DexCom, Inc. Announces First Quarter 2005 Financial Results
Wednesday May 4, 5:00 am ET
SAN DIEGO—(BUSINESS WIRE)—May 4, 2005—DexCom, Inc. (NASDAQ:DXCM - News) today reported a net loss of $6.0 million for the three months ended March 31, 2005 compared to a net loss of $3.2 million for the three months ended March 31, 2004. Net loss attributable to common stockholders was $6.1 million for the three months ended March 31, 2005 compared to $4.0 million for the three months ended March 31, 2004. Included in the net loss attributable to common stockholders was accretion to redemption value of cumulative dividends earned on DexCom’s Series B and C redeemable convertible preferred stock, and financing costs on Series B, C, and D redeemable convertible preferred stock, of $107,000 and $809,000 for the three months ended March 31, 2005 and 2004, respectively. Upon the closing of DexCom’s initial public offering on April 19, 2005, all outstanding shares of preferred stock automatically converted into common stock.
Research and development expense increased $2.2 million to $5.0 million for the three months ended March 31, 2005, compared to $2.8 million for the three months ended March 31, 2004. The increase was primarily related to $1.0 million for the short-term sensor approval support trial and associated expense related to the filing of the pre-market approval (PMA) application with the FDA. DexCom also incurred an additional $0.6 million in material and labor expenses to produce our clinical trial product supplies and an additional $0.5 million in salary and other compensation expenses related to the addition of twenty-one employees. Selling, general and administrative expense increased $0.2 million to $0.5 million for the three months ended March 31, 2005, compared to $0.3 million for the three months ended March 31, 2004. The increase was primarily due to higher independent auditor fees and salary costs from increased headcount.
On April 19, 2005, DexCom closed the initial public offering of its common stock in which it sold 4,700,000 shares of common stock for gross proceeds of $56.4 million. After deduction of underwriting discounts and commissions, DexCom received proceeds of $52.5 million that excluded $1.9 million in estimated offering expenses payable by DexCom.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, CA, is a development stage medical device company focused on the design and development of continuous glucose monitoring systems for people with diabetes.
DexCom, Inc.
(a development stage company)
BALANCE SHEETS
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| December 31, |
| March 31, |
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| 2004 |
| 2005 |
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| (unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
| $ | 27,229,208 |
| $ | 4,644,151 |
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Short-term marketable securities, available-for-sale |
| — |
| 17,107,586 |
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Prepaid and other current assets |
| 43,781 |
| 158,052 |
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Total current assets |
| 27,272,989 |
| 21,909,789 |
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Property and equipment, net |
| 1,851,892 |
| 1,928,612 |
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Restricted cash |
| 200,000 |
| 200,000 |
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Deferred offering costs and other assets |
| 33,000 |
| 1,326,386 |
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Total assets |
| $ | 29,357,881 |
| $ | 25,364,787 |
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Liabilities, redeemable convertible preferred stock and stockholders’ deficit |
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Current liabilities: |
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Accounts payable and accrued liabilities |
| $ | 1,018,879 |
| $ | 1,202,846 |
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Accrued payroll and related expenses |
| 328,476 |
| 488,801 |
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Accrued clinical trials |
| 220,875 |
| 204,346 |
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Accrued deferred offering costs |
| — |
| 901,688 |
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Total current liabilities |
| 1,568,230 |
| 2,797,681 |
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Deferred rent |
| 125,241 |
| 133,026 |
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Commitments and contingencies |
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Redeemable convertible Series B preferred stock, $0.001 par value, 11,304,114 shares authorized, issued, and outstanding at December 31, 2004 and March 31, 2005 (unaudited), respectively; liquidation preference and redemption value of $20,914,724 at December 31, 2004 and March 31, 2005 (unaudited). |
| 20,878,086 |
| 20,881,226 |
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Redeemable convertible Series C preferred stock, $0.001 par value, 13,043,478 shares authorized, 12,790,870 shares issued and outstanding December 31, 2004 and March 31, 2005 (unaudited); liquidation preference and redemption value of $34,807,928 at December 31, 2004 and March 31, 2005 (unaudited). |
| 34,740,360 |
| 34,746,153 |
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Redeemable convertible Series D preferred stock, $0.001 par value, 8,700,000 shares authorized, 8,355,886 shares issued and outstanding at December 31, 2004 and March 31, 2005 (unaudited); liquidation preference and redemption value of $22,499,894 at December 31, 2004 and March 31, 2005 (unaudited). |
| 21,355,894 |
| 21,453,951 |
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Stockholders’ deficit: |
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Convertible Series A preferred stock, $0.001 par value, 3,000,000 shares authorized,issued and outstanding at December 31, 2004 and March 31, 2005 (unaudited); liquidation preference of $3,000,000 at December 31, 2004 and March 31, 2005 (unaudited). |
| 3,000 |
| 3,000 |
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Common stock, $0.001 par value, 50,000,000 shares authorized at December 31, 2004 and March 31, 2005 (unaudited); 2,323,300 and 2,856,103 shares issued and outstanding at December 31, 2004 and March 31, 2005 (unaudited), respectively. |
| 2,323 |
| 2,766 |
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Additional paid-in capital |
| 6,218,012 |
| 6,546,817 |
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Deferred stock-based compensation |
| (2,648,336 | ) | (2,213,345 | ) | ||
Deficit accumulated during the development stage |
| (52,884,929 | ) | (58,977,854 | ) | ||
Accumulated and other comprehensive income (loss) |
| — |
| (8,634 | ) | ||
Total stockholders’ deficit |
| (49,309,930 | ) | (54,647,250 | ) | ||
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit |
| $ | 29,357,881 |
| $ | 25,364,787 |
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DexCom, Inc.
(a development stage company)
STATEMENTS OF OPERATIONS
(unaudited)
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| Three Months Ended |
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|
| 2004 |
| 2005 |
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Costs and expenses: |
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Research and development |
| $ | 2,834,101 |
| $ | 5,004,277 |
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Selling, general and administrative |
| 315,751 |
| 531,675 |
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Stock-based compensation: |
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Research and development |
| 18,681 |
| 430,800 |
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Selling, general and administrative |
| 27,971 |
| 154,920 |
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Total costs and expenses |
| 3,196,504 |
| 6,121,672 |
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Interest and other income |
| 40,384 |
| 135,737 |
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Net loss |
| (3,156,120 | ) | (5,985,935 | ) | ||
Accretion to redemption value and financing costs of Series B, Series C, and Series D redeemable convertible preferred stock |
| (808,628 | ) | (106,990 | ) | ||
Net loss attributable to common stockholders |
| $ | (3,964,748 | ) | $ | (6,092,925 | ) |
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Basic and diluted net loss per share attributable to common stockholders |
| $ | (1.76 | ) | $ | (2.36 | ) |
Shares used to compute basic and diluted net loss per share attributable to common stockholders |
| 2,255,306 |
| 2,577,644 |
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Contact:
DexCom, Inc.
Steve Kemper (CFO), 858-200-0200
Source: DexCom, Inc.
