TearLab Corporation Reports Second Quarter and First Half 2019 Financial Results
ESCONDIDO, Calif., Aug. 08, 2019 (GLOBE NEWSWIRE) -- TearLab Corporation (OTCQB: TEAR) (“TearLab” or the “Company”) today reported its consolidated financial results for the second quarter ended June 30, 2019. 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.
Recent Highlights
- Grew quarterly revenue sequentially to $5.9 million, a $0.2 million increase compared to the first quarter of 2019
- Expanded the U.S. active device base to 4,811 TearLab Osmolarity Systems
- Cash position of $9.2 million as of June 30, 2019, an increase from $8.9 million as of March 31, 2019 and $8.5 million as of December 31, 2018
For the three months ended June 30, 2019, TearLab’s net revenues were $5.9 million, down 8.8% from $6.4 million for the same period in 2018.
The following table sets out the estimated annualized revenue per U.S. device and account analysis for the second quarter ended June 30, 2019.
| Annualized | Annualized | |||||||||
| Active | Active | Revenue | Revenue | |||||||
| Program | Devices | Accounts | Per Device | Per Account | ||||||
| Purchased | 1,216 | 1022 | $ | 2,469 | $ | 2,938 | ||||
| Masters | 1,762 | 209 | $ | 2,974 | $ | 25,069 | ||||
| Flex | 1,833 | 600 | $ | 6,744 | $ | 20,602 | ||||
| Total | 4,811 | 1,831 | ||||||||
The Company’s reported net loss for the 2019 second quarter was approximately $1.2 million, or ($0.10) basic loss per share, compared to a reported net loss of approximately $0.7 million, or ($0.06) basic loss per share in the second quarter of 2018.
Seph Jensen, TearLab’s Chief Executive Officer, commented, “We were pleased to deliver revenue growth over prior quarter, capitalizing on the current market momentum for osmolarity and growing our customer base. In the second quarter of 2019, we continued to strengthen our cash position and work diligently on the resubmission of our 510(k) application to secure FDA clearance of our next-generation TearLab Discovery™ System.”
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 capitalize on the current market momentum for osmolarity and to bring the Tearlab Discovery™ system to the U.S. market. 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, 2018. We do not undertake to update any forward-looking statements except as required by law.
CONTACT: Investor Contact:
The Ruth Group
Janhavi Mohite
Tel: 646-536-7026
jmohite@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, | ||||||||
| 2019 | 2018 | |||||||
| Revenue | ||||||||
| Product sales | $ | 5,157 | $ | 5,679 | ||||
| Reader equipment rentals | 694 | 734 | ||||||
| Total revenue | 5,851 | 6,413 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 2,041 | 2,355 | ||||||
| Cost of goods sold - reader equipment depreciation | 121 | 265 | ||||||
| Gross profit | 3,689 | 3,793 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 995 | 959 | ||||||
| Clinical, regulatory and research & development | 1,007 | 996 | ||||||
| General and administrative | 1,455 | 1,340 | ||||||
| Total operating expenses | 3,457 | 3,295 | ||||||
| Gain from operations | 232 | 498 | ||||||
| Other income (expense) | (1,406 | ) | (1,159 | ) | ||||
| Net loss and comprehensive loss | $ | (1,174 | ) | $ | (661 | ) | ||
| Weighted average shares outstanding - basic and dilutive | 12,041,442 | 10,609,131 | ||||||
| Net loss per share – basic and dilutive | $ | (0.10 | ) | $ | (0.06 | ) | ||
| 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, | ||||||||
| 2019 | 2018 | |||||||
| Revenue | ||||||||
| Product sales | $ | 10,153 | $ | 11,454 | ||||
| Reader equipment rentals | 1,381 | 1,405 | ||||||
| Total revenue | 11,534 | 12,859 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 3,971 | 4,190 | ||||||
| Cost of goods sold - reader equipment depreciation | 274 | 553 | ||||||
| Gross profit | 7,289 | 8,116 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 1,870 | 1,978 | ||||||
| Clinical, regulatory and research & development | 1,881 | 2,038 | ||||||
| General and administrative | 3,299 | 3,385 | ||||||
| Total operating expenses | 7,050 | 7,401 | ||||||
| Gain from operations | 239 | 715 | ||||||
| Other income (expense) | (2,752 | ) | (2,259 | ) | ||||
| Net loss and comprehensive loss | $ | (2,513 | ) | $ | (1,544 | ) | ||
| Weighted average shares outstanding - basic and dilutive | 11,800,331 | 10,070,652 | ||||||
| Net loss per share – basic and dilutive | $ | (0.21 | ) | $ | (0.15 | ) | ||
TearLab Corp.
Consolidated Balance Sheets
(Expressed in U.S. Dollars (000's)
| June 30, | December 31, | |||||||
| 2019 | 2018 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 9,173 | $ | 8,473 | ||||
| Accounts receivable, net | 1,123 | 1,186 | ||||||
| Inventory | 2,832 | 1,987 | ||||||
| Prepaid expenses and other current assets | 356 | 690 | ||||||
| Total current assets | 13,484 | 12,336 | ||||||
| Fixed assets, net | 1,626 | 2,024 | ||||||
| Intangible assets, net | 2 | 2 | ||||||
| Right of Use assets | 677 | - | ||||||
| Other non-current assets | 150 | 151 | ||||||
| Total assets | $ | 15,939 | $ | 14,513 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,425 | $ | 681 | ||||
| Accrued liabilities | 2,084 | 2,363 | ||||||
| Deferred Rent | 4 | 13 | ||||||
| Current portion of long-term debt | 16,486 | - | ||||||
| Current portion of lease liability | 182 | - | ||||||
| Total current liabilities | 20,181 | 3,057 | ||||||
| Long-term debt, net of current portion | 18,278 | 32,014 | ||||||
| Long-term lease liability, net of current portion | 493 | - | ||||||
| Long-term third party payable | 119 | 111 | ||||||
| Total liabilities | 39,071 | 35,182 | ||||||
| Stockholders’ equity (deficit) | ||||||||
| Capital stock | ||||||||
| Preferred Stock, $0.001 par value, 10,000,000 authorized, 160 and 556 and issued and outstanding at June 30, 2019 and December 31, 2018, respectively | - | - | ||||||
| Common stock, $0.001 par value, 40,000,000 authorized, 12,196,998 and 11,296,998 issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 12 | 11 | ||||||
| Additional paid-in capital | 510,429 | 510,380 | ||||||
| Accumulated deficit | (533,573 | ) | (531,060 | ) | ||||
| Total stockholders’ equity (deficit) | (23,132 | ) | (20,669 | ) | ||||
| Total liabilities and stockholders’ equity | $ | 15,939 | $ | 14,513 | ||||