SAN DIEGO, Aug. 6, 2015 (GLOBE NEWSWIRE) -- TearLab Corporation (NASDAQ:TEAR) (TSX:TLB) (“TearLab” or the “Company”) today reported its consolidated financial results for the second quarter ended June 30, 2015. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles.
For the three months ended June 30, 2015, TearLab’s net revenues were $6.3 million, up 27% from $5.0 million for the same period in 2014. A total of 394 orders for TearLab systems were booked in the second quarter, of which 303 were under the Company’s new Flex program and 28 were purchased outside of the U.S.
“We had a strong Q2, characterized by the continuing growth of our installed base and accelerating performance of our Flex program. Our results also confirm the increasing clinical value of osmolarity testing in the management of dry eye disease,” commented Elias Vamvakas, TearLab’s Chief Executive Officer.
The following table sets out the annualized revenue per U.S. device and account analysis for the second quarter ended June 30, 2015:
| Active | Active | Annualized Revenues | Annualized Revenues | |
| Program | Devices | Accounts | Per Device | Per Account |
| Purchased | 267 | 228 | $ 1,506 | $ 1,763 |
| Use | 510 | 516 | $ 8,930 | $ 8,826 |
| Masters | 1,764 | 244 | $ 4,788 | $ 34,615 |
| Flex | 1,093 | 510 | $ 8,678 | $ 18,599 |
| Total: | 3,634 | 1,498 |
The Company’s net loss for the three months ended June 30, 2015 was approximately $8.1 million, or $0.24 per share on a non-diluted basis. The Company’s net loss for the three months ended June 30, 2014 was $5.4 million, or $0.16 per share on a non-diluted basis. This included approximately $0.4 million in non-cash income related to the revaluation of warrants issued in June 2011.
TearLab also announced today that the March 2015 term loan agreement with CRG, under which the Company secured up to $35 million of available borrowing capacity, has been amended. In connection with this amendment, TearLab now has the option of accessing a second tranche of $10 million in funding through November 2015, which is not subject to any revenue milestones. As consideration, TearLab has agreed to grant CRG five year warrants allowing it to purchase up to 350,000 common shares of TearLab at an exercise price of $5.00 per share. All other terms and conditions from the original agreement remain in place.
Mr. Vamvakas also noted, “We are very pleased to amend our loan agreement with CRG, an important strategic financial partner for our company. Their flexible funding solutions provide us certainty on our near-term financing and additional runaway to allow us to focus on growing our revenue base.”
Conference Call and Webcast Information
TearLab will hold a conference call to discuss these results today, August 6, 2015, at 4:30 pm Eastern Time at 877-303-1593. The call will also be broadcast live and archived on TearLab’s website at www.tearlab.com under the “webcasts” link in the Investor Relations section. For those wishing to listen to a recording of the call via telephone, a replay will be made available as soon as possible after the conclusion of the live call and will remain posted for a period of seven days. To listen to the recording, simply telephone (Toll free) 855-859-2056 or (Toll) 404-537-3406 and enter reservation #90115347 when prompted.
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 NASDAQ Capital Market under the symbol ‘TEAR’ and on the Toronto Stock Exchange under the symbol ‘TLB’.
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, statements concerning our future financial performance, opportunities associated with new program offerings, accessing future capital and plans with respect to our marketing strategy. 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 and Canadian securities regulatory authorities, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 13, 2015, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, which TearLab expects to file with the SEC in August 2015. We do not undertake to update any forward-looking statements.
| TearLab Corp. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||
| COMPREHENSIVE LOSS | ||
| (expressed in U.S. dollars 000’s except number of shares and loss per share) | ||
| (Unaudited) | ||
| Three months ended | ||
| June 30, | ||
| 2015 | 2014 | |
| Product sales | $ 4,920 | $ 4,058 |
| Reader equipment rentals | 1,425 | 941 |
| Revenue | 6,345 | 4,999 |
| Costs and operating expenses | ||
| Cost of goods sold (excluding amortization of intangible assets) | 2,812 | 2,128 |
| Cost of goods sold – reader equipment depreciation | 404 | 337 |
| General and administrative | 3,673 | 3,591 |
| Clinical, regulatory and research & development | 1,711 | 608 |
| Sales and marketing | 5,065 | 3,825 |
| Amortization of intangible assets | 382 | 395 |
| Total operating expenses | 14,047 | 10,884 |
| Loss from operations | (7,702 ) | (5,885) |
| Other income (expense) | (370 ) | 446 |
| Net loss and comprehensive loss | $ (8,072 ) | $ (5,439) |
| Weighted average shares outstanding - basic | 33,658,153 | 33,584,980 |
| Loss per share – basic | $ (0.24 ) | $ (0.16) |
| Weighted average shares outstanding - diluted | 33,703,584 | 33,720,896 |
| Loss per share – diluted | $ (0.24 ) | $ (0.17) |
| TearLab Corp. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND | ||
| COMPREHENSIVE LOSS | ||
| (expressed in U.S. dollars 000’s except number of shares and loss per share) | ||
| (Unaudited) | ||
| Six months ended | ||
| June 30, | ||
| 2015 | 2014 | |
| Product sales | $ 9,011 | $ 7,510 |
| Reader equipment rentals | 2,741 | 1,699 |
| Revenue | 11,752 | 9,209 |
| Costs and operating expenses | ||
| Cost of goods sold (excluding amortization of intangible assets) | 5,246 | 4,055 |
| Cost of goods sold – reader equipment depreciation | 749 | 609 |
| General and administrative | 7,309 | 6,718 |
| Clinical, regulatory and research & development | 3,115 | 1,183 |
| Sales and marketing | 10,343 | 7,753 |
| Amortization of intangible assets | 764 | 698 |
| Total operating expenses | 27,526 | 21,016 |
| Loss from operations | (15,774 ) | (11,807) |
| Other income (expense) | (466 ) | 810 |
| Net loss and comprehensive loss | $ (16,240 ) | $ (10,997) |
| Weighted average shares outstanding - basic | 33,650,479 | 33,567,787 |
| Loss per share – basic | $ (0.48 ) | $ (0.33) |
| Weighted average shares outstanding - diluted | 33,697,938 | 33,729,222 |
| Loss per share – diluted | $ (0.49 ) | $ (0.35) |
| TearLab Corp. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (expressed in U.S. dollars 000’s except number of shares) | ||
| (Unaudited) | ||
| June 30, 2015 | December 31, 2014 | |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $ 15,891 | $ 16,338 |
| Accounts receivable, net | 2,231 | 2,480 |
| Inventory, net | 3,753 | 2,986 |
| Prepaid expenses and other current assets | 842 | 890 |
| Total current assets | 22,717 | 22,694 |
| Fixed assets, net | 5,062 | 4,504 |
| Patents and trademarks, net | 66 | 80 |
| Intangible assets, net | 2,833 | 3,596 |
| Other non-current assets | 183 | 157 |
| Total assets | $ 30,861 | $ 31,031 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | |
| Current liabilities | ||
| Accounts payable | $ 1,893 | $ 2,202 |
| Accrued liabilities | 3,140 | 3,765 |
| Deferred rent and revenue | 132 | 174 |
| Obligations under warrants | 139 | 256 |
| Total current liabilities | 5,304 | 6,397 |
| Long-term debt | 14,796 | — |
| Total liabilities | 20,100 | 6,397 |
| Exchange right | 250 | 250 |
| Stockholders’ equity | ||
| Capital stock | ||
| Preferred Stock, $0.001 par value, 10,000,000, authorized none outstanding | — | — |
| Common stock, $0.001 par value, 65,000,000 authorized, 33,712,364 issued and outstanding at June 30, 2015 and 65,000,000 authorized, 33,641,302 issued and outstanding at December 31, 2014 | 34 | 34 |
| Additional paid-in capital | 486,276 | 483,909 |
| Accumulated deficit | (475,799 ) | (459,559) |
| Total stockholders’ equity | 10,511 | 24,384 |
| Total liabilities and stockholders’ equity | $ 30,861 | $ 31,031 |
CONTACT: Investors: Stephen Kilmer (905) 906-6908 skilmer@tearlab.com
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