Medigus Ltd. (MDGS)

[midastouch017]

Medigus Announces Second Quarter 2017 Financial Results

OMER, ISRAEL, Sep 18, 2017 (Marketwired via COMTEX) -- OMER, ISRAEL--(Marketwired - Sep 18, 2017) - Medigus Ltd. MDGS, +4.10% (tase:MDGS), a medical device company developing minimally invasive endosurgical tools and direct visualization technology, today announced financial results for the second quarter ended June 30, 2017.

"This quarter, we continued our efforts of commercial expansion of MUSE™ into Europe and beyond -- an indication that we are on track to deliver on our long-term growth objectives," said Chris Rowland, CEO of Medigus. "Coupled with clinical trials performances in China and our continued reductions in expenses, we believe we are rapidly approaching an important inflection in our business where we will continue to build on our vision of delivering an effective and minimally-invasive treatment option for GERD patients."

Recent Highlights:

The company presented new data demonstrating the MUSE™ system improves GERD symptoms and reduces proton pump inhibitor (PPI) reliance during Digestive Disease Week® (DDW) May 6-9, 2017

In May, the company also announced Japanese and European patents for micro ScoutCam™ microvisual technology

Recently, Medigus broadened availability of MUSE™ through distribution agreements in China, Spain, Switzerland, and Liechtenstein

Financial Results for the Second Quarter 2017:

Revenues for the three months ended June 30, 2017, were $82,000, a decrease of 16%, compared to the three months ended June 30, 2016

Research and development expenses for the three months ended June 30, 2017, were $615,000, a decrease of 44%, compared to the three months ended June 30, 2016

Sales and marketing expenses for the three months ended June 30, 2017, were $236,000, a decrease of 68%, compared to the three months ended June 30, 2016

General and administrative expenses for the three months ended June 30, 2017, were $550,000, a decrease of 39% compared to the three months ended June 30, 2016

Profit from changes in fair value of warrants issued to investors for the three months ended June 30, 2017, were $2,137,000, an increase of $2,136,000 compared to the three months ended June 30, 2016. This increase resulted primarily due to the changes in warrants fair value as of June 30, 2017

Operating loss for the three months ended June 30, 2017, was $1.3 million, compared to $2.7 million in the three months ended June 30, 2016

Total comprehensive income for the three months ended June 30, 2017, was $0.8 million, compared to $2.8 million loss in the three months ended June 30, 2016

Net cash used in operating activities was $1.4 million for the three months ended June 30, 2017, compared to net cash used in operating activities of $2.9 million for the corresponding 2016 period

As of September 17, 2017, Medigus has approximately $5.8 million in cash and cash equivalents

For detailed financial statements, please follow the link: http://www.medigus.com/investor-relations/financial-reports.

About Medigus Medigus is a medical device company specializing in developing minimally invasive endosurgical tools and highly innovative imaging solutions. They are the pioneer developer of the MUSE™ system, an FDA cleared and CE marked endoscopic device to perform Transoral Fundoplication (TF) for the treatment of GERD (gastroesophageal reflux disease), one of the most common chronic conditions in the world. In 2016, the CMS established the Category I CPT® Code of 43210 for TF procedures, such as the ones performed with MUSE, which establishes reimbursement values for physicians and hospitals. MUSE is gaining adoption in key markets around the world -- it is available in world-leading healthcare institutions in the U.S., Europe and Israel. Medigus is also in the process of obtaining regulatory clearance in China. Medigus is traded on the Nasdaq Capital Market and the TASE (Tel-Aviv Stock Exchange). To learn more about the company's advanced technology, please visit www.medigus.com or www.RefluxHelp.com