UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
(Exact name of Registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||||||||
(Address of principal executive offices, including zip code)
(415 ) 657-5500
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02. Results of Operations and Financial Condition.
On December 7, 2022, Cutera, Inc. (the “Company”) announced its intention to offer convertible senior notes in a private placement to qualified institutional buyers (the “Offering”) pursuant to Rule 144A under the Securities Act (the “Act”). On December 7, 2022, the Company delivered an investor presentation in connection with the Offering, in which the Company is providing the following Non-GAAP financial data and a reconciliation to GAAP.
CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Twelve Months Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
| GAAP | Depreciation and Amortization | Stock-Based Compensation | CRM and ERP Implementation | Other Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||
| Net revenue | $ | 181,712 | — | — | — | — | $ | 181,712 | |||||||||||||||||||||||||||
| Cost of revenue | 83,549 | (522) | (1,572) | — | — | 81,455 | |||||||||||||||||||||||||||||
| Gross profit | 98,163 | 522 | 1,572 | — | — | 100,257 | |||||||||||||||||||||||||||||
| Gross margin % | 54.0 | % | 55.2 | % | |||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Sales and marketing | 71,109 | (3,627) | (4,510) | (325) | — | 62,647 | |||||||||||||||||||||||||||||
| Research and development | 15,085 | (109) | (1,536) | — | — | 13,440 | |||||||||||||||||||||||||||||
| General and administrative | 24,033 | (205) | (2,214) | (1,089) | (614) | 19,911 | |||||||||||||||||||||||||||||
| Total operating expenses | 110,227 | (3,941) | (8,260) | (1,414) | (614) | 95,998 | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (12,064) | $ | 4,463 | $ | 9,832 | $ | 1,414 | $ | 614 | $ | 4,259 | |||||||||||||||||||||||
CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Twelve Months Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Depreciation and Amortization | Stock-Based Compensation | CRM and ERP Implementatio/ write-off | Severance (RIF) | Legal/Former CFO Settlement/Lutronic | Other Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||
| Net revenue | $ | 147,683 | — | — | — | — | — | — | $ | 147,683 | |||||||||||||||||||||||||||||||||||||
| Cost of revenue | 71,911 | (591) | (1,665) | — | (318) | — | 275 | 69,612 | |||||||||||||||||||||||||||||||||||||||
| Gross profit | 75,772 | 591 | 1,665 | — | 318 | — | (275) | 78,071 | |||||||||||||||||||||||||||||||||||||||
| Gross margin % | 51.3 | % | 52.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | 52,766 | (3,136) | (3,384) | — | (274) | — | — | 45,972 | |||||||||||||||||||||||||||||||||||||||
| Research and development | 14,322 | (149) | (1,670) | — | (130) | — | — | 12,373 | |||||||||||||||||||||||||||||||||||||||
| General and administrative | 31,512 | (111) | (3,390) | (1,139) | (101) | (1,925) | (324) | 24,522 | |||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 98,600 | (3,396) | (8,444) | (1,139) | (505) | (1,925) | (324) | 82,867 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (22,828) | $ | 3,987 | $ | 10,109 | $ | 1,139 | $ | 823 | $ | 1,925 | $ | 49 | $ | (4,796) | |||||||||||||||||||||||||||||||
CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Twelve Months Ended December 31 , 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Depreciation and Amortization | Stock-Based Compensation | CRM and ERP Implementation Cost | Severance (RIF) | Legal - Lutronic | Other Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||
| Net revenue | $ | 231,270 | — | — | — | — | — | — | $ | 231,270 | |||||||||||||||||||||||||||||||||||||
| Cost of revenue | 98,165 | (526) | (1,408) | — | — | — | 791 | 97,022 | |||||||||||||||||||||||||||||||||||||||
| Gross profit | 133,105 | 526 | 1,408 | — | — | — | (791) | 134,248 | |||||||||||||||||||||||||||||||||||||||
| Gross margin % | 57.6 | % | 58.0 | % | |||||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | 76,762 | (2,420) | (3,160) | (182) | (638) | — | — | 70,362 | |||||||||||||||||||||||||||||||||||||||
| Research and development | 21,568 | (182) | (2,784) | — | — | — | — | 18,602 | |||||||||||||||||||||||||||||||||||||||
| General and administrative | 32,945 | (60) | (5,820) | (1,316) | — | (1,201) | — | 24,548 | |||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 131,275 | 131275 | (2,662) | (11,764) | (1,498) | (638) | (1,201) | — | 113,512 | ||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,830 | $ | 3,188 | $ | 13,172 | $ | 1,498 | $ | 638 | $ | 1,201 | $ | (791) | $ | 20,736 | |||||||||||||||||||||||||||||||
CUTERA, INC.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
| Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Depreciation and Amortization | Stock-Based Compensation | CRM and ERP Implementatio/ write-off | Legal - Lutronic | Severence | Other Adjustments | Non-GAAP | ||||||||||||||||||||||||||||||||||||||||
| Net revenue | $ | 185,046 | — | — | — | — | — | — | $ | 185,046 | |||||||||||||||||||||||||||||||||||||
| Cost of revenue | 83,966 | (596) | (1,430) | — | — | (26) | 290 | 82,204 | |||||||||||||||||||||||||||||||||||||||
| Gross profit | 101,080 | 596 | 1,430 | — | — | 26 | (290) | 102,842 | |||||||||||||||||||||||||||||||||||||||
| Gross margin % | 54.6 | % | 55.6 | % | |||||||||||||||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Sales and marketing | 78,433 | (2,328) | (3,855) | — | — | (262) | — | 71,988 | |||||||||||||||||||||||||||||||||||||||
| Research and development | 19,747 | (180) | (2,513) | — | — | (88) | — | 16,966 | |||||||||||||||||||||||||||||||||||||||
| General and administrative | 35,554 | (238) | (5,223) | (7,712) | (1,062) | (39) | — | 21,280 | |||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 133,734 | (2,746) | (11,591) | (7,712) | (1,062) | (389) | — | 110,234 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | (32,654) | $ | 3,342 | $ | 13,021 | $ | 7,712 | $ | 1,062 | $ | 415 | $ | (290) | $ | (7,392) | |||||||||||||||||||||||||||||||
Item 8.01. Other Events.
As previously announced in March 2022, AviClear became the first FDA-cleared device for the treatment of mild, moderate, and severe acne across all skin types. In November 2022, the Company disclosed that it expected a full commercial launch of AviClear by December 31, 2022. On November 3, 2022, the Company anticipated there being 360 active AviClear devices by December 31, 2022. As of November 30, 2022, there were 387 active AviClear devices. The Company is continuing to place AviClear devices with customers in the month of December.
Item 9.01. Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No. | Description | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CUTERA, INC. | |||||
| Date: December 7, 2022 | /s/ David H. Mowry | ||||
| David H. Mowry | |||||
| Chief Executive Officer | |||||