AP NEWS
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

TransEnterix, Inc. Reports Operating and Financial Results for the Third Quarter 2019

November 12, 2019

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Nov 12, 2019--

TransEnterix, Inc. (NYSE American: TRXC), a medical device company that is digitizing the interface between the surgeon and the patient to improve minimally invasive surgery, today announced its operating and financial results for the third quarter of 2019 and provided a business update.

Recent Highlights

“I am enthusiastic to have the opportunity to lead TransEnterix and excited about the opportunity that lies ahead for the company. The Senhance System has a differentiated position in the surgical robotics market and we have assembled a great team to execute on this opportunity,” said Anthony Fernando, President and CEO of TransEnterix. “In the near term, we are focused on taking the actions needed to implement changes in our commercial strategy that I believe will drive shareholder value.”

Commercial and Clinical Update

In the quarter ended September 30, 2019, the Company sold one Senhance ® System in Asia, to an end user hospital.

AutoLap Transaction Update

On October 15, 2019, the Company amended the previously-announced AutoLap Sale Agreement such that the purchase price for the AutoLap Assets of $17 million is to be paid in installments of $3 million, which was received on October 15, 2019, issuance of an irrevocable $13 million letter of credit received by October 31, 2019, and $1 million to be paid by December 15, 2019.

The letter of credit was issued as required, and as of the date of this press release, the Company believes that it has satisfied all requirements to release the letter of credit funds and has submitted the letter of credit for payment. The Company continues to anticipate receiving the final $1 million payment by December 15, 2019.

Repayment of Hercules Term Loan

On November 4, 2019, the Company entered into a payoff letter with Hercules Capital, Inc. pursuant to which the Company terminated the Hercules Loan Agreement, as amended. The Company determined it was in the best interests of the Company to pay down the debt and terminate the Hercules Agreement to simplify the Company’s balance sheet and provide additional flexibility as the Board of Directors continues to explore strategic and financial alternatives for the Company. Under the payoff letter, the Company repaid all amounts owed under the Hercules Loan Agreement totaling approximately $16.4 million, which included end of term fees of $1.4 million, and Hercules released all security interests held on the assets of the Company and its subsidiaries, including, without limitation, on the intellectual property assets of the Company.

Reverse Stock Split

The Company is expected to hold a Special Meeting of Stockholders on December 11, 2019, to authorize the Board of Directors to effect a reverse stock split of the Company’s common stock. The reverse stock split proposal includes a proposed range between 1-for-10 and 1-for-40 shares of outstanding common stock. The final ratio will be determined by TransEnterix’s Board of Directors after stockholder approval. In addition, if the reverse stock split selected is in the range of 1-for-20 to 1-for-30, the authorized common stock would be reduced to 500,000,000 shares, and if the range selected is greater than 1-for-30, the authorized common stock would be reduced to 250,000,000 shares.

Third Quarter Financial Highlights

For the three months ended September 30, 2019, the Company reported revenue of $2.0 million as compared to revenue of $5.4 million in the three months ended September 30, 2018. Revenue in the third quarter of 2019 included $1.3 million in system sales, $373 thousand in instruments and accessories, and $374 thousand in services.

For the three months ended September 30, 2019, total net operating expenses were $96.4 million, as compared to $13.1 million in the three months ended September 30, 2018. During the three months ended September 30, 2019, the Company recorded a goodwill impairment charge of $79.0 million and an in-process research and development impairment charge of $7.9 million. No impairment charges were recorded during the three months ended September 30, 2018.

For the three months ended September 30, 2019, net loss was $97.8 million, or $0.43 per basic share, as compared to a net loss of $20.2 million, or $0.10 per basic share, in the three months ended September 30, 2018. Net loss and net loss per share are GAAP measures.

For the three months ended September 30, 2019, adjusted net loss was $20.6 million, or $0.09 per basic share, as compared to an adjusted net loss of $12.7 million, or $0.06 per basic share in the three months ended September 30, 2018, after adjusting for the following charges: goodwill and intangible assets impairment, change in fair value of contingent consideration, amortization of intangible assets, change in fair value of warrant liabilities, acquisition-related costs, reversal of transfer fee accrual and the loss (gain) on the sale of the SurgiBot assets. Adjusted net loss is a non-GAAP measure. See the reconciliation to GAAP below.

The Company had cash and cash equivalents and restricted cash of approximately $22.8 million as of September 30, 2019. The Company believes that existing cash and the expected proceeds from the AutoLap transaction are sufficient to support the business into early 2020.

Conference Call

TransEnterix, Inc. will host a conference call on Tuesday, November 12, 2019, at 4:30 p.m. ET to discuss its third quarter 2019 operating and financial results. To listen to the conference call on your telephone, please dial (844) 804-5261 for domestic callers or (612) 979-9885 for international callers and reference conference ID 5398297 approximately ten minutes prior to the start time. To access the live audio webcast or archived recording, use the following link http://ir.transenterix.com/events.cfm. The presentation materials for the conference call will be available for download at http://ir.transenterix.com/events.cfm. The replay will be available on the Company’s website.

About TransEnterix

TransEnterix is a medical device company that is digitizing the interface between the surgeon and the patient to improve minimally invasive surgery by addressing the clinical and economic challenges associated with current laparoscopic and robotic options in today’s value-based healthcare environment. The Company is focused on the commercialization of the Senhance ® Surgical System, which digitizes laparoscopic minimally invasive surgery. The system allows for robotic precision, haptic feedback, surgeon camera control via eye sensing and improved ergonomics while offering responsible economics. The Senhance Surgical System is available for sale in the US, the EU, and select other countries. For more information, visit www.transenterix.com.

Use of Non-GAAP Measures

The adjusted net loss and adjusted net loss per share presented in this press release are non-GAAP measures. The adjustments relate to the change in fair value of warrant liabilities, amortization of intangible assets, change in fair value of contingent consideration, acquisition-related costs, loss on extinguishment of debt, goodwill and intangible assets impairment, reversal of transfer fee accrual and the loss (gain) on the sale of the SurgiBot assets. These financial measures are presented on a basis other than in accordance with U.S. generally accepted accounting principles (“Non-GAAP Measures”). In the tables that follow under “Reconciliation of Non-GAAP Measures,” we present adjusted net loss and adjusted net loss per share, reconciled to their comparable GAAP measures. These items are adjusted because they are not operational or because these charges are non-cash or non-recurring and management believes these adjustments are meaningful to understanding the Company’s performance during the periods presented. These Non-GAAP Measures should be considered a supplement to, not a substitute for, or superior to, the corresponding financial measures calculated in accordance with GAAP.

Forward-Looking Statements

This press release includes statements relating to the repayment of the Company’s debt and future corporate plans. These statements and other statements regarding our future plans and goals constitute “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, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations and include whether taking the actions needed to implement the Company’s commercial strategy will drive shareholder value, whether the Company will receive the cash under the issued irrevocable letter of credit in November 2019 and the $1 million payment by December 15, 2019, whether the reverse stock split proposal will be presented to stockholders for approval, whether the reverse stock split proposal will be approved by the Company’s stockholders at a special meeting, and whether the reverse stock split, if implemented, will have the desired impact on the company’s stock price, and whether TransEnterix has sufficient cash and expected proceeds from the AutoLap transaction to support the business into early 2020. For a discussion of the risks and uncertainties associated with TransEnterix’s business, please review our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 27, 2019 and our other filings we make with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the origination date of this press release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

TransEnterix, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(in thousands except per share amounts)

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue

 

$

2,024

 

 

$

5,422

 

 

$

7,844

 

 

$

16,578

 

Cost of revenue

 

 

3,446

 

 

 

4,249

 

 

 

9,849

 

 

 

10,536

 

Gross (loss) profit

 

 

(1,422

)

 

 

1,173

 

 

 

(2,005

)

 

 

6,042

 

Operating Expenses (Income)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

5,884

 

 

 

4,838

 

 

 

17,834

 

 

 

15,384

 

Sales and marketing

 

 

6,883

 

 

 

5,819

 

 

 

22,425

 

 

 

17,835

 

General and administrative

 

 

5,908

 

 

 

3,686

 

 

 

14,959

 

 

 

9,989

 

Amortization of intangible assets

 

 

2,558

 

 

 

2,674

 

 

 

7,754

 

 

 

8,244

 

Change in fair value of contingent consideration

 

 

(11,647

)

 

 

(1,358

)

 

 

(9,689

)

 

 

81

 

Acquisition related costs

 

 

(40

)

 

 

345

 

 

 

5

 

 

 

345

 

Goodwill impairment

 

 

78,969

 

 

 

 

 

 

78,969

 

 

 

 

Intangible assets impairment

 

 

7,912

 

 

 

 

 

 

7,912

 

 

 

 

Loss (gain) from sale of SurgiBot assets, net

 

 

 

 

 

44

 

 

 

97

 

 

 

(11,915

)

Reversal of transfer fee accrual

 

 

 

 

 

(2,994

)

 

 

 

 

 

(2,994

)

Total Operating Expenses

 

 

96,427

 

 

 

13,054

 

 

 

140,266

 

 

 

36,969

 

Operating Loss

 

 

(97,849

)

 

 

(11,881

)

 

 

(142,271

)

 

 

(30,927

)

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant liabilities

 

 

614

 

 

 

(8,760

)

 

 

3,036

 

 

 

(24,438

)

Interest income

 

 

63

 

 

 

391

 

 

 

559

 

 

 

982

 

Interest expense

 

 

(1,230

)

 

 

(685

)

 

 

(3,407

)

 

 

(3,398

)

Other expense

 

 

(439

)

 

 

(52

)

 

 

(935

)

 

 

(109

)

Total Other Income (Expense), net

 

 

(992

)

 

 

(9,106

)

 

 

(747

)

 

 

(26,963

)

Loss before income taxes

 

$

(98,841

)

 

$

(20,987

)

 

$

(143,018

)

 

$

(57,890

)

Income tax benefit

 

 

1,070

 

 

 

781

 

 

 

2,549

 

 

 

2,554

 

Net loss

 

$

(97,771

)

 

$

(20,206

)

 

$

(140,469

)

 

$

(55,336

)

Comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation loss

 

 

(3,670

)

 

 

(561

)

 

 

(4,379

)

 

 

(2,651

)

Comprehensive loss

 

$

(101,441

)

 

$

(20,767

)

 

$

(144,848

)

 

$

(57,987

)

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.43

)

 

$

(0.10

)

 

$

(0.64

)

 

$

(0.27

)

Diluted

 

$

(0.43

)

 

$

(0.10

)

 

$

(0.64

)

 

$

(0.27

)

Weighted average number of shares used in computing net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

229,178

 

 

 

209,088

 

 

 

221,193

 

 

 

204,531

 

Diluted

 

 

230,634

 

 

 

209,088

 

 

 

223,705

 

 

 

204,531

 

 

TransEnterix, Inc.

Consolidated Balance Sheets

(in thousands, except share amounts)

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

22,106

 

 

$

21,061

 

Short-term investments

 

 

 

 

 

51,790

 

Accounts receivable, net

 

 

2,352

 

 

 

8,560

 

Inventories

 

 

13,657

 

 

 

10,941

 

Interest receivable

 

 

22

 

 

 

26

 

Other current assets

 

 

8,762

 

 

 

9,205

 

Total Current Assets

 

 

46,899

 

 

 

101,583

 

Restricted cash

 

 

698

 

 

 

590

 

Inventories, net of current portion

 

 

9,336

 

 

 

 

Property and equipment, net

 

 

5,428

 

 

 

6,337

 

Intellectual property, net

 

 

30,289

 

 

 

39,716

 

In-process research and development

 

 

2,400

 

 

 

10,747

 

Goodwill

 

 

 

 

 

80,131

 

Other long term assets

 

 

2,584

 

 

 

203

 

Total Assets

 

$

97,634

 

 

$

239,307

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

3,403

 

 

$

4,433

 

Accrued expenses

 

 

8,094

 

 

 

9,619

 

Deferred revenue – current portion

 

 

884

 

 

 

1,733

 

Contingent consideration – current portion

 

 

71

 

 

 

72

 

Deferred consideration – MST Acquisition

 

 

 

 

 

5,962

 

Total Current Liabilities

 

 

12,452

 

 

 

21,819

 

Long Term Liabilities

 

 

 

 

 

 

 

 

Deferred revenue – less current portion

 

 

46

 

 

 

109

 

Contingent consideration – less current portion

 

 

877

 

 

 

10,565

 

Notes payable - net of debt discount

 

 

15,343

 

 

 

28,937

 

Warrant liabilities

 

 

1,600

 

 

 

4,636

 

Net deferred tax liabilities

 

 

1,960

 

 

 

4,720

 

Other long term liabilities

 

 

1,590

 

 

 

 

Total Liabilities

 

 

33,868

 

 

 

70,786

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

Common stock $0.001 par value, 750,000,000 shares authorized at

 

 

255

 

 

 

216

 

September 30, 2019 and December 31, 2018; 255,652,460 and

216,345,984 shares issued and outstanding at September 30, 2019 and

December 31, 2018, respectively

Additional paid-in capital

 

 

716,420

 

 

 

676,373

 

Accumulated deficit

 

 

(649,868

)

 

 

(509,406

)

Accumulated other comprehensive (loss) income

 

 

(3,041

)

 

 

1,338

 

Total Stockholders’ Equity

 

 

63,766

 

 

 

168,521

 

Total Liabilities and Stockholders’ Equity

 

$

97,634

 

 

$

239,307

 

 

TransEnterix, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Operating Activities

 

 

 

 

 

 

 

 

Net loss

 

$

(140,469

)

 

$

(55,336

)

Adjustments to reconcile net loss to net cash and cash equivalents used in

 

 

 

 

 

 

 

 

operating activities:

Loss (gain) from sale of SurgiBot assets, net

 

 

97

 

 

 

(11,915

)

Goodwill and intangible assets impairment

 

 

86,881

 

 

 

 

Depreciation

 

 

1,651

 

 

 

1,876

 

Amortization of intangible assets

 

 

7,754

 

 

 

8,244

 

Amortization of debt discount and debt issuance costs

 

 

1,437

 

 

 

575

 

Amortization of short-term investment discount

 

 

(328

)

 

 

(51

)

Interest expense on deferred consideration – MST acquisition

 

 

762

 

 

 

 

Stock-based compensation

 

 

9,727

 

 

 

6,694

 

Deferred tax benefit

 

 

(2,549

)

 

 

(2,572

)

Bad debt expense

 

 

1,630

 

 

 

 

Write down of inventory

 

 

761

 

 

 

 

Change in fair value of warrant liabilities

 

 

(3,036

)

 

 

24,438

 

Change in fair value of contingent consideration

 

 

(9,689

)

 

 

81

 

Loss on extinguishment of debt

 

 

 

 

 

1,400

 

Recovery of transfer fee

 

 

 

 

 

(2,994

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

4,313

 

 

 

(4,262

)

Interest receivable

 

 

3

 

 

 

28

 

Inventories

 

 

(14,141

)

 

 

(1,276

)

Other current and long term assets

 

 

(2,313

)

 

 

27

 

Accounts payable

 

 

(914

)

 

 

(903

)

Accrued expenses

 

 

(1,439

)

 

 

(56

)

Deferred revenue

 

 

(867

)

 

 

361

 

Other long term liabilities

 

 

1,613

 

 

 

 

Net cash and cash equivalents used in operating activities

 

 

(59,116

)

 

 

(35,641

)

Investing Activities

 

 

 

 

 

 

 

 

Purchase of short-term investments

 

 

(12,883

)

 

 

(39,619

)

Proceeds from maturities of short-term investments

 

 

65,000

 

 

 

 

Proceeds related to sale of SurgiBot assets, net

 

 

 

 

 

4,496

 

Purchase of property and equipment

 

 

(392

)

 

 

(490

)

Proceeds from sale of property and equipment

 

 

 

 

 

32

 

Net cash and cash equivalents provided by (used in) investing activities

 

 

51,725

 

 

 

(35,581

)

Financing Activities

 

 

 

 

 

 

 

 

Payment of note payable

 

 

(15,000

)

 

 

(15,305

)

Proceeds from issuance of debt and warrants, net of issuance costs

 

 

(30

)

 

 

18,828

 

Payment of contingent consideration

 

 

 

 

 

(395

)

Proceeds from issuance of common stock and warrants, net of issuance costs

 

 

23,725

 

 

 

279

 

Taxes paid related to net share settlement of vesting of restricted stock units

 

 

(499

)

 

 

(1,662

)

Proceeds from issuance of common stock related to sale of SurgiBot assets

 

 

 

 

 

3,000

 

Proceeds from exercise of stock options and warrants

 

 

539

 

 

 

11,396

 

Net cash and cash equivalents provided by financing activities

 

 

8,735

 

 

 

16,141

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(191

)

 

 

(114

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

1,153

 

 

 

(55,195

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

21,651

 

 

 

97,606

 

Cash, cash equivalents and restricted cash, end of period

 

$

22,804

 

 

$

42,411

 

Supplemental Disclosure for Cash Flow Information

 

 

 

 

 

 

 

 

Interest paid

 

$

2,073

 

 

$

1,135

 

Supplemental Schedule of Noncash Investing and Financing Activities

 

 

 

 

 

 

 

 

Transfer of inventories to property and equipment

 

$

478

 

 

$

2,160

 

Transfer of property and equipment to inventory

 

$

 

 

$

648

 

Reclass of warrant liability to common stock and additional paid-in capital

 

$

 

 

$

23,485

 

Cashless exercise of warrants

 

$

 

 

$

4,272

 

Issuance of common stock – MST acquisition

 

$

6,600

 

 

$

 

 

 

 

 

 

 

 

 

 

 

TransEnterix, Inc.

Reconciliation of Non-GAAP Measures

Adjusted Net Loss and Net Loss per Share

(in thousands except per share amounts)

(Unaudited)

 

Three Months Ended

Nine Months Ended

September 30,

September 30,

2019

 

2018

 

2019

 

2018

(Unaudited, U.S. Dollars, in thousands)

Net loss (GAAP)

$

(97,771)

$

(20,206)

$

(140,469)

$

(55,336)

 

Adjustments

Loss (gain) from sale of SurgiBot assets, net

44

97

(11,915)

Amortization of intangible assets

2,558

2,674

7,754

8,244

Change in fair value of contingent consideration

(11,647)

(1,358)

(9,689)

81

 

Acquisition related costs

 

(40)

 

 

345

 

 

5

 

 

345

 

Goodwill impairment

 

78,969

 

 

 

 

78,969

 

 

 

Intangible assets impairment

 

7,912

 

 

 

 

7,912

 

 

 

Reversal of transfer fee accrual

 

 

 

(2,994)

 

 

 

 

(2,994)

Change in fair value of warrant liabilities

(614)

8,760

(3,036)

24,438

Loss on extinguishment of debt

1,400

Adjusted net loss (Non-GAAP)

$

(20,633)

$

(12,735)

$

(58,457)

$

(35,737)

 

Three Months Ended

Nine Months Ended

September 30,

September 30,

(Unaudited, per basic share)

2019

 

2018

 

2019

 

2018

Net loss per share (GAAP)

$

(0.43)

$

(0.10)

$

(0.64)

$

(0.27)

 

Adjustments

Loss (gain) from sale of SurgiBot assets, net

0.00

0.00

(0.06)

Amortization of intangible assets

0.01

0.01

0.03

0.04

Change in fair value of contingent consideration

(0.05)

(0.00)

(0.04)

0.00

 

Acquisition related costs

 

(0.00)

 

 

0.00

 

 

0.00

 

 

0.00

 

Goodwill impairment

 

0.34

 

 

 

 

0.36

 

 

 

Intangible assets impairment

 

0.04

 

 

 

 

0.04

 

 

 

Reversal of transfer fee accrual

 

 

 

(0.01)

 

 

 

 

(0.01)

Change in fair value of warrant liabilities

(0.00)

0.04

(0.01)

0.12

Loss on extinguishment of debt

0.01

Adjusted net loss per share (Non-GAAP)

$

(0.09)

$

(0.06)

$

(0.26)

$

(0.17)

 

The non-GAAP financial measures for the three and nine months ended September 30, 2019 and 2018 provide management with additional insight into the Company’s results of operations from period to period without non-recurring and non-cash charges, and are calculated using the following adjustments:

a) Gain from sale of SurgiBot assets relates to amounts received from Great Belief International Limited in excess of the carrying amount of the assets sold. Loss from sale of SurgiBot assets relates to additional outside service costs to transfer the assets.

b) Intangible assets that are amortized consist of developed technology and purchased patent rights recorded at cost and amortized over 5 to 10 years.

c) Contingent consideration in connection with the acquisition of the Senhance System in 2015 is recorded as a liability and is the estimate of the fair value of potential milestone payments related to business acquisitions. Contingent consideration is measured at fair value using a discounted cash flow model utilizing significant unobservable inputs including the probability of achieving each of the potential milestones and an estimated discount rate associated with the risks of the expected cash flows attributable to the various milestones. Significant increases or decreases in any of the probabilities of success or changes in expected timelines for achievement of any of these milestones would result in a significantly higher or lower fair value of these milestones, respectively, and commensurate changes to the associated liability. The contingent consideration is revalued at each reporting period and changes in fair value are recognized in the consolidated statements of operations and comprehensive loss.

d) Acquisition related costs were incurred in connection with the MST purchase agreement and consist of legal, accounting, and other costs.

e) As of September 30, 2019, goodwill was deemed to be fully impaired, and the Company recorded an impairment charge of $79.0 million. As of September 30, 2019, IPR&D was deemed to be significantly impaired, and the Company recorded an impairment charge of $7.9 million. No impairment charges were recorded during the three or nine months ended September 30, 2018.

f) In connection with the Senhance acquisition, the Company recorded an accrual in 2015 for potential assessment of additional transfer fees. In September 2018, the Company determined that the accrual was no longer required and reversed the accrual.

g) The Company’s Series B Warrants are measured at fair value using a simulation model which takes into account, as of the valuation date, factors including the current exercise price, the expected life of the warrant, the current price of the underlying stock, its expected volatility, holding cost and the risk-free interest rate for the term of the warrant. The warrant liability is revalued at each reporting period or upon exercise and changes in fair value are recognized in the consolidated statements of operations and comprehensive loss.

h) In May 2018, in connection with its entrance into the Hercules Loan Agreement, the Company repaid its existing loan and security agreement with Innovatus Life Sciences Lending Fund I, LP. The Company recognized a loss of $1.4 million on the extinguishment of notes payable which is included in interest expense on the consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2018.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191112006050/en/

CONTACT: TransEnterix, Inc.

Investor Contact:

Mark Klausner, 443-213-0501

invest@transenterix.com

or

Media Contact:

Terri Clevenger, 203-682-8297

terri.clevenger@icrinc.com

KEYWORD: UNITED STATES NORTH AMERICA NORTH CAROLINA

INDUSTRY KEYWORD: HOSPITALS HEALTH SURGERY MEDICAL DEVICES

SOURCE: TransEnterix, Inc.

Copyright Business Wire 2019.

PUB: 11/12/2019 04:05 PM/DISC: 11/12/2019 04:06 PM

http://www.businesswire.com/news/home/20191112006050/en