Obalon Announces Second Quarter 2020 Financial Results
July 30 2020 - 6:38AM
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, 2020.
Financial results for the second quarter of
2020
Revenue for the second quarter of 2020 was $0.7 million,
compared to $0.4 million for the second quarter of 2019, primarily
due to reversals of revenue reserves as a result of suspending
business operations at the company-branded retail treatment
centers. Net loss for the second quarter of 2020 was $4.2 million,
compared to $6.8 million for the second quarter of 2019. Net loss
per share for the second quarter of 2020 was $0.54, compared to
$2.52 for the second quarter of 2019.
Cost of revenue was $0.4 million for the second quarter of 2020,
down from $0.7 million for the second quarter of 2019. Gross profit
for the second quarter of 2020 was $0.3 million, compared to a
gross deficit of $0.3 million for the second quarter of 2019.
Research and Development expense for the second quarter of 2020
totaled $0.8 million, down from $1.8 million for the second quarter
of 2019. Selling, General and Administrative expense decreased to
$2.4 million for the second quarter of 2020, compared to $4.3
million for the second quarter of 2019.
The Company recognized $1.3 million impairment expense and other
charges related to its inventory and long-lived assets during the
second quarter of 2020, as a result in the Company's shift in
business strategy away from the retail treatment centers to
reimbursement.
Operating loss for the second quarter of 2020 was $4.2 million,
down from a loss of $6.4 million for the second quarter of
2019.
As of June 30, 2020, the Company had cash and cash equivalents
of $6.8 million and $0.4 million of debt related to its Payroll
Protection Program loan. The Company intends to continue exploring
the potential for third-party reimbursement for the Obalon Balloon
System, as well as exploring and evaluating financial alternatives
to help meet its capital needs and strategic alternatives that
might enhance stockholder value. There is no assurance that
any financial or strategic alternative will be identified. If
the Company is not able to raise additional capital to meet its
needs or to identify a strategic alternative in the best interest
of stockholders, it will have to discontinue all operations and may
be required to declare bankruptcy or dissolve.
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.
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 December 31, 2019, periodic reports on Form 10-Q for the
period ended June 30, 2020 and March 31, 2020 and its other
reports, each as filed with the Securities and Exchange Commission.
Except as required by law, Obalon assumes no obligation to update
any such forward-looking statement after the date of this report or
to conform these forward-looking statements to actual results.
|
OBALON THERAPEUTICS, INC.CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS(unaudited)(in
thousands, except shares and per share data) |
| |
|
|
|
|
| |
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
| |
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
703 |
|
|
$ |
386 |
|
|
$ |
1,483 |
|
|
$ |
2,161 |
|
| Cost of revenue |
423 |
|
|
679 |
|
|
964 |
|
|
1,911 |
|
| Gross profit (deficit) |
280 |
|
|
(293 |
) |
|
519 |
|
|
250 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
765 |
|
|
1,788 |
|
|
2,022 |
|
|
4,227 |
|
|
Selling, general and administrative |
2,362 |
|
|
4,332 |
|
|
6,255 |
|
|
10,536 |
|
|
Asset impairment and other charges |
1,310 |
|
|
— |
|
|
1,310 |
|
|
— |
|
|
Total operating expenses |
4,437 |
|
|
6,120 |
|
|
9,587 |
|
|
14,763 |
|
| Loss from operations |
(4,157 |
) |
|
(6,413 |
) |
|
(9,068 |
) |
|
(14,513 |
) |
| Interest (expense) income,
net |
(5 |
) |
|
(295 |
) |
|
30 |
|
|
(485 |
) |
| Other expense, net |
(26 |
) |
|
(59 |
) |
|
(411 |
) |
|
(59 |
) |
| Net loss and comprehensive
loss |
$ |
(4,188 |
) |
|
$ |
(6,767 |
) |
|
$ |
(9,449 |
) |
|
$ |
(15,057 |
) |
| Net loss per share, basic and
diluted |
$ |
(0.54 |
) |
|
$ |
(2.52 |
) |
|
$ |
(1.22 |
) |
|
$ |
(6.02 |
) |
| Weighted-average common shares
outstanding, basic and diluted |
7,728,624 |
|
|
2,687,829 |
|
|
7,726,915 |
|
|
2,500,619 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
OBALON THERAPEUTICS, INC.CONDENSED
CONSOLIDATED BALANCE SHEETS(in thousands, except shares
and par value data) |
| |
June 30, 2020 |
|
December 31, 2019 |
| Assets |
(unaudited) |
|
|
| Current
assets: |
|
|
|
|
Cash and cash equivalents |
$ |
6,804 |
|
|
$ |
14,055 |
|
|
Accounts receivable, net |
— |
|
|
285 |
|
|
Inventory |
— |
|
|
1,936 |
|
|
Other current assets |
3,971 |
|
|
1,959 |
|
|
Total current assets |
10,775 |
|
|
18,235 |
|
|
Property and equipment, net |
1,055 |
|
|
1,081 |
|
|
Lease right-of-use assets |
748 |
|
|
1,077 |
|
|
Other long-term assets |
1,295 |
|
|
— |
|
|
Total assets |
$ |
13,873 |
|
|
$ |
20,393 |
|
| Liabilities and
Stockholders’ Equity |
|
|
|
| Current
liabilities: |
|
|
|
|
Accounts payable |
$ |
1,054 |
|
|
$ |
648 |
|
|
Accrued compensation |
240 |
|
|
820 |
|
|
Deferred revenue |
123 |
|
|
424 |
|
|
Other current liabilities |
3,603 |
|
|
1,524 |
|
|
Current portion of lease liabilities |
579 |
|
|
561 |
|
|
Total current liabilities |
5,599 |
|
|
3,977 |
|
|
Lease liabilities long-term |
666 |
|
|
567 |
|
|
Long-term debt |
430 |
|
|
— |
|
|
Total long-term liabilities |
1,096 |
|
|
567 |
|
|
Total liabilities |
6,695 |
|
|
4,544 |
|
| Commitments and
contingencies |
|
|
|
| Stockholders’
equity: |
|
|
|
|
Common stock, $0.001 par value; 100,000,000 shares authorized as of
June 30, 2020 and December 31, 2019; 7,731,633 and 7,724,100 shares
issued and outstanding as of June 30, 2020 and December 31, 2019,
respectively |
8 |
|
|
8 |
|
|
Additional paid-in capital |
189,049 |
|
|
188,271 |
|
|
Accumulated deficit |
(181,879 |
) |
|
(172,430 |
) |
|
Total stockholders’ equity |
7,178 |
|
|
15,849 |
|
|
Total liabilities and stockholders’ equity |
$ |
13,873 |
|
|
$ |
20,393 |
|
|
|
|
|
|
|
|
|
|
|
OBALON THERAPEUTICS, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH
FLOWS(unaudited)(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Operating activities: |
|
|
|
|
|
|
|
|
Net loss |
$ |
(9,449 |
) |
|
$ |
(15,057 |
) |
| Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
|
Depreciation |
187 |
|
|
256 |
|
|
Stock-based compensation |
762 |
|
|
1,641 |
|
|
Loss on disposal of fixed assets |
— |
|
|
95 |
|
|
Amortization of right-of-use assets |
239 |
|
|
186 |
|
|
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 |
|
|
423 |
|
|
Inventory |
(524 |
) |
|
(157 |
) |
|
Other current assets |
(1,845 |
) |
|
1,760 |
|
|
Accounts payable |
405 |
|
|
(191 |
) |
|
Accrued compensation |
(564 |
) |
|
(2,712 |
) |
|
Deferred revenue |
(302 |
) |
|
(32 |
) |
|
Lease liabilities, net |
(147 |
) |
|
(136 |
) |
|
Other current and long term liabilities |
2,079 |
|
|
(142 |
) |
|
Net cash used in operating activities |
(7,564 |
) |
|
(13,998 |
) |
| Investing
activities: |
|
|
|
| Maturities of short-term
investments |
— |
|
|
2,550 |
|
| Purchase of property and
equipment |
(117 |
) |
|
(20 |
) |
|
Net cash (used in) provided by investing
activities |
(117 |
) |
|
2,530 |
|
| Financing
activities: |
|
|
|
| Proceeds from long-term loan |
430 |
|
|
10,000 |
|
| Payment on long-term loan |
— |
|
|
(15,000 |
) |
| Proceeds from issuance of common
stock, net of issuance costs |
— |
|
|
8,793 |
|
| Proceeds from sale of common
stock upon exercise of stock options |
— |
|
|
1 |
|
|
Net cash provided by financing activities |
430 |
|
|
3,794 |
|
|
Net decrease in cash and cash equivalents |
(7,251 |
) |
|
(7,674 |
) |
| Cash and cash equivalents at
beginning of period |
14,055 |
|
|
21,187 |
|
| Cash and cash equivalents at end
of period |
$ |
6,804 |
|
|
$ |
13,513 |
|
| Supplemental cash flow
information: |
|
|
|
| Interest paid |
$ |
— |
|
|
$ |
563 |
|
| Unpaid issuance costs |
$ |
— |
|
|
$ |
377 |
|
| |
|
|
|
|
|
|
|
For Obalon Therapeutics, Inc.
Investor Contact:
Andrew Rasdal
President and Chief Executive Officer
Obalon Therapeutics, Inc.
Office: +1 844 362 2566
arasdal@obalon.com
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
