Business Context and Reporting Period
This is Tiger X Medical, Inc.’s unaudited Form 10-Q for the quarter ended March 31, 2016, comparing results with the first quarter of 2015. The filing describes a former orthopedic-device business whose operations were discontinued in 2010; continuing activity primarily consists of collecting royalties from Arthrex. Tiger X also promotes former knee products and is evaluating potential partners or buyers for remaining intellectual property and possible uses for its cash.
Important identity discrepancy: The request identifies BioCardia, Inc., but the supplied filing is for Tiger X Medical, Inc. Investors should verify the issuer and filing before relying on this summary.
Financial Results and Position
Amounts below are in thousands of dollars, except share data.
| Metric | Q1 2016 | Q1 2015 / prior date | Change |
|---|---|---|---|
| Royalty income | $149 | $136 | +$13, approximately 9.6% |
| General and administrative expense | $68 | $61 | +$7 |
| Income from operations | $81 | $75 | +$6 |
| Interest income | $1 | $1 | No change |
| Net income | $82 | $76 | +$6, approximately 7.9% |
| Operating cash flow | $85 | $89 | -$4 |
| Cash at period end | $13,925 | $13,598 | +$327 |
- Operating margin was approximately 54% of royalty income in Q1 2016, versus approximately 55% in Q1 2015; net margin was approximately 55% in both periods.
- At March 31, 2016, total assets were $13.948 million, consisting almost entirely of cash. Current and total liabilities were reported as zero, versus $10,000 of liabilities at December 31, 2015. The filing reports no debt.
- Cash increased by $85,000 during the quarter. There were no investing or financing cash flows. Management said cash was adequate for needs over the next twelve months and beyond.
- Basic and diluted net income per share are shown as “$-” in the filing; a clear per-share amount is not provided. Weighted-average shares were 230,293,141.
Changes, Outlook, and Risks
- Arthrex royalties are 5% of net sales of acquired products, under an agreement with a term up to the 20th anniversary of its closing. Management attributed higher Q1 2016 royalty income to increased Arthrex sales and expected royalties to remain the primary revenue source absent a transaction or investment opportunity.
- G&A expense increased by $7,000, primarily because of higher professional expenses. Operating cash flow declined by $4,000 year over year, which management primarily linked to a larger reduction in accounts payable and accrued expenses.
- The company reported no specific financial guidance. It cautioned that interim results are not necessarily indicative of full-year results and that forward-looking statements are subject to risks and uncertainties.
- Cash balances exceeded FDIC insurance limits by $13.693 million at March 31, 2016, creating significant bank-deposit concentration risk.
- The company reported no material pending legal proceedings, no defaults upon senior securities, and no material changes to internal control over financial reporting. Management concluded disclosure controls were effective as of March 31, 2016.
Investor Verification Priorities
- Confirm whether this Tiger X Medical filing is the intended filing, given the BioCardia, Inc. request metadata.
- Verify Arthrex royalty calculations, underlying product sales, and the expected durability of royalty income.
- Review the cash balances, bank counterparties, and mitigation of uninsured-deposit exposure.
- Assess plans for remaining intellectual property and any proposed joint venture, sale, or investment of cash.
- Check the company’s latest filings for subsequent changes in liquidity, share count, corporate identity, and operating strategy.