Oculis to Present at the Stifel 2024 Healthcare Conference
ZUG, Switzerland, Nov. 13, 2024 (GLOBE NEWSWIRE) — Oculis Holding AG OCS (“Oculis”), a global biopharmaceutical company purposefully driven to save sight and improve eye care, today announced that Oculis’ management will be present at the Stifel 2024 Healthcare Conference being held on November 18-19, 2024 at the Lotte New York Palace Hotel in New York, NY.
Sylvia Cheung, Chief Financial Officer of Oculis, will participate in a fireside chat on November 18, 2024 at 3:35 pm ET. A live webcast of the fireside chat will be available here.
The Company will be available for one-on-one meetings during the conference. Interested investors should contact their Stifel representative to request meetings. A link to access the fireside chat, when available, will be posted to Oculis website on the Events & Presentation page under the Investors & Media section.
About Oculis
Oculis is a global biopharmaceutical company OCSOCS) purposefully driven to save sight and improve eye care. Oculis’ highly differentiated pipeline comprises multiple innovative product candidates in development. It includes OCS-01, a topical eye drop candidate for diabetic macular edema (DME) and for the treatment of inflammation and pain following cataract surgery; licaminlimab (OCS-02), a topical biologic anti-TNFα eye drop candidate for dry eye disease (DED) and for non-infectious anterior uveitis; and OCS-05, a neuroprotective candidate for acute optic neuritis (AON). Headquartered in Switzerland and with operations in the U.S. and Iceland, Oculis’ goal is to improve the health and quality of life of patients worldwide. The company is led by an experienced management team with a successful track record and is supported by leading international healthcare investors.
For more information, please visit: www.oculis.com.
Oculis Contacts
Ms. Sylvia Cheung, CFO
sylvia.cheung@oculis.com
Investor & Media Relations
LifeSci Advisors
Corey Davis, Ph.D.
cdavis@lifesciadvisors.com
1-212-915-2577
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Lucid Diagnostics Provides Business Update and Third Quarter 2024 Financial Results
EsoGuard® revenue up 20 percent sequentially
Clinical evidence package for Medicare coverage submission complete
Direct contracting initiative expanded to multiple programs to drive near-term revenue growth
Conference call and webcast to be held today, November 13th at 8:30 AM EST
NEW YORK, Nov. 13, 2024 /PRNewswire/ — Lucid Diagnostics Inc. LUCD (“Lucid” or the “Company”) a commercial-stage, cancer prevention medical diagnostics company, and subsidiary of PAVmed Inc. PAVM PAVMZ)) (“PAVmed”), today provided a business update for the Company and presented financial results for the three months ended September 30, 2024.
Conference Call and Webcast
The webcast will take place on Wednesday, November 13, 2024, at 8:30 AM and will be accessible in the investor relations section of the Company’s website at luciddx.com. Alternatively, to access the conference call by telephone, U.S.-based callers should dial 1-800-836-8184 and international listeners should dial 1-646-357-8785. All listeners should provide the operator with the conference call name “Lucid Diagnostics Business Update” to join.
Following the conclusion of the conference call, a replay will be available for 30 days on the investor relations section of the Company’s website at luciddx.com.
Business Update Highlights
“The third quarter and recent weeks have been a transformational period for Lucid, including two key milestones announced last week,” said Lishan Aklog, M.D., Lucid’s Chairman and Chief Executive Officer. “We are now fully armed with a complete body of outstanding clinical data to go along with a renewed commercial focus on programs designed to drive near-term revenue. Our team is ready to make our final push towards broad reimbursement, including our upcoming submission formally seeking Medicare coverage of EsoGuard. We are energized by the vast clinical and market opportunity before us as we seek to expand patient access to our groundbreaking technologies to detect esophageal precancer, and drive shareholder value.”
Highlights from the third quarter and recent weeks:
- For the quarter, EsoGuard® Esophageal DNA Test revenue was $1.2M, which represents a 20 percent increase sequentially from 2Q24 and a 50 percent annual increase from 3Q23.
- Lucid’s CLIA-certified clinical laboratory performed 2,787 commercial EsoGuard tests in 3Q24. Additionally, for the month of October, the lab performed a single-month record of more than 1,400 tests, contributing to the largest three-month total in the Company’s history.
- ESOGUARD BE-1 clinical validation study accepted for peer-reviewed publication in the American Journal of Gastroenterology. This publication completes Lucid’s clinical evidence package for submission to formally seek Medicare coverage.
- Company leveraging complete clinical evidence package to expand direct contracting initiative with multiple programs focused on driving near-term revenue growth, including a shift to fully-contracted #CYFT Precancer Testing Events, broadening employer markets activity, and a new foray into the concierge medicine sector.
- Met with CMS Medicare Administrative Contractor (MAC) Palmetto GBA’s Molecular Diagnostics Program (MolDX) to discuss EsoGuard clinical evidence package for upcoming submission for Medicare coverage.
- Peer-reviewed publication of EsoGuard analytical validation study, demonstrating excellent analytical accuracy, repeatability, and reproducibility of the assay.
- Received Notice of Allowance for key patent underlying EsoGuard.
Financial Results
- For the three months ended September 30, 2024, EsoGuard related revenues were $1.2 million. Operating expenses were approximately $12.9 million, which included stock-based compensation expenses of $1.2 million. GAAP net loss attributable to common stockholders was approximately $12.4 million or $(0.25) per common share.
- As shown below and for the purpose of illustrating the effect of stock-based compensation and other non-cash income and expenses on the Company’s financial results, the Company’s non-GAAP adjusted loss for the three months ended September 30, 2024 was approximately $10.1 million or $(0.20) per common share.
- Lucid had cash and cash equivalents of $14.5 million as of September 30, 2024, compared to $18.9 million as of December 31, 2023. As of November 12, the Company has entered into subscription agreements with long-term accredited investors to purchase $21.75 million of five-year Senior Secured Convertible Notes. The Company gave notice to the existing convertible note holder that it is exercising its right to redeem the existing notes. Upon closing of the subscription agreements and completing the redemption of the existing notes, the company expects to increase its cash runway by approximately $13.2 million.
- The unaudited financial results for the three and nine months ended September 30, 2024, were filed with the SEC on Form 10-Q on November 12, 2024, and available at www.luciddx.com or www.sec.gov.
Lucid Non-GAAP Measures
- To supplement our unaudited financial results presented in accordance with U.S. generally accepted accounting principles (GAAP), management provides certain non-GAAP financial measures of the Company’s financial results. These non-GAAP financial measures include net loss before interest, taxes, depreciation, and amortization (EBITDA), and non-GAAP adjusted loss, which further adjusts EBITDA for stock-based compensation expense and other non-cash income and expenses, if any. The foregoing non-GAAP financial measures of EBITDA and non-GAAP adjusted loss are not recognized terms under U.S. GAAP.
- Non-GAAP financial measures are presented with the intent of providing greater transparency to the information used by us in our financial performance analysis and operational decision-making. We believe these non-GAAP financial measures provide meaningful information to assist investors, shareholders, and other readers of our unaudited financial statements in making comparisons to our historical financial results and analyzing the underlying performance of our results of operations. These non-GAAP financial measures are not intended to be, and should not be, a substitute for, considered superior to, considered separately from, or as an alternative to, the most directly comparable GAAP financial measures.
- Non-GAAP financial measures are provided to enhance readers’ overall understanding of our current financial results and to provide further information for comparative purposes. Management believes the non-GAAP financial measures provide useful information to management and investors by isolating certain expenses, gains, and losses that may not be indicative of our core operating results and business outlook. Specifically, the non-GAAP financial measures include non-GAAP adjusted loss, and its presentation is intended to help the reader understand the effect of the loss on the issuance or modification of convertible securities, the periodic change in fair value of convertible securities, the loss on debt extinguishment, and the corresponding accounting for non-cash charges on financial performance. In addition, management believes non-GAAP financial measures enhance the comparability of results against prior periods.
- A reconciliation to the most directly comparable GAAP measure of all non-GAAP financial measures included in this press release for the three and nine months ended September 30, 2024, and 2023 are as follows:
|
Condensed consolidated statements of operations (unaudited) |
||||||||
|
(in thousands except per-share amounts) |
For the three months ended September 30, |
For the nine months ended September 30, |
||||||
|
2024 |
2023 |
2024 |
2023 |
|||||
|
Revenue |
$ 1,172 |
$ 783 |
$ 3,149 |
$ 1,388 |
||||
|
Operating expenses |
12,866 |
11,911 |
36,826 |
38,417 |
||||
|
Other (Income) expense |
677 |
3,080 |
311 |
4,807 |
||||
|
Net Loss |
(12,371) |
(14,208) |
(33,988) |
(41,836) |
||||
|
Net income (loss) per common share, basic and diluted |
$ (0.25) |
$ (0.34) |
$ (0.87) |
$ (1.01) |
||||
|
Net loss attributable to common stockholders |
(12,371) |
(14,208) |
(41,484) |
(41,836) |
||||
|
Preferred Stock dividends and deemed dividends |
— |
— |
7,496 |
— |
||||
|
Net income (loss) as reported |
(12,371) |
(14,208) |
(33,988) |
(41,836) |
||||
|
Adjustments: |
||||||||
|
Depreciation and amortization expense1 |
215 |
625 |
945 |
1,870 |
||||
|
Interest expense, net2 |
(80) |
33 |
(237) |
75 |
||||
|
EBITDA |
(12,236) |
(13,550) |
(33,280) |
(39,891) |
||||
|
Other non-cash or financing related expenses: |
||||||||
|
Stock-based compensation expense3 |
1,228 |
1,252 |
3,363 |
5,859 |
||||
|
ResearchDx acquisition paid in stock1 |
— |
— |
— |
713 |
||||
|
Operating expenses issued in stock1 |
135 |
— |
248 |
23 |
||||
|
Change in FV convertible debt2 |
322 |
3,021 |
(568) |
3,520 |
||||
|
Offering costs convertible debt2 |
— |
— |
— |
1,186 |
||||
|
Debt extinguishments loss – Senior Secured Convertible Note2 |
435 |
26 |
1,116 |
26 |
||||
|
Non-GAAP adjusted (loss) |
$ (10,116) |
$ (9,251) |
$ (29,121) |
$ (28,564) |
||||
|
Basic and Diluted shares outstanding |
50,374 |
41,863 |
47,876 |
41,559 |
||||
|
Non-GAAP adjusted (loss) income per share |
$(0.20) |
$(0.22) |
$(0.61) |
$(0.69) |
||||
|
1 |
Included in general and administrative expenses in the financial statements. |
|
2 |
Included in other income and expenses. |
|
3 |
Stock-based compensation (“SBC”) expense included in operating expenses is detailed as follows in the table below by category within operating expenses for the non-GAAP Net operating expenses: |
|
Reconciliation of GAAP Operating Expenses to Non-GAAP Net Operating Expenses |
||||||||
|
(in thousands except per-share amounts) |
For the three months ended September 30, |
For the nine months ended September 30, |
||||||
|
2024 |
2023 |
2024 |
2023 |
|||||
|
Cost of revenues |
$ 1,684 |
$ 1,634 |
$ 4,954 |
$ 4,522 |
||||
|
Stock-based compensation expense3 |
(41) |
(26) |
(121) |
(70) |
||||
|
Net cost of revenues |
1,643 |
1,608 |
4,833 |
4,452 |
||||
|
Amortization of intangible assets |
105 |
505 |
582 |
1,516 |
||||
|
Sales and marketing |
4,056 |
3,837 |
12,459 |
11,996 |
||||
|
Stock-based compensation expense3 |
(351) |
(334) |
(1,066) |
(1,056) |
||||
|
Net sales and marketing |
3,705 |
3,503 |
11,393 |
10,940 |
||||
|
General and administrative |
5,355 |
4,320 |
14,292 |
15,049 |
||||
|
Depreciation expense |
(110) |
(120) |
(363) |
(354) |
||||
|
RDx Settlement in Stock |
— |
— |
— |
(713) |
||||
|
Operating expenses issued in stock |
(135) |
— |
(248) |
(23) |
||||
|
Stock-based compensation expense3 |
(700) |
(728) |
(1,640) |
(4,239) |
||||
|
Net general and administrative |
4,410 |
3,472 |
12,041 |
9,720 |
||||
|
Research and development |
1,666 |
1,615 |
4,539 |
5,334 |
||||
|
Stock-based compensation expense3 |
(136) |
(164) |
(536) |
(494) |
||||
|
Net research and development |
1,530 |
1,451 |
4,003 |
4,840 |
||||
|
Total operating expenses |
12,866 |
11,911 |
36,826 |
38,417 |
||||
|
Depreciation and amortization expense |
(215) |
(625) |
(945) |
(1,870) |
||||
|
RDx Settlement in Stock |
— |
— |
— |
(713) |
||||
|
Operating expenses issued in stock |
(135) |
— |
(248) |
(23) |
||||
|
Stock-based compensation expense3 |
(1,228) |
(1,252) |
(3,363) |
(5,859) |
||||
|
Net operating expenses |
$ 11,288 |
$ 10,034 |
$ 32,270 |
$ 29,952 |
||||
About EsoGuard and EsoCheck
Millions of patients with gastroesophageal reflux disease (GERD) are at risk of developing esophageal precancer and a highly lethal form of esophageal cancer (“EAC”). Over 80 percent of EAC patients die within five years of diagnosis, making it the second most lethal cancer in the U.S. The mortality rate is high even in those diagnosed with early stage EAC. The U.S. incidence of EAC has increased 500 percent over the past four decades, while the incidences of other common cancers have declined or remained flat. In nearly all cases, EAC silently progresses until it manifests itself with new symptoms of advanced disease. All EAC is believed to arise from esophageal precancer, which occurs in approximately 5 percent to 15 percent of at-risk GERD patients. Early esophageal precancer can be monitored for progression to late esophageal precancer which can be cured with endoscopic esophageal ablation, reliably halting progression to cancer.
Esophageal precancer screening is already recommended by clinical practice guidelines for the millions of GERD patients with multiple risk factors, including age over 50 years, male sex, White race, obesity, smoking history, and a family history of esophageal precancer or cancer. Unfortunately, fewer than 10 percent of those recommended for screening undergo traditional invasive endoscopic screening. The profound tragedy of an EAC diagnosis is that death could likely have been prevented if the at-risk GERD patient had been screened and then undergone surveillance and curative treatment at the precancer stage.
The only missing element for a viable esophageal cancer prevention program has been the lack of an easily accessible, in-office screening tool that can detect esophageal precancer. Lucid believes EsoGuard, performed on samples collected non-endoscopically with EsoCheck, is the missing element – the first and only commercially available test capable of serving as a widespread screening tool to prevent esophageal cancer deaths through the early detection of esophageal precancer in at-risk GERD patients. An updated American College of Gastroenterology (ACG) clinical practice guideline and an American Gastroenterological Association (AGA) clinical practice update both endorse non-endoscopic biomarker tests as an acceptable alternative to costly and invasive endoscopy for esophageal precancer screening. EsoGuard is the only such test currently available in the United States.
EsoGuard is a Next Generation Sequencing (NGS) based DNA methylation assay performed on surface esophageal cells collected with EsoCheck, which quantifies methylation at 31 sites on two genes, Vimentin (VIM) and Cyclin A1 (CCNA1). The assay was initially evaluated in a 408-patient, multicenter, case-control study published in Science Translational Medicine and showed greater than 90 percent sensitivity and specificity at detecting esophageal precancer and cancer.
EsoCheck is a CE Marked and FDA 510(k) cleared noninvasive swallowable balloon capsule catheter device capable of sampling surface esophageal cells in a less than three-minute office procedure. It consists of a vitamin pill-sized rigid plastic capsule tethered to a thin silicone catheter from which a soft silicone balloon with textured ridges emerges to gently swab surface esophageal cells. When vacuum suction is applied, the balloon and sampled cells are pulled into the capsule, protecting them from contamination and dilution by cells outside of the targeted region during device withdrawal. Lucid believes this proprietary Collect+Protect™ technology makes EsoCheck the only noninvasive esophageal cell collection device capable of such anatomically targeted and protected sampling. The sample is sent by overnight express mail to Lucid’s CLIA-certified, CAP-accredited, NYS CLEP approved laboratory, LucidDx Labs, for EsoGuard testing.
About Lucid Diagnostics
Lucid Diagnostics Inc. is a commercial-stage, cancer prevention medical diagnostics company, and subsidiary of PAVmed Inc. Lucid is focused on the millions of patients with GERD, also known as chronic heartburn, who are at risk of developing esophageal precancer and cancer. Lucid’s EsoGuard® Esophageal DNA Test, performed on samples collected in a brief, noninvasive office procedure with its EsoCheck® Esophageal Cell Collection Device – the first and only commercially available tools designed with the goal of preventing esophageal cancer and cancer deaths through widespread, early detection of esophageal precancer in at-risk patients.
For more information, please visit luciddx.com and for more information about its parent company PAVmed, please visit pavmed.com.
Forward-Looking Statements
This press release includes forward-looking statements that involve risk and uncertainties. Forward-looking statements are any statements that are not historical facts. Such forward-looking statements, which are based upon the current beliefs and expectations of Lucid Diagnostics’ management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Risks and uncertainties that may cause such differences include, among other things, volatility in the price of Lucid Diagnostics’ common stock; general economic and market conditions; the uncertainties inherent in research and development, including the cost and time required to advance Lucid Diagnostics’ products to regulatory submission; whether regulatory authorities will be satisfied with the design of and results from Lucid Diagnostics’ clinical and preclinical studies; whether and when Lucid Diagnostics’ products are cleared by regulatory authorities; market acceptance of Lucid Diagnostics’ products once cleared and commercialized; Lucid Diagnostics’ ability to raise additional funding as needed; and other competitive developments. These factors are difficult or impossible to predict accurately and many of them are beyond Lucid Diagnostics’ control. In addition, new risks and uncertainties may arise from time to time and are difficult to predict. For a further list and description of these and other important risks and uncertainties that may affect Lucid Diagnostics’ future operations, see Part I, Item 1A, “Risk Factors,” in Lucid Diagnostics’ most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as the same may be updated in Part II, Item 1A, “Risk Factors” in any Quarterly Report on Form 10-Q filed by Lucid Diagnostics after its most recent Annual Report. Lucid Diagnostics disclaims any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in its expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.
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SOURCE Lucid Diagnostics
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
S&P 500, Dow Futures Dip As Investors Brace For Key Inflation Data: Expert Says 'Strong Productivity' Will Cap Inflation Despite Fed's Rate Cuts
U.S. stocks could open on a negative note on Wednesday after the averages scaled record highs last week. Futures of all three major indices were slightly down as investors await the crucial Consumer Price Index (CPI) print scheduled to be released on Wednesday.
Nasdaq, S&P 500, and Dow Jones surged over 4% last week after the GOP sweep and the Federal Reserve delivered a widely expected 25 basis point rate cut.
However, after Dow Jones scaled a record 44,000 to kick off the week on a positive note, the markets have witnessed a slight pullback due to profit booking and caution among investors.
| Futures | Change (+/-) |
| Nasdaq 100 | -0.14% |
| S&P 500 | -0.13% |
| Dow Jones | -0.11% |
| R2K | -0.08% |
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust SPY fell 0.11% to $596.25 and the Invesco QQQ ETF QQQ declined 0.12% to $512.30, according to Benzinga Pro data.
Cues From Last Session:
The S&P 500 and Nasdaq both snapped their five-session winning streak on Tuesday, edging lower as investors took a breather.
Crude oil prices remained under the $70 mark but edged up due to near-term supply tightness.
Treasury yields eased a little as investors await inflation data.
On the economic data front, U.S. consumer inflation expectations for the year ahead eased to 2.9% in October compared to 3% in each of the prior four months.
The RealClearMarkets/TIPP Economic Optimism Index rose 13.4% in November to a reading of 53.2, recording the highest reading in over three years.
Most sectors on the S&P 500 closed on a negative note, with materials, health care, and real estate stocks recording the biggest losses on Tuesday.
However, information technology and communication services stocks bucked the overall market trend, closing the session higher.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | -0.09% | 19,281.40 |
| S&P 500 | -0.29% | 5,983.99 |
| Dow Jones | -0.86% | 43,910.98 |
| Russell 2000 | -1.77% | 2,391.85 |
Insights From Analysts:
Ryan Detrick, chief market strategist at Carson Group, thinks that the Fed has enough room to cut interest rates further without worrying about a surge in inflation. According to him, the “strong productivity” will help keep inflation capped.
“As long as productivity remains strong (like we think it should) the path is there for the Fed to continue to cut interest rates and not worry about inflation soaring back.”
However, analysts at BlackRock Investment Institute expressed caution on inflation.
“We focus on U.S. CPI to see if inflation will keep falling toward the Fed’s 2% target. Short-term inflation has been decreasing, with immigration boosting the labor supply and cooling wage growth. However, recent services PCE data remains sticky, indicating that inflation may settle above 2% in the medium term.”
Over the longer term, though, an aging population could maintain a persistent upward pressure on inflation, the firm said.
Wells Fargo’s lead economist Jay Bryson echoed similar sentiments, saying, “The October CPI report will likely support the notion that the last mile of inflation’s journey back to target will be the hardest.”
WisdomTree and Wharton School economist Jeremy Siegel continued to stress that the equity markets have enough gas in them to continue the ongoing bull run.
“The ‘bull market’ sentiment remains intact, though valuations remain a watch point,” he said, adding that the expectations of “lighter regulations” from President-elect Donald Trump’s administration would benefit equities.
“The bull market in stocks looks set to continue, while bonds face a rougher road,” Siegel said but noted that the gains that equity investors have been seeing this year are unlikely to repeat in 2025.
See Also: How To Trade Futures
Upcoming Economic Data
Wednesday’s economic calendar includes the release of inflation print.
- The Consumer Price Index (CPI) will be released at 8:30 a.m. ET.
- New York Fed President John Williams will speak at 9:30 a.m. ET.
- Dallas Fed President Lorie Logan will speak at 9:45 a.m. ET.
- The monthly U.S. federal budget will be released at 2 p.m. ET.
Stocks In Focus:
- Rivian Automotive Inc. RIVN shares surged nearly 13% in premarket trading on Wednesday after the company announced the launch of its joint venture with the Volkswagen Group VWAGY, with the deal value rising from $5 billion to $5.8 billion.
- Tesla Inc. TSLA shares rose over 2.5% in premarket trading on Wednesday, after CEO Elon Musk was appointed to the Department of Government Efficiency, or DOGE, along with Vivek Ramaswamy.
- Spirit Airlines Inc. SAVE stock fell over 65% in premarket trading after the company inched closer to bankruptcy and failed to file its September quarter earnings.
- MicroStrategy Inc. MSTR and Robinhood Markets Inc. HOOD shares continued to surge after Bitcoin BTC/USD inched closer to $90,000.
- Investors are awaiting earnings results from CyberArk Software Ltd. CYBR, Cisco Systems, Inc. CSCO, and Beazer Homes USA, Inc. BZH today.
Commodities, Bonds And Global Equity Markets:
Crude oil futures surged in the early New York session, rising by 0.81% to hover around $68.67 per barrel.
The 10-year Treasury note yield eased slightly to 4.418%.
Most of the major Asian markets ended in the red on Wednesday, but European markets were in the green in early trading.
Read Next:
Photo courtesy: Wikimedia
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Bitcoin Depot Reports Third Quarter 2024 Financial Results
ATLANTA, Nov. 13, 2024 (GLOBE NEWSWIRE) — Bitcoin Depot Inc. (“Bitcoin Depot” or the “Company”), a U.S.-based Bitcoin ATM operator and leading fintech company, today reported financial results for the third quarter ended September 30, 2024. Bitcoin Depot will host a conference call and webcast at 10:00 a.m. ET today. An earnings presentation and link to the webcast will be made available at ir.bitcoindepot.com.
“During the third quarter, we made significant strides in expanding our Bitcoin ATM network while working to optimize existing machines for greater profitability,” said Brandon Mintz, CEO and Founder of Bitcoin Depot. “We ended the quarter with 8,300 machines, surpassing our goals and reflecting our team’s execution and vision to enhance Bitcoin’s accessibility.
“In the past year, we’ve focused on relocating underperforming BTMs to more promising locations, a strategy that historically boosts average profitability per kiosk over time. While this improvement may not be fully visible in our consolidated quarterly numbers, the strategy is proving effective. With our extensive kiosk footprint and these initiatives in place, we are confident in our ability to drive shareholder value moving forward.
“As a result of our continued cash flow generation, we believe that beginning a cash dividend to common shareholders in 2025 will be one of the ways we create value for shareholders.”
Third Quarter 2024 Financial Results
Revenue in the third quarter of 2024 was $135.3 million, down 25% from $179.5 million in the third quarter of 2023. This decline was largely driven by the impact of unfavorable legislation that was passed in California that went into effect in January 2024, along with the Company’s continued process of relocating underperforming kiosks in order to optimize fleet profitability.
Total operating expenses declined 13% to $16.9 million for the third quarter of 2024, compared to $19.5 million for the third quarter of 2023 due to costs of going public in 2023 that did not recur in 2024.
Net income for the third quarter of 2024 increased 116% to $2.3 million, compared to net income of $1.1 million for the third quarter of 2023. The increase was due to lower operating expenses in 2024, and expenses associated with the PIPE financing in the third quarter of 2023 that did not recur in 2024.
Adjusted gross profit, a non-GAAP measure, in the third quarter of 2024 was $22.4 million, down 17% from $26.9 million for the third quarter of 2023. Adjusted gross profit margin, a non-GAAP measure, in the third quarter of 2024 increased approximately 160 basis points to 16.6% compared to 15.0% in the third quarter of 2023. Please see “Explanation and Reconciliation of Non-GAAP Financial Measures” below.
Adjusted EBITDA, a non-GAAP measure, in the third quarter of 2024 decreased 34% to $9.2 million, compared to Adjusted EBITDA of $13.9 million for the third quarter of 2023. The decline was due to the lower revenue. Please see “Explanation and Reconciliation of Non-GAAP Financial Measures” below.
Cash and cash equivalents were $32.2 million as of the end of the third quarter of 2024. The Company generated $5.8 million in cash flows from operations in the third quarter and $17.3 million for the first nine months of 2024.
During the third quarter of 2024, the Company generated $5.8 million of cash flow from operations compared to $7.0 million in the third quarter of 2023.
Conference Call
Bitcoin Depot will hold a conference call at 10:00 a.m. Eastern time (7:00 a.m. Pacific time) today to discuss its financial results for the third quarter ended September 30, 2024.
Call Date: Wednesday, November 13, 2024
Time: 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
U.S. dial-in: 646-968-2525
International dial-in: 888-596-4144
Conference ID: 7631242
The conference call will broadcast live and be available for replay here following the call.
Please call the conference telephone number approximately 10 minutes before the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Bitcoin Depot’s investor relations team at 1-949-574-3860.
A replay of the call will be available beginning after 2:00 p.m. Eastern time on November 13, 2024, through November 20, 2024.
U.S. replay number: 609-800-9909
International replay number: 800-770-2030
Conference ID: 7631242
About Bitcoin Depot
Bitcoin Depot Inc. BTM was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to bitcoin at Bitcoin Depot kiosks in 48 states and at thousands of name-brand retail locations in 29 states through its BDCheckout product. The Company has the largest market share in North America with approximately 8,300 kiosk locations as of September 30, 2024. Learn more at www.bitcoindepot.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release and any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Forward-looking statements are any statements other than statements of historical fact, and include, but are not limited to, statements regarding the expectations of plans, business strategies, objectives and growth and anticipated financial and operational performance, including our growth strategy and ability to increase deployment of our products and services, our ability to strengthen our financial profile, and worldwide growth in the adoption and use of cryptocurrencies. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control.
These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination; risks relating to the uncertainty of our projected financial information; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; our ability to manage future growth; our ability to develop new products and services, bring them to market in a timely manner and make enhancements to our platform; the effects of competition on our future business; our ability to issue equity or equity-linked securities; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors described or referenced in filings with the Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this press release. We anticipate that subsequent events and developments will cause our assessments to change.
We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.
| BITCOIN DEPOT INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) |
||||||||
| September 30, 2024 (unaudited) |
December 31, 2023 |
|||||||
| Assets | ||||||||
| Current: | ||||||||
| Cash and cash equivalents | $ | 32,229 | $ | 29,759 | ||||
| Cryptocurrencies | 1,311 | 712 | ||||||
| Accounts receivable | 380 | 245 | ||||||
| Prepaid expenses and other current assets | 7,453 | 6,554 | ||||||
| Total current assets | 41,373 | 37,270 | ||||||
| Property and equipment: | ||||||||
| Furniture and fixtures | 635 | 635 | ||||||
| Leasehold improvements | 172 | 172 | ||||||
| Kiosk machines – owned | 32,086 | 24,222 | ||||||
| Kiosk machines – leased | 20,004 | 20,524 | ||||||
| Total property and equipment | 52,897 | 45,553 | ||||||
| Less: accumulated depreciation | (25,350 | ) | (20,699 | ) | ||||
| Total property and equipment, net | 27,547 | 24,854 | ||||||
| Intangible assets, net | 2,698 | 3,836 | ||||||
| Goodwill | 8,717 | 8,717 | ||||||
| Operating lease right-of-use assets, net | 2,814 | 484 | ||||||
| Deposits | 736 | 412 | ||||||
| Deferred tax assets | 3,562 | 1,804 | ||||||
| Total assets | $ | 87,447 | $ | 77,377 | ||||
| BITCOIN DEPOT INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) |
||||||||
| September 30, 2024 (unaudited) |
December 31, 2023 |
|||||||
| Liabilities and Stockholders’ (Deficit) Equity | ||||||||
| Current: | ||||||||
| Accounts payable | $ | 11,965 | $ | 8,337 | ||||
| Accrued expenses and other current liabilities | 20,196 | 21,545 | ||||||
| Notes payable, current portion | 4,860 | 3,985 | ||||||
| Income taxes payable | 1,355 | 2,484 | ||||||
| Deferred revenue | 201 | 297 | ||||||
| Operating lease liabilities, current portion | 887 | 279 | ||||||
| Current installments of obligations under finance leases | 3,931 | 6,801 | ||||||
| Other non-income tax payable | 2,236 | 2,297 | ||||||
| Total current liabilities | 45,631 | 46,025 | ||||||
| Long-term liabilities | ||||||||
| Notes payable, non-current | 41,864 | 17,101 | ||||||
| Operating lease liabilities, non-current | 1,983 | 319 | ||||||
| Obligations under finance leases, non-current | 2,856 | 2,848 | ||||||
| Deferred income tax, net | 852 | 846 | ||||||
| Tax receivable agreement liability due to related party, non-current | 2,126 | 865 | ||||||
| Total Liabilities | 95,312 | 68,004 | ||||||
| Commitments and Contingencies (Note 19) | ||||||||
| Stockholders’ (Deficit) Equity | ||||||||
| Series A Preferred Stock, $0.0001 par value; 50,000,000 authorized, 3,075,000 and 3,125,000 shares issued and outstanding, at September 30, 2024 and December 31, 2023, respectively | — | — | ||||||
| Class A common stock, $0.0001 par value; 800,000,000 authorized, 17,844,174 and 13,602,691 shares issued, and 17,653,554 and 13,482,047 shares outstanding at September 30, 2024 and December 31, 2023, respectively | 1 | 1 | ||||||
| Class B common stock, $0.0001 par value; 20,000,000 authorized, no shares issued and outstanding at September 30, 2024 and December 31, 2023 | — | — | ||||||
| Class E common stock, $0.0001 par value; 2,250,000 authorized, 1,075,761 shares issued and outstanding at September 30, 2024 and December 31, 2023 | — | — | ||||||
| Class M common stock, $0.0001 par value; 300,000,000 authorized, no shares issued and outstanding at September 30, 2024 and December 31, 2023 | — | — | ||||||
| Class O common stock, $0.0001 par value; 800,000,000 authorized, no shares issued and outstanding at September 30, 2024 and December 31, 2023 | — | — | ||||||
| Class V common stock, $0.0001 par value; 300,000,000 authorized, 41,193,024 and 44,100,000 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively | 4 | 4 | ||||||
| Treasury stock | (437 | ) | (279 | ) | ||||
| Additional paid-in capital | 21,135 | 17,326 | ||||||
| Accumulated deficit | (37,701 | ) | (32,663 | ) | ||||
| Accumulated other comprehensive loss | (204 | ) | (203 | ) | ||||
| Total Stockholders’ (Deficit) Attributable to Bitcoin Depot Inc. | (17,202 | ) | (15,814 | ) | ||||
| Equity attributable to non-controlling interests | 9,337 | 25,187 | ||||||
| Total Stockholders’ (Deficit) Equity | (7,865 | ) | 9,373 | |||||
| Total Liabilities and Stockholders’ (Deficit) Equity | $ | 87,447 | $ | 77,377 | ||||
| BITCOIN DEPOT INC. CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME (UNAUDITED) (in thousands, except share and per share amounts) |
||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 135,271 | $ | 179,483 | $ | 436,876 | $ | 540,561 | ||||||||
| Cost of revenue (excluding depreciation and amortization) | 112,853 | 152,545 | 370,848 | 461,087 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general, and administrative | 14,694 | 16,242 | 44,062 | 43,245 | ||||||||||||
| Depreciation and amortization | 2,245 | 3,260 | 8,184 | 9,554 | ||||||||||||
| Total operating expenses | 16,939 | 19,502 | 52,246 | 52,799 | ||||||||||||
| Income from operations | 5,479 | 7,436 | 13,782 | 26,675 | ||||||||||||
| Other (expense) income: | ||||||||||||||||
| Interest (expense) | (2,907 | ) | (2,769 | ) | (10,731 | ) | (10,120 | ) | ||||||||
| Other income (expense) | 103 | (3,111 | ) | 143 | (14,024 | ) | ||||||||||
| Gain (loss) on foreign currency transactions | (29 | ) | (154 | ) | (294 | ) | (365 | ) | ||||||||
| Total other (expense) | (2,833 | ) | (6,034 | ) | (10,882 | ) | (24,509 | ) | ||||||||
| (Loss) Income before provision for income taxes and non-controlling interest | 2,646 | 1,402 | 2,900 | 2,166 | ||||||||||||
| Income tax benefit (expense) | (347 | ) | (337 | ) | (479 | ) | 977 | |||||||||
| Net income (loss) | 2,299 | 1,065 | 2,421 | 3,143 | ||||||||||||
| Net income attributable to Legacy Bitcoin Depot unit holders | — | — | — | 12,906 | ||||||||||||
| Net income attributable to non-controlling interest | 3,238 | 8,163 | 7,459 | 8,031 | ||||||||||||
| Net (loss) attributable to Bitcoin Depot Inc. | (939 | ) | (7,098 | ) | (5,038 | ) | (17,794 | ) | ||||||||
| Other comprehensive income (loss), net of tax | ||||||||||||||||
| Net income (loss) | 2,299 | 1,065 | 2,421 | 3,143 | ||||||||||||
| Foreign currency translation adjustments | (19 | ) | 87 | (1 | ) | 66 | ||||||||||
| Total comprehensive income (loss) | 2,280 | 1,152 | 2,420 | 3,209 | ||||||||||||
| Comprehensive income attributable to Legacy Bitcoin Depot unit holders | — | — | — | 12,885 | ||||||||||||
| Comprehensive income (loss) attributable to non-controlling interest | 3,225 | 8,249 | 7,459 | 8,118 | ||||||||||||
| Comprehensive (loss) attributable to Bitcoin Depot Inc. | $ | (945 | ) | $ | (7,098 | ) | $ | (5,039 | ) | $ | (17,794 | ) | ||||
Explanation and Reconciliation of Non-GAAP Financial Measures
Bitcoin Depot reports its financial results in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release includes both historical and projected Adjusted EBITDA, Adjusted Gross Profit, and certain ratios and other metrics derived therefrom such as Adjusted EBITDA margin and Adjusted Gross Profit margin, which are not prepared in accordance with GAAP.
Bitcoin Depot defines Adjusted EBITDA as net income before interest expense, income tax expense, depreciation and amortization, non-recurring expenses, share-based compensation, expenses related to the PIPE financing and miscellaneous cost adjustments. Such items are excluded from Adjusted EBITDA because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core results of operations and renders comparisons with prior periods and competitors less meaningful. In addition, Bitcoin Depot defines Adjusted Gross Profit (a non-GAAP financial measure) as revenue less cost of revenue (excluding depreciation and amortization) and depreciation and amortization adjusted to add back depreciation and amortization. Bitcoin Depot believes Adjusted EBITDA and Adjusted Gross Profit each provide useful information to investors and others in understanding and evaluating Bitcoin Depot’s results of operations, as well as provide a useful measure for period-to-period comparisons of Bitcoin Depot’s business performance. Adjusted EBITDA and Adjusted Gross Profit are each key measurements used internally by management to make operating decisions, including those related to operating expenses, evaluate performance and perform strategic and financial planning. However, you should be aware that Adjusted EBITDA and Adjusted Gross Profit are not measures of financial performance calculated in accordance with GAAP and may exclude items that are significant in understanding and assessing Bitcoin Depot’s financial results, and further, that Bitcoin Depot may incur future expenses similar to those excluded when calculating these measures. Bitcoin Depot primarily relies on GAAP results and uses both Adjusted EBITDA and Adjusted Gross Profit on a supplemental basis. Neither Adjusted EBITDA or Adjusted Gross Profit should be considered in isolation from, or as an alternative to, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP and may not be indicative of Bitcoin Depot’s historical or future operating results. Bitcoin Depot’s computation of both Adjusted EBITDA and Adjusted Gross Profit may not be comparable to other similarly titled measures computed by other companies because not all companies calculate such measures in the same fashion. As such, undue reliance should not be placed on such measures.
Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from the projections of Adjusted EBITDA, together with some of the excluded information not being ascertainable or accessible, Bitcoin Depot is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included.
The following table presents a reconciliation of Net (loss) income to Adjusted EBITDA for the periods indicated:
| BITCOIN DEPOT INC. RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (UNAUDITED) |
||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | 2,299 | $ | 1,065 | $ | 2,421 | $ | 3,143 | ||||||||
| Adjustments: | ||||||||||||||||
| Interest expense | 2,907 | 2,769 | 10,731 | 10,120 | ||||||||||||
| Income tax expense (benefit) | 347 | 337 | 479 | (977 | ) | |||||||||||
| Depreciation and amortization | 2,245 | 3,260 | 8,184 | 9,554 | ||||||||||||
| Expense related to the PIPE transaction (1) | — | 2,700 | — | 12,281 | ||||||||||||
| Non-recurring expenses (2) | 297 | 2,873 | 1,204 | 7,664 | ||||||||||||
| Share-based compensation | 412 | 944 | 3,037 | 1,326 | ||||||||||||
| Special bonus (3) | 675 | — | 675 | 3,915 | ||||||||||||
| Expenses associated with the termination of the phantom equity participation plan | — | — | — | 350 | ||||||||||||
| Adjusted EBITDA | $ | 9,182 | $ | 13,948 | $ | 26,731 | $ | 47,376 | ||||||||
| Adjusted EBITDA margin (4) | 6.8 | % | 7.8 | % | 6.1 | % | 8.8 | % | ||||||||
(1) For the three and nine months ended September 30, 2023, amount includes the recognition of a non-cash expense of $2.7 million and $9.0 million, respectively, related to the PIPE transaction.
(2) Comprised of non-recurring professional service fees.
(3) For nine months ended September 30, 2023, amount includes (A) Transaction bonus and related taxes to employees of approximately $2.3 million and (B) Founder Transaction bonus of approximately $1.6 million. For the three months ended September 30, 2024, the Company paid a bonus to the COO and another employee related to the close of the Merger which was linked to payment of the Preferred Dividend.
(4) Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. The Company uses this measure to evaluate its overall profitability.
The following table presents a reconciliation of revenue to Adjusted Gross Profit for the periods indicated:
| BITCOIN DEPOT INC. RECONCILIATION OF REVENUE TO ADJUSTED GROSS PROFIT (UNAUDITED) |
||||||||||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 135,271 | $ | 179,483 | $ | 436,876 | $ | 540,561 | ||||||||
| Cost of revenue (excluding depreciation and amortization) | (112,853 | ) | (152,545 | ) | $ | (370,848 | ) | (461,087 | ) | |||||||
| Depreciation and amortization excluded from cost of revenue | (2,233 | ) | (3,260 | ) | (8,090 | ) | (9,554 | ) | ||||||||
| Gross Profit | $ | 20,185 | $ | 23,678 | $ | 57,938 | $ | 69,920 | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization excluded from cost of revenue | $ | 2,233 | $ | 3,260 | $ | 8,090 | $ | 9,554 | ||||||||
| Adjusted Gross Profit | $ | 22,418 | $ | 26,938 | $ | 66,028 | $ | 79,474 | ||||||||
| Gross Profit Margin (1) | 14.9 | % | 13.2 | % | 13.3 | % | 12.9 | % | ||||||||
| Adjusted Gross Profit Margin (1) | 16.6 | % | 15.0 | % | 15.1 | % | 14.7 | % | ||||||||
(1) Calculated as a percentage of revenue
Contacts:
Investors
Cody Slach,
Gateway Group, Inc.
949-574-3860
BTM@gateway-grp.com
Media
Zach Kadletz, Brenlyn Motlagh, Ryan Deloney
Gateway Group, Inc.
949-574-3860
BTM@gateway-grp.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Lument Finance Trust Reports Third Quarter 2024 Results
NEW YORK, Nov. 12, 2024 /PRNewswire/ — Lument Finance Trust, Inc. LFT (“we”, “LFT” or “the Company”) today reported its third quarter results. GAAP net income attributable to common shareholders for the third quarter was $5.1 million, or $0.10 per share of common stock. Distributable earnings for the third quarter were $5.5 million, or $0.10 per share of common stock. The Company has also issued a detailed presentation of its results, which can be viewed at www.lumentfinancetrust.com.
Conference Call and Webcast Information
The Company will also host a conference call on Wednesday, November 13, 2024, at 8:30 a.m. ET to provide a business update and discuss the financial results for the third quarter of 2024. The conference call may be accessed by dialing 1-800-836-8184 (U.S.) or 1-646-357-8785 (international). Note: there is no passcode; please ask the operator to be joined into the Lument Finance Trust call. A live webcast, on a listen-only basis, is also available and can be accessed through the URL:
https://app.webinar.net/lDnbp3nxz36
For those unable to listen to the live broadcast, a recorded replay will be available for on-demand viewing approximately one hour after the end of the event through the Company’s website https://lumentfinancetrust.com/ and by telephone dial-in. The replay call-in number is 1-888-660-6345 (U.S.) or 1-646-517-4150 (international) with passcode 01454.
Non-GAAP Financial Measures
In this release, the Company presents certain financial measures that are not calculated according to generally accepted accounting principles in the United States (“GAAP”). Specifically, the Company is presenting distributable earnings, which constitutes a non-GAAP financial measure within the meaning of Item 10(e) of Regulation S-K and is net income under GAAP. While we believe the non-GAAP information included in this press release provides supplemental information to assist investors in analyzing our results, and to assist investors in comparing our results with other peer issuers, these measures are not in accordance with GAAP, and they should not be considered a substitute for, or superior to, our financial information calculated in accordance with GAAP. The methods of calculating non-GAAP financial measures may differ substantially from similarly titled measures used by other companies. Our GAAP financial results and the reconciliations from these results should be carefully evaluated.
Distributable Earnings
Distributable Earnings is a non-GAAP measure, which we define as GAAP net income (loss) attributable to holders of common stock computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for that applicable reporting period, regardless of whether such items are included in other comprehensive income (loss) or net income (loss), and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items after discussions with the Company’s board of directors and approved by a majority of the Company’s independent directors. Distributable Earnings mirrors how we calculate Core Earnings pursuant to the terms of our management agreement between our manager Lument Investment Management, LLC (“Manager”) and us, or our management agreement, for purposes of calculating the incentive fee payable to our Manager.
While Distributable Earnings excludes the impact of any unrealized provisions for credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is determined (i) upon the resolution of a loan (i.e. when the loan is repaid, fully or partially, or in the case of foreclosures, when the underlying asset is sold), or (ii) with respect to any amount due under any loan, when such amount is determined to be non-collectible.
We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss) and cash flows from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a useful financial metric for existing and potential future holders of our common stock as historically, over time, Distributable Earnings has been a strong indicator of our dividends per share of common stock. As a REIT, we generally must distribute annually at least 90% of our taxable income, subject to certain adjustments, and therefore we believe our dividends are one of the principal reasons stockholders may invest in our common stock. Furthermore, Distributable Earnings help us to evaluate our performance excluding the effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan portfolio and operations and is a performance metric we consider when declaring our dividends.
Distributable Earnings does not represent net income (loss) or cash generated from operating activities and should not be considered as an alternative to GAAP net income (loss), or an indication of GAAP cash flows from operations, a measure of our liquidity, or an indication of funds available for our cash needs.
GAAP to Distributable Earnings Reconciliation
|
Three Months Ended |
||
|
September 30, 2024 |
||
|
Reconciliation of GAAP to non-GAAP Information |
||
|
Net Income attributable to common shareholders |
$ 5,095,684 |
|
|
Adjustments for non-Distributable Earnings |
||
|
Unrealized loss (gain) on mortgage servicing rights |
46,017 |
|
|
Unrealized provision for credit losses |
317,448 |
|
|
Subtotal |
363,465 |
|
|
Other Adjustments |
||
|
Adjustment for income taxes |
3,489 |
|
|
Subtotal |
3,489 |
|
|
Distributable Earnings |
$ 5,462,638 |
|
|
Weighted average shares outstanding – Basic and Diluted |
52,283,669 |
|
|
Distributable Earnings per weighted share outstanding – Basic and Diluted |
$ 0.10 |
About LFT
LFT is a Maryland corporation focused on investing in, financing and managing a portfolio of commercial real estate debt investments. The Company primarily invests in transitional floating rate commercial mortgage loans with an emphasis on middle-market multi-family assets.
LFT is externally managed and advised by Lument Investment Management LLC, a Delaware limited liability company.
Additional Information and Where to Find It
Investors, security holders and other interested persons may find additional information regarding the Company at the SEC’s Internet site at http://www.sec.gov/ or the Company website www.lumentfinancetrust.com or by directing requests to: Lument Finance Trust, 230 Park Avenue, 20th Floor, New York, NY 10169, Attention: Investor Relations.
Forward-Looking Statements
Certain statements included in this press release constitute forward-looking statements intended to qualify for the safe harbor contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended. Forward-looking statements are subject to risks and uncertainties. You can identify forward-looking statements by use of words such as “believe,” “expect,” “anticipate,” “project,” “estimate,” “plan,” “continue,” “intend,” “should,” “may,” “will,” “seek,” “would,” “could,” or similar expressions or other comparable terms, or by discussions of strategy, plans or intentions. Forward-looking statements are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to the Company on the date of this press release or the date on which such statements are first made. Actual results may differ from expectations, estimates and projections. You are cautioned not to place undue reliance on forward-looking statements in this press release and should consider carefully the factors described in Part I, Item IA “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which is available on the SEC’s website at www.sec.gov, and in other current or periodic filings with the SEC, when evaluating these forward-looking statements. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. Except as required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Lument Finance Trust, Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CNRC portfolio company Worldwide Diversified Holdings Inc to list on OTC Markets
DOVER, Del., Nov. 13, 2024 (GLOBE NEWSWIRE) — Cunningham Natural Resources Corp CNRC announced today that its portfolio company Worldwide Diversified Holdings, Inc (“Worldwide”) has filed to list on the OTC Markets.
Worldwide is pleased to announce that it has applied to list its common stock on the Over-the-Counter (OTC) markets. This milestone marks a significant step in the company’s growth and expansion strategy.
The listing on the OTC markets will provide Worldwide with increased visibility and access to a broader investor base. This move is expected to enhance the company’s ability to raise capital and support its ongoing projects and initiatives.
“We are thrilled to achieve this important milestone,” said Frank Kristan, Worldwide CEO. “Listing on the OTC markets will open new opportunities for us to grow and expand our operations. We look forward to engaging with our new investors and continuing to deliver value to our shareholders.”
The company specializes in investments in technology, infrastructure, fintech, software and telecommunications. The company has identified potential acquisitions to be completed in the first quarter of 2025.
About Worldwide Diversified Holdings, Inc.
Worldwide Diversified Holdings, Inc. WNTR (https://wdhinc.net/). The company is focused on making acquisitions of business operations and investments to create a diversified holding company. As a publicly trading diversified holding company, it is focused on acquiring ownership positions in small to middle market companies over the next three years. The operations will provide for income from advisory services, interest, dividends and capital gains from investments in public and private companies in a variety of industries located worldwide.
FORWARD-LOOKING STATEMENTS:
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.
Contact:
Worldwide Diversified Holdings, Inc
8 The Green Ste A
Dover, DE 19901
Phone: (757) 707-4563
E-mail: frank@wdhinc.net
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AYR Wellness Q3 Revenue Flat, Net Loss Soars 160% Amid Consumer Wallet Pressure
Multi-state cannabis operator AYR Wellness Inc. AYRWF reported financial results Wednesday for the third quarter ended Sept. 30, 2024, showing revenue of $114.4 million, compared to $114.3 million in the same period of 2023.
“Our third quarter performance reflected ongoing macroeconomic pressure to the consumer wallet and increased competition in select markets, which affected revenue and offset the growth from the launch of adult-use sales in Ohio,” stated Steven M. Cohen, interim CEO of AYR. “However, our team adapted to drive gross margin expansion and operating efficiencies, improving our Adjusted EBITDA despite the lower revenue.”
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Q3 Financial Highlights
- Gross profit was $48.1 million, compared to gross profit of $43 million in the third quarter of 2023.
- Net loss from continuing operations was $50.51 million, compared to $19.27 million in the same period last year.
- Adjusted EBITDA was a gain of $28.4 million, compared to $25.7 million in the third quarter of 2023.
- Adjusted EBITDA margin was 24.9%, compared to 21.9% in the same period of the prior year.
- Total operating expenses reached $60.46 million, compared to $49.56 million in the corresponding quarter of last year.
AYR deployed $6.1 million of capital expenditures in Q3 and remains on target with the company’s guidance of approximately $20 million for the full year. It ended Q3 with aggregate cash, cash equivalents and a restricted cash balance of $51 million. This compares to $50.77 million at the end of Dec. 2023.
“Notwithstanding the ongoing leadership transition, we remain focused on strengthening execution and are committed to positioning AYR for sustained growth and profitability,” Cohen added. “Particularly, in 2025, we plan to expand our presence in Ohio, develop an initial footprint in Virginia, and improve our vertical operations in Florida. Although we are disappointed by the result of the Amendment 3 referendum last week in Florida, we continue to maintain strong share in the state’s medical market and see potential for revenue growth as our new indoor cultivation facility comes online next year, which will fill a crucial gap by supplying high-quality indoor flower to our stores. We are well-positioned to navigate the near-term environment as we focus on improving execution in our key markets.”
Outlook
For the fourth quarter, the company expects revenue and Adjusted EBITDA to be essentially flat compared to the third quarter of 2024. AYR also continues to expect positive GAAP cash flow from operations for calendar 2024.
Price Action
AYR Wellness shares closed Tuesday’s market session 19.44% higher at 86 cents a share.
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This Stock Surges Over 20% In Pre-Market Following 66% Gains In Previous Session After Embracing Bitcoin As Treasury Asset
Genius Group Limited GNS experienced a significant boost in its stock value, climbing 20% in pre-market trading on Wednesday, as per Benzinga Pro. This surge followed the company’s announcement to adopt Bitcoin BTC/USD as its main treasury asset. As per a press release, Genius Group plans to allocate 90% of its current and future reserves to Bitcoin.
The Singapore-based company’s shares initially soared by 50% before stabilizing at a 10% increase from Monday’s close, trading at $0.70 per share. Genius Group intends to acquire $120 million worth of Bitcoin, which is approximately 1,380 BTC at current market prices, for long-term holding. Additionally, the company will introduce Bitcoin payment options on its Edtech platform.
This strategic decision follows a recent restructuring of the company’s board to include experts in crypto and Web3 technologies. Genius Group is following in the footsteps of MicroStrategy MSTR, which has amassed 279,420 BTC as a hedge against inflation. Other companies, such as Semler Scientific and Tokyo-based Metaplanet, have also adopted similar strategies.
Thomas Power, a director at Genius Group, stated, “We see Bitcoin as being the primary store of value that will power these exponential technologies,” endorsing the strategy pioneered by Michael Saylor and MicroStrategy.
Bitcoin has recently seen a surge, with the market predicting it to reach $90,000 mark. At the time of writing, it was trading around $87,753.08.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.