Acutus Medical (AFIB) Announces Restructuring and Prelim. Q4 Revenue

Acutus Medical, Inc. (“Acutus” or the “Company”) (Nasdaq: AFIB), an arrhythmia management company focused on improving the way cardiac arrhythmias are diagnosed and treated, today announced a corporate restructuring as well as its preliminary unaudited revenue for the quarter and full year ended December 31, 2021.

Corporate Restructuring“We have undertaken a detailed review of our strategic priorities, the external environment, and cost structure and are restructuring the Company to sharpen our focus and strengthen our financial position,” said Vince Burgess, President & CEO. “While challenging, this restructuring is a critical step in positioning Acutus for the future, and we are committed to treating impacted employees with respect and support through this period of change.”

As part of the restructuring, the Company will prioritize maximizing console utilization and procedure volume growth in targeted geographic regions as well as a more focused scope of product development initiatives. To align resources with current strategic direction, the Company has undertaken a planned reduction in force (RIF) and is implementing additional cost reduction measures. These actions are expected to result in annualized operating expense savings of $23-25 million compared to 2021. The Company expects that operating expense savings, cost reductions in manufacturing operations, and working capital improvements will result in a 30-40% reduction in quarterly cash burn exiting 2022 compared to 2021. Based on the timing of notifications under the Worker Adjustment and Retraining Notification (WARN) Act, the Company expects to start realizing the benefit of its restructuring plan starting late in the first quarter of 2022.

Mr. Burgess concluded “This restructuring is one component of our efforts to strengthen the Company’s foundation. We expect to emerge from these actions as a stronger organization and better-positioned to achieve our mission and strategic objectives. We are making good progress on the clinical and product development front, and we are confident that our strategic realignment of priorities and resources will position us for long-term growth. We are planning to share more detail on our renewed focus and priorities on our earnings call in March.”

Preliminary Unaudited Fourth Quarter and Full Year Revenue The Company expects fourth quarter 2021 revenues of approximately $4.2-4.4 million compared to $2.6 million in the fourth quarter of 2020. Full year 2021 revenues are expected to be in a range of $17.1-17.3 million compared to $8.5 million for the full year 2020 and within the guidance range provided on the third quarter 2021 earnings call. Year-over-year growth in the fourth quarter and full year was driven by increased procedure volumes, new product adoption, and higher capital sales.

Management continues to view the current COVID-19 situation as being fluid, and the potential impact on the Company’s business from hospital and government actions in response to potential resurgences in COVID-19 cases, COVID-19-related hospital admissions, restrictions on lab access and new technology assessments, and hospital staffing shortages are all factors that could influence near-term performance.

The Company will provide further details on its fourth quarter earnings call currently scheduled for March 10, 2022.

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