Summary: ProSomnus Inc reported a 28% revenue increase for Q1 2024, totaling $7.5 million, despite undergoing Chapter 11 restructuring. The company maintained over 99% on-time delivery rates and continued progress on strategic initiatives. ProSomnus’s RPMO2 Next Generation Remote Patient Monitoring device is set for final clinical testing before FDA submission in June. The restructuring plan aims to provide $20 million in new capital, reduce debt by 60%, and return the company to private operation while ensuring consistent customer service and product quality.
Key Takeaways:
- ProSomnus Inc. achieved a 28% increase in Q1 2024 revenue, reaching $7.5 million, despite undergoing Chapter 11 restructuring.
- The company maintained an impressive on-time delivery rate of over 99%, demonstrating strong operational reliability.
- ProSomnus is advancing its RPMO2 Next Generation Remote Patient Monitoring device, with final clinical testing before an expected FDA submission in June, and the restructuring plan aims to provide $20 million in new capital and significantly reduce debt.
ProSomnus Inc, a maker of oral appliance therapy for the treatment of obstructive sleep apnea, reported a 28% increase in Q1 2024 revenue while maintaining above 99% on-time delivery rates for its oral appliance therapy products.
Revenue for the first quarter of 2024 totaled $7.5 million, an increase of $1.7 million or 28% compared to $5.8 million for the first quarter of 2023.
Additionally, the company’s six-day turnaround with on-time customer deliveries continued at above 99%, and its RPMO2 Next Generation Remote Patient Monitoring device is scheduled for expected final clinical testing before its US Food and Drug Administration submission in June.
“These exceptional results demonstrate ProSomnus’s value proposition, differentiation, and the quality of our people, providers, and processes,” says Len Liptak, chief executive officer, in a release. “To generate top-tier revenue growth and make significant progress on our strategic initiatives, all while going through a restructuring, is truly an outstanding achievement.”
Restructuring Plan
The results follow the announcement that ProSomnus is entering into a voluntary restructuring under Chapter 11 of the US Bankruptcy Code. The terms of this restructuring were designed to enable the company to maintain normal business operations for customers and suppliers during and after the process.
The restructuring plan is expected to provide an aggregate of $20 million of new capital, reduce the outstanding senior and subordinate secured debt by approximately 60%, and result in the company returning to operating as a private company. The company expects customers to continue experiencing predictable turn-around times and on-time order fulfillment, continued exceptional device quality and performance, and prompt and responsive levels of customer service.
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