Tue, May 14, 8:44 PM (73 days ago)
**Summary:** For the quarter ending March 31, 2024, Allurion Technologies, Inc. reported a decrease in revenue to $9.4 million, down 33% from the prior year, primarily due to reduced gastric balloon unit sales and inventory adjustments by distributors. Cost of revenue decreased by 14% to $2.5 million, leading to a gross profit of $6.9 million, down 38%. Operating expenses also declined, with sales and marketing expenses down 48% to $6.2 million, and research and development expenses down 27% to $5.7 million, primarily due to reduced clinical trial costs. General and administrative expenses increased by 20% to $6.4 million, driven by higher salaries, legal fees, and insurance costs. The company reported net income of $5.6 million, a significant improvement from a net loss of $17.8 million in the same period last year. This was influenced by a $14.2 million gain in the fair value of earn-out liabilities and a $3.1 million gain in warrant liabilities. Allurion's cash and cash equivalents stood at $29.7 million, with a noted reliance on additional funding due to ongoing operating losses. Recent financing activities include a $48 million convertible note issuance to refinance existing debt and an amended revenue interest financing agreement. The company faces substantial doubt about its ability to continue as a going concern, emphasizing the need for further capital.