xent-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________

FORM 10-Q

___________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-36545

___________________________

INTERSECT ENT, INC.

(Exact name of registrant as specified in its charter)

___________________________

Delaware

(State or other jurisdiction of

incorporation or organization)

1555 Adams Drive

Menlo Park, California

(Address of principal executive offices)

20-0280837

(I.R.S. Employer

Identification Number)

94025

(Zip Code)

Registrant’s telephone number, including area code: (650) 641-2100

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class:

Trading symbol(s)

Name of Exchange on Which registered:

Common Stock, 0.001 par value

XENT

The Nasdaq Global Market

___________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	¨	Accelerated filer	x

Non-accelerated filer	¨	Smaller reporting company	☐

		Emerging growth company	☐

Table of Contents

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

Shares of common stock outstanding as of April 27, 2022 were 33,813,722.

Table of Contents

INTERSECT ENT, INC.

Form 10-Q – QUARTERLY REPORT

For the Quarter Ended March 31, 2022

TABLE OF CONTENTS


			Page
PART I. FINANCIAL INFORMATION			4
Item 1. Financial Statements			4
Condensed Consolidated Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021			4
Condensed Consolidated Statements of Operations and Comprehensive Loss for the three months ended March 31, 2022 and 2021 (unaudited)			5
Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the three months ended March 31, 2022 and 2021 (unaudited)			6
Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 (unaudited)			7
Notes to Condensed Consolidated Financial Statements			8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			24
Item 3. Quantitative and Qualitative Disclosures About Market Risk			34
Item 4. Controls and Procedures			34

PART II. OTHER INFORMATION			35
Item 1. Legal Proceedings			35
Item 1A. Risk Factors			35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			65
Item 3. Defaults Upon Senior Securities			65
Item 4. Mine Safety Disclosures			65
Item 5. Other Information			65
Item 6. Exhibits			66

SIGNATURES			67

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INTERSECT ENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)


	March 31, 2022		December 31, 2021
	(unaudited)		(1)
Assets
Current assets:
Cash and cash equivalents	$	25,589	$	38,397
Short-term investments	25,045		22,618
Accounts receivable, net	13,236		17,326
Inventories, net	17,737		18,599
Assets held for sale	2,264		5,353
Prepaid expenses and other current assets	3,606		3,704
Total current assets	87,477		105,997
Property and equipment, net	5,646		4,995
Operating lease right-of-use assets	14,675		15,149
Restricted cash	16,992		17,887
Other non-current assets	2,603		2,839
Total assets	$	127,393	$	146,867
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	9,179	$	8,888
Accrued compensation	12,322		20,501
Deferred acquisition related consideration, current	16,671		17,013
Liabilities held for sale	2,264		5,353
Other current liabilities	5,977		5,405
Total current liabilities	46,413		57,160
Operating lease liabilities	14,960		14,709
Long-term debt	142,611		127,346
Deferred acquisition related consideration, non-current	15,400		15,409
Other non-current liabilities	2,038		1,312
Total liabilities	221,422

SEC Form 10-Q filed by Intersect ENT Inc.