TearLab Corporation Reports Second Quarter and First Half 2018 Financial Results
SAN DIEGO, Aug. 09, 2018 (GLOBE NEWSWIRE) -- TearLab Corporation (OTCQB: TEAR) (“TearLab” or the “Company”) today reported its consolidated financial results for the second quarter ended June 30, 2018. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles except where noted otherwise.
Second Quarter and Recent Highlights
- Second quarter revenue of $6.4 million, holding revenue flat over the first quarter of 2018
- Income from operations of $0.5 million, compared to operating loss of $2.8 million in second quarter 2017
- Expanded the U.S. active device base to 4,761 TearLab Osmolarity Systems
- On track for resubmission and U.S. Food and Drug Administration (FDA) response to 510(k) filing of Tearlab Discovery™ Platform in back half of 2018
- Cash position of $6.4 million as of June 30, 2018
For the three months ended June 30, 2018, TearLab’s net revenues were $6.4 million, compared with $7 million for the same period in 2017. A net total of 107 TearLab Osmolarity® Systems were added in the second quarter of 2018, of which 38 were under the Company’s Flex program and 10 were purchased outside of the United States.
The following table sets out the estimated annualized revenue per U.S. device and account analysis for the second quarter ended June 30, 2018:
| Annualized | Annualized | |||||||||
| Active | Active | Revenue | Revenue | |||||||
| Program | Devices | Accounts | Per Device | Per Account | ||||||
| Purchased | 1,036 | 883 | $ | 2,598 | $ | 3,048 | ||||
| Masters | 1,711 | 210 | $ | 3,234 | $ | 26,348 | ||||
| Flex | 2,014 | 722 | $ | 7,241 | $ | 20,199 | ||||
| Total | 4,761 | 1,815 | ||||||||
The Company’s reported net loss for the second quarter was approximately $0.7 million, or ($0.06) basic loss per share. This compares to a reported net loss of approximately $3.9 million, or ($0.68) basic loss per share in the second quarter of 2017.
“We were pleased to maintain our revenue sequentially in the second quarter of 2018 despite the reduced resources under our new model, which speaks to the health of our current customer and revenue base,” said Seph Jensen, TearLab’s Chief Executive Officer. “We are laser-focused on addressing FDA’s comments for the clearance of the TearLab Discovery™ System in the U.S. We remain on track to submit our responses, with the potential for a clearance decision toward the end of the year.”
About TearLab Corporation
TearLab Corporation (www.tearlab.com) develops and markets lab-on-a-chip technologies that enable eye care practitioners to improve standard of care by objectively and quantitatively testing for disease markers in tears at the point-of-care. The TearLab Osmolarity Test, for diagnosing Dry Eye Disease, is the first assay developed for the award-winning TearLab Osmolarity System. TearLab Corporation's common shares trade on the OTCQB Market under the symbol 'TEAR'.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, the ability to achieve FDA clearance and the potential success in developing and commercializing the TearLab Discovery™ System and the TearLab Osmolarity System, the success in Brazil of commercializing the TearLab Osmolarity System, the future success of our new commercial model including the ability to lower costs, maintain our current customers and revenue levels and provide the needed resources to complete the development and generate meaningful clinical data of the TearLab Discovery™ System, the ability for the capital we raised to allow us to meet our business objectives and comply with our debt covenants and the ability to raise any future capital that may be needed to achieve our goals and objectives. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties. Many factors, risks and uncertainties may cause our actual results to differ materially from forward-looking statements, including the factors, risks, and uncertainties detailed in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 5, 2018, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, which was filed with SEC on May 11, 2018 and our Quarterly Report on Form 10Q for the quarter ended June 30, 2018, which we expect to file with the SEC on or about August 10, 2018. We do not undertake to update any forward-looking statements except as required by law.
CONTACT: Investor Contact:
The Ruth Group
Lee Roth
Tel: 646-536-7012
lroth@theruthgroup.com
TearLab Corp.
Condensed Consolidated Statements of Operations
(Expressed in U.S. Dollars (000's) except for number of shares and net loss per share)
(Unaudited)
| Three months | ||||||||
| June 30, | ||||||||
| 2018 | 2017 | |||||||
| Revenue | ||||||||
| Product sales | $ | 5,679 | $ | 6,229 | ||||
| Reader equipment rentals | 734 | 785 | ||||||
| Total revenue | 6,413 | 7,014 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 2,355 | 2,682 | ||||||
| Cost of goods sold - reader equipment depreciation | 265 | 446 | ||||||
| Gross profit | 3,793 | 3,886 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 959 | 3,304 | ||||||
| Clinical, regulatory and research & development | 996 | 1,110 | ||||||
| General and administrative | 1,340 | 2,309 | ||||||
| Total operating expenses | 3,295 | 6,723 | ||||||
| Gain (loss) from operations | 498 | (2,837 | ) | |||||
| Other income (expense) | (1,159 | ) | (1,057 | ) | ||||
| Net loss and comprehensive loss | $ | (661 | ) | $ | (3,894 | ) | ||
| Weighted average shares outstanding - basic and dilutive | 10,609,131 | 5,731,293 | ||||||
| Net loss per share – basic and dilutive | $ | (0.06 | ) | $ | (0.68 | ) | ||
TearLab Corp.
Condensed Consolidated Statements of Operations
(Expressed in U.S. Dollars (000's) except for number of shares and net loss per share)
(Unaudited)
| Six months | ||||||||
| June 30, | ||||||||
| 2018 | 2017 | |||||||
| Revenue | ||||||||
| Product sales | $ | 11,454 | $ | 12,357 | ||||
| Reader equipment rentals | 1,405 | 1,358 | ||||||
| Total revenue | 12,859 | 13,715 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 4,190 | 5,224 | ||||||
| Cost of goods sold - reader equipment depreciation | 553 | 912 | ||||||
| Gross profit | 8,116 | 7,579 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 1,978 | 6,636 | ||||||
| Clinical, regulatory and research & development | 2,038 | 2,675 | ||||||
| General and administrative | 3,385 | 4,496 | ||||||
| Total operating expenses | 7,401 | 13,807 | ||||||
| Gain (loss) from operations | 715 | (6,228 | ) | |||||
| Other income (expense) | (2,259 | ) | (2,087 | ) | ||||
| Net loss and comprehensive loss | $ | (1,544 | ) | $ | (8,315 | ) | ||
| Weighted average shares outstanding - basic and dilutive | 10,070,652 | 5,551,334 | ||||||
| Net loss per share – basic and dilutive | $ | (0.15 | ) | $ | (1.50 | ) | ||
TearLab Corp.
Consolidated Balance Sheets
(Expressed in U.S. Dollars (000's))
(Unaudited)
| June 30, | December 31, | |||||||
| 2018 |
2017 |
|||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 6,367 | $ | 7,272 | ||||
| Accounts receivable, net | 1,272 | 1,536 | ||||||
| Inventory | 1,855 | 1,998 | ||||||
| Prepaid expenses and other current assets | 448 | 690 | ||||||
| Total current assets | 9,942 | 11,496 | ||||||
| Fixed assets, net | 2,178 | 2,739 | ||||||
| Intangible assets, net | 5 | 10 | ||||||
| Other non-current assets | 180 | 100 | ||||||
| Total assets | $ | 12,305 | $ | 14,345 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 459 | $ | 1,720 | ||||
| Accrued liabilities | 2,306 | 2,859 | ||||||
| Deferred Rent | 21 | 42 | ||||||
| Current portion of long-term debt | 7,240 | - | ||||||
| Total current liabilities | 10,026 | 4,621 | ||||||
| Long-term debt, net of current portion | 22,311 | 28,290 | ||||||
| Total liabilities | 32,337 | 32,911 | ||||||
| Stockholders’ equity (deficit) | ||||||||
| Capital stock | ||||||||
| Preferred Stock, $0.001 par value, 10,000,000 authorized, 776 and 2,012 and issued and outstanding at June 30, 2018 and December 31, 2017, respectively | - | - | ||||||
| Common stock, $0.001 par value, 40,000,000 authorized, 10,796,998 and 7,986,998 issued and outstanding at June 30, 2018 and December 31, 2018, respectively | 11 | 8 | ||||||
| Additional paid-in capital | 510,310 | 510,235 | ||||||
| Accumulated deficit | (530,353 | ) | (528,809 | ) | ||||
| Total stockholders’ equity (deficit) | (20,032 | ) | (18,566 | ) | ||||
| Total liabilities and stockholders’ equity | $ | 12,305 | $ | 14,345 | ||||
