ENDRA Life Sciences Reports Third Quarter 2021 Financial Results and Provides Business Update

Conference call begins at 4:30 p.m. Eastern time today

ANN ARBOR, Mich.--(BUSINESS WIRE)--ENDRA Life Sciences Inc. (ENDRA) (NASDAQ: NDRA), a pioneer of Thermo Acoustic Enhanced UltraSound (TAEUS^®), today reported financial results for the three months ended September 30, 2021 and provided a business update. Highlights of the third quarter of 2021 and recent weeks include:

• Patient screening was initiated at the University of Pittsburgh Medical Center (UPMC) while it continues to work through a pandemic-related backlog of MRI procedures. Both the UPMC study and the Rocky Vista University College of Osteopathic Medicine (RVUCOM) study, which started scanning patients earlier this year, are comparing liver fat measurements from the TAEUS system to the gold standard, MRI-PDFF. RVUCOM’s study is targeting a total of 200 patients and UPMC’s is targeting 75 patients.
• In-person commercial activities increased for the TAEUS system in Europe, despite recent COVID-19 trends. ENDRA’s sales team is conducting in-person sales visits, including group demonstrations, building a robust pipeline of customer leads. In addition, ENDRA participated in trade shows in France with the ability to demonstrate in-person the benefits of the TAEUS system.
• TAEUS intellectual property (IP) protection bolstered with issuance of 21^st U.S. patent. A U.S. patent was issued in October relating to a novel method and system for monitoring tissue temperature during surgical procedures using the TAEUS system. This adds to three U.S. patents issued in July, representing further protection of optimized hybrid ultrasound and thermoacoustic imaging systems for a wide range of applications. ENDRA’s current IP portfolio stands at 89 assets, which the company defines as patents in preparation, filed or issued.
• Strong balance sheet supports commercial activities in Europe. As of September 30, 2021, ENDRA had cash and cash equivalents of $11.8 million. The company is well-capitalized to continue building its commercial efforts in Europe and to support its clinical evaluation partners worldwide, as it awaits a regulatory determination in the U.S.

“In parallel with advancing our commercial plan in Europe, we continue to engage actively with the FDA regarding the TAEUS system’s 510(k) submission. We are working collaboratively with the Agency for agreement on a definitive path forward, including potentially providing additional real-world clinical data, as the review period has taken longer than we expected,” stated Francois Michelon, Chairman and Chief Executive Officer of ENDRA.

“Despite a recent uptick in COVID-19 cases in Europe, our sales team has been able to schedule in-person visits and to facilitate group demonstrations. In addition, we have been able to participate in trade shows in-person, resulting in additional sales leads to expand our customer database,” commented Renaud Maloberti, ENDRA’s Chief Commercial Officer.

Third Quarter 2021 Financial Results

• Operating expenses decreased to $2.7 million in the third quarter of 2021 from $3.3 million in the same period in 2020. The decrease was primarily due to reduced spending for product development and investor relations.
• Net loss in the third quarter of 2021 was $2.7 million, or $0.06 per share, compared with a net loss of $3.3 million, or $0.15 per share, in the third quarter of 2020.
• Cash and cash equivalents were $11.8 million as of September 30, 2021.

Conference Call and Webcast

Management will host a conference call and webcast today at 4:30 p.m. Eastern time to discuss these results, provide an update on recent corporate developments and answer questions.

Participants are encouraged to pre-register for the conference call using this link. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may register at any time, including up to and after the call start time. A webcast of the call may also be accessed at ENDRA’s Investor Relations page and here. Those without internet access or unable to pre-register should dial [phone] (U.S.) or [phone] (International).

A replay of the webcast will be available beginning approximately one hour after the completion of the live conference call here. A replay of the call will be available until November 22, 2021 by dialing [phone] (U.S.) or [phone] (International) and providing the passcode 10161144.

About ENDRA Life Sciences Inc.

ENDRA Life Sciences is the pioneer of Thermo Acoustic Enhanced UltraSound (TAEUS^®), a ground-breaking technology being developed to visualize tissue like MRI, but at 1/50th the cost and at the point of patient care. TAEUS^® is designed to work in concert with 400,000 cart-based ultrasound systems in use globally today. TAEUS^® is initially focused on the measurement of fat in the liver as a means to assess and monitor Non-Alcoholic Fatty Liver Disease (NAFLD) and Non-Alcoholic Steatohepatitis (NASH), chronic liver conditions that affect over one billion people globally, and for which there are no practical diagnostic tools. Beyond the liver, ENDRA is exploring several other clinical applications of TAEUS^®, including visualization of tissue temperature during energy-based surgical procedures. For more information, please visit www.endrainc.com.

Forward-Looking Statements

All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "goal," "estimate," "anticipate" or other comparable terms. Examples of forward-looking statements include, among others, estimates of the timing of future events and achievements, such as the expectations regarding milestones and future sales, our 510(k) submission with the FDA and commercializing the TAEUS^® device; and expectations concerning ENDRA's business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, among others, our ability to develop a commercially feasible technology; receipt of necessary regulatory approvals; the impact of COVID-19 on our business plans; our ability to find and maintain development partners, market acceptance of our technology, the amount and nature of competition in our industry; our ability to protect our intellectual property; and the other risks and uncertainties described in ENDRA's filings with the Securities and Exchange Commission. The forward-looking statements made in this release speak only as of the date of this release, and ENDRA assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.

[Financial Tables Follow]

 

ENDRA Life Sciences Inc.
Condensed Consolidated Balance Sheets
	September 30, 2021			December 31, 2020
	(Unaudited)
Assets
Current Assets
Cash	$	11,793,189		$	7,227,316
Prepaid expenses		1,177,201			390,800
Inventory		1,499,743			589,620
Total Current Assets		14,470,133			8,207,736
Non-Current Assets
Fixed assets, net		162,265			212,242
Right of use assets		675,822			339,012
Other assets		5,986			5,986
Total Assets	$	15,314,206		$	8,764,976
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable and accrued liabilities	$	1,449,130		$	910,183
Lease liabilities, current portion		127,696			76,480
Total Current Liabilities		1,576,826			986,663
Long Term Debt
Loans		28,484			337,084
Lease liabilities		552,830			271,908
Total Long Term Debt		581,314			608,992
Total Liabilities		2,158,140			1,595,655
Stockholders’ Equity
Series A Convertible Preferred Stock, $0.0001 par value; 10,000 shares authorized; 141.397 and 190.288 shares issued and outstanding, respectively		1			1
Series B Convertible Preferred Stock, $0.0001 par value; 1,000 shares authorized; no shares issued and outstanding	-			-
Common stock, $0.0001 par value; 80,000,000 shares authorized; 42,165,726 and 34,049,704 shares issued and outstanding, respectively		4,215			3,404
Additional paid in capital		78,695,367			64,493,611
Stock payable		42,665			10,794
Accumulated deficit		(65,586,182	)		(57,338,489	)
Total Stockholders’ Equity		13,156,066			7,169,321
Total Liabilities and Stockholders’ Equity	$	15,314,206		$	8,764,976

 

ENDRA Life Sciences Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
	Three Months Ended September 30,			Three Months Ended September 30,			Nine Months Ended September 30,			Nine Months Ended September 30,
	2021			2020			2021			2020
Operating Expenses
Research and development	$	1,173,319		$	1,769,339		$	4,059,730		$	4,774,534
Sales and marketing		275,565			139,751			693,263			389,469
General and administrative		1,201,851			1,346,360			3,673,771			4,083,572
Total operating expenses		2,650,735			3,255,450			8,426,764			9,247,575
Operating loss		(2,650,735	)		(3,255,450	)		(8,426,764	)		(9,247,575	)
Other Expenses
Amortization of debt discount	-			-			-				(232,426	)
Gain on extinguishment of debt	-			-				308,600		-
Other income (expense)		(7,507	)		(2,621	)		(8,458	)		5,261
Total other expenses		(7,507	)		(2,621	)		300,142			(227,165	)
Loss from operations before income taxes		(2,658,242	)		(3,258,071	)		(8,126,622	)		(9,474,740	)
Provision for income taxes	-			-			-			-
Net Loss	$	(2,658,242	)	$	(3,258,071	)	$	(8,126,622	)	$	(9,474,740	)
Deemed dividend	-				(395,551	)		(121,071	)		(395,551	)
Net loss attributable to common stockholders	$	(2,658,242	)	$	(3,653,622	)	$	(8,247,693	)	$	(9,870,291	)
Net loss per share – basic and diluted	$	(0.06	)	$	(0.15	)	$	(0.20	)	$	(0.41	)
Weighted average common shares – basic and diluted		41,912,535			23,889,591			40,471,906			23,808,012

ENDRA Life Sciences Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
	Nine Months Ended September 30, 2021			Nine Months Ended September 30, 2020
Cash Flows from Operating Activities
Net loss	$	(8,126,622	)	$	(9,474,740	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		94,977			45,114
Stock compensation expense including common stock issued for RSUs		1,032,835			1,559,232
Amortization of debt discount		-			232,426
Amortization of right of use assets		75,768			48,859
Gain on extinguishment of debt		(308,600	)		-
Stock payable for investor relations		-			30,000
Changes in operating assets and liabilities:
Increase in prepaid expenses		(786,401	)		(444,805	)
Increase in inventory		(910,123	)		(209,766	)
Decrease in other asset		-			29,250
Increase(decrease) in accounts payable and accrued liabilities		528,797			(444,167	)
Decrease in lease liability		(70,289	)		(44,892	)
Net cash used in operating activities		(8,469,653	)		(8,673,489	)
Cash Flows from Investing Activities
Purchases of fixed assets		(45,000	)		(10,483	)
Net cash used in investing activities		(45,000	)		(10,483	)
Cash Flows from Financing Activities
Proceeds from warrant exercise		2,785,627			4,644,084
Proceeds from loans		-			337,084
Proceeds from issuance of common stock		10,294,899			1,321,890
Net cash provided by financing activities		13,080,526			6,303,058
Net increase (decrease) in cash		4,565,875			(2,380,914	)
Cash, beginning of period		7,227,316			6,174,207
Cash, end of period	$	11,793,189		$	3,793,293
Supplemental disclosures of cash items
Interest paid	$	40,887		$	1,920
Income tax paid	$	-		-
Supplemental disclosures of non­cash items
Conversion of convertible notes and accrued interest	$	-		$	493,814
Exchange of balance in convertible notes and accrued interest for Series A preferred stock	$	-		$	-
Deemed dividend	$	121,071		$	395,551
Conversion of Series A Convertible Preferred Stock	$	(7	)	$	(717	)
Conversion of Series B Convertible Preferred Stock	$	-		$	(36	)
Stock dividend payable	$	(31,870	)	$	(47,641	)
Stock issued for RSU	$	36,462		$	-
Right of use asset	$	675,822		$	356,060
Lease liability	$	680,526		$	364,113