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TearLab Corporation Reports 2013 Financial Results

SAN DIEGO, March 13, 2014 (GLOBE NEWSWIRE) -- TearLab Corporation (Nasdaq:TEAR) (TSX:TLB) ("TearLab" or the "Company") today reported its consolidated financial results for the quarter and the year ended December 31, 2013. 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 December 31, 2013, TearLab's net revenues were $4.4 million, up 176% from $1.6 million for the same period in 2012. A total of 359 orders for TearLab systems were booked in the fourth quarter. Of those, 259 systems were under the Company's Masters Multi Unit Program, 72 were through its minimum use access programs, 7 were direct purchases and 21 were purchased outside of the U.S. The Company's net loss for the three months ended December 31, 2013 was approximately $4.2 million, or $0.13 per share on a non-diluted basis. This included approximately $1.4 million in non-cash income related to the revaluation of warrants issued in June 2011. In last year's fourth quarter, the net loss was $3.7 million, or $0.13 per share. This included approximately $0.3 million in non-cash expense related to the revaluation of warrants issued in June 2011.

For the year ended December 31, 2013, TearLab's net revenues were approximately $14.6 million, an increase of 265% from $4.0 million in 2012. The Company's net loss for the year ended December 31, 2013 was approximately $29.0 million, or $0.94 per share. This included approximately $11.1 million in non-cash expense related to the revaluation of warrants issued in June 2011. For the year ended December 31, 2012, the loss was $19.3 million, or $0.76 per share. This included approximately $7.3 million in non-cash expense related to the revaluation of warrants issued in June 2011. 2013 cash used in operating activities was approximately $12.9 million.

As of December 31, 2013, TearLab had $37.8 million in cash and cash equivalents.

"We continue to be very excited about the opportunity we see ahead of us and believe that our test plays an important role in providing doctors with a critical piece of the dry eye disease diagnosis and management puzzle," commented Elias Vamvakas, TearLab's Chief Executive Officer. "Our primary focus in 2014 will be on improving the integration of the TearLab Osmolarity test into the daily routines of our customers. By doing that while, at the same time, continuing to expand our installed base, we believe that we will be able to achieve another year of triple-digit revenue growth."

Conference Call and Webcast Information

TearLab will hold a conference call to discuss these results today, March 13, at 4:30pm 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 #7641198 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. Headquartered in San Diego, CA, 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 may contain forward-looking statements. These statements relate to future events and are subject to risks, uncertainties and assumptions about TearLab. Examples of forward-looking statements in this press release include statements regarding our future recurring revenue expectations and our plans for executing our marketing strategy and building a salesforce, the future potential of the TearLab® Osmolarity System and the related impact on our sales. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. Many factors may cause our actual results to differ materially from any forward-looking statement, including the factors 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, 2013, expected to be filed with the SEC on March 17, 2014, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2013, filed with the SEC on November 13, 2013. We do not undertake to update any forward-looking statements.

TearLab Corp.
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in U.S. dollars except number of shares)
($ 000's)
Three months ended December 31 Year ended December 31
2013 2012 2013 2012
Revenue $ 4,438 $ 1,610 $ 14,645 $ 3,960
Cost of goods sold 2,323 930 8,146 2,295
Gross profit 2,115 680 6,499 1,665
Operating expenses
Amortization of intangible assets 304 304 1,215 1,215
General and administrative 3,020 1,140 8,942 4,770
Clinical, regulatory and research &
development
410 618 1,095 2,241
Sales and marketing 3,885 1,942 13,021 5,471
Total operating expenses 7,619 4,004 24,273 13,697
Loss from operations (5,504) (3,324) (17,774) (12,032)
Other income (expenses) 1,353 (328) (11,216) (7,280)
Net loss (4,151) (3,652) (28,990) (19,312)
Weighted average number of shares outstanding – basic 33,128,678 28,607,209 30,759,305 25,490,186
Net loss per common share – basic $ (0.13) $ (0.13) $ (0.94) $ (0.76)
Weighted average number of shares outstanding – diluted 33,678,861 28,607,209 30,759,305 25,490,186
Net loss per common share –diluted $ (0.17) $ (0.13) $ (0.94) $ (0.76)
TearLab Corp.
CONSOLIDATED BALANCE SHEETS
(expressed in U.S. dollars)
($ 000's)
December 31, December 31,
2013 2012
ASSETS
Current assets
Cash and cash equivalents $37,778 $15,437
Accounts receivable, net 3,524 889
Inventory, net 885 1,863
Prepaid expenses 689 387
Other current assets 10 60
Total current assets 42,886 18,636
Fixed assets, net 3,429 630
Patents and trademarks, net 108 136
Intangible assets, net 3,494 4,709
Other non-current assets 40 28
Total assets $49,957 $24,139
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $631 $1,067
Accrued liabilities 3,844 1,989
Deferred revenue 67
Obligations under warrants 4,047 6,239
Total current liabilities 8,589 9,295
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, 33,288,701 issued and outstanding at December 31, 2013 and 65,000,000 authorized, 28,741,653 issued and outstanding at December 31, 2012 33 29
Additional paid-in capital 477,172 421,662
Accumulated deficit (435,837) (406,847)
Total stockholders' equity 41,368 14,844
Total liabilities and stockholders' equity $49,957 $24,139

CONTACT: Investors: Stephen Kilmer (905) 906-6908 skilmer@tearlab.comSource:TearLab Corporation