Full Press Release Details
CytoSorbents Reports First Quarter 2024 Results
PRINCETON, N.J., May 9, 2024 - CytoSorbents
Corporation (NASDAQ: CTSO), a pioneer in critical care and cardiac surgery blood purification technologies, today reported unaudited
financial and operating results for the quarter ended March 31, 2024. The company reported a robust 14% increase in product sales year
over year and a sequential increase of 22%.
Dr. Phillip Chan, Chief Executive Officer of CytoSorbents
stated, "We are pleased to announce a strong start to 2024, driven by significant sales growth and operational efficiencies. First
quarter 2024 product sales were $9.0 million, marking the highest quarter for core CytoSorb sales in nearly 3 years. We expanded our product
gross margins to 76%, exclusive of a non-recurring inventory adjustment, up an absolute 8% from Q1 2023, which we believe highlights the
scalability and efficiency of our state-of-the-art manufacturing facility and processes.
Furthermore, Principal Investigator Dr. Michael
Mack presented the results of the U.S. and Canada pivotal STAR-T (Safe and Timely Antithrombotic Removal of Ticagrelor) randomized controlled
trial at the Annual Meeting of the American Association for Thoracic Surgery (AATS) and at the KOL
and Investor/Analyst Day we hosted earlier this week (replay available)
that we believe support a favorable benefit-to-risk profile of the DrugSorb-ATR system* in the perioperative bleeding risk of patients
undergoing isolated CABG surgery within 2 days of receiving Brilinta (ticagrelor, AstraZeneca). We received positive and encouraging
feedback on the strength and clinical importance of these data and the continued unmet medical need from cardiothoracic surgeons. Looking
ahead, we expect to submit marketing applications for DrugSorb-ATR, which has an FDA Breakthrough Device Designation, to the FDA under
the De Novo pathway and Health Canada in the third quarter of 2024.
Additionally, we expect to take delivery of and
launch our PuriFi hemoperfusion pump in select international countries for which we already have strong interest - a key
2024 growth initiative. We continue to work to strengthen our balance sheet and reduce operating expenses while executing our strategic
plan towards these upcoming milestones."
First Quarter 2024 Financial Results
Recent Operating Highlights
*Disclaimer: The DrugSorb-ATR system is
an investigational device that is not yet cleared/approved by FDA, Health Canada, or by any other Global Regulatory Agency and is not
commercially available for sale.
Earnings Call Webcast Details:
Date: Thursday, May 9th, 2024
Live webcast link: https://edge.media-server.com/mmc/p/yv8wd3bs
Conference ID: 5517203
Participant Dial-In:
Participant Dial-in toll-free: (888) 596-4144
It is recommended that participants dial in approximately
10 minutes prior to the start of the call.
An archived recording of the conference call
will be available under the Investor Relations section of the Company's website at https://ir.cytosorbents.com/
For additional information, please see the Company's Form 10-Q
for the period ended March 31, 2024, filed on May 9, 2024, on http://www.sec.gov.
Results of Operations
Comparison of the three months ended March
31, 2024, and March 31, 2023
Revenue from product sales was approximately $8,990,000
in the three months ended March 31, 2024, as compared to approximately $7,910,000 in the three months ended March 31, 2023, an increase
of approximately $1,080,000, or 14%. Distributor sales increased approximately $614,000, or 20%. Direct sales increased approximately
$466,000, or 10%. As a result of the increase in the average exchange rate of the Euro to the U.S. dollar, 2024 product sales were positively
impacted by approximately $98,000. For the three months ended March 31, 2024, the average exchange rate of the Euro to the U.S. dollar
was $1.09 as compared to an average exchange rate of $1.07 for the three months ended March 31, 2023.
Grant income was approximately $797,000 for the
three months ended March 31, 2024 as compared to approximately $1,539,000 for the three months ended March 31, 2023, a decrease of approximately
$742,000, or 48%. This decrease was due to the completion of several grants during 2023.
Total revenues were approximately $9,786,000 for
the three months ended March 31, 2024, as compared to total revenues of approximately $9,449,000 for the three months ended March 31,
2023, an increase of approximately $337,000, or 4%.
For the three months ended March 31, 2024, and
2023, cost of revenue was approximately $3,216,000 and $3,994,000, respectively, a decrease of approximately $778,000. This decrease was
primarily due to the decrease in cost of revenue related to the Company's grant related activities following the completion of several
grants in 2023. Product cost of revenue was approximately $2,420,000 and $2,531,000, respectively, for the three months ended March 31,
2024 and 2023, a decrease of approximately $111,000. This decrease is due primarily to greater efficiencies now being realized at our
new manufacturing facility in Princeton, New Jersey. Product gross margins were approximately 76% during the three months ended March
31, 2024 (which excludes the impact of a one-time, non-recurring inventory adjustment of approximately $304,000 recorded in the first
quarter of 2024), as compared to 68% during the three months ended March 31, 2023.
Research and Development Expenses:
For the three months ended March 31, 2024, research
and development expenses were approximately $2,248,000 as compared to research and development expenses of approximately $4,214,000 for
the three months ended March 31, 2023, a decrease of approximately $1,966,000. This decrease was due to a decrease in clinical trial costs
of approximately $911,000 related to completion of the STAR-T trial in 2023, a decrease of approximately $850,000 in start-up expenses
related to the new facility that were incurred in the first quarter of 2023 that did not recur in the first quarter of 2024, a decrease
in non-grant related salaries of approximately $127,000 and a decrease in other non-grant related research and development activities
of approximately $78,000.
Legal, Financial and Other Consulting Expenses:
Legal, financial and other consulting expenses
were approximately $681,000 for the three months ended March 31, 2024, as compared to approximately $669,000 for the three months ended
March 31, 2023, an increase of approximately $12,000. This increase was due to an increase in accounting and auditing fees of approximately
$46,000 and an increase in legal fees of approximately $30,000. These increases were offset by a decrease in employment agency fees of
approximately $58,000 and a decrease in consulting fees of approximately $6,000.
Selling, General and Administrative Expenses:
Selling, general and administrative expenses were
approximately $8,567,000 for the three months ended March 31, 2024, as compared to approximately $8,463,000 for the three months ending
March 31, 2023, an increase of approximately $104,000. This increase was due to an increase in travel and entertainment expenses of approximately
$132,000, an increase in royalty expense of $88,000, an increase in sales and marketing costs, which include advertising and conference
attendance, of approximately $80,000. These increases were offset by decreases in non-cash stock compensation expense (which includes
both stock options and restricted stock units) of approximately $156,000, and a decrease in salaries, commissions and related costs of
approximately $40,000.
Gain (Loss) on Foreign Currency Transactions:
For the three months ended March 31, 2024, the
loss on foreign currency transactions was approximately $1,426,000 as compared to a gain of approximately $661,000 for the three months
ended March 31, 2023. The 2024 loss was directly related to the decrease in the spot exchange rate of the Euro to the U.S. dollar as of
March 31, 2024 as compared to December 31, 2023. The spot exchange rate of the Euro to the U.S. dollar was $1.08 per Euro as of March
31, 2024, as compared to $1.11 per Euro as of December 31, 2023.
Liquidity and Capital Resources
Since inception, our operations have been primarily
financed through the issuance of debt and equity securities. As of March 31, 2024, we had current assets of approximately $19,993,000
and current liabilities of approximately $13,424,000. As of March 31, 2024, $25 million of our total shelf amount was allocated to our
ATM facility, of which approximately $20.3 million is still available. During the three months ended March 31, 2024, the Company sold
53,290 shares pursuant to the Sale Agreement, at an average selling price of $1.03 per share, generating net proceeds of approximately
In March of 2024, we received approximately $880,000
in cash from the approved sale of our net operating losses and research and development credits from the State of New Jersey.
We are also managing our resources proactively,