorities
SpineGuard is focusing on the following priorities while
investing selectively and with rigor:
1. Boost commercial activities with PediGuard
Threaded and the DSG-Connect platform 2. Develop the DSG drill bit
for a launch beginning of 2024 3. Codevelop the Smart Screw and
Sacro-Iliac fusion DSG device with Omnia Medical 4. Implement the
three-prong agreement recently signed with XinRong Medical for
China 5. Deploy the DSG technology in the surgical robotic and
dental fields 6. Initiate new strategic partnerships
The company’s half-year financial report is available in the
Investors > Exchange filings section of the www.spineguard.com
website in French only.
Next financial press release: Third quarter 2023 revenue
on October 11, 2023, after market closing.
About SpineGuard® Founded in 2009 in France and the USA
by Pierre Jérôme and Stéphane Bette, SpineGuard is an innovative
company deploying its proprietary radiation-free real time sensing
technology DSG® (Dynamic Surgical Guidance) to secure and
streamline the placement of implants in the skeleton. SpineGuard
designs, develops and markets medical devices that have been used
in over 95,000 surgical procedures worldwide. Twenty-five studies
published in peer-reviewed scientific journals have demonstrated
the multiple benefits DSG® offers to patients, surgeons, surgical
staff and hospitals. Building on these strong fundamentals and
several strategic partnerships, SpineGuard has expanded the scope
of its DSG® technology in innovative applications such as the «
smart » pedicle screw, the DSG Connect visualization and
registration interface, dental implantology and surgical robotics.
DSG® was co-invented by Maurice Bourlion, Ph.D., Ciaran Bolger,
M.D., Ph.D., and Alain Vanquaethem, Biomedical Engineer. SpineGuard
has engaged in multiple ESG initiatives. For further information,
visit www.spineguard.com
Disclaimer The SpineGuard securities may not be offered
or sold in the United States as they have not been and will not be
registered under the Securities Act or any United States state
securities laws, and SpineGuard does not intend to make a public
offer of its securities in the United States. This is an
announcement and not a prospectus, and the information contained
herein does and shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities referred to herein in the United States in which such
offer, solicitation or sale would be unlawful prior to registration
or exemption from registration.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230912309855/en/
SpineGuard Pierre Jérôme CEO & Chairman Tel: +33 1 45
18 45 19 p.jerome@spineguard.com
SpineGuard Anne-Charlotte Millard CFO Tel: +33 1 45 18 45
19 ac.millard@spineguard.com
NewCap Investor Relations & Financial Communication
Mathilde Bohin / Aurélie Manavarere Tel: +33 1 44 71 94 94
spineguard@newcap.eu
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