BAXANO SURGICAL, INC.

CIK:0001230355|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue	$ 4,656	$ 3,877	$ 9,068	$ 6,977
Cost of revenue	1,417	1,295	2,680	2,327
Gross profit	3,239	2,582	6,388	4,650
Operating expenses:
Research and development	2,465	1,509	4,452	2,794
Sales and marketing	6,001	6,032	13,275	10,959
General and administrative	2,567	1,860	5,115	3,411
Merger and integration expenses	0	1,583	19	2,895
Total operating expenses	11,033	11,053	22,861	20,219
Operating loss	(7,794)	(8,471)	(16,473)	(15,569)
Non-operating items:
Interest expense	(759)	(73)	(1,135)	(73)
Change in fair value of derivative and warrant liabilities	2,676	0	2,624	0
Other income, net	10	13	8	11
Net loss	(5,867)	(8,531)	(14,976)	(15,631)
Other comprehensive income (loss):
Foreign currency translation adjustments	(1)	1	(2)	0
Comprehensive loss	(5,868)	(8,530)	(14,978)	(15,631)
Net loss per common share - basic and diluted (in dollars Per Share)	$ (0.12)	$ (0.26)	$ (0.31)	$ (0.51)
Weighted average common shares outstanding - basic and diluted (in shares)	48,520	33,408	47,793	30,379
US Treasury and Government [Member]
Operating expenses:
Charges related to U.S. Government settlement	$ 0	$ 69	$ 0	$ 160

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net loss	$ (14,976)	$ (15,631)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	1,745	817
Stock-based compensation	669	620
Provision for bad debts	19	32
Change in fair value of derivative and warrant liabilities	(2,624)	0
Amortization of debt discount and deferred financing fees	485	0
Loss on sale of fixed assets	2	0
Changes in operating assets and liabilities:
Decrease in accounts receivable	926	451
(Increase) decrease in inventory	(144)	91
Increase in prepaid expenses	(245)	(270)
Decrease in accounts payable and accrued expenses	(1,372)	(1,146)
Net cash used in operating activities	(16,886)	(15,663)
Cash flows from investing activities:
Purchases of property and equipment	(508)	(612)
Acquisition, net of cash received	0	(2,685)
Restricted cash classification	41	(62)
Net cash used in investing activities	(467)	(3,359)
Cash flows from financing activities:
Proceeds from convertible notes	9,994	0
Payment of convertible notes issue costs	(1,407)	0
Net proceeds from issuance of common stock	2,506	17,074
Proceeds from employee stock plans	48	10
Net cash provided by financing activities	11,141	17,084
Effect of exchange rate changes on cash and cash equivalents	(2)	(1)
Net decrease in cash and cash equivalents	(6,214)	(1,939)
Cash and cash equivalents, beginning of period	8,540	21,541
Cash and cash equivalents, end of period	2,326	19,602
US Treasury and Government [Member]
Changes in operating assets and liabilities:
Decrease in accrued expenses related to U.S. Government settlement	$ (1,371)	$ (627)

Other Condensed Consolidated Balance Sheet Information

6 Months Ended

Jun. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

10.

Other Condensed Consolidated Balance Sheet Information

Information regarding other accounts on our condensed consolidated balance sheets is as follows (in thousands):

Property and equipment, net

	June 30,		December 31,
	2014		2013
Furniture and fixtures	$	494	$	484
Equipment		7,127		6,459
Computer software		501		496
Leasehold improvements		1,080		1,080
Capital leases of buildings		51		51
Construction in process		32		-
		9,285		8,570
Less: accumulated depreciation and amortization		(6,711)		(5,523)
	$	2,574	$	3,047

Accrued expenses

	June 30,		December 31,
	2014		2013
Accrued payroll, bonuses, and employee benefits	$	1,738	$	2,343
Legal and professional fees		390		638
Interest payable		209		100
Royalties		206		243
Business taxes and licenses		92		122
Travel and entertainment		359		48
Other		114		99
Total accrued expenses	$	3,108	$	3,593