Full Press Release Details
Femasys Inc. Announces Financial Results for the Year Ended December 31, 2021
Company builds out management team and continues to implement its clinical programs to advance much-needed technologies for
ATLANTA, March 24, 2022 -- Femasys Inc. (NASDAQ: FEMY), a biomedical company aiming to meet women's needs worldwide by developing a suite of product candidates that
include minimally invasive, in-office technologies for reproductive health, today announced financial results for the year ended December 31, 2021.
"We are entering this year as a stronger public company with solid leadership, after strengthening both our management team as well as our board," said Kathy Lee-Sepsick,
founder, president and chief executive officer of Femasys. "We are advancing our product candidates to address various underserved areas of women's reproductive health by implementing our clinical programs - addressing infertility and permanent
birth control. We continue to support commercial efforts for our diagnostic product FemVue , the first in-office alternative for ultrasound diagnosis of fallopian tubes for infertility. Commercial launch is pending later this year for
our diagnostic product, FemCerv , a biopsy tool used to diagnose cervical cancer by sampling cervical tissue, to address yet another underserved area of the gynecologic market. We are committed to designing solutions to improve the
continuum of healthcare options for women, with the goal to further grow each of these substantial, multi-billion-dollar global market segments."
2021 and Recent Corporate Highlights
Operational and Leadership
Entry Into the Public Market
2021 and Recent Developments Related to Clinical Programs
2021 Financial Results
| Assets | December 31, 2021 | December 31, 2020 | |||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 24,783,029 | 3,322,226 | ||||
| Accounts receivable, net | 84,258 | 125,790 | |||||
| Inventory, net | 208,270 | 131,378 | |||||
| Other current assets | 555,853 | 284,115 | |||||
| Total current assets | 25,631,410 | 3,863,509 | |||||
| Property and equipment, at cost: | |||||||
| Leasehold improvements | 1,155,332 | 1,155,332 | |||||
| Office equipment | 99,344 | 64,145 | |||||
| Furniture and fixtures | 424,947 | 424,947 | |||||
| Machinery and equipment | 2,261,793 | 2,242,088 | |||||
| Construction in progress | 379,713 | 139,150 | |||||
| 4,321,129 | 4,025,662 | ||||||
| Less accumulated depreciation | (2,722,117 | ) | (2,197,868 | ) | |||
| Net property and equipment | 1,599,012 | 1,827,794 | |||||
| Long-term assets: | |||||||
| Lease right-of-use assets, net | 665,747 | 1,057,506 | |||||
| Intangible assets, net of accumulated amortization | 25,093 | 65,069 | |||||
| Other long-term assets | 655,418 | 792,440 | |||||
| Total long-term assets | 1,346,258 | 1,915,015 | |||||
| Total assets | $ | 28,576,680 | 7,606,318 |
| Liabilities, Redeemable Preferred Stock and Stockholders' Equity (Deficit) | December 31, 2021 | December 31, 2020 | |||||
| Current liabilities: | |||||||
| Accounts payable | $ | 445,522 | 674,333 | ||||
| Accrued expenses | 603,787 | 1,117,601 | |||||
| Clinical holdback - current portion | 18,947 | - | |||||
| Note payable - current portion | 181,123 | 630,010 | |||||
| Lease liabilities - current portion | 406,674 | 434,072 | |||||
| Other - current | 36,037 | 32,895 | |||||
| Total current liabilities | 1,692,090 | 2,888,911 | |||||
| Long-term liabilities: | |||||||
| Clinical holdback - long-term portion | 149,791 | 164,972 | |||||
| Note payable - long-term portion | - | 182,490 | |||||
| Lease liabilities - long-term portion | 402,417 | 809,092 | |||||
| Other - long-term | - | 32,895 | |||||
| Total long-term liabilities | 552,208 | 1,189,449 | |||||
| Total liabilities | 2,244,298 | 4,078,360 | |||||
| Commitments and contingencies | |||||||
| Redeemable convertible preferred stock: | |||||||
| Preferred stock, Series B, $.001 par, none authorized, issued and outstanding as of December 31, 2021; 13,344,349 shares authorized, issued and outstanding as of December 31, 2020 | - | 10,748,873 | |||||
| Preferred stock, Series C, $.001 par, none authorized, issued and outstanding as of December 31, 2021; 42,491,484 shares authorized, issued and outstanding as of December 31, 2020 | - | 44,594,813 | |||||
| Stockholders' equity (deficit): | |||||||
| Common stock, $.001 par, 200,000,000 authorized, 11,921,388 shares issued and 11,804,165 outstanding as of December 31, 2021; and 95,583,558 authorized, 1,110,347 shares issued and 993,124 outstanding as of December 31, 2020 | 11,921 | 1,110 | |||||
| Treasury stock, 117,223 shares | (60,000 | ) | (60,000 | ) | |||
| Preferred stock, Series A, $.001 par, none authorized, issued and outstanding as of December 31, 2021; 17,310,609 shares authorized, and 17,210,609 shares issued and outstanding as of December 31, 2020 | - | 17,211 | |||||
| Warrants | 702,492 | 702,492 | |||||
| Additional paid-in-capital | 108,418,304 | 22,725,949 | |||||
| Accumulated other comprehensive loss, net of tax | - | - | |||||
| Accumulated deficit | (82,740,335 | ) | (75,202,490 | ) | |||
| Total stockholders' equity (deficit) | 26,332,382 | (51,815,728 | ) | ||||
| Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ | 28,576,680 | 7,606,318 |
Statements of Comprehensive Loss
Years ended December 31, 2021 and 2020
| December 31, 2021 | December 31, 2020 | |||||||
| Sales | $ | 1,179,689 | 1,037,918 | |||||
| Cost of sales | 370,384 | 306,533 | ||||||
| Gross margin | 809,305 | 731,385 | ||||||
| Operating expenses: | ||||||||
| Research and development | 4,084,304 | 4,130,613 | ||||||
| Sales and marketing | 208,735 | 310,219 | ||||||
| General and administrative | 4,262,002 | 2,544,043 | ||||||
| Depreciation and amortization | 591,068 | 679,653 | ||||||
| Total operating expenses | 9,146,109 | 7,664,528 | ||||||
| Loss from operations | (8,336,804 | ) | (6,933,143 | ) | ||||
| Other income (expense): | ||||||||
| Interest income, net | 3,768 | 22,504 | ||||||
| Other income | 821,515 | 10,000 | ||||||
| Interest expense | (19,226 | ) | (12,553 | ) | ||||
| Other expense | (3,098 | ) | - | |||||
| Total other income | 802,959 | 19,951 | ||||||
| Loss before income taxes | (7,533,845 | ) | (6,913,192 | ) | ||||
| Income tax expense | 4,000 | 1,800 | ||||||
| Net loss | $ | (7,537,845 | ) | (6,914,992 | ) | |||
| Comprehensive loss: | ||||||||
| Net loss | $ | (7,537,845 | ) | (6,914,992 | ) | |||
| Change in fair value of available for sale investments | - | (20 | ) | |||||
| Total comprehensive loss | $ | (7,537,845 | ) | (6,915,012 | ) | |||
| Net loss attributable to common stockholders, basic and diluted | $ | (7,537,845 | ) | (6,914,992 | ) | |||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (1.12 | ) | (7.20 | ) | |||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 6,712,028 | 959,862 |
Femasys Inc. is a biomedical company aiming to meet women's needs worldwide by developing a suite of product candidates that include minimally invasive, in-office
technologies for reproductive health. Its two lead product candidates are FemBloc permanent birth control and FemaSeed localized directional insemination for infertility. The Company's product for fallopian tube assessment
by ultrasound, FemVue , is currently marketed in the United States. Femasys is also advancing FemCerv , a technology platform for tissue sampling intended to be marketed alongside its other women-specific medical products in
the physician's office setting.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to substantial risks and uncertainties. Forward-looking statements can be
identified by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "believe," "potential" or "continue" or the negative of these terms or other similar expressions, although not all forward-looking statements
contain these words. Forward-looking statements are based on our current expectations and are subject to inherent uncertainties, risks and assumptions, many of which are beyond our control, difficult to predict and could cause actual results to
differ materially from what we expect. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Factors that could cause actual results to differ include, among others: our ability
to develop and advance our current product candidates and programs into, and successfully initiate, enroll and complete, clinical trials; the ability of our clinical trials to demonstrate safety and effectiveness of our product candidates and other
positive results; estimates regarding the total addressable market for our product candidates; our business model and strategic plans for our products, technologies and business, including our implementation thereof; and those other risks and
uncertainties described in the section titled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021, when filed with the Securities and Exchange Commission (the "SEC"), and other reports as filed with the SEC.
Forward-looking statements contained in this press release are made as of this date, and Femasys undertakes no duty to update such information except as required under applicable law.
LifeSci Advisors, LLC
LifeSci Communications