• The Company continues its exploration process to target strategic and financing alternatives aimed at accelerating commercialization of the Pure-Vu System and maximizing stockholder value
• The Company is actively supporting its existing installed customer base and pipeline opportunities in contracted health systems  
• The Company is advancing its development of Pure-Vu EVS Gastro, designed for Upper GI bleeding procedures, and expects submission to FDA by the end of 2023

FORT LAUDERDALE, Fla., March 31, 2023 (GLOBE NEWSWIRE) -- Motus GI Holdings, Inc., (NASDAQ: MOTS) (“Motus GI” or the “Company”), a medical technology company providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions, today reported its financial results for the fourth quarter and year ended December 31, 2022, and provided a corporate update.

“As previously announced, we initiated the ongoing evaluation of strategic and financing alternatives with the goal of identifying opportunities to accelerate our commercialization of the Pure-Vu System while also maximizing shareholder value. In the meantime, we have also implemented a restructuring process to further reduce our costs, while maintaining the ability to support our customers and targeted commercial activities,” commented Tim Moran, Chief Executive Officer.

“We remain on track to achieve our previously communicated timeline for submission of our Pure-Vu Gastro Upper GI product to the FDA in the second half of 2023. New enhancements in this device will be incorporated into the current Pure-Vu colon device, which will reduce our overall cost-of-goods by approximately 50%,” concluded Mr. Moran.

Fourth Quarter and Recent Business Highlights

• The Company’s commercial program continues providing sales and support to hospitals across the United States that have implemented Pure-Vu EVS, as well as pipeline opportunities in contracted health systems.
• The Company recently announced it had initiated a process of exploring a range of strategic and financing alternatives focused on maximizing stockholder value and accelerating commercialization of the Pure-Vu System. Potential strategic alternatives that may be considered by the Company as part of this process include an acquisition, merger, reverse merger, other business combination, sale of assets, licensing, and other strategic transactions. The Company intends to continue to pursue this process, however, there can be no assurance that it will result in any agreements or transactions, or that, if completed, any agreements or transactions will be successful.  
• In January 2023, the Company began implementing a strategic restructuring program, including a reduction in workforce, with the objective of preserving capital by initially reducing quarterly operating costs by approximately 35% on a go forward basis. The Company expects to incur a non-recurring charge of approximately $1.0 to 2.0 million in the first quarter of 2023 related to the restructuring.

◼  Product Innovation

• Motus GI continues to advance the development of the Pure-Vu EVS Gastro device, which is on track to be submitted to the FDA before the end of this year via the 510(k) process. This device brings upper GI capabilities to the new Pure-Vu EVS platform through key enhancements, including a larger and more powerful suction channel, more efficient irrigation jets, and a smaller profile distal tip that offers enhanced flexibility during insertion. In addition, several of the design enhancements will result in a significant reduction in cost-of-goods compared to the EVS colon device that is currently on the market. In parallel the Company is working on incorporating the improvements developed for the Pure-Vu EVS Gastro into the device for the colon, which should achieve approximately a 50% reduction in the cost-of-goods to be better positioned for strategic relationships.  
• The Company believes the Upper GI application and removing adherent blood clots from the field of view is a significant need in allowing a physician the ability to identify and treat a bleed source. Upper GI bleeds occurred in the U.S. at a rate of approximately 400,000 cases per year in 2019, according to iData Research Inc. The existence of blood and blood clots in these patients can impair a physician’s view, making it difficult to identify the bleed source. The mortality rate of this condition can reach up to approximately 13%, as noted in Thad Wilkins, MD, et al., American Family Physician (2012).

◼  Outpatient Reimbursement Strategy

• The Company has designed a large, multi-center trial designed to show a significant reduction in the number of aborted or poor-quality exams that lead to an early repeat procedure as defined by the Gastroenterology Tri-Society guidelines. The study’s aim is to generate data quantifying the percentage of patients with inadequate prep and showing the Pure Vu Systems ability to achieve a substantial clinical improvement in those patients compared to the standard of care in a large multicenter trial. The results from this study are expected to support applications seeking reimbursement of the Pure-Vu System when used in certain outpatient colonoscopies, a market representing approximately 4.7 million procedures per year.

Financial Results for the Quarter and Year Ended December 31, 2022

The Company reported revenue of $109,000 for the fourth quarter 2022, compared to $99,000 for the fourth quarter of 2021. Revenues for the full year 2022 were $592,000 compared to $391,000 for the full year 2021. Revenues were primarily derived from reorders and new customer orders of disposable sleeves.

For the three months ended December 31, 2022, the Company reported a net loss attributable to common shareholders of $3.7 million, or $0.79 per basic and diluted share, compared to a net loss attributable to common shareholders of $4.8 million, or $1.99 per basic and diluted share, for the three months ended December 31, 2021.

For the year ended December 31, 2022, the Company reported a net loss attributable to common shareholders of $18.6 million , or $5.74 per basic and diluted share, compared to a net loss attributable to common shareholders of $25.2 million, or $10.74 per basic and diluted share, for the year ended December 31, 2021, which included a one-time non-cash deemed dividend from warrant issuance, totaling $6.1 million, associated with the warrant exchange agreement from the first quarter 2021.

During the fourth quarter of 2022, net cash used in operating activities and for the purchase of fixed assets was $4.0 million as compared to $3.9 million for the same period of 2021.

Net cash used in operating activities and for the purchase of fixed assets during the year ended December 31, 2022 totaled $17.7 million as compared to $14.9 million for year ended December 31, 2021.

The Company reported $14.0 million in cash and cash equivalents as of December 31, 2022. This balance included the fully funded credit facility with Kreos Capital, which has approximately $11.5 million due and outstanding.

About Motus GI

Motus GI Holdings, Inc. is a medical technology company, with subsidiaries in the U.S. and Israel, providing endoscopy solutions that improve clinical outcomes and enhance the cost-efficiency associated with the diagnosis and management of gastrointestinal conditions.

For more information, visit www.motusgi.com and connect with the Company on Twitter, LinkedIn and Facebook.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms, including without limitation, risks related to the continued impact of the COVID-19 pandemic, risks inherent in the development and commercialization of potential products, possible or assumed future results of operations, business strategies, potential grow opportunities, uncertainty in the timing and results of clinical trials or regulatory approvals, maintenance of intellectual property rights or other risks discussed in the Company’s quarterly and annual reports filed with the Securities and Exchange Commission, and its other filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Contact:

Troy Williams
LifeSci Advisors
(518) 221-0106
This email address is being protected from spambots. You need JavaScript enabled to view it.