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CHF Solutions, Inc. Announces 25 Percent Increase in Revenues for First Quarter 2018 Over Previous Quarter and Provides Company Update

May 8, 2018

EDEN PRAIRIE, Minn., May 08, 2018 (GLOBE NEWSWIRE) -- CHF Solutions, Inc. (Nasdaq:CHFS) announced today its results for the first quarter ended March 31, 2018, which included the following highlights:

  • Revenue for first quarter ended March 31, 2018 increased 24.8 percent compared to the previous quarter and 15.1 percent compared to the same period during the prior year.

  • Strategic expansion of field clinical specialist team with the addition of three experienced heart failure nurses, for a total of five.

  • Addition of a seasoned vice president of marketing and additional marketing team members.

  • Continued international expansion and announced new agreements with distributors in Spain and Italy and initial commercial orders for Singapore and Hong Kong.

  • Launched new marketing initiatives and sales tools to continue education and awareness campaigns to support field team.

“We began the year strong with continued double-digit increase in our revenues over the previous quarter and we believe we are well-poised to continue to grow in the quarters to come,” said John Erb, Chairman and CEO of CHF Solutions. “We will continue to develop and refine our strategic focus toward driving revenue, which is the key metric our employees, shareholders and potential investors use to measure performance.”


Condensed Consolidated Statements of Operations and Comprehensive Loss
 (Unaudited and in thousands, except per share amounts)

   Three months ended
March 31,
   2018   2017
Net sales $ 1,037     $ 901  
Costs and Expenses:              
Cost of goods sold   901       514  
Selling, general and administrative   4,011       2,387  
Research and development   479       308  
Total costs and expenses   5,391       3,209  
Loss from operations   (4,354 )     (2,308 )
Other income (expense):              
Other income, net         6  
Warrant valuation expense         (67 )
Change in fair value of warrant liability         1,429  
Total other income (expense)         1,368  
Loss before income taxes   (4,354 )     (940 )
Income tax expense          
Net loss $ (4,354 )   $ (940 )
Basic and diluted loss per share $ (1.08 )   $ (35.05 )
Weighted average shares outstanding – basic and diluted   4,031       79  
Other comprehensive income (loss):              
Foreign currency translation adjustments   1       (1 )
Total comprehensive loss $ (4,353 )   $ (941 )

Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)

    March 31,
      December 31,
ASSETS   (unaudited)        
Current assets            
Cash and cash equivalents $ 10,504   $ 15,595  
Accounts receivable   658     545  
Inventory   2,525     1,588  
Other current assets   130     136  
Total current assets                  13,817     17,864  
Property, plant and equipment, net   573     570  
Other assets   21     21  
TOTAL ASSETS $ 14,411   $ 18,455  
Current liabilities            
Accounts payable $ 1,051   $ 862  
Accrued compensation   650     1,021  
Other current liabilities   198     208  
Total current liabilities   1,899     2,091  
Other liabilities   126     126  
Total liabilities   2,025     2,217  
Commitments and contingencies        
Stockholders’ equity            
Series A junior participating preferred stock as of March 31, 2018 and December 31, 2017,
par value $0.0001 per share; authorized 30,000 shares, none outstanding
Series F convertible preferred stock as of March 31, 2018 and December 31, 2017, par
value $0.0001 per share; authorized 1,748 and 3,780 shares, respectively, issued and
outstanding 1,748 and 3,780, respectively
Preferred stock as of March 31, 2018 and December 31, 2017, par value
$0.0001 per share; authorized 39,968,252 and 39,966,220 shares, none outstanding
Common stock as of March 31, 2018 and December 31, 2017, par value
$0.0001 per share; authorized 100,000,000 shares, issued and outstanding
4,252,134 and 3,798,929, respectively
Additional paid‑in capital   197,868     197,367  
Accumulated other comprehensive income:            
Foreign currency translation adjustment   1,228     1,227  
Accumulated deficit   (186,710 )   (182,356 )
Total stockholders’ equity   12,386     16,238  

Condensed Consolidated Statements of Cash Flows
(Unaudited and in thousands)

    Three months ended
March 31,
    2018     2017  
Operating Activities:            
Net loss $ (4,354 )   $ (940 )
Adjustments to reconcile net loss to cash flows from operating activities:              
Depreciation and amortization   54       215  
Stock-based compensation expense, net   500       166  
Change in fair value of warrant liability         (1,429 )
Warrant valuation expense         67  
Changes in operating assets and liabilities:              
Accounts receivable   (113 )     (124 )
Inventory   (937 )     (153 )
Other current assets   6       49  
Accounts payable and accrued expenses   (192 )     535  
Net cash used in operations   (5,036 )     (1,614 )
Investing Activities:              
Purchases of property and equipment   (57 )      
Net cash used in investing activities   (57 )      
Financing Activities:              
Net proceeds from the sale of preferred stock and warrants         184  
Net proceeds from exercise of warrants         1,768  
Net cash provided by financing activities         1,952  
Effect of exchange rate changes on cash   2        
Net increase (decrease) in cash and cash equivalents   (5,091 )     338  
Cash and cash equivalents - beginning of period   15,595       1,323  
Cash and cash equivalents - end of period $ 10,504     $ 1,661  
Supplement schedule of non-cash activities              
Warrants issued as inducement to warrant exercise $     $ 509  
Conversion of temporary equity to permanent equity $     $ 485  
Supplemental cash flow information              
Cash paid for income taxes $     $  

The Company will host a conference call and webcast at 9:00 AM ET today to discuss its financial results and provide an update on the Company’s performance.

To access the live webcast, please visit the CHF Solutions website at Alternatively, investors may access the live conference call by dialing (877) 303-9826 (U.S.) or (224) 357-2194 (international) and using conference ID 8694787.  An audio archive of the webcast and the call script will be available following the call on the Investor page at

About CHF Solutions

CHF Solutions, Inc. (NASDAQ:CHFS) is a medical device company focused on commercializing the Aquadex FlexFlow system for Aquapheresis® therapy. The Aquadex FlexFlow system is indicated for temporary (up to eight hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy, and extended (longer than 8 hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy and require hospitalization. All treatments must be administered by a healthcare provider, under physician prescription, both of whom having received training in extracorporeal therapies. The company's mission is to predict, measure, and control patient fluid balance through science, collaboration, and innovative medical technology. CHF Solutions is a Delaware corporation headquartered in Minneapolis, Minnesota with wholly owned subsidiaries in Australia and Ireland. The company has been listed on the NASDAQ Capital Market since February 2012.

Forward-Looking Statements

Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding the Company’s ability to grow revenue in future quarters. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including, without limitation, those risk associated with our ability to execute on our commercialization strategy, the possibility that we may be unable to raise sufficient funds necessary for our anticipated operations, our post-market clinical data collection activities, benefits of our products to patients, our expectations with respect to product development and commercialization efforts, our ability to increase market and physician acceptance of our products, potentially competitive product offerings, intellectual property protection, our ability to integrate acquired businesses, our expectations regarding anticipated synergies with and benefits from acquired businesses, and other risks and uncertainties described in our filings with the SEC. Forward-looking statements speak only as of the date when made. CHF Solutions does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


Claudia Napal Drayton
Chief Financial Officer
CHF Solutions, Inc.


Bret Shapiro
Managing Partner

Jules Abraham
JQA Partners, Inc.


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Source: CHF Solutions, Inc.