Acutus Medical announces financial impact of corporate restructuring

Going forward, the company’s exclusive sources of revenue will come from the sale of left-heart access products at transfer prices specified in Acutus’ existing distribution agreement with Medtronic and any fee-bearing transition services, with the company’s operating expenses and working capital utilized to support manufacturing, quality, and supply chain related activities as well as general and administrative functions. Under the asset purchase agreement dated April 26, 2022, between Acutus and Medtronic, Acutus is eligible to receive net-sales earnouts under the following terms: 100% of total net end-user sales in year 1; 75% of total net end-user sales in year 2; and 50% of total net end-user sales in years 3 and 4. The annual measurement period for net sales earnouts began on January 30, 2023, and any such earnout payments would begin in April 2024 and continue annually each year thereafter until 2027. As of September 30, the company had $45.5M in cash, cash equivalents, marketable securities, and restricted cash. Once restructuring actions are completed, the Company expects that cash on hand, distribution revenue from left-heart access products to Medtronic, and future earn-outs will be sufficient to service the Company’s outstanding debt and fund the remaining business.