News & Events

Highlights for the quarter ended 30 September 2016

•  Increased unit sales of 25% compared to Q2 2016 
•  Positive Results from use of AeroForm Tissue Expander System highlighted at  world's largest gathering of plastic surgeons 
•  Cash balance as of 30 September 2016 of US$17.7 million 

Palo Alto, CA, United States - AirXpanders, Inc. (ASX: AXP) a medical device company focused on the design, manufacture, sale and distribution of the AeroForm® Tissue Expander System, today released its Appendix 4C - Quarterly Cash Flow report for the quarter ended 30 September 2016.

Unit sales increased 25% compared to the second quarter of 2016. The increased sales in the third quarter of 2016 reflect an increase in procedures, with new customer orders accounting for almost half of the growth. Receipts from customers totalled $0.2M for the quarter, reflecting an increase in sales over the second quarter, combined with a decrease in days sales outstanding from 58 days at the end of the second quarter to 32 days at the end of the current quarter. The Australian market continues to be an excellent learning ground to prepare the Company for its planned commercial launch of AeroForm in the United States, the largest medical device market in the world.

During the quarter, new data on the use of AeroForm was presented at the American Society of Plastic Surgeons meeting, the world's largest gathering of plastic surgeons, with our profile at the meeting confirming the prevailing interest in AeroForm in anticipation of US commercialisation once FDA clearance is obtained. The Company still anticipates that a final decision from the FDA could be received in the final quarter of 2016. Pending receiving clearance from the FDA, the Company expects US commercialisation to commence shortly thereafter.

The Company had a cash balance of US$17.7 million as of 30 September 2016. Cash outflow during the quarter was US$5.7 million, compared to US$6.2 million in the previous quarter. The decrease in cash outflows as compared to the second quarter of 2016 reflects an increase investment in working capital, primarily inventory build, offset by a decrease in financing costs, specifically the one-time fees incurred in the second quarter of 2016 associated with the private placement to sophisticated and professional investors in June 2016. The quarterly outflow may increase in the future if the Company decides to accelerate investment in working capital, primarily inventory, additional capital equipment, and sales and marketing, for its US commercialisation.

Company
Scott Dodson
President & CEO
Tel: +1 (650)-390-9008
Email: sdodson@airxpanders.com

Investor relations
Kyahn Williamson
Buchan Consulting
Tel: +61 (3) 9866 4722 / + 61 (0)401018828
Email: kwilliamson@buchanwe.com.au