Medigus Ltd. (MDGS)

[midastouch017]

Medigus Announces First Quarter 2017 Financial Results

OMER, ISRAEL--(Marketwired - May 30, 2017) - Medigus Ltd. ( NASDAQ : MDGS ) ( TASE : MDGS ), a medical device company developing minimally invasive endosurgical tools and a leader in direct visualization technology, today announced financial results for the first quarter ended March 31, 2017.

"This quarter, we saw a significant reduction in our expenses compared to the same period last year due to cost reduction programs implemented since the third quarter of 2016," said Chris Rowland, CEO of Medigus. "We are pleased with the completed public offering, which will allow us to continue making clinical progress in GERD, as well as China. In addition, this year we will continue to build momentum on our commercial expansion in Europe and beyond."

Recent Highlights:

Recently, Medigus completed a $7.5 million public offering.
The first MUSE™ procedures for treatment of gastroesophageal reflux disease (GERD) were performed in Switzerland.
The multi-center MUSE™ clinical study commenced in China, with the first procedure performed by leading gastroenterologist, Professor Rong Wan.
In January, the company received its first purchase order for the MUSE™ system in Italy from INNOVAMEDICA S.p.A., a privately-owned distributor of minimally invasive medical devices.

Financial Results for the First Quarter 2017:

Revenues for the three months ended March 31, 2017, were $114,000, a decrease of 56%, compared to the three months ended March 31, 2016. This decrease was primarily due to a decrease in development services provided to National Aeronautics and Space Administration (NASA) in the amount of approximately $110,000 and to one of Israel's leading industrial companies in the amount of approximately $118,000 during the three months period ended March 31, 2016.

Research and development expenses for the three months ended March 31, 2017, were $475,000, a decrease of 61%, compared to the three months ended March 31, 2016. The decrease resulted primarily due to a cost reduction program, which was implemented since the third quarter of 2016.

Sales and marketing expenses for the three months ended March 31, 2017, were $146,000, a decrease of 80%, compared to the three months ended March 31, 2016. The decrease resulted primarily due to a cost reduction program, which was implemented since the third quarter of 2016.

General and administrative expenses for the three months ended March 31, 2017, were $1.4 million, an increase of 24%, compared to the three months ended March 31, 2016. This increase resulted primarily due to a $908,000 increase in professional expenses in connection with issuance expenses which were charged directly to profit or loss, partly offset by a decrease in professional expenses in connection with an intellectual property litigation. Operating loss for the three months ended March 31, 2017, was $2.2 million, compared to $2.9 million in the three months ended March 31, 2016.
Total loss for the three months ended March 31, 2017, was $2.0 million, compared to $2.7 million in the three months ended March 31, 2016.
Net cash used in operating activities was $1.1 million for the three months ended March 31, 2017, compared to net cash used in operating activities of $2.9 million for the corresponding 2016 period. The $1.8 million decrease in net cash used in operating activities was primarily due to a cost reduction program which was implemented by the Company since the third quarter of 2016.
Net cash generated from financing activities for the three months ended March 31, 2017, was $6.5 million and represents net proceeds from the issuance of shares and warrants.
As of March 31, 2017, Medigus had approximately $8.4 million in cash and cash equivalents.
For detailed financial statements, please follow the link: http://www.medigus.com/investor-relations/financial-reports.