Amedica reported their fourth quarter and full year revenue, with product revenue decreases amid leadership changes.
The company has gone through several changes and recently was notified by Nasdaq that if the stock doesn't improve — it's been under $1 for 30 consecutive business days — there will be issues. Now the company has 180 days to get the stock above $1 for 10 consecutive business days to stay listed.
"We believe the recent clinical, financial and regulatory developments position Amedica to capture additional market share, enhance our ability to demonstrate the benefits of silicon nitride and promote wider adoption of the material across a number of biomedical platforms," said Ameidca CEO Sonny Bal, MD.
Here are 10 key notes from the financial report:
1. Total product revenue increases 2 percent in 2014 to $11.8 million, attributable to a 41 percent increase in silicon nitride ceramic product revenue as a result of the increased Valeo spinal interbody device market adoption.
2. Net loss was $32 million in 2014, up significantly from $8.3 million in 2013. The increase is primarily due to non-cash stock compensation expense of $10.2 million, higher operating expenses, increased interest expense, a loss on the extinguishment of debt and offering costs incurred.
3. The gross profit for the full year was $14.9 million, slightly down from $15.3 million over the same period last year.
4. In 2013, the gross margin was 65 percent, compared with 68 percent for the full year last year.
5. If the company excludes excess and obsolete inventory for both years, the 2014 gross margins improved 3 percentage points to 77 percent from product efficiencies and quality improvements.
6. The adjusted EBITDA was an $11.9 million loss, compared to $7 million loss in 2013.
7. The cash and cash equivalents reached $18.2 million.
8. Total principal debt obligations were $24.5 million as of Dec. 31, 2014.
9. Amedica maintained previous estimates of 30 percent to 40 percent increases in silicon nitride sales this year that could equal $23 million to $24 million.
10. New financial and operational alignment actions — previously announced — are expected to deliver $6 million to $8 million of annualized operating profit beginning in the first quarter of 2015.