TearLab Corporation Reports First Quarter 2019 Financial Results
ESCONDIDO, Calif., May 9, 2019 — TearLab Corporation (OTCQB: TEAR) (“TearLab” or the “Company”) today reported its consolidated financial results for the first quarter ended March 31, 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
| | - | First quarter revenue of $5.7 million |
| | - | Cash position of $8.9 million as of March 31, 2019, an increase from $8.5 million as of December 31, 2018 |
| | - | May, 2019 annual meeting of American Society of Cataract and Refractive Surgery (ASCRS) introduced the ASCRS ‘Algorithm for Preoperative Diagnosis and Treatment of Ocular Surface Disease’ – which includes osmolarity testing as part of the ‘essential screening battery’ of pre-operative diagnostic tests |
For the three months ended March 31, 2019, TearLab’s net revenues were $5.7 million, down 10.9% 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 first quarter ended March 31, 2019;
| | | | | | | | | Annualized | | | Annualized | |
| | | Active | | | Active | | | Revenue | | | Revenue | |
| Program | | Devices | | | Accounts | | | Per Device | | | Per Account | |
| Purchased | | | 1,169 | | | | 981 | | | $ | 2,162 | | | $ | 2,576 | |
| Masters | | | 1,740 | | | | 210 | | | $ | 2,758 | | | $ | 22,849 | |
| Flex | | | 1,888 | | | | 634 | | | $ | 6,881 | | | $ | 20,492 | |
| Total | | | 4,797 | | | | 1,825 | | | | | | | | | |
The Company’s reported net loss for the 2019 first quarter was approximately $1.3 million, or ($0.12) basic loss per share, compared to a reported net loss of approximately $0.9 million, or ($0.09) basic loss per share in the first quarter of 2018.
“We were pleased to report another quarter of positive cash flows and operating income, which demonstrates the stability of our current business. We are also excited about the impact of this week’s release by ASCRS for their Algorithm for Preoperative Diagnosis and Treatment Ocular Surface Disease. We believe the increased interest and activity in the dry eye space creates continued growth opportunities for our current generation TearLab Osmolarity System. In addition, we continue to work diligently to complete the resubmission of our 510(k) application for FDA clearance of the next generation Discovery™ platform” said Seph Jensen, TearLab’s Chief Executive Officer.
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 | |
| | | ended December 31, | |
| | | 2019 | | | 2018 | |
| Revenue | | | | | | | | |
| Product sales | | $ | 4,996 | | | $ | 5,775 | |
| Reader equipment rentals | | | 687 | | | | 671 | |
| Total revenue | | | 5,683 | | | | 6,446 | |
| Cost of goods sold | | | | | | | | |
| Cost of goods sold (excluding amortization of intangible assets) | | | 1,930 | | | | 1,836 | |
| Cost of goods sold - reader equipment depreciation | | | 153 | | | | 288 | |
| Gross profit | | | 3,600 | | | | 4,322 | |
| Operating expenses | | | | | | | | |
| Sales and marketing | | | 875 | | | | 1,020 | |
| Clinical, regulatory and research & development | | | 874 | | | | 1,041 | |
| General and administrative | | | 1,844 | | | | 2,044 | |
| Total operating expenses | | | 3,593 | | | | 4,105 | |
| Income from operations | | | 7 | | | | 217 | |
| Other income (expense) | | | (1,346 | ) | | | (1,100 | ) |
| Net loss and comprehensive loss | | $ | (1,339 | ) | | $ | (883 | ) |
| Weighted average shares outstanding | | | 11,559,220 | | | | 9,526,122 | |
| Net loss per share | | $ | (0.12 | ) | | $ | (0.09 | ) |
TearLab Corp.
CondensedConsolidated Balance Sheets
(Expressed in U.S. Dollars (000’s)
| | | March 31, 2019 | | | December 31, 2018 | |
| | | | | | | |
| ASSETS | | | | | | | | |
| Current assets | | | | | | | | |
| Cash | | $ | 8,860 | | | $ | 8,473 | |
| Accounts receivable, net | | | 1,098 | | | | 1,186 | |
| Inventory | | | 2,207 | | | | 1,987 | |
| Prepaid expenses and other current assets | | | 632 | | | | 690 | |
| Total current assets | | | 12,797 | | | | 12,336 | |
| | | | | | | | | |
| Fixed assets, net | | | 1,797 | | | | 2,024 | |
| Right of Use assets | | | 738 | | | | | |
| Intangible assets, net | | | 2 | | | | 2 | |
| Other non-current assets | | | 150 | | | | 151 | |
| Total assets | | $ | 15,484 | | | $ | 14,513 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | |
| Current liabilities | | | | | | | | |
| Accounts payable | | $ | 1,319 | | | $ | 681 | |
| Accrued liabilities | | | 1,920 | | | | 2,363 | |
| Deferred revenue/rent | | | 7 | | | | 13 | |
| Current portion of lease liability | | | 221 | | | | - | |
| Current portion of long-term debt | | | 7,981 | | | | - | |
| Total current liabilities | | | 11,448 | | | | 3,057 | |
| | | | | | | | | |
| Long-term debt, net of current portion | | | 25,381 | | | | 32,014 | |
| Long-term 3rd party payable | | | 113 | | | | 111 | |
| Long-term lease liability, net of current portion | | | 518 | | | | | |
| | | | | | | | | |
| Total liabilities | | | 37,460 | | | | 35,182 | |
| Commitments and contingencies (Note8) | | | | | | | | |
| | | | | | | | | |
| Stockholders’ deficit | | | | | | | | |
| Capital stock | | | | | | | | |
| Preferred Stock, $0.001 par value, 10,000,000 authorized, 380 and 556 and issued and outstanding at March 31, 2019 and December 31, 2018, respectively | | | - | | | | - | |
| Common stock, $0.001 par value, 40,000,000 authorized, 11,696,998 and 11,296,998 issued and outstanding at March 31, 2019 and December 31, 2018, respectively | | | 12 | | | | 11 | |
| Additional paid-in capital | | | 510,411 | | | | 510,380 | |
| Accumulated deficit | | | (532,399 | ) | | | (531,060 | ) |
| Total stockholders’ deficit | | | (21,976 | ) | | | (20,669 | ) |
| Total liabilities and stockholders’ deficit | | $ | 15,484 | | | $ | 14,513 | |
