PRESS RELEASE
Obalon Announces Third Quarter 2020 Financial Results
Financial results for the third quarter of 2020
Revenue for the third quarter of 2020 was
Cost of revenue was
Research and Development expense for the third quarter of 2020 totaled
Operating loss for the third quarter of 2020 was
As of
About
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements that are not purely historical regarding Obalon’s or its management’s intentions, beliefs, expectations and strategies for the future, including those related to new products and their potential benefits. All forward-looking statements and reasons why results might differ included in this press release are made as of the date of this release, based on information currently available to Obalon, deal with future events, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in those forward looking statements. The risks and uncertainties that may cause actual results to differ materially from Obalon’s current expectations are more fully described in Obalon’s annual report on Form 10-K for the period ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except shares and per share data)
Three Months Ended |
Nine Months Ended |
||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
Revenue | $ | 44 | $ | 333 | $ | 1,527 | $ | 2,494 | |||||||
Cost of revenue | 41 | 412 | 1,005 | 2,323 | |||||||||||
Gross profit (deficit) | 3 | (79 | ) | 522 | 171 | ||||||||||
Operating expenses: | |||||||||||||||
Research and development | 271 | 1,174 | 2,293 | 5,401 | |||||||||||
Selling, general and administrative | 1,291 | 2,489 | 7,546 | 13,025 | |||||||||||
Asset impairment and other charges | — | — | 1,310 | — | |||||||||||
Total operating expenses | 1,562 | 3,663 | 11,149 | 18,426 | |||||||||||
Loss from operations | (1,559 | ) | (3,742 | ) | (10,627 | ) | (18,255 | ) | |||||||
Interest (expense) income, net | (1 | ) | 37 | 29 | (448 | ) | |||||||||
Other expense, net | — | (1 | ) | (411 | ) | (60 | ) | ||||||||
Net loss and comprehensive loss | $ | (1,560 | ) | $ | (3,706 | ) | $ | (11,009 | ) | $ | (18,763 | ) | |||
Net loss per share, basic and diluted | $ | (0.20 | ) | $ | (0.61 | ) | $ | (1.42 | ) | $ | (5.07 | ) | |||
Weighted-average common shares outstanding, basic and diluted | 7,728,639 | 6,061,248 | 7,727,494 | 3,700,538 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and par value data)
2020 |
2019 |
||||||
Assets | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 5,514 | $ | 14,055 | |||
Accounts receivable, net | — | 285 | |||||
Inventory | — | 1,936 | |||||
Other current assets | 3,517 | 1,959 | |||||
Total current assets | 9,031 | 18,235 | |||||
Property and equipment, net | 982 | 1,081 | |||||
Lease right-of-use assets | 646 | 1,077 | |||||
Other long-term assets | 1,303 | — | |||||
Total assets | $ | 11,962 | $ | 20,393 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 656 | $ | 648 | |||
Accrued compensation | 116 | 820 | |||||
Deferred revenue | 61 | 424 | |||||
Other current liabilities | 3,634 | 1,524 | |||||
Current portion of lease liabilities | 583 | 561 | |||||
Total current liabilities | 5,050 | 3,977 | |||||
Lease liabilities, long-term | 553 | 567 | |||||
Long-term debt | 430 | — | |||||
Other long-term liabilities | 7 | — | |||||
Total long-term liabilities | 990 | 567 | |||||
Total liabilities | 6,040 | 4,544 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock, |
8 | 8 | |||||
Additional paid-in capital | 189,353 | 188,271 | |||||
Accumulated deficit | (183,439 | ) | (172,430 | ) | |||
Total stockholders’ equity | 5,922 | 15,849 | |||||
Total liabilities and stockholders’ equity | $ | 11,962 | $ | 20,393 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Nine Months Ended |
|||||||
2020 | 2019 | ||||||
Operating activities: | |||||||
Net loss | $ | (11,009 | ) | $ | (18,763 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation | 260 | 361 | |||||
Stock-based compensation | 1,021 | 2,300 | |||||
Issuance of cash-settled options | 7 | — | |||||
Issuance of warrants for the purchase of common stock | 45 | — | |||||
Loss on disposal of fixed assets | — | 128 | |||||
Amortization of right-of-use assets | 378 | 301 | |||||
Accretion of investment discount, net | — | (2 | ) | ||||
Amortization of debt discount | — | 70 | |||||
Impairment of long-lived assets and other charges | 1,257 | — | |||||
Impairment of inventory | 53 | — | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable, net | 285 | 632 | |||||
Inventory | (524 | ) | (117 | ) | |||
Other long-term assets | (9 | ) | — | ||||
Other current assets | (1,389 | ) | 1,604 | ||||
Accounts payable | 8 | (724 | ) | ||||
Accrued compensation | (688 | ) | (3,097 | ) | |||
Deferred revenue | (363 | ) | (69 | ) | |||
Lease liabilities, net | (293 | ) | (248 | ) | |||
Other current and long term liabilities | 2,107 | (363 | ) | ||||
Net cash used in operating activities | (8,854 | ) | (17,987 | ) | |||
Investing activities: | |||||||
Maturities of short-term investments | — | 2,550 | |||||
Purchase of property and equipment | (117 | ) | (44 | ) | |||
Net cash (used in) provided by investing activities | (117 | ) | 2,506 | ||||
Financing activities: | |||||||
Proceeds from long-term loan | 430 | 10,000 | |||||
Payment on long-term loan | — | (20,000 | ) | ||||
Proceeds from issuance of common and warrants, net of paid issuance costs | — | 15,014 | |||||
Proceeds from issuance of common stock, net of issuance costs | — | 8,659 | |||||
Proceeds from sale of common stock upon exercise of stock options | — | 1 | |||||
Net cash provided by financing activities | 430 | 13,674 | |||||
Net decrease in cash and cash equivalents | (8,541 | ) | (1,807 | ) | |||
Cash and cash equivalents at beginning of period | 14,055 | 21,187 | |||||
Cash and cash equivalents at end of period | $ | 5,514 | $ | 19,380 | |||
Supplemental cash flow information: | |||||||
Interest paid | $ | — | $ | 700 | |||
Unpaid issuance costs | $ | — | $ | 295 |
ForObalon Therapeutics, Inc. Investor Contact:Andrew Rasdal President and Chief Executive OfficerObalon Therapeutics, Inc. Office: +1 844 362 2566 arasdal@obalon.com
Source: Obalon Therapeutics, Inc.