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TearLab Corporation Reports Second Quarter and First Half 2018 Financial Results

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SAN DIEGO, Aug. 09, 2018 (GLOBE NEWSWIRE) -- TearLab Corporation (OTCQB:TEAR) ("TearLab" or the "Company") today reported its consolidated financial results for the second quarter ended June 30, 2018. 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.

Second Quarter and Recent Highlights

  • Second quarter revenue of $6.4 million, holding revenue flat over the first quarter of 2018
  • Income from operations of $0.5 million, compared to operating loss of $2.8 million in second quarter 2017
  • Expanded the U.S. active device base to 4,761 TearLab Osmolarity Systems
  • On track for resubmission and U.S. Food and Drug Administration (FDA) response to 510(k) filing of Tearlab Discovery™ Platform in back half of 2018
  • Cash position of $6.4 million as of June 30, 2018

For the three months ended June 30, 2018, TearLab's net revenues were $6.4 million, compared with $7 million for the same period in 2017. A net total of 107 TearLab Osmolarity® Systems were added in the second quarter of 2018, of which 38 were under the Company's Flex program and 10 were purchased outside of the United States.

The following table sets out the estimated annualized revenue per U.S. device and account analysis for the second quarter ended June 30, 2018:

                 
            Annualized   Annualized
    Active   Active   Revenue   Revenue
Program   Devices   Accounts   Per Device   Per Account
Purchased   1,036   883   $ 2,598   $ 3,048
Masters   1,711   210   $ 3,234   $ 26,348
Flex   2,014   722   $ 7,241   $ 20,199
Total     4,761     1,815        
                 

The Company's reported net loss for the second quarter was approximately $0.7 million, or ($0.06) basic loss per share.  This compares to a reported net loss of approximately $3.9 million, or ($0.68) basic loss per share in the second quarter of 2017. 

"We were pleased to maintain our revenue sequentially in the second quarter of 2018 despite the reduced resources under our new model, which speaks to the health of our current customer and revenue base," said Seph Jensen, TearLab's Chief Executive Officer.  "We are laser-focused on addressing FDA's comments for the clearance of the TearLab Discovery™ System in the U.S.  We remain on track to submit our responses, with the potential for a clearance decision toward the end of the year."     

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 achieve FDA clearance and the potential success in developing and commercializing the TearLab Discovery™ System and the TearLab Osmolarity System, the success in Brazil of commercializing the TearLab Osmolarity System, the future success of our new commercial model including the ability to lower costs, maintain our current customers and revenue levels and provide the needed resources to complete the development and generate meaningful clinical data of the TearLab Discovery™ System, the ability for the capital we raised to allow us to meet our business objectives and comply with our debt covenants and the ability to raise any future capital that may be needed to achieve our goals and objectives. 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, 2017, filed with the SEC on March 5, 2018, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, which was filed with SEC on May 11, 2018 and our Quarterly Report on Form 10Q for the quarter ended June 30, 2018, which we expect to file with the SEC on or about August 10, 2018. We do not undertake to update any forward-looking statements except as required by law.

CONTACT: Investor Contact: 
The Ruth Group 
Lee Roth 
Tel: 646-536-7012 
lroth@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,
    2018   2017
Revenue        
Product sales   $ 5,679     $ 6,229  
Reader equipment rentals     734       785  
Total revenue     6,413       7,014  
Cost of goods sold        
Cost of goods sold  (excluding amortization of intangible assets)     2,355       2,682  
Cost of goods sold - reader equipment depreciation     265       446  
Gross profit     3,793       3,886  
Operating expenses        
Sales and marketing     959       3,304  
Clinical, regulatory and research & development     996       1,110  
General and administrative     1,340       2,309  
Total operating expenses     3,295       6,723  
Gain (loss) from operations     498       (2,837 )
Other income (expense)     (1,159 )     (1,057 )
Net loss and comprehensive loss   $ (661 )   $ (3,894 )
Weighted average shares outstanding  - basic and dilutive     10,609,131       5,731,293  
Net loss per share  – basic and dilutive   $ (0.06 )   $ (0.68 )
                 

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,
    2018   2017
Revenue        
Product sales   $ 11,454     $ 12,357  
Reader equipment rentals     1,405       1,358  
Total revenue     12,859       13,715  
Cost of goods sold        
Cost of goods sold  (excluding amortization of intangible assets)     4,190       5,224  
Cost of goods sold - reader equipment depreciation     553       912  
Gross profit     8,116       7,579  
Operating expenses        
Sales and marketing     1,978       6,636  
Clinical, regulatory and research & development     2,038       2,675  
General and administrative     3,385       4,496  
Total operating expenses     7,401       13,807  
Gain (loss) from operations     715       (6,228 )
Other income (expense)     (2,259 )     (2,087 )
Net loss and comprehensive loss   $ (1,544 )   $ (8,315 )
Weighted average shares outstanding  - basic and dilutive     10,070,652       5,551,334  
Net loss per share  – basic and dilutive   $ (0.15 )   $ (1.50 )
                 

TearLab Corp.
Consolidated Balance Sheets
(Expressed in U.S. Dollars (000's))
(Unaudited)

    June 30,   December 31,
    2018
  2017
ASSETS        
Current assets        
Cash   $ 6,367     $ 7,272  
Accounts receivable, net     1,272       1,536  
Inventory     1,855       1,998  
Prepaid expenses and other current assets     448       690  
Total current assets     9,942       11,496  
         
Fixed assets, net     2,178       2,739  
Intangible assets, net     5       10  
Other non-current assets     180       100  
Total assets   $ 12,305     $ 14,345  
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities        
Accounts payable   $ 459     $ 1,720  
Accrued liabilities     2,306       2,859  
Deferred Rent     21       42  
Current portion of long-term debt     7,240       -  
Total current liabilities     10,026       4,621  
         
Long-term debt, net of current portion     22,311       28,290  
         
Total liabilities     32,337       32,911  
         
         
Stockholders' equity (deficit)        
Capital stock        
Preferred Stock, $0.001 par value, 10,000,000 authorized, 776 and 2,012 and  issued and outstanding at June 30, 2018 and December 31, 2017, respectively     -       -  
Common stock, $0.001 par value, 40,000,000 authorized, 10,796,998 and 7,986,998 issued and outstanding at June 30, 2018 and December 31, 2018, respectively     11       8  
Additional paid-in capital     510,310       510,235  
Accumulated deficit      (530,353 )     (528,809 )
Total stockholders' equity (deficit)       (20,032 )     (18,566 )
Total liabilities and stockholders' equity   $   12,305     $ 14,345  

 

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