ENTELLUS MEDICAL INC

CIK:0001374128|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	$ 23,329	$ 17,880	$ 64,575	$ 53,512
Cost of goods sold	6,555	4,648	17,287	13,107
Gross profit	16,774	13,232	47,288	40,405
Operating expenses
Selling and marketing	18,457	15,364	49,743	41,857
Research and development	4,653	2,047	8,881	5,832
General and administrative	5,043	4,698	13,964	12,183
Amortization of intangible assets	1,957	109	2,313	111
Acquisition-related expenses	3,865		5,059	300
Total operating expenses	33,975	22,218	79,960	60,283
Loss from operations	(17,201)	(8,986)	(32,672)	(19,878)
Other income (expense)
Interest income	117	75	286	228
Interest expense	(1,018)	(562)	(2,029)	(1,686)
Other non-operating expense	(20)	(12)	(82)	(42)
Loss before income tax expense	(18,122)	(9,485)	(34,497)	(21,378)
Income tax benefit (expense)	14,882	(34)	14,876	(34)
Net loss	(3,240)	(9,519)	(19,621)	(21,412)
Other comprehensive loss
Unrealized (loss) gain on short-term investments, net of tax		(39)	(1)	26
Foreign currency translation gain (loss)	34	(28)	81	(123)
Comprehensive loss	$ (3,206)	$ (9,586)	$ (19,541)	$ (21,509)
Net loss per share, basic and diluted	$ (0.13)	$ (0.50)	$ (0.87)	$ (1.14)
Weighted average common shares outstanding, basic and diluted	24,944	18,855	22,595	18,827

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (19,621)	$ (21,412)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,800	1,201
Amortization of intangible assets	2,313	111
Amortization, other	88	158
Fair value adjustment to contingent consideration	2,329
Deferred taxes, net	(14,876)	34
Acquired inventory fair value adjustment recognized	326	53
Stock-based compensation	5,892	4,060
Other	601	423
Changes in operating assets and liabilities, net of acquired assets and liabilities:
Accounts receivables	(3,448)	(1,454)
Inventories	(924)	(2,057)
Prepaid expenses and other current assets	493	656
Other non-current assets	297	(283)
Accounts payable	(235)	1,834
Accrued expenses	(1,936)	3,393
Net cash used in operating activities	(26,901)	(13,283)
Cash flows from investing activities:
Purchase of property and equipment	(2,603)	(3,469)
Purchase of investments		(32,182)
Proceeds from maturities of short-term investments	10,837	46,339
Net cash used in investing activities	(16,544)	(312)
Cash flows from financing activities:
Proceeds from revolving credit facility	48,145
Payments on revolving credit facility	(40,202)
Proceeds from long-term debt	40,000
Payments of term debt	(20,000)
Payment of debt fees	(1,206)
Payment of debt issuance costs	(132)
Proceeds from stock plans	1,622	372
Proceeds from public offering, net of issuance costs	45,361
Net cash provided by financing activities	73,588	372
Effect of exchange rate changes on cash and cash equivalents	(108)	(89)
Net increase (decrease) in cash and cash equivalents	30,035	(13,312)
Cash and cash equivalents - beginning of period	21,417	28,548
Cash and cash equivalents - end of period	51,452	15,236
Supplemental cash flow information:
Cash paid for interest	1,549	1,410
Non-cash transactions related to investing and financing activities:
Issuance of stock related to acquisition	55,502
Contingent consideration for acquisition	50,590
Spirox [Member]
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of intangible assets	6,000	6,100
Cash flows from investing activities:
Acquisition of business	$ (24,778)
XeroGel [Member]
Cash flows from investing activities:
Acquisition of business		$ (11,000)

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 51,452,000	$ 21,417,000
Short-term investments	0	10,845,000
Accounts receivable, net of allowance for doubtful accounts and sales returns of $649 and $308, respectively	18,320,000	13,556,000
Inventories	8,618,000	7,226,000
Prepaid expenses and other current assets	2,300,000	1,862,000
Total current assets	80,690,000	54,906,000
Property and equipment, net	8,317,000	6,487,000
Intangible assets, net	89,630,000	9,840,000
Goodwill	62,772,000	477,000
Other non-current assets	427,000	379,000
Total assets	241,836,000	72,089,000
CURRENT LIABILITIES
Accounts payable	3,821,000	2,796,000
Accrued expenses	12,929,000	13,005,000
Current portion of contingent consideration	17,426,000
Revolving credit facility	7,943,000
Current portion of long-term debt		9,118,000
Total current liabilities	42,119,000	24,919,000
LONG-TERM LIABILITIES
Long-term debt, less current portion, net of debt issuance costs of $329 and $116, respectively	39,671,000	10,766,000
Contingent consideration, less current portion	35,493,000
Other non-current liabilities	273,000	959,000
Total liabilities	117,556,000	36,644,000
COMMITMENTS AND CONTINGENCIES (See Note N)
STOCKHOLDERS' EQUITY (see Note J)
Preferred stock, $0.001 par value per share: Authorized shares: 10,000 at September 30, 2017 and December 31, 2016 Issued and outstanding shares: none
Common stock, $0.001 par value per share: Authorized shares: 200,000 at September 30, 2017 and December 31, 2016; Issued and outstanding shares: 25,448 and 18,908 at September 30, 2017 and December 31, 2016, respectively	25,000	19,000
Additional paid-in capital	294,740,000	186,370,000
Accumulated other comprehensive loss	(76,000)	(156,000)
Accumulated deficit	(170,409,000)	(150,788,000)
Total stockholders' equity	124,280,000	35,445,000
Total liabilities and stockholders' equity	$ 241,836,000	$ 72,089,000