Acutus Medical, Inc. (AFIB): Business Model Canvas [Dec-2025 Updated]

You're looking at Acutus Medical, Inc. (AFIB), and what you need to know is the old, complex electrophysiology (EP) company is gone, replaced by a lean contract manufacturer focused on one massive customer: Medtronic. This isn't a growth story yet; it's a high-stakes execution play, where their entire 2025 strategy hinges on maximizing earnout payments and managing a tight balance sheet, especially with 2024 Revenue from Continuing Operations at $20.2 million and facing $1.4 million to $1.8 million in downsizing charges this year. Honestly, the business model is now a single-point-of-failure arrangement, and understanding the pivot-from IP pioneer to Original Equipment Manufacturer (OEM)-is defintely the only way to assess the risk and opportunity.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Key Partnerships

You're looking at Acutus Medical's (AFIB) Key Partnerships because, honestly, this company's entire business model now hinges on a single, massive relationship. The core takeaway is that Acutus has successfully transitioned from a broad electrophysiology company to a laser-focused contract manufacturer, making Medtronic, Inc. its single most critical partner and revenue source, while Deerfield Partners, L.P. remains the essential financial backer.

Medtronic, Inc. for Exclusive Left-Heart Access Product Distribution

The partnership with Medtronic, Inc. is the foundation of Acutus's current operations. Following the sale of its left-heart access portfolio in 2022, Acutus fully pivoted to become an Original Equipment Manufacturer (OEM) and distributor for Medtronic, Inc. This is now their exclusive source of revenue, which is a high-risk, high-reward model. To align with this singular focus, Acutus implemented an operational downsizing in late 2024, reducing its workforce by approximately 70%, a necessary step to cut cash burn and meet its manufacturing obligations.

The deal provides a clear, contracted revenue stream. For the fiscal year ended December 31, 2024, Acutus reported Revenue from Continuing Operations of $20.2 million, marking a significant 181% increase from the $7.2 million reported in 2023. This growth is directly tied to the ramp-up of sales through Medtronic, Inc. The company remains eligible for future payments, which is the long-term opportunity.

• Initial Cash Payment (2022): $50 million from Medtronic, Inc. for the portfolio.
• OEM Milestone Payment: An additional $20 million was earned upon OEM qualification.
• Future Earnouts: Acutus is eligible for revenue-based earnouts through 2027.

Deerfield Partners, L.P. and Deerfield Private Design Fund III, L.P. as Primary Lenders

Deerfield Partners, L.P. and Deerfield Private Design Fund III, L.P. are Acutus's primary financial partners, essentially acting as the company's lifeline through a new debt facility established in 2022. The aggregate principal of this facility is $35 million, with a maturity date set for June 30, 2027. This refinancing bought the company critical time, but the debt terms are still tight.

In a crucial financial move in late 2024, Acutus amended the credit agreement to manage cash flow. Here's the quick math on the 2025 debt schedule:

The lenders also increased the exit fee for prepayment or repayment of the loans from 5.0% to 6.0% of the principal amount. This defintely helps cash flow in the near term, but it makes the debt more expensive if they manage to pay it off early.

Raw Material and Component Suppliers for Left-Heart Access Products

While specific supplier names are not publicly disclosed, this partnership category is fundamental to Acutus's new identity as a contract manufacturer. The company's entire value chain is now focused on the production of the left-heart access devices sold to Medtronic, Inc. These products include the AcQCross line of septal crossing devices and the AcQGuide family of steerable introducers and sheaths.

The operational downsizing completed in the first quarter of 2025 was specifically designed to support the manufacturing, quality, and supply chain activities required by the Medtronic Distribution Agreement. Any disruption with a key supplier-a quality lapse, a price increase, or a delivery delay-would directly jeopardize the single revenue stream, making supply chain management a high-priority Key Activity.

Biotronik SE & Co. KG Settlement (Terminating Prior Agreements)

The finalization of the settlement with Biotronik SE & Co. KG and VascoMed GmbH (the BIO Parties) in October 2024 formally ended a complex and contentious relationship. This partnership, which involved prior agreements related to licensing, manufacturing, and distribution, is now an exit-based financial obligation rather than a collaborative alliance.

The settlement resolved an ongoing arbitration and terminated five material agreements. The financial terms included an initial payment from Acutus of approximately $2.6 million to Biotronik. Furthermore, the settlement includes contingent payment obligations tied to future corporate events, such as a Qualifying Asset Sale or a Change of Control, where Biotronik could be entitled to up to 50% of the cash consideration.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Key Activities

Contract manufacturing and quality assurance for Medtronic products.

Acutus Medical's core activity has been completely realigned to function as a specialized contract manufacturer for Medtronic. This is the single, focused engine of the business model now. The entire operation is scaled to meet the requirements of the Asset Purchase Agreement and Distribution Agreement, following a massive operational downsizing that cut the workforce by approximately 70%, a move substantially completed in the first quarter of 2025.

This activity generates the company's exclusive source of revenue, which saw a significant jump in the latest reported fiscal year, with revenue hitting $20.2 million in 2024, up from $7.2 million the prior year, due to increased sales through Medtronic. The quality assurance processes are critical; failure to meet Medtronic's standards would jeopardize the entire business, which is now a pure-play supplier. This is a high-stakes, low-volume operation.

Managing the supply chain for left-heart access devices.

The entire supply chain and logistics function is now streamlined to support the production and distribution of Medtronic's left-heart access portfolio. This includes critical devices like the AcQCross line of septal crossing devices and the AcQGuide family of sheaths. The remaining operating expenses and working capital are primarily dedicated to sustaining this lean supply chain, manufacturing, and quality infrastructure. Honestly, this activity is less about strategic sourcing and more about flawless execution and cost-control to minimize the cash burn rate.

• Focus solely on AcQCross, AcQGuide MINI, AcQGuide FLEX, and AcQGuide VUE.
• Utilize working capital to support manufacturing and quality functions.
• Ensure compliance with Medtronic's transfer price specifications.

Fulfilling obligations under the Distribution and Asset Purchase Agreements.

This activity is the company's financial lifeline, extending through January 2027. The primary obligation is to continue manufacturing and distributing the products to Medtronic while being eligible for contingent payments (an earnout) based on Medtronic's net end-user sales. The structure of the earnout is a clear financial driver for the business, as the percentage of sales they receive decreases over time.

For the current period, the earnout is significantly reduced. The annual measurement period for the net sales earnouts began in January 2023. This means that for the majority of the 2025 fiscal year, Acutus is in Year 3 of the earnout period.

What this estimate hides is the total potential value: Acutus has already received $50 million upfront and a $20 million OEM qualification milestone, plus they were eligible for up to $37 million more in milestone payments.

Strategic financial management, including debt amortization.

Given the company's significant debt burden and history of quickly burning cash, strategic financial management is a critical activity, not just a back-office function. The focus is on managing liquidity and restructuring debt obligations to survive the transition period and maximize the value of the Medtronic earnout.

A key action in late 2024 was amending the credit agreement with Deerfield Partners. This directly impacts 2025 cash flow. Here's the quick math on the principal payment due in 2025:

• Original principal payment due on June 30, 2025: $7.5 million.
• New 2025 amortization schedule: three equal installments of $2.5 million each.
• Payment dates: June 30, 2025, September 30, 2025, and December 31, 2025.

Plus, they had to make an initial settlement payment of about $2.6 million to Biotronik in late 2024 to terminate prior, complex agreements, which defintely clears the corporate slate but required immediate cash. As of December 31, 2024, their cash and cash equivalents stood at $14.0 million, so every payment date is a high-priority event.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Key Resources

You're looking for the core assets that keep Acutus Medical running in late 2025, and the picture is clear: it's a focused contract manufacturing operation. The company shed its ambitious electrophysiology (EP) mapping and ablation business to concentrate on a single, capital-efficient revenue stream. This shift means its key resources are now highly specialized, not broad.

The entire business model hinges on physical infrastructure and human expertise dedicated to one client, Medtronic, plus the remaining financial runway to execute on that contract. Here's the quick math on what matters now.

Manufacturing infrastructure for left-heart access products.

The primary physical resource is the specialized manufacturing infrastructure used to produce left-heart access products, such as the AcQCross septal crossing devices and Acqguide steerable introducers, which were sold to Medtronic but are still manufactured by Acutus Medical under a long-term agreement. This infrastructure is the engine for the company's sole revenue source.

This focus is paying off in efficiency. The gross margin from continuing operations improved to 7% in the third quarter of 2024, a significant jump from -53% in the same period the previous year, directly attributed to higher production volumes in this left-heart access manufacturing business. This infrastructure is defintely a high-value, high-utilization asset now.

Remaining specialized workforce for manufacturing and quality.

Following the strategic realignment to exit the EP mapping and ablation business, Acutus Medical executed a massive operational downsizing. This restructuring, substantially completed in the first quarter of 2025, reduced the overall workforce by approximately 70%.

The remaining staff represents a highly specialized human resource pool, scaled precisely to meet the company's obligations under the contract with Medtronic. This workforce is essential for maintaining the stringent quality and production standards required for medical device contract manufacturing.

• Retained a core team for left-heart access product manufacturing.
• Focuses on quality assurance and distribution support for Medtronic.
• Workforce size is approximately 30% of the pre-restructuring total.

Cash and equivalents of $14.0 million as of December 31, 2024.

Financial resources are critical for a company in a transition phase, especially one relying on earnout payments. As of December 31, 2024, Acutus Medical reported cash and cash equivalents of $14.0 million. This is down from $29.4 million the previous year, reflecting ongoing operational and restructuring costs.

Management expects this cash on hand, combined with distribution revenue and future earnouts from Medtronic, to be sufficient to service the company's outstanding debt and fund the remaining business through the earnout period, which extends until January 2027.

Intellectual property (IP) rights retained for contract manufacturing.

The nature of Acutus Medical's intellectual property has fundamentally changed. The company sold its AcQMap High Resolution Imaging and Mapping platform assets to EnChannel Medical in July 2025, and previously sold the left-heart access product portfolio to Medtronic.

Crucially, Acutus Medical no longer retains any patents covering the Products sold to Medtronic. What remains as the core intellectual resource is the manufacturing processes and know-how-the unpatented, specialized knowledge required to efficiently produce these complex medical devices under the contract. This reliance on manufacturing expertise, rather than registered product IP, is the key intangible asset.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Value Propositions

The core value proposition of Acutus Medical has fundamentally shifted from an innovative electrophysiology (EP) solutions provider to a highly specialized, contract-based Original Equipment Manufacturer (OEM). You need to understand this is a pure-play manufacturing and supply business now, not a growth-stage medical device company.

Reliable Original Equipment Manufacturer (OEM) for Medtronic.

Acutus Medical's primary value proposition is its guaranteed, reliable supply of critical left-heart access products to Medtronic, a global leader in medical technology. This shift, finalized after the sale of the portfolio in 2022, has stabilized the company's revenue stream. Frankly, this is their whole business now.

The company's future revenue is tied to a distribution agreement and revenue-based earnouts that extend through January 2027. This stability is a huge value-add for Medtronic, ensuring continuity for high-demand products without the risk of an internal manufacturing ramp-up.

Here's the quick math on the revenue impact of this OEM focus:

High-quality left-heart access products (e.g., AcQCross and AcQGuide).

The value proposition is grounded in the proven clinical efficacy and unique design of the left-heart access portfolio, which Medtronic now exclusively distributes. These devices are essential for the estimated 800,000 transseptal crossings performed annually in EP and structural heart procedures. The technology simplifies complex procedures, which is a massive benefit for electrophysiologists.

The key products Acutus manufactures for Medtronic include:

• AcQCross Family: Sheath-compatible septal crossing devices.
• AcQGuide MINI: Integrated crossing device and sheath.
• AcQGuide FLEX: Steerable introducer with integrated transseptal dilator and needle.
• AcQGuide VUE: Steerable sheath technology.

The AcQCross system is defintely a standout, being the first and only transseptal access system cleared for both mechanical and radiofrequency (RF) crossing. This dual-capability improves physician workflow and adds procedure efficiencies during left-heart procedures.

Lean, cost-optimized manufacturing structure post-downsizing.

The third value proposition is internal: a lean, focused operational structure that promises efficient, low-cost production. This is the new financial reality. In late 2024, Acutus announced a significant operational downsizing, reducing its workforce by approximately 70%. This drastic action was taken to align the company's resources to the scale needed solely for the Medtronic contract manufacturing obligations.

The restructuring was largely completed in the first quarter of 2025 (Q1 2025) and is expected to meaningfully reduce cash burn and ongoing operating expenses. What this estimate hides is the one-time costs associated with the transition, but the long-term benefit is a lower cost of goods sold (COGS) for the products supplied to Medtronic, which is a value proposition for both companies.

The financial impact of the restructuring in early 2025 included approximately $1.4 million to $1.8 million in pre-tax downsizing and exit-related charges. This includes about $0.3 million for severance and $1.2 million for retention bonuses to key employees who managed the transition. The clear action here was to cut everything that didn't directly support the Medtronic contract.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Customer Relationships

Dedicated, high-touch contractual relationship with Medtronic.

You need to understand that Acutus Medical's customer relationship model has radically changed from a broad, direct-to-hospital sales approach to a singular, high-touch business-to-business (B2B) partnership with Medtronic. This isn't a typical vendor relationship; it's a dedicated, contractual manufacturing and distribution support role. The entire company is now structured to fulfill the obligations under the Asset Purchase Agreement and Distribution Agreement with Medtronic, which means the relationship is deep and requires constant, close operational alignment.

The core focus is manufacturing and distributing the left-heart access products, such as the AcQCross line of septal crossing devices. This is a mission-critical supply chain role for Medtronic, making Acutus Medical a defintely integrated partner, not just a supplier.

Transactional relationship with Medtronic based on transfer pricing.

The financial nature of this relationship is purely transactional, centered on specific payment mechanisms outlined in the agreements. Acutus Medical's revenue is derived from two primary sources: the sale of products at a pre-determined transfer price and contingent earnout payments.

For the fiscal year ended December 31, 2024, Acutus Medical reported total revenue of $20.2 million, a significant jump from the $7.2 million reported the prior year, directly attributed to these sales to Medtronic. The company is now operating as a contract manufacturing business, with its revenue stream tied exclusively to this deal.

The transactional structure is complex because it involves a variable component, which is a key opportunity for Acutus Medical.

• Transfer Pricing: Revenue from product sales to Medtronic at specified contractual prices.
• Contingent Earnouts: Payments based on a percentage of Medtronic's total net end-user sales of the acquired products.

Here's the quick math on the earnout potential: Acutus Medical is eligible for these net-sales earnouts through January 2027. For the six months ended June 30, 2024, the company earned $5.8 million in contingent consideration alone based on Medtronic's sales. The structure of these payments ramps down over time, starting at 100% of net end-user sales in the first year after the deal's close, then dropping to 75% in the second year, and 50% in the third and fourth years.

No direct commercial sales force for the end-user market.

What this strategic shift means for customer relationships is simple: Acutus Medical has no direct relationship with the end-user-the hospitals, electrophysiologists, or patients. Medtronic owns that relationship entirely.

Acutus Medical's operational downsizing, which resulted in a workforce reduction of approximately 70%, was a direct consequence of eliminating its own commercial infrastructure, including the sales force, field support, and marketing teams that previously supported its mapping and ablation business. The company has exited the electrophysiology (EP) mapping and ablation business entirely.

What this estimate hides is the total cost savings from this move. The operational downsizing actions, completed in the first quarter of 2025, were expected to incur between $1.4 million and $1.8 million in pre-tax charges, but they are designed to meaningfully reduce cash burn and ongoing operating expenses going forward. The customer is Medtronic, full stop.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Channels

The channels for Acutus Medical, Inc. are now hyper-focused, reflecting the company's dramatic strategic pivot to a contract manufacturing model. You need to understand that their channel strategy has essentially been outsourced to a single, massive partner, Medtronic, which carries both opportunity and significant concentration risk.

Direct sales channel to Medtronic, the single primary customer.

Acutus Medical's commercial channel is now a single, direct business-to-business (B2B) relationship with Medtronic. Following the sale of its left-heart access portfolio in 2022, Acutus transitioned to become the exclusive Original Equipment Manufacturer (OEM) for these products, including the AcQCross and AcQGuide devices. This means Acutus manufactures the product and sells it directly to Medtronic at specified transfer prices, eliminating the need for a large, internal sales force.

This streamlined channel is the sole source of product revenue. For the full fiscal year 2024, Acutus reported a total revenue of $20.2 million (or $20,157 thousand), a significant jump from $7.2 million in the prior year, directly attributable to this channel's increased sales volume. That's a clear example of a channel decision dictating your entire top line.

Medtronic's global distribution network for end-user sales.

The end-user channel-the path to the electrophysiologists and hospitals-is entirely managed by Medtronic. Acutus relies on Medtronic's established, worldwide distribution network to get the left-heart access products to the market. This partnership provides Acutus with global reach without the massive capital expenditure and operating expense of building its own international sales and support teams.

The financial payoff for Acutus in this channel includes both the transfer price revenue and potential contingent payments (earn-outs) based on Medtronic's net sales of the products. Acutus is eligible to receive these revenue-based earn-outs through January 2027. Here's a quick look at the direct financial impact this distribution channel has had:

What this estimate hides is the total volume of Medtronic's end-user sales, which is the actual driver of the earn-out payments. Still, the $8.1 million gain in earn-outs for the first nine months of 2024 shows the value of leveraging a partner's global channel.

OTC Pink Market for common stock trading after Nasdaq delisting.

For investors and financial stakeholders, the channel for trading Acutus Medical's common stock (AFIB) is now the over-the-counter (OTC) Pink Market. The company was delisted from the Nasdaq exchange in May 2024. Trading on the Pink Market, which is the most speculative and least regulated tier of the OTC markets, significantly impacts the stock's liquidity and visibility. This is defintely a channel you need to be aware of if you hold or track the stock.

Key data points on this channel as of late 2025 underscore the risk:

• Stock Price (Nov 2025): Approximately $0.0005 per share.
• 52-Week Range (Nov 2025): $0.0001 to $0.0842, showing extreme volatility.
• Market Capitalization (Nov 2025): Approximately $14.96 thousand (or $14.96K USD).

The stock's channel is now highly illiquid and volatile, reflecting the company's shift to a minimal, contract-only operation. The channel for equity holders is a low-volume, high-risk trading environment.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Customer Segments

You're looking for a clear map of who Acutus Medical, Inc. actually serves, and the answer is simple: the company has fundamentally shifted to a single, dominant customer relationship. After divesting key assets, Acutus Medical's business model in late 2025 is overwhelmingly focused on its role as a contract manufacturer for a major medical device corporation, making its primary customer a powerhouse distributor, not the end-user physician.

Primary Customer: Medtronic, Inc. (a large medical device corporation)

Acutus Medical's primary customer is Medtronic, Inc., following the sale of Acutus's left-heart access portfolio in 2022. This wasn't a typical partnership; it was a strategic pivot that turned Acutus into an Original Equipment Manufacturer (OEM) for Medtronic. This means Acutus now manufactures the products, and Medtronic handles all the commercial distribution and sales to hospitals and clinics globally. Honestly, this is a massive change in risk profile.

The financial reality of this relationship is stark: Acutus's revenue from continuing operations is almost entirely tied to this agreement. For the fiscal year ended December 31, 2024, which was reported in March 2025, Acutus reported revenue from continuing operations of $20.2 million, a significant increase that was largely attributed to sales through Medtronic. This figure is defintely the most important number to watch, as it represents the core of the current business.

The arrangement is structured to continue generating revenue for Acutus through 2027, including potential earnout payments based on Medtronic's sales of the acquired left-heart access products. Here's a quick snapshot of the financial dependence:

• Revenue Source: Exclusive sale of left-heart access products to Medtronic at specified transfer prices.
• Financial Goal: Capture value from future earnout payments tied to Medtronic's sales performance.
• Risk: High dependence on a single customer for nearly all continuing revenue.

End-Users (Indirect): Electrophysiologists and hospitals treating cardiac arrhythmias

While Medtronic is the direct customer paying Acutus, the ultimate users of the manufactured products-devices like the AcQCross septal crossing systems-are Electrophysiologists (EPs) and the hospitals where they perform procedures. Acutus's products are critical tools used in complex procedures like atrial fibrillation (AFib) ablation, left atrial appendage occlusion, and transcatheter mitral valve repair.

The size of this indirect market is substantial. The products Acutus manufactures are essential for the estimated 800,000 transseptal crossings performed annually during electrophysiology and structural heart procedures in the U.S. and globally. Acutus's focus is on providing a product that simplifies the transseptal crossing, which is a challenging and critical step in accessing the left side of the heart.

The end-users, the EPs and hospitals, are characterized by their need for precision, efficiency, and a complete, integrated solution for catheter-based treatment of cardiac arrhythmias. They value the technology for its ability to improve workflow and patient outcomes, but they now purchase it directly from Medtronic's sales channel.

To be fair, the end-user segment is still the reason the product exists, but the sales and marketing effort is now Medtronic's job.

A breakdown of the customer segments and their relationship to Acutus Medical is as follows:

Next step: Finance needs to model the sensitivity of the remaining business to Medtronic's sales forecasts for the next two years to quantify the full earnout opportunity.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Cost Structure

You're looking at Acutus Medical, Inc.'s cost structure, and the story is one of aggressive, necessary contraction. The direct takeaway is that the company has shifted from a high-burn R&D and commercial model to a lean, contract-manufacturing cost base focused almost entirely on fulfilling its obligations to Medtronic. This pivot dramatically reduces variable costs but introduces significant, one-time exit charges in 2025 and a higher debt repayment penalty.

Lean, heavily reduced operational and administrative expenses.

The company has executed a brutal but essential operational downsizing, cutting its workforce by approximately 70% to focus solely on the manufacturing and distribution of left-heart access products for Medtronic. This move is designed to meaningfully reduce the company's cash burn and ongoing operating expenses, which is critical given its financial position.

Here's the quick math: Sales, General, and Administrative (SG&A) expenses were already trending down to $10.436 million in the fiscal year ended December 31, 2024, a reduction from $14.189 million in 2023. You can expect a further, steep drop in the 2025 run-rate as the effect of the 70% workforce reduction takes full hold, leaving only the bare minimum staff to manage manufacturing, quality, and general administration. That's a huge cut to overhead.

Significant pre-tax downsizing and exit-related charges of $1.4 million to $1.8 million in 2025.

While the long-term goal is a lower cost base, the near-term reality involves substantial one-time costs. Acutus Medical estimates it will incur approximately $1.4 million to $1.8 million in pre-tax downsizing and exit-related charges. A majority of these cash expenditures were expected to hit in the first quarter of 2025.

This is a necessary cost to right-size the organization. The charges break down into three main buckets:

• Severance and related benefits: Approximately $0.3 million in cash expenditures.
• Retention bonuses: Approximately $1.2 million for employees assisting with the operational downsizing.
• Contract closing costs: Up to $0.3 million estimated for future cash expenditures.

The total cash outlay for this restructuring is defintely manageable against the backdrop of the expected reduction in annual operating expenses.

Debt servicing costs, including an increased 6.0% exit fee on loans.

Debt servicing remains a major cost component, and the company has had to restructure its principal payments in 2025 to manage liquidity. The annual Interest Expense for the fiscal year ended December 31, 2024, was $5.758 million.

A $7.5 million principal payment originally due on June 30, 2025, has been rescheduled into three equal installments of $2.5 million each. These payments are due on June 30, September 30, and December 31, 2025. Also, the exit fee for the prepayment or repayment of loans has been increased from 5.0% to 6.0% of the principal amount. This higher fee is a clear cost of the company's need for financial flexibility and loan amendments.

The debt servicing schedule for 2025 looks like this:

Manufacturing and supply chain costs for left-heart access devices.

The core of Acutus Medical's remaining cost structure is the Cost of Revenue for its contract manufacturing business, which is now its exclusive focus. This includes all the direct costs for manufacturing, quality control, and supply chain logistics for the left-heart access devices sold to Medtronic.

For the fiscal year ended December 31, 2024, the Cost of Revenue was $19.144 million. This is the cost that must be managed tightly to maximize the gross profit from the Medtronic distribution revenue and earnout payments. The entire working capital and operating expense budget is now dedicated to supporting these specific activities.

What this estimate hides is the potential for volatility in the supply chain, which could impact the cost of revenue and, ultimately, the gross margin, a key metric for a contract manufacturer.

Acutus Medical, Inc. (AFIB) - Canvas Business Model: Revenue Streams

The company is defintely a different animal now, focused on maximizing Medtronic earnouts and managing a very tight cash position. The entire model hinges on the success of that one key partnership.

For Acutus Medical, the revenue model has fundamentally shifted from a broad electrophysiology (EP) platform to a highly focused, contract-based manufacturing and earnout structure following the sale of its left-heart access portfolio to Medtronic in 2022. This means their revenue streams are now concentrated and predictable, but also entirely dependent on a single customer and the performance of the acquired products in the market.

Product sales to Medtronic at specified transfer prices.

The primary, day-to-day revenue stream for Acutus comes from the direct sale of its left-heart access products-like the AcQCross septal crossing devices and AcQGuide sheaths-to Medtronic. Acutus acts as an Original Equipment Manufacturer (OEM) and contract manufacturer under a Distribution Agreement, selling the products at specified transfer prices.

This is the exclusive source of revenue from the left-heart access product line, and it is crucial for covering their streamlined operating expenses, which were reduced to $1.1 million in 2024 from $8.6 million in 2023.

Contingent net sales earnout payments from Medtronic through January 2027.

The biggest potential upside lies in the contingent earnout payments, which are tied directly to Medtronic's future net end-user sales of the acquired products. This revenue stream is a direct result of the June 2022 asset sale and provides a clear incentive for Acutus to maintain high-quality production.

The earnout period extends for a total of four years, with the final eligibility period running until January 2027.

Here's the quick math on the earnout structure:

• Year 1 (starting Jan 2023): 100% of Medtronic's net sales.
• Year 2: 75% of Medtronic's net sales.
• Years 3 and 4: 50% of Medtronic's net sales.

The annual measurement period for these net sales earnouts begins in February of each year, and payments are made to Acutus quarterly in arrears. This is a high-stakes, high-reward component of the revenue model.

Revenue from Continuing Operations reached $20.2 million in 2024.

The company's latest reported full-year financial data confirms a strong growth trajectory in its continuing operations, which now exclusively reflect the Medtronic partnership. In 2024, Revenue from Continuing Operations was a substantial $20.2 million.

This figure represents a massive 181% increase year-over-year compared to the $7.2 million reported in 2023. That's a huge jump, and it shows the leverage of the new focused model.

The table below breaks down the latest full-year revenue data:

Fee-bearing transition services revenue, if applicable.

A minor, but still relevant, revenue stream is the income generated from providing fee-bearing transition services to Medtronic. This encompasses various support and service activities as the left-heart access assets are fully integrated into Medtronic's operations.

While the company has not provided a specific 2024 figure for this line item, it was reported under Service/Other revenue as $849 thousand for the full year 2023. This revenue stream is expected to diminish over time as the transition is completed, but it remains a contractual component of their current revenue mix.

Next step: Finance: Draft a sensitivity analysis modeling the 50% earnout phase (Years 3 and 4) to quantify the remaining revenue opportunity through January 2027.