AP NEWS

CHF Solutions, Inc. Announces 42% Revenue Growth for its Third Quarter and Provides Company Update

November 6, 2018

EDEN PRAIRIE, Minn., Nov. 06, 2018 (GLOBE NEWSWIRE) -- CHF Solutions, Inc. (NASDAQ: CHFS) announced today its third quarter results for the period ended September 30, 2018. Highlights include:

-- Revenue for third quarter ended September 30, 2018 increased 42 percent compared to the same period in 2017, and 24 percent sequentially over the second quarter of 2018. -- Announced expansion into the post-surgical cardiovascular market, an adjacent market opportunity with a significant unmet clinical need. -- Continued international expansion and announced entrance into the markets in Germany and Thailand. -- Continued path to identify complementary diagnostic technologies. Completed acquisition of AcQtrac™ impedance technology and announced collaboration agreements with NIMedical and Daxor Corporation to evaluate available, market-cleared diagnostic technologies. -- Announced completion of all manufacturing transfer activities from Baxter. -- Ended the quarter with $8.2 million of cash and equivalents and no debt.

“We have delivered double-digit year over year quarterly growth for six quarters in a row,” said John Erb, Chairman and CEO. “We continue to execute on our strategy and deliver results.”

The Company will host a conference call and webcast at 9:00 AM ET today to discuss its financial results and provide an update on the Company’s performance.

To access the live webcast, please visit Investor Relations | CHF Solutions, Inc. Alternatively, you may access the live conference call by dialing (877) 303-9826 (U.S.) or (224) 357-2194 (international) and using conference ID: 8283328. An audio archive of the webcast will be available following the call at Investor Relations | CHF Solutions, Inc.

About CHF Solutions

CHF Solutions, Inc. (NASDAQ:CHFS) is a medical device company focused on commercializing the Aquadex FlexFlow® system for aquapheresis therapy. The Aquadex FlexFlow system, is indicated for temporary (up to eight hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy, and extended (longer than 8 hours) ultrafiltration treatment of patients with fluid overload who have failed diuretic therapy and require hospitalization. All treatments must be administered by a healthcare provider, under physician prescription, both of whom having received training in extracorporeal therapies. The company’s objective is to improve the quality of life for patients with heart failure and related conditions. CHF Solutions is a Delaware corporation headquartered in Minneapolis with wholly owned subsidiaries in Australia and Ireland. The company has been listed on the NASDAQ Capital Market since February 2012.

Forward-Looking Statements

Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, the statement regarding the benefits from using the Aquadex FlexFlow, trends in our revenue, our expansion plan and our future growth and developments. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including, without limitation, those risk associated with our ability to execute on our business strategy, the possibility that we may be unable to raise sufficient funds necessary for our anticipated operations, our post-market clinical data collection activities, benefits of our products to patients, our expectations with respect to product development and commercialization efforts, our ability to increase market and physician acceptance of our products, potentially competitive product offerings, intellectual property protection, our ability to integrate acquired businesses, our expectations regarding anticipated synergies with and benefits from acquired businesses, and other risks and uncertainties described in our filings with the SEC. Forward-looking statements speak only as of the date when made. CHF Solutions does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

FINANCIALS

CHF SOLUTIONS, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited and in thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 ------------ ----------- ---------- Net sales $ 1,363 $ 957 $ 3,499 $ 2,722 Costs and expenses: Cost of goods sold 915 782 2,686 1,912 Selling, general and administrative 3,713 2,671 11,489 7,478 Research and development 985 367 2,107 1,002 ------ ------- ------- ------ Total costs and expenses 5,613 3,820 16,282 10,392 ------ ------- ------- ------ Loss from operations (4,250 ) (2,863 ) (12,783 ) (7,670 ) ------ ------ Other income (expense): Other income, net 10 17 10 28 Warrant valuation expense - - - (67 ) Change in fair value of warrant liability - 4 - 1,470 ------ ------ ------- ------ Total other income 10 21 10 1,431 ------ ------ ------- ------ Loss before income taxes (4,240 ) (2,842 ) (12,773 ) (6,239 ) Income tax expense, net (1 ) (5 ) (3 ) (6 ) ------ ------ ------- ------ Net loss $ (4,241 ) $ (2,847 ) $ (12,776 ) $ (6,245 ) ------ ------- ------- ------ Basic and diluted loss per share $ (0.61 ) $ (4.55 ) $ (2.47 ) $ (25.36 ) ------ ------- ------- ------ Weighted average shares outstanding – basic and diluted 6,987 626 5,171 359 Other comprehensive loss: Foreign currency translation adjustments $ (1 ) $ (1 ) $ (2 ) $ (7 ) ------ ------- ------- ------ Total comprehensive loss $ (4,242 ) $ (2,848 ) $ (12,778 ) $ (6,252 ) ------ ------- ------- ------

CHF SOLUTIONS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) September 30, December 2018 31, 2017 (unaudited) ------------- -------- ASSETS Current assets Cash and cash equivalents $ 8,222 $ 15,595 Accounts receivable 787 545 Inventory 1,948 1,588 Other current assets 240 136 ------------- -------- Total current assets 11,197 17,864 Property, plant and equipment, net 573 570 Other assets 21 21 ------------- -------- TOTAL ASSETS $ 11,791 $ 18,455 ------------- -------- LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable and accrued expenses $ 617 $ 862 Accrued compensation 1,315 1,021 Other current liabilities 80 208 ------------- -------- Total current liabilities 2,012 2,091 Other liabilities 126 126 ------------- -------- Total liabilities 2,138 2,217 Commitments and contingencies — — Stockholders’ equity Series A junior participating preferred stock as of September 30, 2018 and December 31, 2017, par value $0.0001 per share; authorized 30,000 shares, none — — outstanding Series F convertible preferred stock as of September 30, 2018 and December 31, 2017, par value $0.0001 per share; authorized 565 and 3,780 shares, — — respectively, issued and outstanding 565 and 3,780, respectively Preferred stock as of September 30, 2018 and December 31, 2017, par value $0.0001 per share; authorized 39,969,435 and 39,966,220 shares, none — — outstanding Common stock as of September 30, 2018 and December 31, 2017, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 7,074,407 and 1 — 3,798,929, respectively Additional paid‑in capital 203,559 197,367 Accumulated other comprehensive income: Foreign currency translation adjustment 1,225 1,227 Accumulated deficit (195,132 ) (182,356 ) ------------- -------- Total stockholders’ equity 9,653 16,238 ------------- -------- TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 11,791 $ 18,455 ------------- --------

CHF SOLUTIONS, INC.AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited, in thousands) Nine months ended September 30, 2018 2017 Operating Activities: Net loss $ (12,776 ) $ (6,245 ) Adjustments to reconcile net loss to cash flows used in operating activities: Depreciation and amortization expense 174 656 Stock-based compensation expense 1,544 391 Change in fair value of warrant liability - (1,470 ) Warrant valuation expense - 67 Changes in operating assets and liabilities: Accounts receivable (242 ) (498 ) Inventory (361 ) (660 ) Other current and long-term assets (104 ) 28 Accounts payable and accrued expenses (78 ) (1,038 ) ------- ------ Net cash used in operations (11,843 ) (8,769 ) ------- ------ Investing Activities: Purchases of property and equipment (177 ) (206 ) ------- ------ Net cash used in investing activities (177 ) (206 ) ------- ------ Financing Activities: Net proceeds from public stock offering 4,649 8,002 Net proceeds from exercise of warrants - 1,981 Net proceeds from the sale of common stock, preferred stock, and warrants - 184 ------- ------ Net cash provided by financing activities 4,649 10,167 ------- ------ Effect of exchange rate changes on cash (2 ) (2 ) Net increase (decrease) in cash and cash equivalents (7,373 ) 1,190 Cash and cash equivalents - beginning of period 15,595 1,323 ------- ------ Cash and cash equivalents - end of period $ 8,222 $ 2,513 ------- ------ Supplement schedule of non-cash activities Warrants issued as inducement to warrant exercise $ - $ 509 Conversion of temporary equity to permanent equity $ - $ 485 Supplemental cash flow information Cash paid for income taxes $ - $ 8

CONTACTS:

INVESTORS: Claudia Napal Drayton Chief Financial Officer CHF Solutions, Inc. 952-345-4205 ir@chf-solutions.com

-or- Bret Shapiro Managing Partner CORE IR 516-222-2560 brets@coreir.comwww.coreir.com

MEDIA Jules Abraham JQA Partners, Inc. 917-885-7378 jabraham@jqapartners.com

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