The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when operating and evaluating the Company’s business internally and therefore decided to make these non-GAAP adjustments available to investors.
About Mazor
Mazor Robotics is dedicated to the development and marketing of innovative surgical guidance systems and complementary products that provide a safer surgical environment for patients, surgeons, and operating room staff. Mazor Robotics’ flagship product, Renaissance®, is a state-of-the-art surgical guidance system that enables surgeons to conduct spine surgeries in an accurate and secure manner. Mazor Robotics systems have been successfully used in the placement of over 45,000 implants worldwide. Numerous peer-reviewed publications and presentations at leading scientific conferences have validated the accuracy, usability, and clinical advantages of Mazor Robotics technology. For more information, the content of which is not part of this press release, please visit www.mazorrobotics.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Any statements in this release about future expectations, plans or prospects for the Company, including without limitation, statements regarding Mazor’s expected sales and clinical success throughout 2014, expected sales in Georgia, expected maintenance of competitive advantage and building greater awareness of the Renaissance system, increase in investments in sales, marketing, research and development, expected increase in interest in the Renaissance system, and other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions are forward-looking statements. These statements are only predictions based on Mazor's current expectations and projections about future events. There are important factors that could cause Mazor's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Those factors include, but are not limited to, the impact of general economic conditions, competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results, and other factors indicated in Mazor's filings with the Securities and Exchange Commission (SEC) including those discussed under the heading "Risk Factors" in Mazor’s annual report on Form 20-F filed with the SEC on April 9, 2014 and in subsequent filings with the SEC. For more details, refer to Mazor's SEC filings. Mazor undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in our expectations, except as may be required by law.
| Mazor Robotics Ltd. | ||||||||||||
|
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
||||||||||||
| (in thousands, except per share data) | ||||||||||||
|
Three-month period |
||||||||||||
|
ended March 31, |
||||||||||||
| 2014 | 2013 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Revenue | $ | 4,878 | $ | 4,906 | ||||||||
| Cost of revenue | $ | 1,031 | $ | 950 | ||||||||
| Gross profit | $ | 3,847 | $ | 3,956 | ||||||||
| Operating costs and expenses: | ||||||||||||
| Research and development | $ | 1,644 | $ | 928 | ||||||||
| Selling and marketing | $ | 4,911 | $ | 3,109 | ||||||||
| General and administrative | $ | 910 | $ | 575 | ||||||||
| Total operating costs and expenses | $ | 7,465 | $ | 4,612 | ||||||||
| Loss from operations | $ | (3,618 |
) |
|
$ | (656 | ) | |||||
| Financing income (expenses), net | $ | 24 | $ | (9,898 | ) | |||||||
| Loss before taxes on income | $ | (3,594 |
) |
|
$ | (10,554 |
) |
|
||||
| Taxes on income | $ | 40 | $ | 38 | ||||||||
| Net loss attributable to ordinary shareholders | $ | (3,634 |
) |
|
$ | (10,592 | ) | |||||
|
Net loss per share – Basic and diluted attributable to ordinary shareholders |
$ | (0.09 | ) | $ | (0.36 | ) | ||||||
| Weighted average common shares outstanding – | 41,120 | 29,241 | ||||||||||
| Basic and diluted | ||||||||||||
| Mazor Robotics Ltd. | ||||||||||
| Consolidated Statements of Financial Position as of | ||||||||||
| (U.S. Dollars in thousands) | ||||||||||
|
|
||||||||||
| March 31, | December 31, | |||||||||
| 2014 | 2013 | |||||||||
| Unaudited | Audited | |||||||||
| Balance Sheet Data: | ||||||||||
| Current Assets | ||||||||||
| Cash and cash equivalents | $ | 14,325 | $ | 19,803 | ||||||
| Short-term investments | $ | 46,735 | $ | 45,014 | ||||||
| Trade receivables | $ | 3,301 | $ | 1,974 | ||||||
| Other accounts receivable | $ | 988 | $ | 655 | ||||||
| Inventory | $ | 2,714 | $ | 2,480 | ||||||
| Total Current Assets | $ | 68,063 | $ | 69,926 | ||||||
| Non-Current Assets | ||||||||||
| Prepaid lease fees |
$ |
83 | $ | 78 | ||||||
| Property and equipment, net | $ | 828 | $ | 792 | ||||||
| Intangible assets, net | $ | 19 | $ | 93 | ||||||
| Total Non-Current Assets | $ | 930 | $ | 963 | ||||||
| Total assets | $ | 68,993 | $ | 70,889 | ||||||
| Current liabilities | ||||||||||
| Trade payables | $ | 1,561 | $ | 1,899 | ||||||
| Other accounts payable | $ | 3,879 | $ | 4,565 | ||||||
| Total current liabilities | $ | 5,440 | $ | 6,464 | ||||||
| Non-Current Liabilities | ||||||||||
| Employee benefits | $ | 336 | $ | 311 | ||||||
| Deferred tax liability | $ | 21 | $ | 21 | ||||||
| Total Non-Current liabilities | $ | 357 | $ | 332 | ||||||
| Total liabilities | $ | 5,797 | $ | 6,796 | ||||||
| Equity | ||||||||||
| Share capital | $ | 109 | $ | 106 | ||||||
| Share premium | $ | 134,212 | $ | 130,472 | ||||||
| Amounts allocated to share options | $ | 77 | $ | 77 | ||||||
| Capital reserve for share-based payment transactions | $ | 2,848 | $ | 3,854 | ||||||
| Foreign currency translation reserve | $ | 2,119 | $ | 2,119 | ||||||
| Accumulated loss | $ | (76,169) | $ | (72,535) | ||||||
| Total equity | $ | 63,196 | $ | 64,093 | ||||||
| Total liabilities and equity | $ | 68,993 | $ | 70,889 | ||||||
| Mazor Robotics Ltd. | ||||||||||||||
|
Reconciliations of GAAP to Non-GAAP Financial Measures |
||||||||||||||
|
(U.S. Dollars in thousands, except per share data) |
||||||||||||||
| (UNAUDITED) | ||||||||||||||
|
|
||||||||||||||
|
Three-month period |
||||||||||||||
|
ended March 31, |
||||||||||||||
| 2014 | 2013 | |||||||||||||
| GAAP gross profit | $ | 3,847 | $ | 3,956 | ||||||||||
| Amortization of intangible assets | $ | 73 | $ | 73 | ||||||||||
| Stock-based compensation | $ | 7 | $ | 2 | ||||||||||
| Non-GAAP gross profit | $ | 3,927 | $ | 4,031 | ||||||||||
| GAAP gross profit as percentage of revenues |
79% |
|
81% |
|
||||||||||
| Non-GAAP gross profit as percentage of revenues |
80% |
|
82% |
|
||||||||||
| GAAP operating expenses | $ | 7,465 | $ | 4,612 | ||||||||||
| Stock-based compensation: | ||||||||||||||
| Research and development | $ | 38 | $ | 27 | ||||||||||
| Selling and Marketing | $ | 200 | $ | 69 | ||||||||||
| General and administrative | $ | 108 | $ | 82 | ||||||||||
| Non-GAAP operating expenses | $ | 7,119 | $ | 4,434 | ||||||||||
| GAAP operating loss | $ | (3,618 | ) | $ | (656 | ) | ||||||||
| Non-GAAP operating loss | $ | (3,192 | ) | $ | (403 | ) | ||||||||
| GAAP Financing income (expenses), net | $ | 24 | $ | (9,898 | ) | |||||||||
| Change in fair value of derivative instruments | $ | - | $ | 9,907 | ||||||||||
| Non-GAAP Financing income (expenses), net | $ | 24 | $ | 9 | ||||||||||
| GAAP net loss | $ | (3,634 | ) | $ | (10,592 | ) | ||||||||
| Stock-based compensation | $ | 353 | $ | 180 | ||||||||||
| Amortization of intangible assets | $ | 73 | $ | 73 | ||||||||||
| Change in fair value of derivative instruments | $ | - | $ | 9,907 | ||||||||||
| Non-GAAP net loss | $ | (3,208 | ) | $ | (432 | ) | ||||||||
| GAAP basic and diluted loss per share | $ | (0.09 | ) | $ | (0.36 | ) | ||||||||
| Non-GAAP basic and diluted loss per share | $ | (0.08 | ) | $ | (0.01 | ) | ||||||||
| Mazor Robotics Ltd. | |||||||||||
| CONSOLIDATED CASH FLOW STATEMENTS | |||||||||||
| (U.S. Dollars in thousands) | |||||||||||
| Three-month period | |||||||||||
|
ended March 31, |
|||||||||||
| 2014 | 2013 | ||||||||||
| (Unaudited) | (Unaudited) | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Loss for the period | $ | (3,634) | $ | (10,592) | |||||||
| Adjustments: | |||||||||||
| Depreciation and amortization | $ | 161 | $ | 146 | |||||||
| Change in fair value of derivative liability | |||||||||||
| on account of warrants | - | $ | 9,907 | ||||||||
| Financing expenses, net | $ | 72 | $ | (47) | |||||||
| Share-based payment | $ | 353 | $ | 180 | |||||||
| Taxes on income | $ | 40 | $ | 38 | |||||||
| $ | 626 | $ | 10,224 | ||||||||
| Change in inventory | $ | (234) | $ | 13 | |||||||
| Change in trade and other accounts receivable | $ | (1,663) | $ | (2,203) | |||||||
| Change in prepaid lease fees | $ | (5) | $ | (5) | |||||||
| Change in trade and other accounts payable | $ | (446) | $ | 794 | |||||||
| Change in employee benefits | $ | 25 | $ | 105 | |||||||
| $ | (2,323) | $ | (1,296) | ||||||||
| Interest received | $ | 2 | $ | 58 | |||||||
| Income tax paid | $ | (11) | $ | (35) | |||||||
| $ | (9) | $ | 23 | ||||||||
| Net cash used in operating activities | $ | (5,340) | $ | (1,641) | |||||||
| Cash flows from investing activities: | |||||||||||
| Proceeds from short-term investments and deposits, net | $ | (1,752) | $ | 2,831 | |||||||
| Purchase of property and equipment | $ | (124) | $ | (83 | ) | ||||||
| Net cash provided by (used in) investing activities | $ | (1,876) | $ | 2,748 | |||||||
| Cash flows used in financing activities: | |||||||||||
| Issuance expenses | $ | (294) | $ | (160) | |||||||
| Proceeds from exercise of share options by employees | $ | 2,384 | $ | 16 | |||||||
| Repayment of loans to the OCS | $ | (324) | $ | - | |||||||
| Net cash provided by (used in) financing activities | $ | 1,766 | $ | (144) | |||||||
| Net increase (decrease) in cash and cash equivalents | $ | (5,450) | $ | 963 | |||||||
| Cash and cash equivalents at the beginning of the period | $ | 19,803 | $ | 12,797 | |||||||
|
Effect of exchange rate differences on balances of cash and cash equivalents |
$ | (28) | $ | (16) | |||||||
| Cash and cash equivalents at the end of the period | $ | 14,325 | $ | 13,744 | |||||||
