Artificial Intelligence
Surgalign Announces First Quarter 2023 Results and Provides Update on its Business Operations
<!– Name:DistributionId Value:8837653 –> <!– Name:EnableQuoteCarouselOnPnr Value:False –> <!– Name:IcbCode Value:4500 –> <!– Name:CustomerId Value:1028246 –> <!– Name:HasMediaSnippet Value:false –> <!– Name:AnalyticsTrackingId Value:2c0bbf34-d810-4878-846b-038618c3af0e –>
DEERFIELD, Ill., May 11, 2023 (GLOBE NEWSWIRE) — Surgalign Holdings, Inc., (NASDAQ: SRGA) a global medical technology company focused on elevating the standard of care by driving the evolution of digital surgery, today announced financial results for its 2023 first quarter ended March 31, 2023.
2023 First Quarter and Subsequent Corporate Highlights:
- Launch of HOLO™ AI Insights for Spine Imaging; collaboration with Dr. Alexander Vaccaro, Dr. Pierce Nunley and Spine Institute of Louisiana, and leading neuro and orthopedic spine surgeons and San Diego Spine Foundation.
- Launch of HOLO AI Insights for Neurovascular Research; collaboration with Dr. Brian Jankowitz, a fellowship trained cerebrovascular neurosurgeon, for neurovascular research.
- HOLO Portal™ Surgical Guidance System (“HOLO Portal”) upgrades unveiled; next generation software and new surgical tool integration to improve system functionality and drive further adoption.
- Two new sites added in May 2023 for HOLO Portal; onboarding underway with cases to be scheduled.
- HOLO Portal expansion into Texas; first case performed by Dr. Ripul Panchal, DO of Medical City Frisco, part of HCA Healthcare.
- Sale of its Coflex® and CoFix™ product lines for $17.0 million, raising net proceeds of $14.8 million.
“Throughout 2023, we have advanced our HOLO AI portfolio with an upgraded HOLO Portal system, and the launch of HOLO AI Insights for research-use for both spine imaging and neurovascular research,” stated Terry Rich, President and Chief Executive Officer. “This was made possible by the invaluable feedback from the medical community, and we couldn’t be happier to be working with such world-class physicians to harness the full potential of artificial intelligence. We are focused on further enhancements to our AI platform with a goal to expedite commercialization efforts as we capitalize on the Digital Health opportunity.”
Mr. Rich continued, “With the sale of our Coflex and CoFix product lines in February, we strengthened our balance sheet and extended our cash runway, while our restructuring initiatives are progressing accordingly to plan. We will remain vigilant in our capital allocation and continue to explore strategic paths to improve liquidity and provide the resources needed to execute on our vision.”
Financial Update
Total revenue for the three months ended March 31, 2023 was $16.7 million as compared to $20.6 million in the comparable year-ago period, a decline of $3.9 million. On a sequential basis when compared to the three months ended December 31, 2022, total revenue declined by $3.9 million. The sequential decrease in revenue was primarily related to a significant reduction in product offerings as part of the Company’s ongoing restructuring efforts, lower international revenue resulting from wind down of the international business, and lost revenue from the sale of the Coflex® and CoFix™ product lines in February 2023.
The Company reported gross margin of 63.7% for the three months ended March 31, 2023, as compared to gross margin of 68.9% in the comparable year-ago period, a reduction of 520 basis points. On a sequential basis when compared to the three months ended December 31, 2022, gross margin improved by 7730 basis points. The sequential increase in gross profit was primarily related to product rationalization initiatives during the fourth quarter of 2022, which led to significant charges to cost of goods sold in that period.
On a non-GAAP basis, the Company reported adjusted gross margin of 69.5% for the three months ended March 31, 2023, as compared to adjusted gross margin of 70.9% in the comparable year-ago period, a reduction of 140 basis points. On a sequential basis when compared to the three months ended December 31, 2022, adjusted gross margin decreased by 240 basis points.
Total operating expenses for the three months ended March 31, 2023 were $24.4 million as compared to $23.1 million in the comparable year-ago period, an increase of $1.3 million or 5.8%. On a sequential basis when compared to the three months ended December 31, 2022, total operating expenses declined by approximately $20.9 million. The primary drivers for the sequential improvement in operating expenses were a $17.5 million decline in transaction and financing expenses related to the Company’s November 2022 warrant offering, and a $1.3 million decline in general and administrative expenses, primarily related to restructuring.
On a non-GAAP basis, total adjusted operating expenses for the three months ended March 31, 2023 were $23.0 million, as compared to $28.4 million for the three months ended March 31, 2022. Excluded from non-GAAP operating expenses for the 2023 first quarter was a gain of $1.1 million due to adjustments to the fair value of Holo Surgical Inc. contingent consideration, $0.6 million in asset impairment charges, $1.0 million in non-cash stock-based compensation, $0.5 million in transaction and financing expenses, and $0.5 million in severance and restructuring costs. On a sequential basis when compared to the three months ended December 31, 2022, total adjusted operating expenses declined by approximately $1.6 million.
The Company reported an operating loss of $1.1 million for the three months ended March 31, 2023, as compared to an operating loss of $8.9 million in the comparable year-ago period and an operating loss of $48.2 million for the three months ended December 31, 2022. Net income from continuing operations for the three months ended March 31, 2023 was $4.1 million. This compares to net income from continuing operations of $0.0 million in the comparable year-ago period and a net loss from continuing operations of $39.1 million for the three months ended December 31, 2022.
Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) for the three months ended March 31, 2023 was a loss of $10.8 million. This compares to an Adjusted EBITDA loss of $13.3 million in the comparable year-ago period and an Adjusted EBITDA loss of $9.1 million for the three months ended December 31, 2022.
As of March 31, 2023, cash and cash equivalents were approximately $22.4 million, as compared to $16.3 million reported as of December 31, 2022.
The Company continues to implement a corporate-wide review of its organizational structure, processes and costs, along with continued product rationalization initiatives. The restructuring plan began during the fourth quarter of 2022 and continues today.
Conference Call
Surgalign will host a conference call and audio webcast at 4:30 p.m. ET today. The conference call can be accessed by dialing (888) 437-3179 (U.S.) or (862) 298-0702 (International). The webcast can be accessed through the investor section of Surgalign’s website at surgalign.com/investors/. A replay of the conference call will be available on Surgalign’s website for one month following the call.
About Surgalign Holdings, Inc.
Surgalign Holdings, Inc. is a global medical technology company committed to the promise of digital health to drive transformation across the surgical landscape. Uniquely aligned and resourced to advance the standard of care, the company is building technologies physicians and other health providers will look to for what is truly possible for their patients. Surgalign is focused on developing solutions that predictably deliver superior clinical and economic outcomes. Surgalign markets products throughout the United States and in approximately 40 countries worldwide through its network of top independent distributors. Surgalign is headquartered in Deerfield, IL, with commercial, innovation and design centers in San Diego, CA, Warsaw and Poznan, Poland, and Wurmlingen, Germany. Learn more at www.surgalign.com and connect on LinkedIn and Twitter.
Forward Looking Statements
This press release contains forward-looking statements based on management’s current expectations, estimates and projections about our industry, our management’s beliefs and certain assumptions made by our management, and such forward-looking statements include (among others) statements regarding anticipated future financial and operating performance (including forecasted full-year revenue and number of HOLO sites secured), product rationalization and expense reduction initiatives and the results thereof, potential third party financing and anticipated cash needs. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “projects,” “seeks,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. The forward-looking statements are not guarantees of future performance and are based on certain assumptions including general economic conditions, as well as those within the Company’s industry, and numerous other factors and risks identified in the Company’s most recent Form 10-K, 10-Q and other filings with the SEC. Our actual results may differ materially from the anticipated results reflected in these forward-looking statements. Important factors that could cause actual results to differ materially from the anticipated results reflected in these forward-looking statements include risks and uncertainties relating to the following: (i) the Company’s access to adequate operating cash flow, trade credit, borrowed funds and equity capital to fund its operations and pay its obligations as they become due, and the terms on which external financing may be available, including the impact of adverse trends or disruption in the global credit and equity markets; (ii) our ability to continue as a going concern, which requires us to manage costs and obtain significant additional funding; (iii) the need for additional financing to fund future operations; (iv) our expectations regarding our ability to regain and maintain compliance with the continued listing requirements of the Nasdaq Global Select Market; (v) our financial position and results, total revenue, product revenue, gross margin, and operations; (vi) failure to realize, or unexpected costs in seeking to realize, the expected benefits of the Holo Surgical Inc. (“Holo Surgical”) and Inteneural Networks Inc. (“INN”) acquisitions, including the failure of Holo Surgical’s and INN’s products and services to be satisfactorily developed or achieve applicable regulatory approvals or as a result of the failure to commercialize and distribute its products; (vii) risks relating to existing or potential litigation or regulatory actions; (viii) the continued impact of COVID-19 variants, particularly in international markets served by the Company; (ix) the failure by the Company to identify, develop and successfully implement its strategic initiatives, particularly with respect to its digital surgery strategy; (x) the reliability of our supply chain; (xi) our ability to meet obligations, including purchase minimums, under our vendor and other agreements; (xii) whether or when the demand for procedures involving our products will increase; (xiii) the number of shares and amount of cash that will be required in connection with any post-closing milestone payments, including as a result of changes in the trading price of the Company’s common stock and their effect on the amount of cash needed by the Company to fund any post-closing milestone payments in connection with the acquisitions; (xiv) the continuation of recent quality issues with respect to our global supply chain; (xv) the effect and timing of changes in laws or in governmental regulations; and (xvi) other risks described in our public filings with the SEC. These factors should be considered carefully, and undue reliance should not be placed on the forward-looking statements. Each forward-looking statement in this communication speaks only as of the date of the particular statement. Copies of the Company’s SEC filings may be obtained by contacting the Company or the SEC or by visiting Surgalign’s website at http://www.surgalign.com/ or the SEC’s website at http://www.sec.gov/. We undertake no obligation to update these forward-looking statements except as may be required by law.
Investor and Media Relations Contact:
Glenn Wiener
GW Communications
T: +1 (917) 887 8434
E: [email protected]
| SURGALIGN HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (Unaudited, in thousands, except share and per share data) | ||||||||
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenues | $ | 16,748 | $ | 20,605 | ||||
| Cost of goods sold | 6,074 | 6,410 | ||||||
| Gross profit | 10,674 | 14,195 | ||||||
| Operating Expenses: | ||||||||
| General and administrative | 21,127 | 25,317 | ||||||
| Severance and restructuring costs | 466 | — | ||||||
| Research and development | 2,905 | 4,447 | ||||||
| Gain on acquisition contingency | (1,066 | ) | (8,503 | ) | ||||
| Asset impairment and abandonments | 553 | 939 | ||||||
| Transaction and financing expenses | 463 | 916 | ||||||
| Total operating expenses | 24,448 | 23,116 | ||||||
| Gain on sale of Coflex | (12,631 | ) | — | |||||
| Operating loss | (1,143 | ) | (8,921 | ) | ||||
| Other (income) expense – net | ||||||||
| Other (income) expense – net | (147 | ) | 28 | |||||
| Interest expense | 252 | 252 | ||||||
| Foreign exchange (gain) loss | (238 | ) | 353 | |||||
| Change in fair value of warrant liability | (5,288 | ) | (9,743 | ) | ||||
| Total other (income) – net | (5,421 | ) | (9,110 | ) | ||||
| Income before income tax provision | 4,278 | 189 | ||||||
| Income tax provision | 133 | 162 | ||||||
| Net income from operations | 4,145 | 27 | ||||||
| Other comprehensive income (loss) | ||||||||
| Unrealized foreign currency translation (gain) | (509 | ) | (109 | ) | ||||
| Total other comprehensive income | $ | 4,654 | $ | 136 | ||||
| Net income per common share – basic | $ | 0.51 | $ | 0.00 | ||||
| Net (loss) income per common share – diluted | $ | (0.03 | ) | $ | 0.00 | |||
| Weighted average shares outstanding – basic | 8,072,339 | 5,733,646 | ||||||
| Weighted average shares outstanding – diluted | 13,320,439 | 5,910,719 | ||||||
| SURGALIGN HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited, in thousands) | ||||||||
| March 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Cash | $ | 22,430 | $ | 16,295 | ||||
| Accounts receivable – net | 12,575 | 16,057 | ||||||
| Current inventories – net | 13,530 | 17,710 | ||||||
| Prepaid and other assets | 4,895 | 6,649 | ||||||
| Total current assets | $ | 53,430 | $ | 56,711 | ||||
| Non-current inventories – net | 6,148 | 5,947 | ||||||
| Property, plant and equipment – net | 2,421 | 2,057 | ||||||
| Other assets – net | 5,713 | 5,527 | ||||||
| Total assets | $ | 67,712 | $ | 70,242 | ||||
| Liabilities, Mezzanine Equity and Stockholders’ Equity | ||||||||
| Accounts payable | $ | 7,492 | $ | 7,705 | ||||
| Accrued expenses and other current liabilities | 12,090 | 13,146 | ||||||
| Accrued income taxes | 402 | 296 | ||||||
| Total current liabilities | $ | 19,984 | $ | 21,147 | ||||
| Notes payable – related party | 10,244 | 10,192 | ||||||
| Acquisition contingencies – Holo | 22,995 | 24,061 | ||||||
| Warrant liability | 15,512 | 22,982 | ||||||
| Other Long-term liabilities | 7,906 | 7,583 | ||||||
| Total liabilities | $ | 76,641 | $ | 85,965 | ||||
| Mezzanine equity | 10,006 | 10,006 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock and additional paid-in capital | 604,487 | 601,329 | ||||||
| Accumulated other comprehensive loss | (3,349 | ) | (2,840 | ) | ||||
| Accumulated deficit | (620,073 | ) | (624,218 | ) | ||||
| Total stockholders’ equity | $ | (18,935 | ) | $ | (25,729 | ) | ||
| Total liabilities and stockholders’ equity | $ | 67,712 | $ | 70,242 | ||||
| SURGALIGN HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited, in thousands) | ||||||||
| For the Three Months Ended March 31, |
||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 4,145 | $ | 27 | ||||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Depreciation and amortization expense | 499 | 562 | ||||||
| Provision for bad debts and product returns | 29 | 913 | ||||||
| Investor fee | — | 916 | ||||||
| Change in fair value of warrant liability | (5,288 | ) | (9,743 | ) | ||||
| Provision for inventory write-downs | 215 | 3,044 | ||||||
| Deferred income tax provision | (21 | ) | — | |||||
| Stock-based compensation | 985 | 1,374 | ||||||
| Asset impairment and abandonments | 553 | 939 | ||||||
| Gain on acquisition contingency | (1,066 | ) | (8,503 | ) | ||||
| Gain on sale of Coflex | (12,631 | ) | — | |||||
| Other | (35 | ) | (3 | ) | ||||
| Change in assets and liabilities: | ||||||||
| Accounts receivable | 3,451 | (2,235 | ) | |||||
| Inventories | 1,580 | (2,122 | ) | |||||
| Accounts payable | (2,405 | ) | 1,771 | |||||
| Accrued expenses | (826 | ) | (17,492 | ) | ||||
| Right-of-use asset and lease liability | (360 | ) | (2 | ) | ||||
| Other operating assets and liabilities | 2,153 | 11,416 | ||||||
| Net cash used in operating activities | $ | (9,022 | ) | $ | (19,138 | ) | ||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (1,297 | ) | (1,261 | ) | ||||
| Disposal of Coflex | 17,000 | — | ||||||
| Patent and acquired intangible asset costs | (35 | ) | (81 | ) | ||||
| Net cash provided by (used in) investing activities | $ | 15,668 | $ | (1,342 | ) | |||
| Cash flows from financing activities: | ||||||||
| Share offering proceeds including prefunded warrant exercised, net | — | 17,729 | ||||||
| Payment of Holo Milestones – contingent consideration | — | (4,081 | ) | |||||
| Pre-funded warrant execution | 1 | — | ||||||
| Payments for treasury stock | (20 | ) | (5 | ) | ||||
| Net cash (used in) provided by investing activities | $ | (19 | ) | $ | 13,643 | |||
| Effect of exchange rate changes on cash and cash equivalents | (492 | ) | 227 | |||||
| Net increase (decrease) in cash and cash equivalents | 6,135 | (6,610 | ) | |||||
| Cash and cash equivalents, beginning of period | 16,295 | 51,287 | ||||||
| Cash and cash equivalents, end of period | $ | 22,430 | $ | 44,677 | ||||
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements presented on a GAAP basis, we disclose non-GAAP net loss applicable to common shares, non-GAAP net loss per diluted share, non-GAAP operating expenses, and non-GAAP gross profit, in each case adjusted for certain amounts. In addition, we disclose EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The calculation of the tax effect on the adjustments between GAAP net loss applicable to common shares and non-GAAP net income applicable to common shares is based upon our estimated annual GAAP tax rate, adjusted to account for items excluded from GAAP net loss applicable to common shares in calculating non-GAAP net loss applicable to common shares. Reconciliations of each of these non-GAAP financial measures to the most directly comparable GAAP measures are included in the reconciliations below.
The following are explanations of the adjustments that management excluded as part of the non-GAAP measures for the three months ended March 31, 2023 and 2022. Management removes the amount of these costs including the tax effect on the adjustments from our operating results to supplement a comparison to our past operating performance.
2023 and 2022 Non-cash stock-based compensation – These costs relate to expense amortization for all stock-based awards made to employees and directors, including restricted stock awards, restricted stock units, stock options and the employee stock purchase plan purchase rights.
2023 and 2022 Foreign exchange (gain) loss– These costs relate to the process of remeasuring international activity into the Company’s functional currency.
2023 and 2022 Change in fair value of warrant liability – Other income related to the revaluation of our warrant liability.
2023 and 2022 Gain on acquisition contingency – The gain on acquisition contingency relates to an adjustment to our estimate of obligation for future milestone payments on the Holo Surgical acquisition.
2023 and 2022 Asset impairment and abandonments – These costs relate to asset impairment and abandonments of certain long-term assets within the asset group.
2023 and 2022 Transaction and financing expenses – These costs relate to professional fees associated with financings, issuance costs for the underwritten public offering, and service related to sale of the Company’s Coflex inventory line.
2023 and 2022 Inventory purchase price adjustment – These costs relate to the purchase price effects of acquired Paradigm inventory that was sold during the two months of January and February of 2023 prior to the sale of inventory line, and for the three months ended March 31, 2022.
2023 Severance and restructuring costs – These costs relate to employee related severance costs as a result of the Company’s organization restructuring plan.
2023 Gain on sale of Coflex – Gain related to the sale of the Company’s Coflex and Cofix product lines in the United States.
2023 Product rationalization – These costs relate to inventory write downs associated with the wind down of the international business.
Material Limitations Associated with the Use of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA and Adjusted Net Income Applicable to Common Shares should not be considered in isolation, or as a replacement for GAAP measures.
Usefulness of Non-GAAP Financial Measures to Investors
The Company believes that presenting EBITDA, Adjusted EBITDA and Adjusted Net Income Applicable to Common Shares in addition to the related GAAP measures provide investors greater transparency to the information used by management in its financial decision-making.
| SURGALIGN HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||
| Reconciliation of Revenues to Adjusted Gross Profit | |||||||||||
| (Unaudited, in thousands) | |||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2023 | 2022 | ||||||||||
| Revenues | $ | 16,748 | 100.0 | % | $ | 20,605 | 100.0 | % | |||
| Costs of processing and distribution | 6,074 | 36.3 | % | 6,410 | 31.1 | % | |||||
| Gross profit, as reported | 10,674 | 63.7 | % | 14,195 | 68.9 | % | |||||
| Inventory write-off | 730 | 4.4 | % | — | — | % | |||||
| Inventory purchase price adjustment | 235 | 1.4 | % | 410 | 2.0 | % | |||||
| Non-GAAP gross profit, adjusted | $ | 11,639 | 69.5 | % | $ | 14,605 | 70.9 | % | |||
| SURGALIGN HOLDINGS, INC. AND SUBSIDIARIES | |||||||
| Non-GAAP Operating Expenses, Adjusted | |||||||
| (Unaudited, in thousands) | |||||||
| For the Three Months Ended March 31, |
|||||||
| 2023 | 2022 | ||||||
| Operating Expenses | $ | 24,448 | $ | 23,116 | |||
| Non-cash stock-based compensation | 985 | 1,374 | |||||
| Gain on acquisition contingency | (1,066 | ) | (8,503 | ) | |||
| Asset impairment and abandonments | 553 | 939 | |||||
| Transaction and integration expenses | 463 | 916 | |||||
| Severance and restructuring costs | 466 | — | |||||
| Non-GAAP Operating Expenses, adjusted* | $ | 23,047 | $ | 28,390 | |||
| Non-GAAP Operating Expenses, adjusted, as a percent of revenues | 137.6 | % | 137.8 | % | |||
| *Please note this reconciliation does not include HOLO™ Portal capitalized costs of $0.4 million and $0.0 million for the three months ended March 31, 2023 and 2022. | |||||||
| #See explanations in Non-GAAP Financial Measures above. | |||||||
| SURGALIGN HOLDINGS, INC. AND SUBSIDIARIES | ||||||||||||||||
| Reconciliation of Net Income Applicable to Common Shares and Income Per Diluted Share to Adjusted Net Loss Applicable to Common Shares and Adjusted Net Loss Per Diluted Share | ||||||||||||||||
| (Unaudited, in thousands except per share data) | ||||||||||||||||
| For the Three Months Ended | ||||||||||||||||
| March 31, 2023 | March 31, 2022 | |||||||||||||||
| Net Income Applicable to Common Shares | Amount Per Diluted Share | Net Income Applicable to Common Shares | Amount Per Diluted Share | |||||||||||||
| Net income from continuing operations | $ | 4,145 | $ | 0.31 | $ | 27 | $ | 0.00 | ||||||||
| Change in fair value of warrant liability | (5,288 | ) | (0.40 | ) | (9,743 | ) | (1.65 | ) | ||||||||
| Gain on acquisition contingency | (1,066 | ) | (0.08 | ) | (8,503 | ) | (1.44 | ) | ||||||||
| Non-cash stock-based compensation | 985 | 0.07 | 1,374 | 0.23 | ||||||||||||
| Foreign exchange (gain) loss | (238 | ) | (0.02 | ) | 353 | 0.06 | ||||||||||
| Gain on sale of Coflex | (12,631 | ) | (0.95 | ) | — | 0.00 | ||||||||||
| Asset impairment and abandonments | 553 | 0.04 | 939 | 0.16 | ||||||||||||
| Transaction and financing expenses | 463 | 0.03 | 916 | 0.15 | ||||||||||||
| Inventory purchase price adjustment | 235 | 0.02 | 410 | 0.07 | ||||||||||||
| Product rationalization | 730 | 0.05 | — | 0.00 | ||||||||||||
| Severance and restructuring costs | 466 | 0.03 | — | 0.00 | ||||||||||||
| Tax effect on adjustments | 17 | 0.00 | — | 0.00 | ||||||||||||
| Non-GAAP net loss from continuing operations, adjusted* | $ | (11,629 | ) | $ | (0.90 | ) | $ | (14,227 | ) | $ | (2.42 | ) | ||||
| *Please note this reconciliation does not include HOLO™ Portal capitalized costs of $0.4 million and $0.0 million for the three months ended March 31, 2023 and 2022. | ||||||||||||||||
| #See explanations in Non-GAAP Financial Measures above. | ||||||||||||||||
| SURGALIGN HOLDINGS, INC. AND SUBSIDIARIES | ||||||||
| Reconciliation of Net Income Applicable to Commons Shares to Adjusted EBITDA | ||||||||
| (Unaudited, in thousands) | ||||||||
| For the Three Months Ended March 31, |
||||||||
| 2023 | 2022 | |||||||
| Net income from continuing operations | $ | 4,145 | $ | 27 | ||||
| Interest expense, net | 252 | 252 | ||||||
| Income tax provision | 133 | 162 | ||||||
| Depreciation | 450 | 509 | ||||||
| EBITDA | $ | 4,980 | $ | 950 | ||||
| Reconciling items impacting EBITDA | ||||||||
| Non-cash stock-based compensation | 985 | 1,374 | ||||||
| Foreign exchange loss | (238 | ) | 353 | |||||
| Other reconciling items* | ||||||||
| Inventory purchase price adjustment | 235 | 410 | ||||||
| Change in fair value of warrant liability | (5,288 | ) | (9,743 | ) | ||||
| Gain on acquisition contingency | (1,066 | ) | (8,503 | ) | ||||
| Gain on sale of Coflex | (12,631 | ) | — | |||||
| Asset impairment and abandonments | 553 | 939 | ||||||
| Transaction and financing expenses | 463 | 916 | ||||||
| Product rationalization | 730 | — | ||||||
| Severance and restructuring costs | 466 | — | ||||||
| Adjusted EBITDA* | $ | (10,811 | ) | $ | (13,304 | ) | ||
| Adjusted EBITDA as a percent of revenues | (64.6 | )% | (64.6 | )% | ||||
| *Please note this reconciliation does not include HOLO™ Portal capitalized costs of $0.4 million and $0.0 million for the three months ended March 31, 2023 and 2022. | ||||||||
| #See explanations in Non-GAAP Financial Measures above. | ||||||||
Artificial Intelligence
Complyport’s new AI tool – ViCA.Chat – set to revolutionise compliance support services
LONDON, June 14, 2024 /PRNewswire/ — ViCA.Chat, the Virtual Compliance Assistant powered by AI technology, is set to transform regulatory compliance consulting. Developed by ComplyMAP Group’s AI engineers and Complyport’s compliance consulting teams, ViCA redefines compliance support services and propels governance, risk and compliance consulting into a new era of innovation.
Offering real-time assistance across a vast array of UK and EU regulatory frameworks, ViCA delivers unparalleled efficiency, detail and precision in disentangling and dealing with complicated regulatory frameworks.
The key differentiator of ViCA is its specialised and purposely constructed unique databases that leverage Complyport’s 22 years of regulatory expertise, combined with tailored AI training tools, enabling ViCA to operate as an experienced compliance consultant. A dedicated human support team continuously improves and updates ViCA’s knowledge and responses through a feedback loop process and quality assurance sessions. This powerful symbiosis of AI and human expertise sets ViCA apart and ensures businesses have the latest regulatory information instantaneously and seamlessly.
As a result, ViCA’s specialised regulatory database goes beyond readily available online resources which feature into traditional AI tools. ViCA offers exclusive insights, proprietary regulatory interpretations, historical data, bespoke and purposely structured compliance documentation and templates. With advanced scraping capabilities, ViCA also extracts relevant data from selected websites and publicly available information, ensuring an up-to-date and comprehensive understanding of compliance requirements across industries.
From agile fintech startups to established law firms, financial institutions, regulatory bodies, insurance providers, as well as compliance consultants, ViCA seamlessly adapts to unique compliance needs. Its user-friendly interface ensures navigating and analysing regulatory data is swift and intuitive, streamlining the compliance workflow.
“ViCA is a game-changer in how regulatory compliance advice will be provided in the future”, commented Luis Parra, Managing Director of ViCA. “With ViCA, compliance insights become available to all. No longer are regulated firms and responsible people overly dependent on advisors and compliance consultants. Through ViCA, the financial system will not only meet but exceed regulatory standards. Moreover, the level of information made available to the public will benefit society as a whole, in its interactions with the financial services sector.”
Among ViCA’s revolutionary features is its cost-effective model, allowing businesses to significantly reduce reliance on traditional spending with external consultants and advisors.
Visit ViCA.Chat to experience the future of compliance support.
Contact:
Name: Luis ParraTitle: Managing DirectorCompany: Vica.ChatTelephone: +44 20 7399 4980 Email: [email protected]
About ViCA.Chat:
ViCA.Chat is a revolutionary Virtual Compliance Assistant powered by cutting-edge AI technology, designed to demystify the complexities of regulatory compliance. Utilising Complyport’s 22 years of regulatory expertise, ViCA offers real-time assistance and guidance across a wide range of regulatory frameworks, setting a new standard for efficiency and precision in compliance support. From fintech start-ups to established law firms, financial services institutions, regulators, regulatory firms, compliance consultants and insurance firms, ViCA caters to the diverse needs of professionals across all levels in the broader UK financial services sector.
Visit ViCA.Chat to learn more.
Logo – https://mma.prnewswire.com/media/2439008/ViCA_Logo.jpg
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/complyports-new-ai-tool—vicachat—set-to-revolutionise-compliance-support-services-302173182.html
Artificial Intelligence
LoRa and LoRaWAN IoT Market worth $32.7 billion by 2029- Exclusive Report by MarketsandMarkets™
CHICAGO, June 14, 2024 /PRNewswire/ — The LoRa and LoRaWAN IoT Market is expected to reach USD 32.7 billion by 2029 from USD 8.0 billion in 2024, at a Compound Annual Growth Rate (CAGR) of 32.4 % during 2024–2029, according to a new report by MarketsandMarkets™.
Browse in-depth TOC on “LoRa and LoRaWAN IoT Market”
320 – Tables 58 – Figures294 – Pages
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=144298529
Scope of the Report
Report Metrics
Details
Market size available for years
2018-2029
Base year considered
2023
Forecast period
2024–2029
Forecast units
Value (USD Billion)
Segments Covered
Offering, Network Deployment, Application, End User, and Region
Region covered
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
List of Companies in LoRa and LoRaWAN IoT
The Bosch Group (Germany), Cisco (US), Orange SA (France), Comcast Corporation (US), Semtech (US), NEC Corporation(Japan), Tata Communications (India), AWS (US), Advantech (Taiwan), SK Telecom (South Korea), Murata (Japan), Kerlink (France), Actility (France), Digi International (US), MultiTech (US), Ezurio (US), Sensoterra (Netherlands), Nwave Technologies (US), RAKwireless (China), TheThings.io (Spain), Datacake (Germany), Milesight (China), LORIOT (Switzerland), Exosite (US), Orbiwise (Switzerland), Netmore Group (Sweden), and Radio Bridge Inc (US).
The LoRaWAN ecosystem influences development of tools, software libraries, and cloud-based platforms that streamline the creation, deployment, and management of IoT solutions. Continuously evolving, this ecosystem boasts a burgeoning array of vendors providing LoRa-compliant devices, gateways, and network management solutions. This vibrant competition within the ecosystem propels innovation while driving down costs for end-users. Moreover, the development of interoperable solutions fosters seamless integration and deployment of LoRaWAN networks, simplifying the implementation process for businesses and organizations. As the ecosystem continues to expand and mature, it empowers developers, system integrators, and IoT enthusiasts to unleash their creativity, accelerate time-to-market, and unlock the full potential of LoRaWAN technology in diverse applications and industries.
Request Sample Pages@ https://www.marketsandmarkets.com/requestsampleNew.asp?id=144298529
Based on network deployment, the public network segment to hold the largest market size during the forecast period.
The robust security features integrated into public LoRaWAN networks play a significant role in driving the growth and adoption of LoRaWAN technology in the market. End-to-end encryption ensures that data transmitted between devices and gateways is protected from unauthorized access or interception, safeguarding sensitive information such as sensor readings, location data, and command messages. Message integrity checks verify the integrity of data packets, detecting any tampering or alteration during transmission and ensuring data authenticity and reliability. Additionally, mutual authentication mechanisms establish trust between devices and gateways, verifying the identity of both parties before allowing communication to occur. These security measures provide organizations and end-users with confidence in the integrity and confidentiality of their data, mitigating concerns related to data privacy, cybersecurity threats, and regulatory compliance. As a result, implementing robust security features in public LoRaWAN networks enhances trust and credibility in the technology, driving increased adoption and market growth as organizations seek reliable and secure connectivity solutions for their IoT deployments.
By offering, the services segment is expected to hold a higher growth rate during the forecast period.
IoT service providers are pivotal in driving adoption by developing vertical-specific solutions finely tuned to the distinct needs of industries like agriculture, healthcare, logistics, and smart cities. In agriculture, for instance, IoT services offer solutions for precision farming, crop monitoring, and livestock management, enabling farmers to optimize irrigation, monitor soil health, and enhance yields. Similarly, IoT services facilitate remote patient monitoring, asset tracking, and inventory management in healthcare, improving patient care, reducing costs, and ensuring compliance with regulatory standards such as HIPAA. In logistics, IoT services provide real-time tracking of shipments, fleet management, and predictive maintenance, enhancing supply chain visibility, efficiency, and reliability. For smart cities, IoT services offer solutions for traffic management, waste management, energy optimization, and public safety, transforming urban infrastructure and enhancing the quality of life for residents. By addressing industry-specific challenges, compliance requirements, and use cases, vertical-specific IoT solutions deliver tangible business value, driving adoption and fueling the growth of the IoT services market across diverse sectors.
Inquire Before Buying@ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=144298529
Asia Pacific is expected to hold a higher growth rate during the forecast period.
In the Asia Pacific region, where agriculture serves as a cornerstone of many economies, adopting IoT technologies, particularly LoRa and LoRaWAN, is revolutionizing traditional farming practices. LoRaWAN’s long-range connectivity and low-power consumption make it well-suited for deployment in rural agricultural settings, where access to reliable connectivity may be limited. Through LoRa-based IoT solutions, farmers can implement precision agriculture techniques to address pressing challenges such as water scarcity, soil degradation, and unpredictable weather patterns. LoRa-enabled sensors facilitate real-time monitoring of soil moisture levels, temperature, and humidity, allowing farmers to optimize irrigation schedules and conserve water resources. Remote sensing technologies powered by LoRaWAN enable farmers to gather actionable insights on crop health, pest infestations, and nutrient deficiencies, facilitating timely interventions and improving overall crop management practices. Furthermore, LoRa-based crop analytics platforms provide farmers with data-driven decision support tools, helping them optimize planting strategies, improve yield forecasting, and mitigate the impact of climate change on agricultural productivity. By harnessing the power of LoRa and LoRaWAN IoT solutions, farmers in the Asia Pacific region can increase yields, conserve resources, and enhance resilience to environmental challenges, driving the adoption and growth of the LoRaWAN IoT market in the agricultural sector.
Top Key Companies in LoRa and LoRaWAN IoT Market:
The major vendors covered in the LoRa and LoRaWAN IoT Market are The Bosch Group (Germany), Cisco (US), Orange SA (France), Comcast Corporation (US), Semtech (US), NEC Corporation(Japan), Tata Communications (India), AWS (US), Advantech (Taiwan), SK Telecom (South Korea), Murata (Japan), Kerlink (France), Actility (France), Digi International (US), MultiTech (US), Ezurio (US), Sensoterra (Netherlands), Nwave Technologies (US), RAKwireless (China), TheThings.io (Spain), Datacake (Germany), Milesight (China), LORIOT (Switzerland), Exosite (US), Orbiwise (Switzerland), Netmore Group (Sweden), and Radio Bridge Inc (US). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches, enhancements, and acquisitions to expand their footprint in the LoRa and LoRaWAN IoT Market.
Browse Adjacent Markets: Digitalization and Internet of Things (IoT) Market Research Reports & Consulting
Related Reports:
Perimeter Security Market- Global Forecast to 2029
Smart Cities Market – Global Forecast to 2028
Fleet Management Market – Global Forecast to 2028
Smart Water Management Market – Global Forecast to 2028
Rail Asset Management Market – Global Forecast to 2026
Get access to the latest updates on LoRa and LoRaWAN IoT Companies and LoRa and LoRaWAN IoT Industry
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
Contact:Mr. Aashish MehraMarketsandMarkets™ INC.630 Dundee RoadSuite 430Northbrook, IL 60062USA: +1-888-600-6441Email: [email protected] Our Website: https://www.marketsandmarkets.com/
Logo: https://mma.prnewswire.com/media/1951202/4609423/MarketsandMarkets.jpg
View original content:https://www.prnewswire.co.uk/news-releases/lora-and-lorawan-iot-market-worth-32-7-billion-by-2029–exclusive-report-by-marketsandmarkets-302172905.html
Artificial Intelligence
Scoring a Seat at UEFA EURO 2024™ with Top-Performing AI-Powered TOSHIBA TV Lineup
HONG KONG, June 14, 2024 /PRNewswire/ — Football fans are in for a treat as they gear up for UEFA EURO 2024™ with Toshiba TV’s top-performing Gaming TV Z670. As the OFFICIAL TV OF UEFA EURO 2024™, Toshiba TVs present immersive viewing of the football game by their AI-powered TV lineup. To celebrate the brilliant moments it can bring, Toshiba TV are gifting USD100 Amazon Gift Card via their social platform! By simply like, follow and comment on @ToshibaTVGlobal, fans can boost their chances of scoring this prize.
Optimized Visuals Tailored for Football Dynamics
The Toshiba REGZA Engine ZRi in Z670 transports football fans into the heart of the action. With the AI Football Mode, they’ll be able to see fast-moving objects crystal clear and football field actions much enriched. To see their favourite player score that winning goal, the AI Picture Optimizer automatically adjusts visual contrast and precision adapted to the game. From vivid green fields and vibrant player kits, every play comes to life with AI 4K Upscaling and Quantum Dot Color, transforming lower-resolution broadcasts into near-4K quality and unleashing lifelike visual color.
Powerful Audio Effects for a Live Stadium Experience
The Toshiba TV Z670’s powerful audio system makes viewers feel like they’re right in the game. With the REGZA Bass Woofer Pro, Tru Bass Booster, and Dolby Atmos, they’ll experience heart-thumping 3D surround sound that captures the live stadium atmosphere. Whether it’s the roar of the crowd or the intensity of each play, the rich audio brings the excitement of each game right into their room.
Bringing Everyone Together for UEFA EURO 2024™
Available in sizes ranging from 55″ to 85″, Z670 is equipped with a Wide Viewing Angle and Anti-reflection features that ensures a clear picture from all viewing positions with the non-glare panel. Gather everyone for “Brilliant Every Moment” in UEFA EURO 2024™ with Toshiba TV!
Please find the high-resolution TVC here: Link
About Toshiba TV:
With 70+ years of history in TV production, Toshiba TV is known for its exquisite craftsmanship, innovative ideas and groundbreaking inventions. By prioritizing superior image quality and auditory experiences, Toshiba TV sets new standards in entertainment. Toshiba TV stems from the excellence quest of customers, providing the world with responsible products to make the world a better place. Emphasizing attention to product details and technological advancement, Toshiba TV integrates aesthetically pleasing design, quality assurance, and brand reputation to underscore its commitment to authenticity in the actual world and a sincere dedication to its consumers, showcasing Toshiba TV’s long-standing design philosophy and continuous pursuit of product quality.
Photo – https://mma.prnewswire.com/media/2438761/image_5030810_27421259.jpgLogo – https://mma.prnewswire.com/media/2438760/image_5030810_27421181_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/scoring-a-seat-at-uefa-euro-2024-with-top-performing-ai-powered-toshiba-tv-lineup-302172970.html
-
Artificial Intelligence6 days agoADP Rings NASDAQ Opening Bell Celebrates 75 Years at the Forefront of Payroll & HR Innovation
-
Artificial Intelligence6 days agoPressidium® Introduces New Hosting Plans and Global Data Centers
-
Artificial Intelligence6 days agoTraceLink Partners with Genpact to Expand Delivery of Digital Supply Chain Innovation for Healthcare and Life Sciences Sectors
-
Artificial Intelligence6 days agoEmpowering data practitioners will help shape generative AI deployment for enterprise, says new MIT Technology Review Insights research report
-
Artificial Intelligence2 days agoBorderless AI & Cohere team up to build a custom-trained AI model for HR professionals, taking on Deel and Remote.com
-
Uncategorized5 days agoHughes Europe Expands into Military, Defence & Government Sectors with Launch of Konnect VHTS Services in Collaboration with Telespazio
-
Uncategorized4 days ago
AI Could Transform UK’s Public Finances as Labour Touts Gains
-
Artificial Intelligence6 days ago
Cell & Gene Therapy Supply Chain Software Market Expected to Grow at a 13.9% CAGR from 2024-2031 | Latest Report by InsightAce Analytic
