Medigus Ltd. (MDGS)

[midastouch017]

Medigus Announces Third Quarter 2017 Financial Results


OMER, ISRAEL, Nov 24, 2017 (Marketwired via COMTEX) -- OMER, ISRAEL--(Marketwired - Nov 24, 2017) - Medigus Ltd. MDGS, +1.83% (tase:MDGS), a medical device company developing minimally invasive endosurgical tools and direct visualization technology, today announced financial results for the third quarter ended September 30, 2017.

"In recent months, we have announced progress across key areas of our development strategy, including broadening the availability of our flagship MUSE™ system with leading multinational distributors," said Chris Rowland, CEO of Medigus. "We are positioned to enter 2018 with positive momentum as we drive our development and clinical programs forward."

Recent Highlights:

In July, the company expanded the distribution agreement with China's Golden Grand (Shanghai Golden-Grand-Medical Instruments Ltd.), a leading national distributor of medical devices, which requires Golden Grand to commit to a minimum purchase of $27 million worth of the MUSE™ system over a period of five years, replacing the former distribution agreement of $17 million over the course of four years

In July, the company also entered into distribution agreements with Spain's Izasa Hospital, S.L.U., and Switzerland and Liechtenstein's ADMEDICS AG (Advanced Medical Solutions AG), requiring a minimum purchase order of EUR 1.4 million and EUR 1.8 million, respectively, over the course of five years

In October, the company received its first purchase order for the MUSE™ system in Spain, from Izasa Hospital, S.L.U., a distributor of medical products in the hospital sector

Financial Results for the Third Quarter 2017:

Revenues for the three months ended September 30, 2017, were $117,000, a decrease of 14%, compared to the three months ended September 30, 2016

Research and development expenses for the three months ended September 30, 2017, were $654,000, a decrease of 8%, compared to the three months ended September 30, 2016

Sales and marketing expenses for the three months ended September 30, 2017, were $159,000, a decrease of 54%, compared to the three months ended September 30, 2016

General and administrative expenses for the three months ended September 30, 2017, were $490,000, a decrease of 51% compared to the three months ended September 30, 2016

Operating loss for the three months ended September 30, 2017, was $1,255,000, compared to $1,947,000 in the three months ended September 30, 2016

Loss from changes in fair value of warrants issued to investors for the three months ended September 30, 2017, was $92,000, a decrease of $100,000 compared to the three months ended September 30, 2016

Total loss for the three months ended September 30, 2017, was $1,342,000, compared to $1,899.000 loss in the three months ended September 30, 2016

Net cash used in operating activities was $1,200,000 for the three months ended September 30, 2017, compared to net cash used in operating activities of $1,900,000 for the corresponding 2016 period

As of November 23, 2017, Medigus had approximately $5.2 million in cash and cash equivalents and short term deposits

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