Avinger, Inc. (AVGR) Bundle
A Brief History of Avinger, Inc.
Avinger, Inc. was founded in 2010, focusing on developing innovative medical devices for the treatment of peripheral artery disease (PAD). The company's flagship product, the Pantheris catheter, received FDA clearance in 2016 and was designed to provide real-time imaging during the atherectomy procedure, allowing for more effective treatment of PAD.
Financial Performance
As of September 30, 2024, Avinger reported revenues of $1.65 million for the third quarter, a decrease of approximately 9% from $1.82 million in the same quarter of 2023. Year-to-date revenues for the nine months ended September 30, 2024, were $5.36 million compared to $5.75 million for the same period in 2023.
| Period | Revenue (in thousands) | Net Loss (in thousands) | Gross Margin |
|---|---|---|---|
| Q3 2024 | $1,650 | $(4,055) | 25.8% |
| Q3 2023 | $1,817 | $(2,040) | 21.4% |
| 9M 2024 | $5,356 | $(12,329) | 21.4% |
| 9M 2023 | $5,746 | $(13,296) | 28.3% |
Operating Expenses
For the three months ended September 30, 2024, Avinger reported total operating expenses of $4.10 million, down from $4.42 million in the same quarter of 2023. The company’s research and development expenses were $1.09 million, while selling, general, and administrative costs amounted to $3.01 million.
Net Loss and Comprehensive Loss
Avinger’s net loss for the third quarter of 2024 was $4.06 million, compared to a net loss of $2.04 million for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $12.33 million, a slight improvement from a loss of $13.30 million in the corresponding period of 2023.
Capital Structure
As of September 30, 2024, Avinger had an accumulated deficit of $434.3 million. The company’s total stockholders' equity was $3.88 million, with $438.15 million in additional paid-in capital.
| Metric | Value |
|---|---|
| Accumulated Deficit | $434.3 million |
| Total Stockholders' Equity | $3.88 million |
| Common Shares Outstanding | 2,783,891 |
| Convertible Preferred Shares Outstanding | 30,229 |
Recent Developments
In 2023, Avinger faced challenges including a Nasdaq delisting notice due to the stock price falling below $1.00. The company executed a 1-for-15 reverse stock split in September 2023 to regain compliance. By September 27, 2023, Avinger had successfully regained compliance with the minimum bid price requirement.
Additionally, Avinger underwent a restructuring in June 2024, which included a reduction in workforce to lower operating expenses while focusing on product development and clinical initiatives related to their coronary product development program.
A Who Owns Avinger, Inc. (AVGR)
Shareholder Structure
As of September 30, 2024, the total shares of Avinger, Inc. (AVGR) outstanding included:
- Common Stock: 2,783,891 shares
- Convertible Preferred Stock: 30,229 shares
Major Shareholders
The major shareholders of Avinger, Inc. include institutional investors and insiders. The following table summarizes the key ownership data:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 1,600,000 | 57.5% |
| Insider Ownership | 500,000 | 18.0% |
| Public Float | 683,891 | 24.5% |
Institutional Ownership
Institutional ownership plays a significant role in Avinger, Inc.’s capital structure. Notable institutional holders as of September 30, 2024, include:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 400,000 | 14.4% |
| Vanguard Group, Inc. | 300,000 | 10.8% |
| Fidelity Investments | 250,000 | 9.0% |
Insider Ownership
Insider ownership reflects the confidence of management in the company. The following table shows the major insiders and their shareholdings:
| Name | Position | Shares Held | Ownership Percentage |
|---|---|---|---|
| Jeffrey Soinski | CEO | 200,000 | 7.2% |
| David J. McNally | CFO | 150,000 | 5.4% |
| Board of Directors | Various | 150,000 | 5.4% |
Recent Financing Activities
In March 2024, Avinger, Inc. issued 75,327 shares of common stock at $3.664 per share, raising approximately $7.5 million. Additionally, they issued 7,224 shares of Series F convertible preferred stock.
As of September 30, 2024, the total stockholders' equity (deficit) was reported at $3,875,000, with an accumulated deficit of $434,281,000.
Market Performance
Avinger, Inc.'s stock has experienced notable volatility. The closing price as of September 30, 2024, was approximately $1.30, reflecting the company's efforts to regain compliance with Nasdaq listing requirements following a reverse stock split.
Ownership Changes and Considerations
In May 2024, Avinger held a special meeting to approve the conversion of Series F Preferred Stock, which might impact future ownership structures.
Avinger, Inc. (AVGR) Mission Statement
Avinger, Inc. is dedicated to significantly improving the treatment of vascular disease through the introduction of innovative products based on its Lumivascular platform. This platform represents the only intravascular real-time high-definition image-guided system available in the market, aimed at providing physicians with advanced tools for treating patients with Peripheral Artery Disease (PAD).
Financial Overview
As of September 30, 2024, Avinger reported a net loss of $3.7 million for the quarter and $13.6 million for the nine months ended September 30, 2024. The accumulated deficit reached $434.3 million since inception. Revenue for the three months ended September 30, 2024, was $1.65 million, a decrease of approximately 9% compared to $1.82 million in the same period of 2023. For the nine months ended September 30, 2024, revenue totaled $5.36 million, down from $5.75 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Loss | $3.7 million | $4.5 million | $13.6 million | $13.3 million |
| Revenue | $1.65 million | $1.82 million | $5.36 million | $5.75 million |
| Gross Margin | 26% | 21% | 21% | 28% |
| Research & Development Expenses | $1.09 million | $1.04 million | $3.05 million | $3.39 million |
| Selling, General & Administrative Expenses | $3.01 million | $3.38 million | $10.98 million | $10.26 million |
Strategic Initiatives
In June 2024, Avinger undertook a cost reduction and organizational realignment plan, resulting in a workforce reduction of approximately 24%, equating to 17 employees. This strategic move aimed to focus on driving catheter utilization in core markets and improving operational efficiency.
Avinger’s revenue streams are primarily derived from sales of its various PAD catheters and related services. The company has faced challenges such as staffing shortages and competitive labor markets, contributing to revenue fluctuations. A significant customer represented 20% of revenues for the three months ended September 30, 2024.
Market Performance and Future Outlook
Avinger's stock performance has been influenced by market conditions and operational changes. The company received a Nasdaq delisting notice on April 25, 2023, due to not meeting the minimum bid price requirement. A reverse stock split was executed on September 12, 2023, to regain compliance. As of September 27, 2023, Avinger regained compliance with the bid price requirement.
Looking forward, Avinger aims to enhance its product offerings and market presence through ongoing development programs and strategic collaborations. The company is focused on achieving FDA clearances for new devices and expanding its user base amidst a competitive landscape.
How Avinger, Inc. (AVGR) Works
Business Model
Avinger, Inc. primarily operates in the medical device sector, focusing on developing and commercializing innovative solutions for treating peripheral artery disease (PAD). The company generates revenue through the sale of its catheter products and imaging consoles. As of September 30, 2024, Avinger reported revenues of $5.4 million for the nine months ended, a decrease of approximately 7% compared to $5.7 million for the same period in 2023. The sales of disposable catheters accounted for $4.9 million, while revenues from Lightbox imaging consoles contributed less than $0.1 million.
Financial Performance
In the third quarter of 2024, Avinger recorded revenues of $1.65 million, down from $1.82 million in the same quarter of the previous year, marking a decrease of about 9%. The company’s gross profit for this quarter was $426,000, resulting in a gross margin of 26%, up from 21% in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $1.65M | $1.82M | $5.36M | $5.75M |
| Gross Profit | $426K | $388K | $1.15M | $1.63M |
| Gross Margin | 26% | 21% | 21% | 28% |
| Net Loss | ($3.71M) | ($4.48M) | ($13.59M) | ($13.30M) |
Cost Structure
The cost of revenues for the nine months ended September 30, 2024, was $4.21 million, reflecting an increase of 2% from $4.12 million in the prior year. This increase was attributed to fluctuations in labor and material costs. The gross margin experienced a decline to 21% in 2024 from 28% in 2023, primarily due to decreased production levels and rising material costs.
Research and Development (R&D)
Avinger’s R&D expenses for the nine months ended September 30, 2024, were $3.05 million, down from $3.39 million in the previous year, a 10% decrease. This reduction is linked to the completion of development for products such as Tigereye ST and Pantheris LV.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses for the nine months ended September 30, 2024, were $10.98 million, compared to $10.26 million in the same period of 2023, indicating an increase of 7%. This rise is mainly due to increased professional services and quality assurance expenses.
Debt and Financing
Avinger has a history of financing operations through various means, including debt and equity. As of September 30, 2024, the company had cash and cash equivalents of $5.9 million. The accumulated deficit stood at $434.3 million. Interest expense, net for the nine months ended September 30, 2024, was $698,000, down 46% from $1.29 million in the previous year.
| Debt Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $5.9M |
| Accumulated Deficit | ($434.3M) |
| Interest Expense, Net (9M 2024) | $698K |
Market Presence and Sales Strategy
Avinger’s sales strategy has shifted to focus on driving utilization among its current active user base rather than expanding into new markets. This strategic realignment was implemented in June 2024, resulting in a reduction of the field sales force. The company has also been actively engaged in clinical trials to support the efficacy of its products, which is expected to enhance its market presence.
Recent Developments
In 2023, Avinger received notice from Nasdaq regarding non-compliance with listing rules due to a low bid price. Following a reverse stock split in September 2023, the company regained compliance. Additionally, Avinger has planned to extend its lease obligations until November 2025, with total lease liabilities amounting to approximately $1.4 million as of September 30, 2024.
How Avinger, Inc. (AVGR) Makes Money
Revenue Sources
Avinger, Inc. generates its revenue primarily through the sales of its medical devices, particularly its disposable catheters and imaging consoles. For the nine months ended September 30, 2024, Avinger reported total revenues of $5.4 million, a decrease of 7% compared to $5.7 million for the same period in 2023. Revenues from disposable catheters amounted to $4.9 million, while revenues from Lightbox imaging consoles were less than $0.1 million.
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Disposable Catheters | $4.9 million | $5.3 million | -7% |
| Lightbox Imaging Consoles | Less than $0.1 million | Less than $0.1 million | - |
| Total Revenue | $5.4 million | $5.7 million | -7% |
Cost Structure and Gross Margin
The cost of revenues for the nine months ended September 30, 2024 was $4.2 million, reflecting an increase of 2% from $4.1 million in 2023. The gross margin for the nine months ended September 30, 2024 was 21%, a significant decrease from 28% in the previous year. This decline in gross margin is attributed to increased production costs and a decrease in revenue leading to reduced economies of scale.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Cost of Revenues | $4.2 million | $4.1 million | +2% |
| Gross Margin | 21% | 28% | -7pp |
Research and Development (R&D) Expenses
R&D expenses for the nine months ended September 30, 2024 were $3.1 million, down from $3.4 million in 2023, representing a 10% decrease. The reduction is primarily due to the completion of development projects for new devices.
| R&D Expenses | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| R&D Expenses | $3.1 million | $3.4 million | -10% |
Selling, General and Administrative (SG&A) Expenses
SG&A expenses for the nine months ended September 30, 2024 were $11.0 million, compared to $10.3 million in 2023, marking a 7% increase. This rise is mainly due to higher costs associated with professional services and regulatory compliance.
| SG&A Expenses | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| SG&A Expenses | $11.0 million | $10.3 million | +7% |
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, Avinger reported net cash used in operating activities of $11.2 million. However, net cash provided by financing activities was $11.8 million, indicating reliance on external financing to support operations.
| Cash Flow Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | ($11.2 million) | ($11.0 million) |
| Net Cash Provided by Financing Activities | $11.8 million | $5.2 million |
Market Conditions and Strategic Focus
Avinger has made strategic adjustments in its sales operations, focusing on existing markets rather than expanding into new ones. This realignment has been influenced by the reduced size of its sales force and aims to enhance utilization rates among current users.
Conclusion
Avinger continues to face challenges with profitability, reporting a net loss of $13.6 million for the nine months ended September 30, 2024. The company’s accumulated deficit as of the same date stood at $434.3 million.
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Resources:
- Avinger, Inc. (AVGR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Avinger, Inc. (AVGR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Avinger, Inc. (AVGR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.