Profound Medical Announces Second Quarter 2021 Financial Results

Mississauga, Ontario, CANADA

TORONTO, Aug. 04, 2021 (GLOBE NEWSWIRE) -- Profound Medical Corp. (NASDAQ:PROF; TSX:PRN) (“Profound” or the “Company”), a commercial-stage medical device company that develops and markets customizable, incision-free therapies for the ablation of diseased tissue, today reported financial results for the second quarter ended June 30, 2021.

Recent Corporate Highlights

  • On April 21, 2021, the Company participated in the 2021 Bloom Burton & Co. Virtual Healthcare Investor Conference.
  • On May 6, 2021, Profound announced a multi-site imaging center agreement for TULSA-PRO® with Akumin Inc. (NASDAQ/TSX:AKU), a leading provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States.
  • On May 19, 2021, the Company announced the voting results from its 2021 Annual General Meeting of Shareholders. Following the meeting, Rashed Dewan, Profound’s VP Finance, Manufacturing & Service, was appointed to the additional position of Chief Accounting Officer. As part of this transition, Aaron Davidson continues in the position of SVP Corporate Development, but no longer serves as Profound’s Chief Financial Officer.
  • On June 1, 2021, Profound participated in the Jefferies Virtual Healthcare Conference.
  • On June 22, the Company participated in the Virtual Raymond James Human Health Innovations Conference.
  • On July 29, 2021, Profound participated in A.G.P.’s Virtual MedTech Summer Conference.

“The U.S. TULSA-PRO® business rebound that started in March continued through the second quarter, driving a 145% sequential increase in recurring revenues over the previous quarter,” said Arun Menawat, Profound’s CEO. “Moving forward, while we remain cautious about the continuing impact of COVID-19, particularly in select international markets such as China and Japan, we believe that our overall Q2 financial performance bodes well for the second half of 2021.”

Summary Second Quarter 2021 Results

Effective December 31, 2020, Profound changed its presentation currency from the Canadian dollar to the United States dollar. The comparative figures disclosed in this press release have been retrospectively changed to reflect the change in presentation currency to the U.S. dollar, as if the U.S. dollar had been used as the presentation currency for the period ended June 30, 2020. Unless specified otherwise, all amounts in this press release are expressed in U.S. dollars and are presented in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

For the quarter ended June 30, 2021, the Company recorded revenue of approximately $2.6 million, with $1.4 million from the one-time sale of capital equipment and $1.2 million from recurring revenue (non-capital), which consists of the sale of consumables, lease of medical devices, procedures and services associated with extended warranties. Second quarter 2021 revenue increased approximately 156% from $1.0 million in the same three-month period a year ago.

Total operating expenses, which consist of research and development (“R&D”), general and administrative (“G&A”), and selling and distribution expenses, were approximately $7.6 million in the second quarter of 2021, an increase of 74% compared with approximately $4.4 million in second quarter of 2020.

Expenditures for R&D for the three months ended June 30, 2021 were approximately $3.4 million, an increase of 99% compared with approximately $1.7 million in the three months ended June 30, 2020, primarily driven by increased costs associated with new and existing clinical trials, increased spending for R&D initiatives and projects, travel restrictions being removed, options awarded to employees, additional headcount and overall increase to general expenses, partially offset by decreased consulting fees.

G&A expenses for the 2021 second quarter increased by 49% to approximately $2.5 million, compared with approximately $1.6 million in the same period in 2020, due to additional headcount, increased salaries and director fees, higher Nasdaq and TSX fees, increased legal and accounting fees, and options awarded to employees.

Second quarter 2021 selling and distribution expenses increased by 74% to approximately $1.7 million, compared with $993,000 in the second quarter of 2020. While selling and distribution expenses have historically been lower than R&D expenses, Profound continues to expect that, in the future, selling and distribution expenses will exceed R&D expenses as the Company continues to commercialize the TULSA-PRO® system in the United States.

Net finance costs for the three months ended June 30, 2021 were approximately $602,000, compared with approximately $1.2 million in the three months ended June 30, 2020.

Second quarter 2021 net loss was approximately $7.0 million, or $0.35 per common share, compared to approximately $5.3 million, or $0.33 per common share, in the three months ended June 30, 2020.

Liquidity and Outstanding Share Capital

As at June 30, 2021, Profound had cash of approximately $73.8 million.

As at August 4, 2021, Profound had 20,386,802 common shares issued and outstanding.

For complete financial results, please see Profound’s filings at, and on the Company’s website at under “Financial” in the Investors section.

Conference Call Details

Profound Medical is pleased to invite all interested parties to participate in a conference call today, August 4, 2021, at 4:30 pm ET during which time the results will be discussed.

Live Call:1-833-710-1825 (Canada and the United States)
 1-929-517-0404 (International)
Conference ID:2181037

The call will also be broadcast live and archived on the Company's website at under "Webcasts" in the Investors section.

About Profound Medical Corp.

Profound is a commercial-stage medical device company that develops and markets customizable, incision-free therapies for the ablation of diseased tissue.

Profound is commercializing TULSA-PRO®, a technology that combines real-time MRI, robotically-driven transurethral ultrasound and closed-loop temperature feedback control. TULSA-PRO® is designed to provide customizable and predictable radiation-free ablation of a surgeon-defined prostate volume while actively protecting the urethra and rectum to help preserve the patient’s natural functional abilities. TULSA-PRO® has the potential to be a flexible technology in customizable prostate ablation, including intermediate stage cancer, localized radio-recurrent cancer, retention and hematuria palliation in locally advanced prostate cancer, and the transition zone in large volume benign prostatic hyperplasia (BPH). TULSA-PRO® is CE marked, Health Canada approved, and 510(k) cleared by the U.S. Food and Drug Administration (“FDA”).

Profound is also commercializing Sonalleve®, an innovative therapeutic platform that is CE marked for the treatment of uterine fibroids and palliative pain treatment of bone metastases. Sonalleve® has also been approved by the China National Medical Products Administration for the non-invasive treatment of uterine fibroids and has FDA approval under a Humanitarian Device Exemption for the treatment of osteoid osteoma. The Company is in the early stages of exploring additional potential treatment markets for Sonalleve® where the technology has been shown to have clinical application, such as non-invasive ablation of abdominal cancers and hyperthermia for cancer therapy.

Forward-Looking Statements

This release includes forward-looking statements regarding Profound and its business which may include, but is not limited to, the expectations regarding the efficacy of Profound’s technology in the treatment of prostate cancer, uterine fibroids, palliative pain treatment and osteoid osteoma. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements are based on the current expectations of the management of Profound. The forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the medical device industry, regulatory approvals, reimbursement, economic factors, the equity markets generally and risks associated with growth and competition. Although Profound has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. In addition, there is uncertainty about the spread of the COVID-19 virus and the impact it will have on Profound’s operations, the demand for its products, global supply chains and economic activity in general. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Profound undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, other than as required by law.

For further information, please contact:

Stephen Kilmer
Investor Relations
T: 647.872.4849

Profound Medical Corp. 
Interim Condensed Consolidated Balance Sheets 

 June 30, 
  December 31,
Current assets   
Cash73,771  83,913 
Trade and other receivables7,535  7,431 
Inventory7,386  5,331 
Prepaid expenses and deposits446  1,067 
Total current assets89,138  97,742 
Property and equipment888  859 
Intangible assets1,754  1,898 
Right-of-use assets1,310  1,424 
Goodwill2,751  2,678 
Total assets95,841  104,601 
Current liabilities   
Accounts payable and accrued liabilities2,307  3,382 
Deferred revenue852  358 
Provisions187  195 
Other liabilities-  99 
Derivative financial instrument316  450 
Lease liabilities407  312 
Income taxes payable-  13 
Total current liabilities4,069  4,809 
Deferred revenue723  1,078 
Lease liabilities1,168  1,364 
Total liabilities5,960  7,251 
Shareholders’ Equity   
Share capital219,056  211,527 
Contributed surplus13,708  11,250 
Accumulated other comprehensive loss1,653  4,567 
Deficit(144,536) (129,994)
Total Shareholders’ Equity89,881  97,350 
Total Liabilities and Shareholders’ Equity95,841  104,601 

Profound Medical Corp. 
Interim Condensed Consolidated Statements of Loss and Comprehensive Loss 

June 30,
June 30,

June 30,

June 30,
Capital equipment1,459  426  1,693  1,166 
Non-capital - recurring1,168  600  1,645  1,020 
 2,627  1,026  3,338  2,186 
Cost of sales 1,411  610  1,870  1,328 
Gross profit1,216  416  1,468  858 
Operating expenses       
Research and development3,419  1,721  6,524  3,832 
General and administrative2,453  1,642  4,585  3,912 
Selling and distribution1,728  993  3,315  1,926 
Total operating expenses7,600  4,356  14,424  9,670 
Operating Loss6,384  3,940  12,956  8,812 
Net finance costs/(income)602  1,225  1,502  (1,056)
Loss before taxes6,986  5,165  14,458  7,756 
Income taxes57  138  84  230 
Net loss attributed to shareholders for the period7,043  5,303  14,542  7,986 
Other comprehensive loss       
Item that may be reclassified to loss       
Foreign currency translation adjustment(1,929) (3,998) (2,914) 4,808 
Net loss and comprehensive loss for the period8,972  9,301  17,456  3,178 
Loss per share       
Basic and diluted loss per common share0.35  0.33  0.72  0.52 

Profound Medical Corp. 
Interim Condensed Consolidated Statements of Cashflows 

 Six months

June 30,
 Six months

June 30,
Operating activities  
Net loss for the period(14,542)(7,986)
Adjustments to reconcile net loss to net cash flows from operating activities:  
Depreciation of property and equipment229 180 
Amortization of intangible assets502 423 
Depreciation of right-of-use assets165 149 
Share-based compensation2,798 1,092 
Interest and accretion expense46 517 
Deferred revenue107 26 
Change in fair value of derivative financial instrument(149)170 
Change in fair value of contingent consideration- 8 
Changes in non-cash working capital balances  
Trade and other receivables56 (393)
Prepaid expenses and deposits640 551 
Accounts payable and accrued liabilities(1,168)(693)
Income taxes payable(13)(7)
Foreign exchange on cash1,188 (1,250)
Total cash used in operating activities(12,288)(8,826)
Investing activities  
Purchase of property and equipment(32)- 
Purchase of intangible assets(313)- 
Total cash used in investing activities(345)- 
Financing activities  
Issuance of common shares- 39,523 
Transaction costs paid- (3,150)
Payment of other liabilities(99)(141)
Payment of long-term debt and interest- (9,293)
Proceeds from share options exercised342 1,128 
Proceeds from warrants exercised1,511 7,802 
Payment of lease liabilities(197)(128)
Total cash from financing activities1,557 35,741 
Net change in cash during the period(11,076)26,915 
Foreign exchange on cash934 (649)
Cash – Beginning of period83,913 14,800 
Cash – End of period73,771 41,066