Citigroup's Options Frenzy: What You Need to Know
Whales with a lot of money to spend have taken a noticeably bearish stance on Citigroup.
Looking at options history for Citigroup C we detected 22 trades.
If we consider the specifics of each trade, it is accurate to state that 36% of the investors opened trades with bullish expectations and 59% with bearish.
From the overall spotted trades, 5 are puts, for a total amount of $211,613 and 17, calls, for a total amount of $732,862.
What’s The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $50.0 to $90.0 for Citigroup over the last 3 months.
Analyzing Volume & Open Interest
In today’s trading context, the average open interest for options of Citigroup stands at 14385.71, with a total volume reaching 32,890.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Citigroup, situated within the strike price corridor from $50.0 to $90.0, throughout the last 30 days.
Citigroup Option Volume And Open Interest Over Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| C | CALL | SWEEP | BEARISH | 12/20/24 | $1.29 | $1.26 | $1.26 | $70.00 | $74.5K | 14.5K | 1.6K |
| C | CALL | SWEEP | BULLISH | 12/20/24 | $5.0 | $4.95 | $5.0 | $65.00 | $62.0K | 16.3K | 159 |
| C | CALL | TRADE | BEARISH | 06/20/25 | $20.6 | $20.2 | $20.2 | $50.00 | $60.6K | 4.3K | 30 |
| C | CALL | SWEEP | BEARISH | 01/17/25 | $2.78 | $2.74 | $2.74 | $70.00 | $58.9K | 73.6K | 231 |
| C | CALL | SWEEP | BEARISH | 01/17/25 | $1.53 | $1.52 | $1.52 | $72.50 | $55.6K | 28.1K | 2.3K |
About Citigroup
Citigroup is a global financial-services company doing business in more than 100 countries and jurisdictions. Citigroup’s operations are organized into five primary segments: services, markets, banking, US personal banking, and wealth management. The bank’s primary services include cross-border banking needs for multinational corporates, investment banking and trading, and credit card services in the United States.
Having examined the options trading patterns of Citigroup, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Citigroup’s Current Market Status
- Currently trading with a volume of 9,127,274, the C’s price is down by -1.34%, now at $67.97.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 62 days.
Expert Opinions on Citigroup
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $82.8.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge’s Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access.
* Maintaining their stance, an analyst from Oppenheimer continues to hold a Outperform rating for Citigroup, targeting a price of $107.
* An analyst from Evercore ISI Group has decided to maintain their In-Line rating on Citigroup, which currently sits at a price target of $64.
* An analyst from Morgan Stanley has decided to maintain their Overweight rating on Citigroup, which currently sits at a price target of $82.
* An analyst from Oppenheimer has decided to maintain their Outperform rating on Citigroup, which currently sits at a price target of $91.
* An analyst from Barclays persists with their Equal-Weight rating on Citigroup, maintaining a target price of $70.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Citigroup options trades with real-time alerts from Benzinga Pro.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tesla, Rivian Drop on Report Trump Wants to End EV Credit
(Bloomberg) — US automaker stocks fell after Reuters reported President-elect Donald Trump plans to eliminate a key consumer tax credit aimed at boosting electric-vehicle adoption.
Most Read from Bloomberg
Trump’s transition team has been discussing ending the $7,500 subsidy as part of a broader tax-reform effort, Reuters said, citing unidentified sources with direct knowledge of the matter. Representatives of Tesla Inc. also support ending the credit, according to the report.
Repealing the subsidy — a major component of President Joe Biden’s signature climate bill, the Inflation Reduction Act — would deal a significant blow to EV adoption in the US, which has already sputtered due to still-high vehicle prices and spotty charging infrastructure. Trump has previously said he would reverse Biden’s EV policies on day one of his presidency.
“The American people re-elected President Trump by a resounding margin giving him a mandate to implement the promises he made on the campaign trail,” said Karoline Leavitt, a spokeswoman for Trump’s transition team. “He will deliver.”
Trump would need Congressional approval to repeal the IRA, which was approved on a party-line vote in August 2022. His transition team has determined some of the policies within the law will be difficult to roll back because certain programs have already started allocating money, including to Republican-dominated states, Reuters said.
Shares of Rivian Automotive Inc. were hardest-hit among major EV makers, plunging 14% in New York trading, the biggest drop since Feb. 22. Tesla also hit an intraday low following the report and closed the day down 5.8%. General Motors Co. and Ford Motor Co. shares declined.
“The potential elimination of the federal tax credit for electric vehicles by the Trump administration — without another form of incentive to replace it — could derail the trajectory of EV sales in the United States,” Jessica Caldwell, head of insights for automotive research firm Edmunds.com, said in a note.
While Tesla is by far the top EV seller in the US, Chief Executive Officer Elon Musk has said the company will be better positioned to deal with the potential pullback of incentives. The billionaire has become a member of Trump’s inner circle and accepted a role helping the incoming administration to reduce government spending.
Nature's Miracle Holding Inc. Announces Third Quarter 2024 Financial Results
~ Revenue Growth of 13.5% to $3.1 Million from Q3 2023~
ONTARIO, Calif., Nov. 14, 2024 /PRNewswire/ — Nature’s Miracle Holding Inc. NMHI (“Nature’s Miracle” or the “Company”), a leader in vertical farming technology and infrastructure, today announced its financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial and Business Updates
- Revenue for the third quarter of 2024 increased 13.5% to $3.1 million compared to $2.7 million in the same year ago period.
- Gross profit of $228,113 and $158,768 for the third quarter of 2024 and 2023, respectively.
- Gross margin expanded by 160 basis points to 7.5% from 5.9% in the third quarter of 2023.
- Net loss of $2.8 million as compared to net loss of $0.4 million in the third quarter of 2023.
- Adjusted EBITDA for the third quarter of 2024 was a loss of $1.1 million compared to a loss of $0.2 million in the same year ago period.
- Completed $2.1 million of debt reduction with forgiveness agreement from Uninet Global Inc. which improved its shareholder equity position.
- Delivered first shipment of Efinity brand dehumidifier product to Fiacre Inc., a major indoor grower in the San Francisco Bay Area.
- Received record $2.4 million purchase order of Efinity LED grow lights from a top indoor grower.
- Entered a sales order agreement with What Rebates for $5.1 million of grow light products for use by the U.S. energy rebate market that will contribute to 2024 full year revenue.
- Closed an underwritten public offering for gross proceeds of $1.2 million in July.
Management Commentary
James Li, Chairman and CEO of Nature’s Miracle, commented, “We are encouraged with third quarter’s double digit revenue growth while making significant operational progress in the third quarter and thus far in the fourth quarter to accelerate our growth objectives. As previously announced, on November 12th, we closed a $3 million equity raise, which significantly improved our liquidity position for the execution of our growth plan. While our core business in the Controlled Environment Agriculture industry has performed strongly as we launched a variety of new products and initiatives that resulted in customer growth, we are excited to enter the EV space with our recently announced agreement with Robostreet. This strategic pivot to the marketing and distribution of electric powered agriculture vehicles for commercial use, combined with our core vertical farming business is a venture that aligns with convenience culture and is currently underrepresented in the market. Our ultimate goal is to market and distribute our EV trucks to the commercial and agriculture markets in the United States and South America as we continue to cultivate and diversify our revenue streams and generate value for all shareholders over the long-term.”
Subsequent Operational Updates
- Launched a wholly owned subsidiary, NM Rebate Inc., to facilitate the Company’s energy rebate financing segment.
- Announced an agreement with Robostreet Inc. to order a total of 150 LS450 electric trucks from to convert into mobile vertical farms targeting the Los Angeles market.
- Announced Hydroman, Inc., its 100% owned subsidiary, will become Hydroman Electric Corporation to launch its electric-powered mobile vertical farms throughout the United States and South America.
- Received aggregate gross proceeds of approximately $3 million from an underwritten public offering in November.
Third Quarter 2024 Financial Summary
For the third quarter of 2024, revenue totaled $3.1 million, an increase of 13.5%, compared to $2.7 million in the same year ago period. Revenue increased due to rising demand from new and existing customers as a result of an expansion of the sales team in 2024 and the introduction of new product lines in 2024.
Cost of revenue totaled $2.8 million in the third quarter of 2024, compared to $2.5 million in the same year ago period. The increase in the cost of revenue was primarily due to the increase in revenue, driven by a higher volume of product sales on an increase in customer demand.
Gross profit totaled $228,113 in the third quarter of 2024, or 7.5% of revenue, an increase from $158,768 and 5.9% of revenue, in the third quarter of 2023. The increase in gross profit and margin was due to a combination of customers shifting to premium grow lighting, such as our own “Efinity” brand, favorable purchasing conditions from suppliers and consistent fixed costs over higher volume of sales.
Operating expenses in the third quarter of 2024 were $2.2 million, as compared to $0.6 million for the third quarter of 2023. The increase was mainly due to the introduction of public company costs in 2024, resulting in an increase in payroll and compensation expense, increased professional fees and increased stock compensation expense which were not components of private entity operations in 2023.
Net loss in the third quarter of 2024 was $2.8 million, as compared to net loss of $0.4 million in the third quarter of 2023. The increase in losses was a result of additional personnel and stock compensation expense after the de-SPAC transaction, a higher level of legal and accounting costs related to the Nasdaq listing and SEC filings, higher public relations costs, new corporate offices and higher interest expense.
About Nature’s Miracle Holding Inc.
Nature’s Miracle (www.Nature-Miracle.com) is a growing agriculture technology company providing equipment and services to growers in the Controlled Environment Agriculture (“CEA”) industry which also includes vertical farming in North America. Nature’s Miracle offers hardware to design, build and operate various indoor growing settings including greenhouse and indoor-growing spaces. Nature’s Miracle, through its two wholly-owned subsidiaries (Visiontech Group, Inc. and Hydroman, Inc.), provides grow lights as well as other hydroponic products to hundreds of indoor growers in North America. Nature’s Miracle has also developed a robust pipeline to build commercial-scale greenhouse in the U.S. and Canada to meet the growing needs of fresh and local vegetable products. Nature’s Miracle has established its first manufacturing footprint in North America with its grow-light assembly plant in Manitoba, Canada and is expected to set up additional manufacturing/assembly facilities in North America.
Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intends,” “may,” “will,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: the intended use of proceeds from the offering; successful launch and implementation of NMHI’s joint projects with manufacturers and other supply chain participants of steel, rubber and other materials; changes in NMHI’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; NMHI’s ability to develop and launch new products and services; NMHI’s ability to successfully and efficiently integrate future expansion plans and opportunities; NMHI’s ability to grow its business in a cost-effective manner; NMHI’s product development timeline and estimated research and development costs; the implementation, market acceptance and success of NMHI’s business model; developments and projections relating to NMHI’s competitors and industry; and NMHI’s approach and goals with respect to technology. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company’s shares on Nasdaq; changes in applicable laws or regulations; the effects of the COVID-19 pandemic on NMHI’s business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which NMHI operates; the risk that NMHI and its current and future collaborators are unable to successfully develop and commercialize NMHI’s products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that NMHI is unable to secure or protect its intellectual property; the possibility that NMHI may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in NMHI’s filings from time to time with the Securities and Exchange Commission.
Contacts
George Yutuc
Chief Financial Officer
George.Yutuc@nature-miracle.com
MZ North America
Shannon Devine / Rory Rumore
Main: 203-741-8811
NMHI@mzgroup.us
|
NATURE’S MIRACLE HOLDING INC., SUBSIDIARIES AND VIE |
||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET |
||||||||||
|
As of |
As of |
|||||||||
|
2024 |
2023 |
|||||||||
|
(Unaudited) |
||||||||||
|
ASSETS |
||||||||||
|
CURRENT ASSETS |
||||||||||
|
Cash and cash equivalent |
$ |
40,114 |
$ |
221,760 |
||||||
|
Accounts receivable, net |
2,376,603 |
1,236,248 |
||||||||
|
Accounts receivable – related parties, net |
1,850,601 |
305,669 |
||||||||
|
Inventories, net |
3,333,539 |
5,046,084 |
||||||||
|
Prepayments and other current assets |
393,439 |
139,734 |
||||||||
|
Loans receivable – related parties |
– |
460,000 |
||||||||
|
Total Current Assets |
7,994,296 |
7,409,495 |
||||||||
|
NON-CURRENT ASSETS |
||||||||||
|
Security deposit |
27,633 |
47,633 |
||||||||
|
Right-of-use assets, net |
582,890 |
503,089 |
||||||||
|
Cost method investment |
1,000,000 |
1,000,000 |
||||||||
|
Property and equipment, net |
4,286,692 |
4,406,272 |
||||||||
|
Deferred offering costs |
– |
833,932 |
||||||||
|
Total Assets |
$ |
13,891,511 |
$ |
14,200,421 |
||||||
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
||||||||||
|
CURRENT LIABILITIES |
||||||||||
|
Short-term loans |
$ |
2,856,673 |
$ |
509,443 |
||||||
|
Short-term loans – related parties |
858,255 |
783,255 |
||||||||
|
Current portion of long-term debts |
293,541 |
268,805 |
||||||||
|
Convertible notes |
681,410 |
– |
||||||||
|
Accounts payable |
9,356,293 |
8,034,044 |
||||||||
|
Accounts payable – related parties |
572,500 |
2,758,074 |
||||||||
|
Other payables and accrued liabilities |
3,469,680 |
1,351,951 |
||||||||
|
Other payables – related parties |
348,658 |
257,954 |
||||||||
|
Operating lease liabilities – current |
451,417 |
359,459 |
||||||||
|
Tax accrual |
469,419 |
340,628 |
||||||||
|
Deferred income – Contract liabilities |
376,562 |
118,909 |
||||||||
|
Total Current Liabilities |
19,734,408 |
14,782,522 |
||||||||
|
NON-CURRENT LIABILITIES |
||||||||||
|
Long-term debts, net of current portion |
5,757,460 |
5,979,939 |
||||||||
|
Operating lease liabilities, net of current portion |
235,040 |
157,897 |
||||||||
|
Total Non-Current Liabilities |
5,992,500 |
6,137,836 |
||||||||
|
Total Liabilities |
25,726,908 |
20,920,358 |
||||||||
|
COMMITMENTS AND CONTINGENCIES |
||||||||||
|
SHAREHOLDERS’ DEFICIT |
||||||||||
|
Preferred Stock ($0.0001 par value, 1,000,000 shares authorized, none issued and |
– |
– |
||||||||
|
Common Stock ($0.0001 par value,100,000,000 shares authorized, 31,636,764 and |
3,163 |
2,227 |
||||||||
|
Additional paid-in capital |
5,939,783 |
1,526,773 |
||||||||
|
Accumulated deficit |
(17,777,200) |
(8,247,862) |
||||||||
|
Accumulated other comprehensive loss |
(1,143) |
(1,075) |
||||||||
|
Total Stockholders’ Deficit |
(11,835,397) |
(6,719,937) |
||||||||
|
Total Liabilities and Stockholders’ Deficit |
$ |
13,891,511 |
$ |
14,200,421 |
||||||
|
*Giving retroactive effect to reverse recapitalization effected on March 11, 2024 |
||||||||||
|
NATURE’S MIRACLE HOLDING INC., SUBSIDIARIES AND VIE |
||||||||||||||||||
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
||||||||||||||||||
|
For the |
For the |
For the |
For the |
|||||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
|||||||||||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||||||||
|
REVENUE (including related party revenue of $1,135,628 and |
$ |
3,052,727 |
$ |
2,690,690 |
$ |
8,662,414 |
$ |
7,600,890 |
||||||||||
|
COST OF REVENUE |
2,824,614 |
2,531,922 |
7,669,764 |
7,044,591 |
||||||||||||||
|
GROSS PROFIT |
228,113 |
158,768 |
992,650 |
556,299 |
||||||||||||||
|
OPERATING EXPENSES: |
||||||||||||||||||
|
Selling, general and administrative |
1,375,475 |
579,827 |
4,059,595 |
1,594,873 |
||||||||||||||
|
Stock compensation expenses |
848,075 |
– |
1,215,880 |
– |
||||||||||||||
|
Total operating expenses |
2,223,550 |
579,827 |
5,275,475 |
1,594,873 |
||||||||||||||
|
LOSS FROM OPERATIONS |
(1,995,437) |
(421,059) |
(4,282,825) |
(1,038,574) |
||||||||||||||
|
OTHER INCOME (EXPENSE) |
||||||||||||||||||
|
Interest expense, net |
(738,468) |
(133,047) |
(1,527,443) |
(493,067) |
||||||||||||||
|
Non cash finance expense |
– |
– |
(1,000,000) |
– |
||||||||||||||
|
Loss on loan extinguishment |
(15,131) |
– |
(15,131) |
(233,450) |
||||||||||||||
|
Other (expense) income |
(1,300) |
(5,023) |
2,438 |
1,323 |
||||||||||||||
|
Total other expense, net |
(754,899) |
(138,070) |
(2,540,136) |
(725,194) |
||||||||||||||
|
LOSS BEFORE INCOME TAXES |
(2,750,336) |
(559,129) |
(6,822,961) |
(1,763,768) |
||||||||||||||
|
PROVISION FOR (BENEFIT OF) INCOME TAXES |
– |
(155,163) |
2,500 |
(385,853) |
||||||||||||||
|
NET LOSS |
$ |
(2,750,336) |
$ |
(403,966) |
$ |
(6,825,461) |
$ |
(1,377,915) |
||||||||||
|
OTHER COMPREHENSIVE LOSS |
||||||||||||||||||
|
Foreign currency translation adjustment |
(35) |
85 |
(68) |
876 |
||||||||||||||
|
COMPREHENSIVE LOSS |
$ |
(2,750,371) |
$ |
(403,881) |
$ |
(6,825,529) |
$ |
(1,377,039) |
||||||||||
|
WEIGHTED AVERAGE NUMBER OF COMMON STOCK* |
||||||||||||||||||
|
Basic and diluted |
30,241,099 |
22,272,478 |
26,622,599 |
22,272,478 |
||||||||||||||
|
LOSS PER SHARE |
||||||||||||||||||
|
Basic and diluted |
$ |
(0.09) |
$ |
(0.02) |
$ |
(0.26) |
$ |
(0.06) |
||||||||||
|
*Giving retroactive effect to reverse recapitalization effected on March 11, 2024 |
||||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP Financial Measures |
|||
|
Reconciliation of Adjusted EBITDA |
|||
|
For the Three |
For the Three |
||
|
Net Loss |
$ (2,750,371) |
$ (403,881) |
|
|
Add Back: Depreciation |
39,860 |
41,694 |
|
|
Stock Compensation |
848,075 |
– |
|
|
Interest Expense |
738,468 |
133,047 |
|
|
EBITDA plus non-cash Stock Compensation |
$ (1,123,968) |
$ (229,140) |
|
View original content:https://www.prnewswire.com/news-releases/natures-miracle-holding-inc-announces-third-quarter-2024-financial-results-302306406.html
SOURCE Nature’s Miracle Holding Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Syntec Optics Holdings, Inc. (Nasdaq: OPTX) Reports Third Quarter 2024 Financial Results
ROCHESTER, NEW YORK, Nov. 14, 2024 (GLOBE NEWSWIRE) — Syntec Optics OPTX, a leading provider of mission-critical products to advanced technology defense, biomedical, and communications equipment manufacturers, today reported financial results for the first quarter of 2024.
Third Quarter 2024 Financial Highlights
- Net Sales of $7.86 million increased by 12.3% from $7.01 million in Q2 2024, and sales from products of $7.33 million increased by 17.2% from $6.26 million in Q3 2023.
- Adjusted EBITDA decreased to $1.10 million from $1.32 million in Q2 2024.
- Earnings per Share decreased to $0.00 from $0.01 in Q2 2024.
Dean Rudy, CFO, said, “At the previous earnings call, we provided guidance for the third quarter 2024 revenue to be between $9.5 and $11.0 million. Our revenues came in below this projection at $7.86 million but 12.3% higher than the prior quarter, showing sequential growth. The company ramped up data center connectivity products for increased Artificial Intelligence deployment and continued its production of currently deployed night vision optics and opto-mechanicals, mission-critical biomedical products, space optics, and other diverse products.”
Strong End-Market Expansion:
- Continued production of space optics for Low Earth Orbit (LEO) satellites. Satellite broadband could represent a significant portion of the $1 trillion global space economy by 2040.
- Ramped up production to nearly triple the quantity per week for the high-growth data center market driven by the deployment of Artificial Intelligence. The data center market is expected to reach $622.4 billion by 2030.
Technological Leadership and Innovation:
- Delivered proof of concept for phase 1 advanced optical solutions, including high-performance, disposable optics for biomedical imaging with a multi-angled, wider field of view and increased imaging detail. SPIE assessed the 2021 photonics-enabled biomedical marketplace as $201 billion in total revenues.
- Delivered designs for complex optical systems, such as high numerical aperture lens systems for digital night vision.
Third Quarter 2024 Financial and Operating Results
The $7.86 million in net sales for the three months ending 2024 increased 12.3% compared to $7.01 million in Q2 2024. The overall sales increased by 19.2% compared to $6.60 million in Q3 2023, and sales from products increased by 19.9% as the company shifts from development to production ramp-up.
The increase in net sales compared to the prior year is due to increases in our product revenue stream. Product revenue increased by $1.1 million for the three months ended 2024 compared to 2023, a 17.2% increase.
The third quarter of 2024 adjusted EBITDA was $1.10 million for the three months ending 2024, compared to $1.32 million adjusted EBITDA in the second quarter of 2024 and $1.30 million in 2023. Contributing factors to the decrease over the previous quarter were a reduction in gross profit of $0.3 million, a reduction in other income of $0.3 million, and offset by a decrease in general and administrative expenses of $0.3 million. Contributing factors to the year-over-year decrease include a $0.4 million increase in general and administrative expenses to enable future product launches.
The Company ended the third quarter of 2024 with an unused $3.9 million line of credit, an unused $4.8 million equipment line of credit, and a paydown of 3.3% principal on other commercial bank lines.
Our net income for the three months ended in the third quarter of 2024 was a negative $0.01 million, or $0.00 per share, down from $0.3 million or negative $0.01 per share for Q2 2024, and compared to $0.4 million, or $0.01 per share, for Q3 2023.
Guidance
Our recent increases in ongoing sales into the communications, medical, and defense industries are expected to accelerate in the third quarter, particularly within our space communications optics and datacom microlens arrays. As such, the fourth quarter 2024 revenue is expected to be in the range of $7.4 – $9.0 million.
We expect our gross margin to hold level or slightly improve based on the profitability of ramping up products. General and administrative costs are expected to increase modestly to enable ramped-up engineering, quality, and pilot production to support continued growth in the fourth quarter.
Looking to the first quarter of 2025, we anticipate continued strength from the communications and biomedical end-markets, with additional growth coming from defense-based product launches.
Our products are propelled by tailwinds as we move towards laser-based satellite communications versus radar-based for low latency, biomedical automation, defense equipment modernization, and on-shoring. Mission-critical products use proprietary techniques that provide an economic moat.
Lastly, we expect positive net income in the fourth quarter, enabling further investments to energize our continued growth.
About Syntec Optics
Syntec Optics Holdings, Inc. OPTX, headquartered in Rochester, NY, is one of the largest custom and diverse end-market optics and photonics manufacturers in the United States. Operating for over two decades, Syntec Optics runs a state-of-the-art facility with extensive core capabilities of various optics manufacturing processes, both horizontally and vertically integrated, to provide a competitive advantage for mission-critical OEMs. Syntec Optics recently launched new products, including Low Earth Orbit (LEO) satellite optics, lightweight night vision goggle optics, biomedical equipment optics, and precision microlens arrays. To learn more, visit www.syntecoptics.com.
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, including certain financial forecasts and projections. All statements other than statements of historical fact contained in this press release, including statements as to the transactions contemplated by the business combination and related agreements, future results of operations and financial position, revenue and other metrics, planned products and services, business strategy and plans, objectives of management for future operations of Syntec Optics, market size, and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the control of Syntec Optics), which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by Syntec Optics and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: 1) risk outlined in any prior SEC filings; 2) ability of Syntec Optics to successfully increase market penetration into its target markets; 3) the addressable markets that Syntec Optics intends to target do not grow as expected; 4) the loss of any key executives; 5) the loss of any relationships with key suppliers including suppliers abroad; 6) the loss of any relationships with key customers; 7) the inability to protect Syntec Optics’ patents and other intellectual property; 8) the failure to successfully execute manufacturing of announced products in a timely manner or at all, or to scale to mass production; 9) costs related to any further business combination; 10) changes in applicable laws or regulations; 11) the possibility that Syntec Optics may be adversely affected by other economic, business and/or competitive factors; 12) Syntec Optics’ estimates of its growth and projected financial results for the future and meeting or satisfying the underlying assumptions with respect thereto; 13) the impact of any pandemic, including any mutations or variants thereof and the Russian/Ukrainian or Israeli conflict, and any resulting effect on business and financial conditions; 14) inability to complete any investments or borrowings in connection with any organic or inorganic growth; 15) the potential for events or circumstances that result in Syntec Optics’ failure to timely achieve the anticipated benefits of Syntec Optics’ customer arrangements; and 16) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in prior SEC filings including registration statement on Form S-4 filed with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Syntec Optics does not give any assurance that Syntec Optics will achieve its expected results. Syntec Optics does not undertake any duty to update these forward-looking statements except as otherwise required by law.
For further information, please contact:
Sara Hart
Investor Relations
InvestorRelations@syntecoptics.com
SOURCE: Syntec Optics Holdings, Inc. OPTX
SYNTEC OPTICS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2024 AND DECEMBER 31, 2023
| 2024 (unaudited) | 2023 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 476,784 | $ | 2,158,245 | ||||
| Accounts Receivable, Net | 5,821,986 | 6,800,064 | ||||||
| Inventory | 7,560,983 | 5,834,109 | ||||||
| Prepaid Expenses and Other Assets | 344,442 | 359,443 | ||||||
| Total Current Assets | 14,204,195 | 15,151,861 | ||||||
| Property and Equipment, Net | 12,437,352 | 11,101,052 | ||||||
| Deferred Income Taxes | 420,261 | – | ||||||
| Intangible Assets, Net | 250,000 | 295,000 | ||||||
| Total Assets | $ | 27,311,808 | $ | 26,547,913 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable | $ | 2,492,383 | $ | 3,042,315 | ||||
| Accrued Expenses | 1,224,587 | 1,071,257 | ||||||
| Federal Income Tax Payable | 92,127 | 370,206 | ||||||
| Deferred Revenue | 82,813 | – | ||||||
| Line of Credit | 6,063,863 | 6,537,592 | ||||||
| Current Maturities of Debt Obligations | 461,510 | 362,972 | ||||||
| Current Maturities of Finance Lease Obligations | 181,327 | – | ||||||
| Total Current Liabilities | 10,598,610 | 11,384,342 | ||||||
| Long-Term Liabilities | ||||||||
| Long-Term Debt Obligations | 2,698,386 | 2,024,939 | ||||||
| Long-Term Finance Lease Obligations | 1,891,659 | – | ||||||
| Deferred Income Taxes | – | 74,890 | ||||||
| Total Long-Term Liabilities | 4,590,045 | 2,099,829 | ||||||
| Total Liabilities | 15,188,655 | 13,484,171 | ||||||
| Commitments and Contingencies (Note 16) | – | |||||||
| Stockholder’s Equity | ||||||||
| CL A Common Stock, Par value $.0001 per share; 121,000,000 authorized; 36,688,266 issued and outstanding as of September 30, 2024; 36,688,266 issued and outstanding as of December 31, 2023 | 3,669 | 3,669 | ||||||
| Additional Paid-In Capital | 1,927,204 | 1,927,204 | ||||||
| Retained Earnings | 10,192,280 | 11,132,869 | ||||||
| Total Stockholder’s Equity | 12,123,153 | 13,063,742 | ||||||
| Total Liabilities and Stockholder’s Equity | $ | 27,311,808 | $ | 26,547,913 | ||||
SYNTEC OPTICS HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| Net Sales | $ | 7,866,355 | $ | 6,600,525 | $ | 21,128,263 | $ | 21,177,257 | ||||||||
| Cost of Goods Sold | 6,032,635 | 4,756,467 | 16,412,773 | 15,244,863 | ||||||||||||
| Gross Profit | 1,833,720 | 1,844,058 | 4,715,490 | 5,932,394 | ||||||||||||
| General and Administrative Expenses | 1,727,480 | 1,314,885 | 5,857,806 | 4,442,117 | ||||||||||||
| Income (Loss) from Operations | 106,240 | 529,173 | (1,142,316 | ) | 1,490,277 | |||||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest Expense, Including Amortization of Debt Issuance Costs | (206,069 | ) | (185,292 | ) | (533,178 | ) | (446,875 | ) | ||||||||
| Other Income | 8,575 | 21,107 | 347,547 | 70,914 | ||||||||||||
| Total Other Income (Expense), Net | (197,494 | ) | (164,185 | ) | (185,631 | ) | (375,961 | ) | ||||||||
| Income (Loss) Before Provision for (Benefit) Income Taxes | (91,254 | ) | 364,988 | (1,327,947 | ) | 1,114,316 | ||||||||||
| Provision (Benefit) for Income Taxes | (77,965 | ) | 11,008 | (387,358 | ) | 139,549 | ||||||||||
| Net Income (Loss) | $ | (13,289 | ) | $ | 353,980 | $ | (940,589 | ) | $ | 974,767 | ||||||
| Net Income (Loss) per Common Share | ||||||||||||||||
| Basic and diluted | $ | (0.00 | ) | $ | 0.01 | $ | (0.03 | ) | $ | 0.03 | ||||||
| Weighted Average Number of Common Shares Outstanding | ||||||||||||||||
| Basic and diluted | 36,688,266 | 31,600,000 | 36,688,266 | 31,600,000 | ||||||||||||
SYNTEC OPTICS HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
| 2024 | 2023 | |||||||
| Cash Flows From Operating Activities | ||||||||
| Net (Loss) Income | $ | (940,589 | ) | $ | 974,767 | |||
| Adjustments to Reconcile (Loss) Income to Net Cash (Used In) | ||||||||
| Provided By Operating Activities: | ||||||||
| Depreciation and Amortization | 2,122,999 | 2,096,335 | ||||||
| Amortization of Debt Issuance Costs | 6,806 | 5,758 | ||||||
| Gain on Disposal of Property and Equipment | (309,000 | ) | – | |||||
| Change in Allowance for Expected Credit Losses | 132,764 | (51,706 | ) | |||||
| Change in Reserve for Obsolescence | 283,196 | 16,299 | ||||||
| Deferred Income Taxes | (495,151 | ) | (536,090 | ) | ||||
| (Increase) Decrease in: | ||||||||
| Accounts Receivable | 845,314 | (504,372 | ) | |||||
| Inventory | (2,010,070 | ) | (1,831,660 | ) | ||||
| Prepaid Expenses and Other Assets | 15,001 | 193,379 | ||||||
| Increase (Decrease) in: | ||||||||
| Accounts Payables and Accrued Expenses | (1,022,602 | ) | 523,455 | |||||
| Federal Income Tax Payable | (278,079 | ) | 528,411 | |||||
| Deferred Revenue | 82,813 | (309,735 | ) | |||||
| Net Cash (Used In) Provided By Operating Activities | (1,566,598 | ) | 1,104,841 | |||||
| Cash Flows From Investing Activities | ||||||||
| Purchases of Property and Equipment | (628,229 | ) | (979,630 | ) | ||||
| Proceeds from Disposal of Property and Equipment | 309,000 | – | ||||||
| Net Cash Used in Investing Activities | (319,229 | ) | (979,630 | ) | ||||
| Cash Flows From Financing Activities | ||||||||
| (Repayments) Borrowing on Line of Credit, Net | (473,729 | ) | 147,076 | |||||
| Borrowing on Debt Obligations | 1,100,388 | – | ||||||
| Repayments on Debt Obligations | (335,209 | ) | (633,081 | ) | ||||
| Repayments on Finance Lease Obligations | (87,084 | ) | – | |||||
| Distributions | – | (62,065 | ) | |||||
| Net Cash Provided By (Used in) Financing Activities | 204,366 | (548,070 | ) | |||||
| Net Decrease in Cash | (1,681,461 | ) | (422,859 | ) | ||||
| Cash – Beginning | 2,158,245 | 526,182 | ||||||
| Cash – Ending | $ | 476,784 | $ | 103,323 | ||||
| Supplemental Cash Flow Disclosures: | ||||||||
| Cash Paid for Interest | $ | 459,994 | $ | 451,580 | ||||
| Cash Paid for Taxes | $ | 568,143 | $ | 118,616 | ||||
| Supplemental Disclosures of Non-Cash Investing Activities: | ||||||||
| Assets Acquired and Included in Accounts Payable and Accrued Expenses | $ | 626,000 | $ | 680,337 | ||||
| Finance Lease Liability Incurred | $ | 2,160,070 | $ | – | ||||
NON-GAAP RECONCILIATION OF EBITDA
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| Net (Loss) Income | $ | (13,289 | ) | $ | 353,980 | $ | (940,589 | ) | $ | 974,767 | ||||||
| Depreciation & Amortization | 739,812 | 692,716 | 2,129,805 | 2,102,093 | ||||||||||||
| Interest Expenses | 203,650 | 184,358 | 526,372 | 441,115 | ||||||||||||
| Taxes | (77,965 | ) | 11,008 | (387,358 | ) | 139,549 | ||||||||||
| Non-Recurring Items | ||||||||||||||||
| Other Income – Sale of Equipment & Accessories | – | – | – | (10,068 | ) | |||||||||||
| Discount Income | – | – | – | 192 | ||||||||||||
| Non-Recurring Contributions, Management Fees & Expenses | – | (2,404 | ) | – | 210,112 | |||||||||||
| Non-Recurring Professional & Transaction Fees | – | 55,444 | 174,500 | 213,500 | ||||||||||||
| Technology Start-up Costs | 22,275 | – | 272,067 | – | ||||||||||||
| Non-Recurring Optical Molding Evaluation Expenses | 77,386 | – | 187,734 | – | ||||||||||||
| Non-Recurring Glass Molding Evaluation Expenses | 28,240 | – | 130,196 | – | ||||||||||||
| Non-Recurring Executive Transition Expense | 122,374 | – | 122,374 | – | ||||||||||||
| Adjusted EBITDA | $ | 1,102,483 | $ | 1,295,104 | $ | 2,215,101 | $ | 4,071,261 | ||||||||
Use of Non-GAAP Financial Measures
The Company provides non-GAAP financial measures, including EBITDA and Adjusted EBITDA, as a supplement to GAAP financial information to enhance the overall understanding of the Company’s financial performance and to assist investors in evaluating the Company’s results of operations, period over period. Adjusted non-GAAP measures exclude significant unusual items. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for financial information prepared on a GAAP basis.
Non-GAAP Financial Measures
This Annual Report includes a non-GAAP measure that the Company uses to supplement our results presented in accordance with U.S. GAAP. EBITDA is defined as earnings before interest and other income, tax and depreciation and amortization. Adjusted EBITDA is calculated as EBITDA adjusted for non-recurring items, and business combination expenses. Adjusted EBITDA is a performance measure that we believe is useful to investors and analysts because it illustrates the underlying financial and business trends relating to our core, recurring results of operations and enhances comparability between periods.
Adjusted EBITDA is not a recognized measure under U.S. GAAP and is not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. Investors should exercise caution in comparing our non-GAAP measure to any similarly titled measure used by other companies. This non-GAAP measure excludes certain items required by U.S. GAAP and should not be considered as an alternative to information reported in accordance with U.S. GAAP.
Adjusted EBITDA
The Company defines adjusted EBITDA, a non-GAAP financial measure, as net earnings (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude non-recurring items as outlined in our 10-Q. The Company utilizes adjusted EBITDA as an internal performance measure in the management of our operations because we believe the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of our results of operations to other companies in our industry and is in accordance with the Non-GAAP Financial Measures Compliance & Disclosure Interpretations (Reference Question 102.03).
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Powell: With Strong US Economy, Fed Has 'No Need To Be In A Hurry To Lower Rates'
Federal Reserve Chair Jerome Powell indicated Thursday the remarkable strength of the U.S. economy is not sending any signals that policymakers “need to be in a hurry to lower rates.”
Powell’s remarks came at an event organized by the Dallas Regional Chamber on Thursday, just a week after his press conference following the November Federal Reserve meeting.
“Inflation is running much closer to our 2% longer-run goal, but it is not there yet. We are committed to finishing the job,” Powell said.
The Fed chair hinted that interest rates may be moving “to a more neutral setting,” but stressed that “the path for getting there is not preset.”
Powell Hints At Economic Strength, Warns About Risk Of Tariff Retaliations
Powell described the U.S. economy’s recent performance as “by far the best of any major economy in the world.” He attributed this strength in part to increased productivity.
“Productivity has grown faster over the past five years than its pace in the two decades before the pandemic, increasing the productive capacity of the economy and allowing rapid economic growth without overheating,” he said.
This resilience in the economy, according to Powell, gives the Federal Reserve the flexibility to “approach our decisions carefully,” though he underscored that the future path of interest rates would depend on how incoming data and economic forecasts evolve.
Powell expressed confidence that, with careful adjustments to the Fed’s policy stance, the strength of both the economy and the labor market could be preserved, while inflation trends back down to the Fed’s 2% target.
Regarding the labor market, Powell downplayed the significance of the October jobs report, noting it was influenced by temporary factors such as hurricanes and labor strikes.
He also indicated no urgency to change Fed policy in response to potential shifts in fiscal policy under the new Trump’s administration.
“It takes quite a long time to get a bill through Congress. We have time to make assessments about what the net effects of policy changes will be on the economy before we work with policy,” he said.
Powell reiterated his concern over the U.S. fiscal trajectory, calling it “unsustainable.”
“We have a very large deficit at a time when we’re at full employment,” Powell said, adding that he and recommended addressing it “sooner rather than later.”
When asked about the impact of higher trade tariffs on monetary policy, Powell was cautious but said scenarios involving retaliatory measures from other countries would require close monitoring by the Fed.
Market Reactions
Powell’s cautious remarks about the path for interest rates led to a sharp repricing of December rate cut expectations.
According to the CME FedWatch tool, the probability of a 25-basis-point rate cut in December has dropped, with Fed futures now indicating a 62% chance, down from prior estimates of nearly 80%.
In response, the U.S. dollar rallied, extending its winning streak to five sessions. Treasury yields also reversed course, with significant gains across the curve as investors adjusted their rate expectations. The yield on the two-year Treasury note, which is particularly sensitive to Fed policy shifts, jumped 6 basis points to 4.34%.
Equity markets reacted negatively to Powell’s tone. Major U.S. indices turned lower, with the S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, down 0.7%. The tech-heavy Nasdaq-100, represented by the Invesco QQQ Trust QQQ, slipped 0.8%.
Small-cap stocks suffered the most, with the iShares Russell 2000 ETF IWM dropping 1.3%, signaling broader risk aversion among investors.
Read Next:
Photo: Jerome Powell at the Nov. 7 FOMC press conference. Photo courtesy of the Federal Reserve.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Stocks Get Hit as Powell’s Remarks Curb Fed Wagers: Markets Wrap
(Bloomberg) — Stocks extended losses after Jerome Powell signaled the Federal Reserve is in no rush to cut rates as the economy is holding up.
Most Read from Bloomberg
The equity market closed near session lows, US two-year yields spiked and the dollar climbed after Powell’s remarks. Traders dialed back bets on a December rate reduction to around 55% — from 80% in the previous day.
“Powell’s speech was hawkish,” said Neil Dutta at Renaissance Macro Research. “I think they will still cut in December since policy remains restrictive and they want to get to a neutral setting. That said, on the economy, I think Powell (and the broader consensus) is complacent. There is more downside risk in the near-term than is being appreciated.”
To Quincy Krosby at LPL Financial, while it’s expected that the last mile towards price stability will be bumpy, Powell reminded markets that once again the Fed will not deliver the series of rate cuts they want, unless of course the labor market deteriorates.
Several policymakers have urged a cautious approach to further rate cuts in comments this week, in light of a strong economy, lingering inflation concerns and broad uncertainty. Their comments come at a time when the equity market is showing signs of fatigue following a post-election surge that spurred calls for a pause, with several measures highlighting “stretched” trader optimism.
The S&P 500 dropped 0.6%. The Nasdaq 100 slipped 0.7%. The Dow Jones Industrial Average lost 0.5%. Automakers like Tesla Inc. and Rivian Automotive Inc. slumped as Reuters reported President-elect Donald Trump plans to eliminate the $7,500 consumer tax credit for electric-vehicle purchases. Walt Disney Co. jumped on a profit beat.
Treasury two-year yields rose seven basis points to 4.36%. The Bloomberg Dollar Spot Index added 0.3%.
Equities lost steam after a strong post-election rally that reflected optimism that Trump’s agenda would support corporate growth.
While many investors seem reluctant to sell just yet, caution is warranted, according to Fawad Razaqzada at City Index and Forex.com. The S&P 500 is clearly overbought by several metrics, signaling that a correction or consolidation may be due, he noted.
“Although a full-fledged selloff appears unlikely without the index first breaking multiple support levels, current conditions suggest a modest pullback may be in order for the S&P 500,” Razaqzada added. “For seasoned traders, a short-term pullback could offer buying opportunities, though a clear trend reversal signal has yet to emerge.”
Acutus Medical Reports Third Quarter and Year-To-Date 2024 Financial Results
CARLSBAD, Calif., Nov. 14, 2024 (GLOBE NEWSWIRE) — Acutus Medical, Inc. (“Acutus” or the “Company”) AFIB today reported results for the third quarter and year-to-date of 2024.
Recent Highlights:
- Third quarter revenue from Continuing Operations of $5.3 million grew 156% year-over-year, from $2.1 million in the same quarter last year.
- Operating income for continuing operations was $0.1 million, an improvement of 119% compared to the same period last year.
- Recorded $2.4 million in gain on sale of business, a decrease of 8% compared to the same period last year.
- Cash, cash equivalents, marketable securities and restricted cash were $12.6 million as of September 30, 2024.
Third Quarter 2024 Financial Results
Revenue from Continuing Operations was $5.3 million for the third quarter of 2024, an increase of 156% compared to $2.1 million for the third quarter of 2023.
Gross margin on a GAAP basis for continuing operations was 7% for the third quarter of 2024 compared to negative 53% for the same quarter last year. The improvement was driven by higher production volumes related to left-heart access manufacturing and reduced manufacturing overhead expenses.
Operating income for continuing operations on a GAAP basis was $0.1 million for the third quarter of 2024 compared to Operating expenses of $0.6 million for the same period last year. The decrease in operating expenses from reduced discretionary spend under this new business model.
Net loss on continuing operations on a GAAP basis was $0.8 million for the third quarter of 2024 and net loss per share was $0.03 on a weighted average basic and diluted outstanding share count of 29.8 million, compared to a net loss of $1.9 million and a net loss per share of $0.7 on a weighted average basic and diluted outstanding share count of 29.3 million for the same period last year.
Cash, cash equivalents, marketable securities and restricted cash were $12.6 million as of September 30, 2024.
Loss on Discontinued Operations
Loss on discontinued operations was $4.8 million for third quarter of 2024, compared to $13.2 million for the same period last year.
Outlook
Due to the announced plan to realign resources to support the left-heart access distribution business and exit from the electrophysiology mapping and ablation businesses, the Company will no longer provide financial guidance.
About Acutus
Acutus is focused on the production of left-heart access products under its distribution agreement with Medtronic, Inc. Founded in 2011, Acutus is based in Carlsbad, California.
Caution Regarding Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements, usually containing the words ‘believe”, “estimate”, “project”, “expect” or similar expressions. Forward looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the Company’s ability to continue to manage expenses and cash burn rate at sustainable levels, successful completion of the Company’s restructuring plan, continued acceptance of the Company’s left-heart access products in the marketplace, the effect of global economic conditions on the ability and willingness of Medtronic to purchase the Company’s left-heart access products and the timing of such purchases, competitive factors, changes resulting from healthcare policy in the United States and globally including changes in government reimbursement of procedures, dependence upon third-party vendors and distributors, timing of regulatory approvals, the Company’s ability to maintain its listing on Nasdaq, and other risks discussed in the Company’s periodic and other filings with the Securities and Exchange Commission. By making these forward-looking statements, Acutus undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.
Investor Contact:
Chad Hollister
Acutus Medical, Inc.
investors@acutus.com
| Acutus Medical, Inc. Consolidated Balance Sheets |
|||||||
| September 30, 2024 |
December 31, 2023 |
||||||
| (in thousands, except share and per share amounts) | (unaudited) | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 12,595 | $ | 19,170 | |||
| Marketable securities, short-term | — | 3,233 | |||||
| Restricted cash, short-term | — | 7,030 | |||||
| Accounts receivable | 9,970 | 11,353 | |||||
| Inventory | 4,191 | 4,278 | |||||
| Prepaid expenses and other current assets | 403 | 678 | |||||
| Current assets of discontinued operations (Note 3) | — | 510 | |||||
| Total current assets | 27,159 | 46,252 | |||||
| Property and equipment, net | 736 | 825 | |||||
| Right-of-use assets, net | 2,647 | 3,189 | |||||
| Other assets | 94 | 94 | |||||
| Non-current assets of discontinued operations (Note 3) | 1,531 | 3,600 | |||||
| Total assets | $ | 32,167 | $ | 53,960 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | 1,711 | 2,761 | |||||
| Accrued liabilities | 1,702 | 2,887 | |||||
| Operating lease liabilities, short-term | 897 | 718 | |||||
| Long-term debt, current portion | 7,084 | 1,864 | |||||
| Warrant liability | 302 | 409 | |||||
| Current liabilities of discontinued operations (Note 3) | 2,969 | 10,303 | |||||
| Total current liabilities | 14,665 | 18,942 | |||||
| Operating lease liabilities, long-term | 2,532 | 3,243 | |||||
| Long-term debt | 25,269 | 32,654 | |||||
| Total liabilities | 42,466 | 54,839 | |||||
| Commitments and contingencies (Note 11) | |||||||
| Stockholders’ deficit | |||||||
| Preferred stock, $0.001 par value; 5,000,000 shares authorized as of September 30, 2024 and December 31, 2023; 6,666 shares of preferred stock, designated as Series A Common Equivalent Preferred Stock, are issued and outstanding as of September 30, 2024 and December 31, 2023 | — | — | |||||
| Common stock, $0.001 par value; 260,000,000 shares authorized as of September 30, 2024 and December 31, 2023; 29,912,305 and 29,313,667 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 30 | 29 | |||||
| Additional paid-in capital | 598,670 | 599,935 | |||||
| Accumulated deficit | (608,118 | ) | (599,977 | ) | |||
| Accumulated other comprehensive loss | (881 | ) | (866 | ) | |||
| Total stockholders’ deficit | (10,299 | ) | (879 | ) | |||
| Total liabilities and stockholders’ deficit | $ | 32,167 | $ | 53,960 | |||
| Acutus Medical, Inc. Consolidated Statements of Operations and Comprehensive Loss |
|||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (in thousands, except share and per share amounts) | (unaudited) | ||||||||||||||
| Revenue | $ | 5,266 | $ | 2,060 | $ | 13,027 | $ | 4,816 | |||||||
| Cost of products sold | 4,894 | 3,150 | 13,019 | 7,835 | |||||||||||
| Gross profit (loss) | 372 | (1,090 | ) | 8 | (3,019 | ) | |||||||||
| Operating expenses (income): | |||||||||||||||
| Research and development | — | 896 | — | 2,752 | |||||||||||
| Selling, general and administrative | 2,318 | 2,354 | 7,880 | 9,502 | |||||||||||
| Change in fair value of contingent consideration | — | — | — | 123 | |||||||||||
| Gain on sale of business | (2,435 | ) | (2,648 | ) | (8,096 | ) | (5,927 | ) | |||||||
| Total operating expenses (income) | (117 | ) | 602 | (216 | ) | 6,450 | |||||||||
| Gain (loss) from operations | 489 | (1,692 | ) | 224 | (9,469 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Change in fair value of warrant liability | (174 | ) | 636 | 107 | 1,478 | ||||||||||
| Interest income | 153 | 547 | 641 | 2,223 | |||||||||||
| Interest expense | (1,395 | ) | (1,409 | ) | (4,384 | ) | (4,110 | ) | |||||||
| Other revenue | 111 | — | 187 | — | |||||||||||
| Total other expense, net | (1,305 | ) | (226 | ) | (3,449 | ) | (409 | ) | |||||||
| Loss from continuing operations before income taxes | (816 | ) | (1,918 | ) | (3,225 | ) | (9,878 | ) | |||||||
| Net loss from continuing operations | (816 | ) | (1,918 | ) | (3,225 | ) | (9,878 | ) | |||||||
| Discontinued operations: | |||||||||||||||
| Loss from discontinued operations before taxes | (4,791 | ) | (11,244 | ) | (4,906 | ) | (37,945 | ) | |||||||
| Income tax expense – discontinued operations | — | 75 | 10 | 75 | |||||||||||
| Net loss from discontinued operations | (4,791 | ) | (11,319 | ) | (4,916 | ) | (38,020 | ) | |||||||
| Net loss | $ | (5,607 | ) | $ | (13,237 | ) | $ | (8,141 | ) | $ | (47,898 | ) | |||
| Other comprehensive loss | |||||||||||||||
| Unrealized loss (gain) on marketable securities | — | 4 | — | 7 | |||||||||||
| Foreign currency translation adjustment | (15 | ) | (66 | ) | (15 | ) | (91 | ) | |||||||
| Comprehensive loss | $ | (5,622 | ) | $ | (13,299 | ) | $ | (8,156 | ) | $ | (47,982 | ) | |||
| Net loss per share, basic and diluted: | |||||||||||||||
| Loss from continuing operations | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.11 | ) | $ | (0.34 | ) | |||
| Loss from discontinued operations | $ | (0.16 | ) | $ | (0.39 | ) | $ | (0.17 | ) | $ | (1.31 | ) | |||
| Net loss per common share | $ | (0.19 | ) | $ | (0.45 | ) | $ | (0.27 | ) | $ | (1.65 | ) | |||
| Weighted average shares outstanding, basic and diluted | 29,799,241 | 29,262,768 | 29,768,208 | 29,024,353 | |||||||||||
| Acutus Medical, Inc. Consolidated Statements of Cash Flows |
|||||||
| Nine Months Ended September 30, | |||||||
| 2024 | 2023 | ||||||
| (in thousands) | (unaudited) | ||||||
| Cash flows from operating activities | |||||||
| Net loss | $ | (8,141 | ) | $ | (47,898 | ) | |
| Less: Loss from discontinued operations | 4,916 | 38,020 | |||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation expense | 235 | 384 | |||||
| Non-cash stock-based compensation expense | 459 | 1,272 | |||||
| Accretion of discounts on marketable securities, net | (28 | ) | (1,318 | ) | |||
| Amortization of debt issuance costs | 460 | 325 | |||||
| Amortization of operating lease right-of-use assets | 542 | 513 | |||||
| Gain on sale of business, net | (8,096 | ) | (5,927 | ) | |||
| Change in fair value of warrant liability | (107 | ) | (1,478 | ) | |||
| Loss on disposal of property and equipment | — | — | |||||
| Change in fair value of contingent consideration | — | 123 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (3,499 | ) | 3,247 | ||||
| Inventory | 87 | 11,567 | |||||
| Employer retention credit receivable | — | 4,703 | |||||
| Prepaid expenses and other current assets | 286 | 2,010 | |||||
| Accounts payable | (1,050 | ) | (3,020 | ) | |||
| Accrued liabilities | (1,442 | ) | (8,043 | ) | |||
| Operating lease liabilities | (532 | ) | (253 | ) | |||
| Other long-term liabilities | — | 20 | |||||
| Net cash used in operating activities – continuing operations | (15,910 | ) | (5,753 | ) | |||
| Net cash used in operating activities – discontinued operations | (11,692 | ) | (39,352 | ) | |||
| Net cash used in operating activities | (27,602 | ) | (45,105 | ) | |||
| Cash flows from investing activities | |||||||
| Proceeds from sale of business | 13,235 | 17,000 | |||||
| Purchases of available-for-sale marketable securities | — | (38,521 | ) | ||||
| Sales of available-for-sale marketable securities | 500 | — | |||||
| Maturities of available-for-sale marketable securities | 2,750 | 70,250 | |||||
| Purchases of property and equipment | (148 | ) | (1,187 | ) | |||
| Net cash provided by investing activities – continuing operations | 16,337 | 47,542 | |||||
| Net cash provided by (used in) investing activities – discontinued operations | 339 | (207 | ) | ||||
| Net cash provided by investing activities | 16,676 | 47,335 | |||||
| Cash flows from financing activities | |||||||
| Repayment of debt | (2,625 | ) | — | ||||
| Proceeds from the exercise of stock options | — | 4 | |||||
| Repurchase of common shares to pay employee withholding taxes | — | (35 | ) | ||||
| Proceeds from employee stock purchase plan | — | 25 | |||||
| Net cash (used in) provided by financing activities – continuing operations | (2,625 | ) | (1,929 | ) | |||
| Net cash used in financing activities – discontinued operations | (41 | ) | (240 | ) | |||
| Net cash used in financing activities | (2,666 | ) | (2,169 | ) | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (13 | ) | (294 | ) | |||
| Net change in cash, cash equivalents and restricted cash | (13,605 | ) | (233 | ) | |||
| Cash, cash equivalents and restricted cash, at the beginning of the period | 26,200 | 31,348 | |||||
| Cash, cash equivalents and restricted cash, at the end of the period | $ | 12,595 | $ | 31,115 | |||
| Supplemental disclosure of cash flow information: | |||||||
| Cash paid for interest | 3,394 | 3,731 | |||||
| Supplemental disclosure of noncash investing and financing activities: | |||||||
| Accounts receivable from sale of business | $ | 4,478 | $ | 6,111 | |||
| Change in unrealized (gain) on marketable securities | $ | — | $ | (7 | ) | ||
| Change in unpaid purchases of property and equipment | $ | — | $ | 35 | |||
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Massive Insider Trade At Gartner
On November 13, a recent SEC filing unveiled that Kenneth Allard, EVP at Gartner IT made an insider sell.
What Happened: Allard’s decision to sell 3,015 shares of Gartner was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,652,786.
Gartner shares are trading down 1.64% at $542.75 at the time of this writing on Thursday morning.
About Gartner
Gartner Inc provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients’ desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies’ IT budgets. Gartner also provides consulting services. The Company operates through three business segments, namely Research, Conferences and Consulting. The company generates majority of the revenue from Research segment.
Gartner: Delving into Financials
Revenue Growth: Gartner displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 5.36%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Evaluating Earnings Performance:
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Gross Margin: The company sets a benchmark with a high gross margin of 67.98%, reflecting superior cost management and profitability compared to its peers.
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Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 5.36, Gartner showcases strong earnings per share.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.73, caution is advised due to increased financial risk.
Valuation Analysis:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 40.75 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 7.07, Gartner’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 26.02 reflects market recognition of Gartner’s value, positioning it as more highly valued compared to industry peers.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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The Relevance of Insider Transactions
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Breaking Down the Significance of Transaction Codes
For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Gartner’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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