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8-K - TearLab Corpform8-k.htm

 

TearLab Corporation Reports Second Quarter and First Half 2018 Financial Results

 

SAN DIEGO, Aug 9, 2018 — 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   1036    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