|
|
|
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification Number)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
|
|
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01. |
Financial Statements and Exhibits.
|
Exhibit
No.
|
Description
|
|
Press release dated August 13, 2021.
|
VENUS CONCEPT INC.
|
||
Date: August 13, 2021
|
By:
|
/s/ Domenic Della Penna
|
Domenic Della Penna
|
||
Chief Financial Officer
|
● |
Total revenue of $25.8 million, up $8.8 million, or 52%, year-over-year.
|
● |
Gross margin of 72.5%, up approximately 250 basis points year-over-year.
|
● |
GAAP operating income of $1.5 million, up $10.3 million, or 117%, year-over-year.
|
● |
GAAP net income attributable to stockholders of $0.4 million, up $13.5 million, or 103%, year-over-year.
|
● |
Adjusted EBITDA of $0.5 million, up $3.2 million, or 117%, year-over-year.
|
● |
On July 20, 2021, the Company announced that it received a medical device license issued by Health Canada to market the Venus Fiore Feminine Health System in Canada.
|
● |
Collaboration with Venus Williams for Venus Bliss has generated a significant increase in visits to B2B and B2C websites, accelerating sales process and driving consumer adoption.
|
● |
Venus Concept is pleased to announce AImeTM, the new commercial brand name for Robocor, the development project for our next generation robotic technology for medical aesthetic applications.
|
● |
Three Months
Ended June 30
|
Six Months
Ended June 30
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(dollars in thousands)
|
(dollars in thousands)
|
|||||||||||||||
Revenues by region:
|
||||||||||||||||
United States
|
$
|
13,186
|
$
|
8,915
|
$
|
24,063
|
$
|
14,555
|
||||||||
International
|
12,642
|
8,081
|
24,362
|
16,949
|
||||||||||||
Total revenue
|
$
|
25,828
|
$
|
16,996
|
$
|
48,425
|
$
|
31,504
|
||||||||
Three Months
Ended June 30
|
Six Months
Ended June 30
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(dollars in thousands)
|
(dollars in thousands)
|
|||||||||||||||
Revenues by product:
|
||||||||||||||||
Subscription—Systems
|
$
|
12,787
|
$
|
7,465
|
$
|
21,324
|
$
|
14,278
|
||||||||
Products—Systems
|
8,694
|
6,757
|
18,504
|
10,255
|
||||||||||||
Products—Other(1)
|
3,314
|
1,787
|
6,369
|
4,504
|
||||||||||||
Services(2)
|
1,033
|
987
|
2,228
|
2,467
|
||||||||||||
Total revenue
|
$
|
25,828
|
$
|
16,996
|
$
|
48,425
|
$
|
31,504
|
Three Months Ended June 30,
|
||||||||||||||||||||||||
2021
|
2020
|
Change
|
||||||||||||||||||||||
(in thousands, except percentages)
|
|
$ |
% of Total
|
|
$ |
% of Total
|
$ |
|
%
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Subscription—Systems
|
$
|
12,787
|
49.5
|
$
|
7,465
|
43.9
|
$
|
5,322
|
71.3
|
|||||||||||||||
Products—Systems
|
8,694
|
33.7
|
6,757
|
39.8
|
1,937
|
28.7
|
||||||||||||||||||
Products—Other(1)
|
3,314
|
12.8
|
1,787
|
10.5
|
1,527
|
85.5
|
||||||||||||||||||
Services(2)
|
1,033
|
4.0
|
987
|
5.8
|
46
|
4.7
|
||||||||||||||||||
Total
|
$
|
25,828
|
100.0
|
$
|
16,996
|
100.0
|
$
|
8,832
|
52.0
|
(1) |
Products other include ARTAS procedure kits and other consumables.
|
(2) |
Services include VeroGrafters™ technician services and extended warranty sales.
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
2021
|
2020
|
Change
|
||||||||||||||||||||||
(in thousands, except percentages)
|
|
$ |
% of Total
|
|
$ |
% of Total
|
$ |
|
%
|
|||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Subscription—Systems
|
$
|
21,324
|
44.0
|
$
|
14,278
|
45.3
|
$
|
7,046
|
49.3
|
|||||||||||||||
Products—Systems
|
18,504
|
38.2
|
10,255
|
32.6
|
8,249
|
80.4
|
||||||||||||||||||
Products—Other
|
6,369
|
13.2
|
4,504
|
14.3
|
1,865
|
41.4
|
||||||||||||||||||
Services
|
2,228
|
4.6
|
2,467
|
7.8
|
(239
|
)
|
(9.7
|
)
|
||||||||||||||||
Total
|
$
|
48,425
|
100.0
|
$
|
31,504
|
100.0
|
$
|
16,921
|
53.7
|
June 30, 2021
|
December 31, 2020
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
23,059
|
$
|
34,297
|
||||
Restricted cash
|
83
|
83
|
||||||
Accounts receivable, net of allowance of $12,295 and $18,490 as of June 30, 2021, and December 31, 2020
|
50,078
|
52,764
|
||||||
Inventories
|
19,767
|
17,759
|
||||||
Prepaid expenses
|
2,350
|
2,240
|
||||||
Advances to suppliers
|
3,359
|
2,587
|
||||||
Other current assets
|
4,635
|
5,674
|
||||||
Total current assets
|
103,331
|
115,404
|
||||||
LONG-TERM ASSETS:
|
||||||||
Long-term receivables
|
21,950
|
21,148
|
||||||
Deferred tax assets
|
1,196
|
884
|
||||||
Severance pay funds
|
715
|
685
|
||||||
Property and equipment, net
|
2,937
|
3,539
|
||||||
Intangible assets
|
17,144
|
18,865
|
||||||
Total long-term assets
|
43,942
|
45,121
|
||||||
TOTAL ASSETS
|
$
|
147,273
|
$
|
160,525
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Trade payables
|
$
|
5,684
|
$
|
6,322
|
||||
Accrued expenses and other current liabilities
|
17,096
|
20,253
|
||||||
Taxes payable
|
1,851
|
1,132
|
||||||
Unearned interest income
|
2,464
|
1,950
|
||||||
Warranty accrual
|
1,314
|
1,106
|
||||||
Deferred revenues
|
901
|
1,752
|
||||||
Current portion of government assistance loans
|
1,280
|
—
|
||||||
Total current liabilities
|
30,590
|
32,515
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Long-term debt
|
76,396
|
75,491
|
||||||
Government assistance loans
|
—
|
4,110
|
||||||
Taxes payable
|
478
|
478
|
||||||
Accrued severance pay
|
819
|
755
|
||||||
Deferred tax liabilities
|
308
|
811
|
||||||
Unearned interest income
|
1,176
|
1,778
|
||||||
Warranty accrual
|
467
|
533
|
||||||
Other long-term liabilities
|
192
|
293
|
||||||
Total long-term liabilities
|
79,836
|
84,249
|
||||||
TOTAL LIABILITIES
|
110,426
|
116,764
|
||||||
Commitments and Contingencies (Note 8)
|
||||||||
STOCKHOLDERS’ EQUITY (Note 1):
|
||||||||
Common Stock, $0.0001 par value: 300,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 54,141,822 and
53,551,126 issued and outstanding as of June 30, 2021 and December 31, 2020, respectively
|
26
|
26
|
||||||
Additional paid-in capital (Note 1)
|
203,877
|
201,598
|
||||||
Accumulated deficit
|
(166,274
|
)
|
(157,392
|
)
|
||||
TOTAL STOCKHOLDERS’ EQUITY
|
37,629
|
44,232
|
||||||
Non-controlling interests
|
(782
|
)
|
(471
|
)
|
||||
36,847
|
43,761
|
|||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
147,273
|
$
|
160,525
|
Three Months
Ended June 30
|
Six Months
Ended June 30
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Revenue
|
||||||||||||||||
Leases
|
$
|
12,787
|
$
|
7,465
|
$
|
21,324
|
$
|
14,278
|
||||||||
Products and services
|
13,041
|
9,531
|
27,101
|
17,226
|
||||||||||||
25,828
|
16,996
|
48,425
|
31,504
|
|||||||||||||
Cost of goods sold
|
||||||||||||||||
Leases
|
2,736
|
1,541
|
4,506
|
2,993
|
||||||||||||
Products and services
|
4,375
|
3,558
|
9,968
|
7,334
|
||||||||||||
7,111
|
5,099
|
14,474
|
10,327
|
|||||||||||||
Gross profit
|
18,717
|
11,897
|
33,951
|
21,177
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling and marketing
|
10,114
|
4,545
|
17,968
|
13,156
|
||||||||||||
General and administrative
|
7,828
|
14,590
|
19,993
|
28,766
|
||||||||||||
Research and development
|
2,024
|
1,570
|
4,075
|
4,194
|
||||||||||||
Goodwill impairment
|
—
|
—
|
—
|
27,450
|
||||||||||||
Gain on forgiveness of government assistance loans
|
(2,775
|
)
|
—
|
(2,775
|
)
|
—
|
||||||||||
Total operating expenses
|
17,191
|
20,705
|
39,261
|
73,566
|
||||||||||||
Loss from operations
|
1,526
|
(8,808
|
)
|
(5,310
|
)
|
(52,389
|
)
|
|||||||||
Other expenses:
|
||||||||||||||||
Foreign exchange loss (gain)
|
130
|
(1,166
|
)
|
844
|
3,113
|
|||||||||||
Finance expenses
|
1,161
|
2,371
|
3,046
|
4,625
|
||||||||||||
Loss on disposal of subsidiaries
|
-
|
385
|
-
|
385
|
||||||||||||
Income (loss) before income taxes
|
235
|
(10,398
|
)
|
(9,200
|
)
|
(60,512
|
)
|
|||||||||
Income tax benefit
|
(7
|
)
|
(633
|
)
|
(7
|
)
|
(44
|
)
|
||||||||
Net income (loss)
|
242
|
(9,765
|
)
|
(9,193
|
)
|
(60,468
|
)
|
|||||||||
Deemed dividend
|
-
|
(3,564
|
)
|
-
|
(3,564
|
)
|
||||||||||
Income (loss) attributable to stockholders of the Company
|
377
|
(13,152
|
)
|
(8,882
|
)
|
(63,342
|
)
|
|||||||||
Loss attributable to non-controlling interest
|
(135
|
)
|
(177
|
)
|
(311
|
)
|
(690
|
)
|
||||||||
Net income (loss) per share:
|
||||||||||||||||
Basic
|
$
|
0.01
|
$
|
(0.39
|
)
|
$
|
(0.16
|
)
|
$
|
(2.01
|
)
|
|||||
Diluted
|
$
|
0.01
|
$
|
(0.39
|
)
|
$
|
(0.16
|
)
|
$
|
(2.01
|
)
|
|||||
Weighted-average number of shares used in per share calculation:
|
||||||||||||||||
Basic
|
54,088
|
33,315
|
53,917
|
31,564
|
||||||||||||
Diluted
|
54,237
|
33,315
|
53,917
|
31,564
|
||||||||||||
Net income (loss)
|
$
|
242
|
$
|
(9,765
|
)
|
$
|
(9,193
|
)
|
$
|
(60,468
|
)
|
|||||
Deemed dividend
|
-
|
(3,564
|
)
|
-
|
(3,564
|
)
|
||||||||||
Income (loss) attributable to stockholders of the Company
|
377
|
(13,152
|
)
|
(8,882
|
)
|
(63,342
|
)
|
|||||||||
Loss attributable to non-controlling interest
|
(135
|
)
|
(177
|
)
|
(311
|
)
|
(690
|
)
|
||||||||
Comprehensive income (loss)
|
$
|
242
|
$
|
(9,765
|
)
|
$
|
(9,193
|
)
|
$
|
(60,468
|
)
|
Three Months
Ended June 30
|
Six Months
Ended June 30
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Reconciliation of net income (loss) to Adjusted EBITDA
|
(in thousands)
|
(in thousands)
|
||||||||||||||
Net income (loss)
|
$
|
242
|
$
|
(9,765
|
)
|
$
|
(9,193
|
)
|
$
|
(60,468
|
)
|
|||||
Foreign exchange loss (gain)
|
130
|
(1,166
|
)
|
844
|
3,113
|
|||||||||||
Interest expense
|
930
|
2,220
|
2,068
|
4,328
|
||||||||||||
Accretion on long-term debt and amortization of fees
|
231
|
151
|
978
|
297
|
||||||||||||
Income tax benefit
|
(7
|
)
|
(633
|
)
|
(7
|
)
|
(44
|
)
|
||||||||
Depreciation and amortization
|
1,147
|
1,269
|
2,451
|
2,514
|
||||||||||||
Stock-based compensation expense
|
558
|
539
|
1,066
|
1,056
|
||||||||||||
Goodwill impairment charge
|
—
|
—
|
—
|
27,450
|
||||||||||||
Gain on forgiveness of government assistance loans
|
(2,775
|
)
|
—
|
(2,775
|
)
|
—
|
||||||||||
Other adjustments (1)
|
—
|
4,664
|
—
|
5,302
|
||||||||||||
Adjusted EBITDA
|
$
|
456
|
$
|
(2,721
|
)
|
$
|
(4,568
|
)
|
$
|
(16,452
|
)
|
Document and Entity Information |
Aug. 13, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Aug. 13, 2021 |
Entity Registrant Name | VENUS CONCEPT INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-38238 |
Entity Tax Identification Number | 06-1681204 |
Entity Address, Address Line One | 235 Yorkland Blvd |
Entity Address, Address Line Two | Suite 900 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Postal Zip Code | M2J 4Y8 |
City Area Code | 877 |
Local Phone Number | 848-8430 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Central Index Key | 0001409269 |
Title of 12(b) Security | Common Stock, $0.0001 par value per share |
Trading Symbol | VERO |
Security Exchange Name | NASDAQ |
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