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Appendix 4C – Quarterly Cash Flow Report and Business Update

25 / 01 / 2018

Highlights for the quarter ended 31 December 2017
  • Net revenue increased to US$1.8 million compared to US$0.2 million in Q4 2016; driven by U.S. and Australia sales growth 
  • U.S. unit sales grew 56% compared to Q3 2017 
  • AeroForm available in more than one hundred and forty (140) hospitals across the US 
  • Cash and short-term investments balance as of 31 December 2017 of US$22.6 million 

Palo Alto, CA, United States - AirXpanders, Inc. (ASX: AXP), a medical device company focused on the design, manufacture, sale and distribution of the AeroForm® Tissue Expander System, today released its Appendix 4C - Quarterly Cash Flow report for the quarter ended 31 December 2017.

Net revenue performance for the quarter and the fiscal year was as follows:

(US$ in ‘000, unaudited)

Q4 2017

Q4 2016

% Growth

Net revenue




Units Sold





(US$ in ‘000,


FY 2017

FY 2016

% Growth

Net revenue




Units Sold




Worldwide unit sales of the AeroForm Tissue Expander grew to 693 units in the fourth quarter of 2017, an increase from 459 units in the third quarter of 2017. This was driven by continued acceleration of the Company's market release of AeroForm in the United States in the fourth quarter of 2017, with net unit sales of 570 units, compared to 366 units in the third quarter of 2017, an increase of 56%. In Australia, unit sales were 123 units, an increase of 32% over the third quarter of 2017 and 15% over the fourth quarter of 2016. Worldwide revenue growth in the fourth quarter continued to outpace unit growth due to the additive impact of higher average unit selling prices (ASPs) in the United States.

For the year ended 31 December 2017, net revenue for the Company totalled US$3.9 million with unit sales of 1,563. Of this amount, U.S. net revenue totalled US$3.1 million with unit sales of 1,143 reflective of strong average selling price in the first year of commercialization for this market.

"Our fourth quarter and full year sales results are reflective of our continued success since the launch of AeroForm in the U.S. market in early 2017. The increase in revenue and unit sales over the third quarter of 2017 was driven both by new physicians performing their initial cases and increased utilization by physicians who have been using the product since our US launch earlier this year. AeroForm is now available in over 140 hospitals throughout the United States," said Scott Dodson,
President and CEO of AirXpanders. "In these early days of commercialisation, it appears that, on average, the longer a surgeon has used AeroForm, the more they use it."

"We are proud of our many achievements throughout 2017, including building and training our U.S. sales force, obtaining FDA approval for the latest version of the AeroForm, successfully completing our manufacturing transfer to Medplast in Costa Rica, and quickly growing our US unit sales to a run- rate of several thousand units per annum based on fourth quarter unit sales. We are excited at the prospects of delivering continued growth in 2018."

The Company had total cash and short-term investment balances of US$22.6 million as of 31 December 2017. Short-term investments consist of highly liquid, U.S. Treasury securities. Cash outflow for operating activities during the quarter was US$7.6 million, compared to US$9.8 million in the previous quarter. This decrease of US$2.2 million was primarily attributable to a decrease in the Company's rate of build of inventory as compared to the third quarter of 2017, in addition to higher receipts.


Scott Dodson
President & CEO
Tel: +1 (650)-390-9008

Investor Relations 
Kyahn Williamson 
WE Buchan 
Tel: +61 (3) 9866 4722 / +61 (0) 4010018828 


About AirXpanders
Founded in 2005, AirXpanders, Inc. ( designs, manufactures and markets innovative medical devices to improve breast reconstruction. The Company's AeroForm Tissue Expander System, is used in patients undergoing two-stage breast reconstruction following mastectomy. Headquartered in Palo Alto, California, AirXpanders' vision is to be the global leader in reconstructive surgery products and to become the standard of care in two-stage breast reconstruction. AirXpanders is a publically listed Company on the Australian Securities Exchange under the symbol "AXP." AeroForm was granted U.S. FDA de novo marketing authorization in 2016, first CE mark in Europe in 2012 and is currently licensed for sale in Australia.

Forward-Looking Statements
This announcement contains or may contain forward-looking statements that are based on management's beliefs, assumptions and expectations and on information currently available to management.

All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements. These include, without limitation, prospects of continued growth and commercial success in 2018, commercial success of our U.S launch, the success of our sales personnel in on- boarding and training physicians, continued acceptance and increased utilization of AeroForm by physicians; the clinical benefits to physicians and patients, the ability of our third-party contract manufacturer to produce our product in greater capacity and at lower gross margins, and the prospects for continued growth in the near term.

Management believes that these forward-looking statements are reasonable when made. You should not place undue reliance on forward-looking statements because they speak only as of the date when made. AirXpanders may not actually achieve the plans, projections or expectations disclosed in forward-looking statements. Actual results, developments or events could differ materially from those disclosed in the forward-looking statements. For additional information and considerations regarding the risks faced by AirXpanders that could cause actual results to differ materially, see its most recent Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on November 3, 2017, including under the caption "Risk Factors," as well as other periodic reports filed with the SEC from time to time. AirXpanders disclaims any obligation to update information contained in any forward-looking statement, except as required by law.

For more information, refer to the Company's website at