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Surgalign (SRGA)

Surgalign Holdings, Inc. is a global medical technology company advancing the science of spine care, focused on delivering innovative solutions that drive superior clinical and economic outcomes.

Company profile

Ticker
SRGA
Exchange
CEO
Terry M. Rich
Employees
Incorporated
Location
Fiscal year end
Former names
Bears Holding Sub, Inc., RTI Surgical Holdings, Inc.
SEC CIK
Subsidiaries
Surgalign Spine Technologies, Inc. • RTI Services, Inc. • Tutogen Medical, Inc. • Pioneer Surgical Technology, Inc. • Angstrom Acquisition Corp. • Pioneer Surgical Orthobiologics, Inc. • Zyga Technology, Inc. • Paradigm Spine LLC • Andi’s Belmarall, LLC • Fourth Dimension Spine, LLC ...
IRS number
832540607

SRGA stock data

Calendar

9 Aug 22
1 Oct 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 29.34M 29.34M 29.34M 29.34M 29.34M 29.34M
Cash burn (monthly) 5.11M 3.33M 4.46M 10.99M 4.42M 3.17M
Cash used (since last report) 15.64M 10.18M 13.66M 33.63M 13.53M 9.7M
Cash remaining 13.71M 19.17M 15.69M -4.28M 15.81M 19.64M
Runway (months of cash) 2.7 5.8 3.5 -0.4 3.6 6.2

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Sep 22 Paolo Amoruso Common Stock Grant Acquire A No No 0 27,000 0 31,000
15 Aug 22 Conley Sheryl L Common Stock Grant Acquire A No No 0 22,857 0 24,783
15 Aug 22 Thomas McEachin Common Stock Grant Acquire A No No 0 22,857 0 29,610
15 Aug 22 Mark Stolper Common Stock Grant Acquire A No No 0 22,857 0 28,867
15 Aug 22 Paul Thomas Common Stock Grant Acquire A No No 0 22,857 0 28,610
21.9% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 42 81 -48.1%
Opened positions 6 24 -75.0%
Closed positions 45 19 +136.8%
Increased positions 0 21 EXIT
Reduced positions 33 14 +135.7%
13F shares Current Prev Q Change
Total value 21.15M 29.91M -29.3%
Total shares 10.5M 49.58M -78.8%
Total puts 0 0
Total calls 14.3K 76.32K -81.3%
Total put/call ratio
Largest owners Shares Value Change
Roboticine 6.25M $10.63M 0.0%
Glen Capital Partners Focus Fund 3.24M $7.1M 0.0%
Vanguard 157.81K $539K -96.6%
Atria Wealth Solutions 129.73K $442K -88.7%
Renaissance Technologies 94.55K $322K -84.1%
HighTower Advisors 84.9K $289K -91.5%
Alyeska Investment 70K $239K -96.7%
D. E. Shaw & Co. 49.3K $168K -95.2%
Susquehanna International 48.86K $167K -66.1%
MS Morgan Stanley 45.73K $155K -95.2%
Largest transactions Shares Bought/sold Change
Stonepine Capital Management 0 -7.38M EXIT
STT State Street 15.83K -6.05M -99.7%
Vanguard 157.81K -4.44M -96.6%
Mitsubishi UFJ Kokusai Asset Management 0 -3.19M EXIT
Alyeska Investment 70K -2.03M -96.7%
Eversept Partners 0 -1.57M EXIT
BLK Blackrock 41.51K -1.52M -97.3%
Dimensional Fund Advisors 29.68K -1.03M -97.2%
Atria Wealth Solutions 129.73K -1.02M -88.7%
Geode Capital Management 34.42K -1M -96.7%

Financial report summary

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Competition
Xtant MedicalSI-BONESeaSpine
Risks
  • Risks Related to the Business
  • An investment in our common stock involves a high degree of risk. You should consider each of the risks and uncertainties described in this section and all of the other information in this document before deciding to invest in our common stock. Any of the risk factors we describe below could severely harm our business, financial condition, and results of operations. The market price of our common stock could decline if any of these risks or uncertainties develops into actual events, and you may lose all or part of your investment.
  • COVID-19 has had and may continue to have a material, adverse impact on us.
  • We may not have sufficient cash flows from operating activities, cash on hand and available capital sources to finance capital expenditures and other working capital needs and to finance contingent consideration and forward contract arrangements when they become due.
  • We have a history of net losses, we expect to continue to incur net losses in the near future, and we may not achieve or maintain profitability.
  • Our operating results have fluctuated significantly in the past and may fluctuate significantly in the future, which makes our future operating results difficult to predict and could cause our operating results to fall below expectations.
  • Our auditors have issued a “going concern” audit opinion.
  • We are involved in an ongoing government investigation by the SEC, the results of which may have a material adverse effect on our financial condition and business.
  • Consolidation in the healthcare industry could lead to demands for price concessions or to the exclusion of some suppliers from certain of our markets, which could have an adverse effect on our business, financial condition, results of operations and prospects.
  • Security breaches, loss of data and other disruptions could compromise sensitive information related to our business, prevent us from accessing critical information or expose us to liability, which could adversely affect our business and our reputation.
  • If we fail to maintain existing strategic relationships or are unable to identify distributors of our implants, our revenues may decrease.
  • Supply chain disruptions could adversely impact our operations and financial condition.
  • If we, our suppliers, or parties who manufacture our products fail to maintain the high quality standards that implants require, if we are unable to procure processing capacity as required, or if the parties who manufacture our products experience disruptions in their ability to procure materials to manufacture our products, our commercial opportunity will be reduced or eliminated.
  • Our success depends on the continued acceptance of our surgical implants and technologies by the medical community, and rapid technological changes could result in reduced demand for our implants and products.
  • We face intense competition, which could result in reduced acceptance and demand for our implants and technologies.
  • We or our competitors may be exposed to product or professional liability claims which could cause us to be liable for damages or cause investors to think we will be liable for similar claims in the future.
  • A disruption in our relationship with our former OEM Businesses could have a material adverse impact on our business, financial condition, and results of operations.
  • If we are not successful in expanding our distribution activities into international markets, we will not be able to pursue one of our strategies for increasing revenues.
  • Adverse litigation judgments or settlements resulting from legal proceedings in which we may be involved could expose us to monetary damages or limit our ability to operate our business.
  • We are dependent on our key management and technical personnel for continued success.
  • Any acquisitions, strategic investments, divestures, mergers, or joint ventures we make may require the issuance of a significant amount of equity or debt securities and may not be scientifically or commercially successful.
  • We may fail to realize the potential benefits of our Holo Surgical Acquisition and our acquisition of equity interests in INN, which could negatively affect our business, financial condition, results of operations and prospects.
  • Risks Related to Government Regulation
  • We and certain of our suppliers may be subject to extensive government regulation that increases our costs and could limit our ability to market or sell our products.
  • If we fail to obtain, or experience significant delays in obtaining, FDA clearances or approvals for our future products or modifications to our products, our ability to commercially distribute and market our products could suffer.
  • The safety of our products is not yet supported by long-term clinical data and may therefore prove to be less safe and effective than initially thought.
  • Our business is subject to complex and evolving U.S. and international laws and regulation regarding privacy and data protection. Many of these laws and regulations are subject to change and uncertain interpretation and could result in claims, changes to our business practices, penalties, increased cost of operations, or otherwise harm our business.
  • If third-party payers fail to provide appropriate levels of reimbursement for the use of our implants, our revenues could be adversely affected.
  • We are subject to federal, state, and foreign laws and regulations, including fraud and abuse laws, as well as anti-bribery laws, and could face substantial penalties if we fail to fully comply with such regulations and laws.
  • We may be subject to suit under a state or federal whistleblower statute.
  • Risks Related to Intellectual Property
  • If our patents and the other means we use to protect our intellectual property prove to be inadequate, our competitors and other parties could exploit our intellectual property or develop and commercialize products and technologies similar or identical to ours and our ability to successfully commercialize any products may be adversely affected.
  • If we are unable to protect the confidentiality of our trade secrets, our business and competitive position would be harmed.
  • Our success depends in part on our ability to operate without infringing on, misappropriating, or otherwise violating the intellectual property and proprietary rights of others, and if we are unable to do so we may be liable for damages.
  • We may be subject to claims that our employees, consultants, or advisors have wrongfully used or disclosed alleged trade secrets of their current or former employers or claims asserting ownership of what we regard as our own intellectual property.
  • Risks Related to Our Common Stock
  • We received a written notice from Nasdaq that we have failed to comply with certain listing requirements of the Nasdaq Stock Market, which could result in our Common Stock being delisted from the Nasdaq Stock Market.
  • Underwriter Warrants may be adversely affected.
  • Our stock price has been, and could continue to be, volatile.
  • The future issuance or sale of shares of our common stock, or the perception that such issuances or sales could occur, may negatively impact our stock price and you may experience significant dilution, as a result of future issuances of our securities.
  • Certain provisions in our charter and bylaws and under Delaware law, and the terms of certain milestone obligations to which we are subject, may inhibit potential acquisition bids for our company and prevent changes in our management, which may adversely affect the price of our common stock.
Management Discussion
  • Revenues – Total revenues decreased $4.2 million, or 17.0%, to $20.6 million for the three months ended June 30, 2022, compared to $24.8 million for the three months ended June 30, 2021. The decrease in revenue was primarily related to the impact of the global pandemic, which has led to fewer surgical procedures and hospital staffing shortages throughout the U.S., among other factors.
  • Gross profit – Gross profit decreased $3.4 million or 19.3% to $14.2 million for the three months ended June 30, 2022 compared to $17.6 million for the three months ended June 30, 2021. Gross profit percentage decreased by 2.1% to 68.9% from 70.9% for the three months ended June 30, 2021. The decrease in gross profit was primarily caused by decreased revenue for the comparable period. The decrease in gross margin was primarily due to an increase in inventory write-offs caused by continued product rationalization programs instituted by the Company.
  • Operating expenses - Total operating expenses decreased by $3.3 million or 10.6% to $27.6 million for the three months ended June 30, 2022 compared to $30.9 million for the three months ended June 30, 2021. The primary driver was a $1.3 million decrease in “General and administrative” expenses caused by a reduction in spending through continued simplification of the distribution and administrative infrastructure. Additionally, there was a decrease in “Asset impairment and abandonment” of $1.2 million due to impairment of the ERP system in 2021 and a reduction in capital expenditures during 2022. This was partially offset by an increase of $0.9 million in “Research and development” expenses related to the continued development of the HOLOTM platform and obtaining regulatory approval.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Avg
New words: authorize, authorized, civil, continuum, cure, entirety, escrow, FIZN, GPV, illegal, incentive, Incorporation, inflation, intracranial, issuable, mix, modify, powerful, Proportionate, ratio, recouped, release, retroactively, room, SKA, split, stage, unlawful
Removed: Chairman, consummation, contemplated, cooperate, cooperating, denied, extended, force, initially, lead, majeure, mutual, obsolete, Patricia, Plaintiff, precipitated, purported, relation, resigned, setup, Simpson, Stuart, terminated, termination

Patents

Utility
Autonomous Segmentation of Three-dimensional Nervous System Structures from Medical Images
4 Aug 22
A method for autonomous segmentation of three-dimensional nervous system structures from raw medical images, the method including: receiving a 3D scan volume with a set of medical scan images of a region of the anatomy; autonomously processing the set of medical scan images to perform segmentation of a bony structure of the anatomy to obtain bony structure segmentation data; autonomously processing a subsection of the 3D scan volume as a 3D region of interest by combining the raw medical scan images and the bony structure segmentation data, wherein the 3D ROI contains a subvolume of the bony structure with a portion of surrounding tissues, including the nervous system structure; autonomously processing the ROI to determine the 3D shape, location, and size of the nervous system structures by means of a pre-trained convolutional neural network (CNN).
Utility
Graphical user interface for a surgical navigation system and method for providing an augmented reality image during operation
26 Jul 22
A surgical navigation system includes: a 3D display system with a see-through visor; a tracking system comprising means for real-time tracking of: a surgeon's head, the see-through visor, a patient anatomy and a surgical instrument to provide current position and orientation data; a source of an operative plan, a patient anatomy data and a virtual surgical instrument model; a surgical navigation image generator configured to generate a surgical navigation image with a three-dimensional image representing simultaneously a virtual image of the surgical instrument corresponding to the current position and orientation of the surgical instrument and a virtual image of the surgical instrument indicating the suggested positions and orientation of the surgical instrument according to the operative plan data based on the current relative position and orientation of the surgeon's head, the see-through visor, the patient anatomy and the surgical instrument; wherein the 3D display system is configured to show the surgical navigation image at the see-through visor, such that an augmented reality image collocated with the patient anatomy in the surgical field underneath the see-through visor is visible to a viewer looking from above the see-through visor towards the surgical field.
Utility
Graphical user interface for use in a surgical navigation system with a robot arm
22 Mar 22
A surgical navigation system includes: a tracker (125) for real-time tracking of a position and orientation of a robot arm (191); a source of a patient anatomical data (163) and a robot arm virtual image (166); a surgical navigation image generator (131) generating a surgical navigation image (142A) including the patient anatomy (163) and the robot arm virtual image (166) in accordance to the current position and/or orientation data provided by the tracker (125); a 3D display system (140) showing the surgical navigation image (142A).
Utility
Connective-tissue-based or Dermal-tissue-based Grafts/implants
18 Feb 21
The present invention is directed to a composition comprising a matrix suitable for implantation in humans, comprising defatted, shredded, allogeneic human muscle tissue that has been combined with an aqueous carrier and dried in a predetermined shape.
Utility
Osteoinductive putties and methods of making and using such putties
16 Feb 21
The present disclosure relates to osteoinductive putties and other implantable compositions for repair of bone defects and other medical uses.