CHF Solutions, Inc. Announces 18% Revenue Growth for its Second...

CHF Solutions, Inc. Announces 18% Revenue Growth for its Second Quarter and Provides Company Update

EDEN PRAIRIE, Minn., Aug. 08, 2017 (GLOBE NEWSWIRE) -- CHF Solutions, Inc. (NASDAQ:CHFS) announced today its second quarter results for the period ending June 30, 2017, which included the following highlights:

Revenue for second quarter ended June 30, 2017 increased 18% compared to the same period in 2016 when the business was under previous ownership.
New sales leadership on board focusing on building a direct field organization, increasing account penetration and utilization, driven by strong account training and servicing.
Stanford University FDA approval for IDE clinical trial using Aquadex FlexFlow System to treat pediatric patients.
Transition of Aquadex FlexFlow System manufacturing from Baxter to in-house operations. Manufacturing in house expected to commence in the fourth quarter of 2017.
Completed an underwritten public equity offering for net proceeds of approximately $8.0 million. Reduced operating expenses by 31% compared to the same quarter of 2016. Ended quarter with cash on hand of $5.6 million.
Announced a name change from Sunshine Heart, Inc. to CHF Solutions, Inc. to capitalize on brand recognition and goodwill, and to more appropriately reflect the direction of the business.

"We are pleased with our second quarter results in both revenue growth and operational accomplishments," said John Erb, Chairman and CEO. "We have supported our account penetration goals with the addition of a growing direct salesforce and a focused effort to reengage with dormant accounts who stand to realize improved patient care and cost efficiencies with our Aquadex system. We are excited to bring our manufacturing in-house which provides numerous advantages for CHF Solutions and enables us to better control our supply chain and potential margin improvements as well. Our focus remains on serving the large number of heart failure patients with fluid overload who can benefit from our Aquadex therapy. We continue to be very optimistic about our future and look forward to further developments in the coming quarters in support of achieving our growth and business objectives," Mr. Erb added.

FINANCIALS

CHF SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited and in thousands, except per share amounts)

Three months ended
June 30,
Six months ended
June 30,
2017 2016 2017
2016
Net sales $ 864 $ - $ 1,765 $ -
Costs and expenses:
Cost of goods sold 616 - 1,130 -
Selling, general and administrative 2,420 1,412 4,807 2,761
Research and development 327 2,570 635 5,776
Total costs and expenses 3,363 3,982 6,572 8,537
Loss from operations (2,499 ) (3,982 ) (4,807 ) (8,537 )
Other income (expense):
Interest expense - (207 ) - (436 )
Other income (expense), net 5 (1 ) 11 -
Warrant valuation expense - - (67 ) -
Change in fair value of warrant liability 37 - 1,466 -
Total other income (expense) 42 (208 ) 1,410 (436 )
Loss before income taxes (2,457 ) (4,190 ) (3,397 ) (8,973 )
Income tax benefit (expense), net (1 ) 2 (1 ) (1 )
Net loss $ (2,458 ) $ (4,188 ) $ (3,398 ) $ (8,974 )

Basic and diluted loss per share $ (0.47 ) $ (6.83 ) $ (1.39 ) $ (14.64 )

Weighted average shares outstanding - basic and diluted 7,430 613 4,505 613

Other comprehensive income:
Foreign currency translation adjustments $ (5 ) $ (2 ) $ (6 ) $ (6 )
Total comprehensive loss $ (2,463 ) $ (4,190 ) $ (3,404 ) $ (8,980 )