Obalon Announces Second Quarter 2019 Financial Results
July 24 2019 - 7:45AM
Obalon Therapeutics, Inc. (NASDAQ:OBLN), a vertically integrated
medical technology company with the first and only FDA-approved
swallowable, gas-filled intragastric balloon system for the
treatment of obesity, today announced its financial results
for the second quarter ended June 30, 2019.
Second Quarter 2019 highlights:
- Further streamlined operations and spend to support new
commercial strategy
- Promoted William Plovanic to President and Chief Financial
Officer
- Appointed Robert MacDonald as Chief Retail Officer to create
network of Obalon-branded retail outlets
- Signed store lease to begin the development of Obalon's first
Company-owned retail weight loss center targeted to open in Fall
2019
- Raised $8.8 million in equity capital
- Reduced debt by $15 million
"We worked throughout the second quarter to restructure the
organization, making key leadership changes, significantly reducing
expenses, and improving our balance sheet in preparation of the
roll out of our new business model later this fall,” said William
J. Plovanic, Obalon’s President and Chief Financial Officer. “There
continues to be significant patient interest in our proprietary and
patented FDA-approved weight loss solution, and our strategy to
create a network of retail centers dedicated to treatment with the
Obalon Balloon System is intended make this safe and effective
technology available to obese individuals who are frustrated with
not being able to lose weight with diet and exercise-alone and who
are not interested in surgery. I look forward to providing more
detail on the Obalon retail center strategy on our earnings call
today.”
Revenues for the second quarter of 2019 was $0.4 million,
compared to $2.7 million for the second quarter of 2018, as the
Company restructured its operations, eliminating its direct field
sales force in advance of a transition to its new strategy and
business model. Obalon intends to create a network of Company-owned
retail weight loss centers dedicated to delivering the Obalon
Balloon System. Net loss for the second quarter of 2019 was $6.8
million, compared to $9.8 million for the second quarter of 2018.
Net loss per share for the second quarter of 2019 was $0.25,
compared to $0.57 for the second quarter of 2018.
Cost of revenue was $0.7 million for the second quarter of 2019,
down from $1.7 million for the second quarter of 2018. Gross
deficit for the second quarter of 2019 was $0.3 million, compared
to a gross profit of $1.0 million for the second quarter of
2018.
Research and Development expense for the second quarter of 2019
totaled $1.8 million, down from $3.4 million for the second quarter
of 2018. Selling, General and Administrative expense decreased to
$4.3 million for the second quarter of 2019, compared to $7.3
million for the second quarter of 2018.
Operating loss for the second quarter of 2019 was $6.4 million,
down from a loss of $9.6 million for the second quarter of
2018.
As of June 30, 2019, the Company had cash and cash equivalents
of $13.5 million and $5.0 million of debt outstanding under its
loan and security agreement. The terms of the loan and security
agreement require the Company to maintain a cash balance in its
account with the lender in an amount equal to the amount of
outstanding indebtedness.
Call Information
A conference call to discuss second quarter 2019 financial
results is scheduled for today, July 24, 2019, at 8:30 AM Eastern
Time (5:30 AM Pacific Time). Interested parties may access the
conference call by dialing (844) 889-7791 (U.S.) or (661) 378-9934
(international) using passcode 1787979. Media and individuals will
be in a listen-only mode. Participants are asked to dial in a few
minutes prior to the call to register for the event. The conference
call will also be webcast live
at: http://edge.media-server.com/mmc/p/vvo9cozg.
An archive of the webcast will be available for twelve months
following the event on the Obalon Therapeutics, Inc. website
located at http://investor.obalon.com in the “News &
Events” section.
About Obalon Therapeutics, Inc. Obalon
Therapeutics, Inc. (NASDAQ:OBLN) is a San Diego-based company
focused on developing and commercializing novel technologies for
weight loss. For more information, please
visit http://www.obalon.com.
For Obalon Therapeutics, Inc.
Investor Contact: William Plovanic President and
Chief Financial Officer Obalon Therapeutics, Inc.
Office: +1 760 607 5103 wplovanic@obalon.com
OBALON THERAPEUTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS(in thousands, except
shares and per share data)
| |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
| |
2019 |
|
2018 |
|
2019 |
|
2018 |
| |
|
|
|
|
|
|
|
| |
(Unaudited) |
| Revenue |
$ |
386 |
|
|
$ |
2,732 |
|
|
$ |
2,161 |
|
|
$ |
4,078 |
|
| Cost of revenue |
679 |
|
|
1,732 |
|
|
1,911 |
|
|
2,501 |
|
| Gross (deficit) profit |
(293 |
) |
|
1,000 |
|
|
250 |
|
|
1,577 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
1,788 |
|
|
3,352 |
|
|
4,227 |
|
|
5,991 |
|
|
Selling, general and administrative |
4,332 |
|
|
7,250 |
|
|
10,536 |
|
|
17,256 |
|
|
Total operating expenses |
6,120 |
|
|
10,602 |
|
|
14,763 |
|
|
23,247 |
|
| Loss from operations |
(6,413 |
) |
|
(9,602 |
) |
|
(14,513 |
) |
|
(21,670 |
) |
| Interest expense, net |
(295 |
) |
|
(57 |
) |
|
(485 |
) |
|
(94 |
) |
| Other expense, net |
(59 |
) |
|
(94 |
) |
|
(59 |
) |
|
(115 |
) |
|
Net loss |
(6,767 |
) |
|
(9,753 |
) |
|
(15,057 |
) |
|
(21,879 |
) |
| Other comprehensive income |
— |
|
|
— |
|
|
— |
|
|
6 |
|
| Net loss and comprehensive
loss |
$ |
(6,767 |
) |
|
$ |
(9,753 |
) |
|
$ |
(15,057 |
) |
|
$ |
(21,873 |
) |
| Net loss per share, basic and
diluted |
$ |
(0.25 |
) |
|
$ |
(0.57 |
) |
|
$ |
(0.60 |
) |
|
$ |
(1.29 |
) |
| Weighted-average common shares
outstanding, basic and diluted |
26,877,568 |
|
|
17,039,876 |
|
|
25,005,475 |
|
|
17,013,529 |
|
OBALON THERAPEUTICS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands, except shares and par value data)
| |
June 30, 2019 |
|
December 31, 2018 |
| Assets |
(Unaudited) |
| Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
13,513 |
|
|
$ |
21,187 |
|
|
Short-term investments |
— |
|
|
2,548 |
|
|
Accounts receivable, net of allowance of $900 and $665,
respectively |
447 |
|
|
870 |
|
|
Inventory |
2,107 |
|
|
1,580 |
|
|
Other current assets |
954 |
|
|
2,462 |
|
|
Total current assets |
17,021 |
|
|
28,647 |
|
| Property and equipment, net |
1,038 |
|
|
1,739 |
|
| Lease right-of-use assets |
1,140 |
|
|
— |
|
|
Total assets |
$ |
19,199 |
|
|
$ |
30,386 |
|
| Liabilities and
Stockholders’ Equity |
|
|
|
| Current
liabilities: |
|
|
|
|
Accounts payable |
$ |
1,082 |
|
|
$ |
1,159 |
|
|
Accrued compensation |
1,093 |
|
|
3,805 |
|
|
Deferred revenue |
320 |
|
|
352 |
|
|
Other current liabilities |
2,127 |
|
|
1,985 |
|
|
Current portion of lease liabilities |
468 |
|
|
— |
|
|
Current portion of long-term loan |
5,000 |
|
|
9,930 |
|
|
Total current liabilities |
10,090 |
|
|
17,231 |
|
|
Lease liabilities long-term |
722 |
|
|
— |
|
|
Other long-term liabilities |
— |
|
|
48 |
|
|
Total long-term liabilities |
722 |
|
|
48 |
|
|
Total liabilities |
10,812 |
|
|
17,279 |
|
| Commitments and
contingencies |
|
|
|
| Stockholders’
equity: |
|
|
|
|
Common stock, $0.001 par value; 100,000,000 shares authorized as of
June 30, 2019 and December 31, 2018; 35,582,614 and 23,513,292
shares issued and outstanding as of June 30, 2019 and December 31,
2018, respectively |
36 |
|
|
23 |
|
|
Additional paid-in capital |
172,162 |
|
|
161,838 |
|
|
Accumulated deficit |
(163,811 |
) |
|
(148,754 |
) |
|
Total stockholders’ equity |
8,387 |
|
|
13,107 |
|
|
Total liabilities and stockholders’ equity |
$ |
19,199 |
|
|
$ |
30,386 |
|
OBALON THERAPEUTICS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(in thousands)
| |
Six Months Ended June 30, |
| |
2019 |
|
2018 |
| |
(Unaudited) |
| Operating
activities: |
|
|
|
|
Net loss |
$ |
(15,057 |
) |
|
$ |
(21,879 |
) |
| Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
|
Depreciation |
256 |
|
|
276 |
|
|
Stock-based compensation |
1,641 |
|
|
2,603 |
|
|
Loss on disposal of fixed assets |
95 |
|
|
107 |
|
|
Amortization of right-of-use asset |
186 |
|
|
— |
|
|
Accretion of investment discount, net |
(2 |
) |
|
(7 |
) |
|
Amortization of debt discount |
70 |
|
|
22 |
|
|
Change in operating assets and liabilities: |
|
|
|
|
Accounts receivable, net |
423 |
|
|
1,174 |
|
|
Inventory |
(157 |
) |
|
(424 |
) |
|
Other current assets |
1,760 |
|
|
857 |
|
|
Accounts payable |
(191 |
) |
|
275 |
|
|
Accrued compensation |
(2,712 |
) |
|
(2,362 |
) |
|
Deferred revenue |
(32 |
) |
|
(208 |
) |
|
Lease liabilities, net |
(136 |
) |
|
— |
|
|
Other current and long term liabilities |
(142 |
) |
|
842 |
|
|
Net cash used in operating activities |
(13,998 |
) |
|
(18,724 |
) |
| Investing
activities: |
|
|
|
| Purchases of short-term
investments |
— |
|
|
(995 |
) |
| Maturities of short-term
investments |
2,550 |
|
|
23,301 |
|
| Purchase of property and
equipment |
(20 |
) |
|
(657 |
) |
|
Net cash provided by (used in) investing
activities |
2,530 |
|
|
21,649 |
|
| Financing
activities: |
|
|
|
| Proceeds from long-term loan |
10,000 |
|
|
— |
|
| Payment on long-term loan |
(15,000 |
) |
|
— |
|
| Proceeds from issuance of common
stock, net of issuance costs |
8,793 |
|
|
— |
|
| Proceeds from stock issued under
employee stock purchase plan |
— |
|
|
148 |
|
| Proceeds from sale of common
stock upon exercise of stock options |
1 |
|
|
31 |
|
|
Net cash provided by financing activities |
3,794 |
|
|
179 |
|
|
Net (decrease) increase in cash and cash
equivalents |
(7,674 |
) |
|
3,104 |
|
| Cash and cash equivalents at
beginning of period |
21,187 |
|
|
21,108 |
|
| Cash and cash equivalents at end
of period |
$ |
13,513 |
|
|
$ |
24,212 |
|
| Supplemental cash flow
information: |
|
|
|
| Interest paid |
$ |
563 |
|
|
$ |
307 |
|
| Unpaid issuance costs |
$ |
377 |
|
|
$ |
— |
|
| Property and equipment in
accounts payable |
$ |
— |
|
|
$ |
106 |
|
Obalon Therapeutics (NASDAQ:OBLN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Obalon Therapeutics (NASDAQ:OBLN)
Historical Stock Chart
From Apr 2023 to Apr 2024
