SAN DIEGO, March 05, 2018 (GLOBE NEWSWIRE) -- 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 audited financial results as of and for the fourth quarter and full year ended December 31, 2017.
Fourth Quarter highlights:
- Q4-17 total revenue of $3.7 million grew 32% sequentially over Q3-17
- Q4-17 U.S. revenue of $2.9 million grew 43% sequentially over Q3-17
- Highest number of new U.S. accounts sold of any quarter since U.S. launch
- U.S. reorder revenue exceeds revenue from new account additions for first quarter since U.S. launch
- Gross margin improved to 54%
Full Year 2017 highlights:
- Full year 2017 revenue increased 192% year over year to $9.9 million
- Full year U.S. revenue of $8.3 million for first year of U.S. commercialization
- New U.S. account revenue accounted for approximately 60% and U.S. reorder revenue accounted for approximately 40% of total U.S. revenue
Fourth Quarter 2017 Results:
The Company reported total revenue of $3.7 million for the fourth quarter of 2017, compared to $0.8 million for the fourth quarter of 2016. U.S. revenue of $2.9 million represented 78% of total revenue and international revenue of $0.8 million represented 22% of total revenue for the fourth quarter 2017.
Net loss was reported at $10.1 million compared to a net loss of $7.5 million in the fourth quarter of 2016 and net loss per share was $0.60 for the fourth quarter of 2017 as compared to net loss per share of $0.51 for the fourth quarter of 2016.
Cost of goods sold was $1.7 million during the three months ended December 31, 2017, up from $0.9 million for the prior year period. Gross profit for the fourth quarter of 2017 was $2.0 million, resulting in a gross margin of 54%, compared to a gross loss of $0.1 million and gross margin of -13% for the fourth quarter of 2016.
Research and Development expense for the fourth quarter of 2017 totaled $2.7 million, up from $2.6 million in the fourth quarter of 2016, and Selling, General and Administrative expense increased to $9.2 million for the fourth quarter of 2017, compared to $4.8 million in the fourth quarter 2016.
Operating loss for the fourth quarter of 2017 was $9.9 million, compared to an operating loss of $7.5 million for the fourth quarter of 2016.
As of December 31, 2017, cash, cash equivalents and short-term investments were $44.4 million and total debt was $10.0 million.
Full Year 2017 Results
Obalon reported full year 2017 total revenue of $9.9 million, a 192% increase from $3.4 million for the full year 2016. U.S. revenue of $8.3 million represented 83% of full year 2017 revenue. International revenue of $1.7 million equated to 17% of full year revenue as compared to 100% of full year revenue in 2016.
Gross profit for the full year 2017 was $5.1 million, a gross margin of 51%, and increased from a gross profit of $0.6 million in the prior year and a gross margin of 17%.
Research and Development expense totaled $10.7 million for the full year 2017, up from $9.9 million for the full year 2016, and Selling, General and Administrative expense increased to $28.8 million for the full year 2017, compared to $10.2 million for the full year 2016.
Operating loss for the full year 2017 was $34.4 million, compared to an operating loss of $19.5 million for the full year 2016.
Net loss was reported at $34.8 million for the full year 2017 compared to a net loss of $20.5 million for the full year 2016 and net loss per share was $2.08 for the full year 2017 as compared to net loss per share of $4.85 for the full year 2016.
A conference call to discuss fourth quarter 2017 financial results is scheduled for today, March 5, 2018, at 5:00 PM Eastern Standard Time (2:00 PM Pacific Standard Time). Interested parties may access the conference call by dialing (844) 889-7791 (U.S.) or (661) 378-9934 (international) using passcode 1178907. 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/m6/p/sfqrxtdj.
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. The Obalon management team has over 150 combined years of experience in developing and commercializing novel medical technologies with a track record of financial and clinical excellence. For more information, please visit www.obalon.com.
For Obalon Therapeutics, Inc.
Chief Financial Officer
Obalon Therapeutics, Inc.
Office: +1 760 607 5103
Office Phone: +1 646 517 4220
|OBALON THERAPEUTICS, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS|
|(in thousands, except shares and per share data)|
|Three months ended December 31,||Year ended December 31,|
|Revenue, related party||—||772||—||3,393|
|Cost of revenue||1,702||871||4,829||2,809|
|Research and development||2,689||2,605||10,647||9,872|
|Selling, general and administrative||9,223||4,830||28,829||10,217|
|Total operating expenses||11,912||7,435||39,476||20,089|
|Loss from operations||(9,922||)||(7,534||)||(34,391||)||(19,505||)|
|Interest expense, net||(25||)||(52||)||(135||)||(477||)|
|Gain (loss) from change in fair value of warrant liability||—||84||—||(466||)|
|Other (expense) income, net||(173||)||7||(239||)||(19||)|
|Other comprehensive loss income||—||(6||)||(4||)||(1||)|
|Net loss and comprehensive loss||$||(10,120||)||$||(7,501||)||$||(34,769||)||$||(20,468||)|
|Net loss per share, basic and diluted||$||(0.60||)||$||(0.51||)||$||(2.08||)||$||(4.85||)|
|Weighted-average common shares outstanding, basic and diluted||16,918,702||14,689,828||16,717,106||4,221,893|
|OBALON THERAPEUTICS, INC.|
|CONSOLIDATED BALANCE SHEETS|
|(in thousands, except shares and par value data)|
|Cash and cash equivalents||$||21,108||$||72,975|
|Accounts receivable, net||4,223||—|
|Accounts receivable, related party||—||515|
|Other current assets||1,714||1,244|
|Total current assets||51,755||78,061|
|Property and equipment, net||1,346||717|
|Liabilities and Stockholders’ Equity|
|Other current liabilities||1,773||1,379|
|Current portion of long-term loan||1,958||—|
|Total current liabilities||10,011||4,592|
|Long-term loan, excluding current potion||7,964||9,881|
|Total long-term liabilities||7,977||9,881|
|Commitments and contingencies|
|Common stock, $0.001 par value; 300,000,000 shares authorized at December 31, 2017 and December 31, 2016; 17,500,604 and 16,773,205 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively||18||17|
|Additional paid-in capital||146,474||140,898|
|Accumulated other comprehensive loss||(5||)||(1||)|
|Total stockholders’ equity||35,113||64,305|
|Total liabilities and stockholders’ equity||$||53,101||$||78,778|
|OBALON THERAPEUTICS, INC.|
|CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||330||192|
|Fair value of stock issued for legal settlements||1,606||—|
|Loss on disposal of fixed assets||—||13|
|Change in fair value of warrant liability||—||466|
|Amortization of investment premium, net||18||125|
|Amortization of debt discount||42||70|
|Change in operating assets and liabilities:|
|Accounts receivable, net||(4,223||)||—|
|Accounts receivable from related party||515||121|
|Other current assets||(470||)||(985||)|
|Other current and long-term liabilities||663||(416||)|
|Net cash used in operating activities||(30,624||)||(19,368||)|
|Purchases of short-term investments||(94,613||)||(18,897||)|
|Maturities of short-term investments||73,800||25,450|
|Purchase of property and equipment||(1,043||)||(352||)|
|Net cash (used in) provided by investing activities||(21,856||)||6,201|
|Issuance of preferred stock for cash, net of offering costs||—||14,517|
|Proceeds from initial public offering, net of issuance costs||—||67,233|
|Proceeds from long-term loan, net of issuance costs||—||—|
|Fees paid in connection with loan amendment||—||(30||)|
|Proceeds from common stock issued under employee stock purchase plan||429||—|
|Proceeds from sale of common stock upon exercise of stock options||184||1,066|
|Net cash provided by financing activities||613||82,786|
|Effect of exchange rate changes on cash and cash equivalents||—||—|
|Net (decrease) increase in cash and cash equivalents||(51,867||)||69,619|
|Cash and cash equivalents at beginning of period||72,975||3,356|
|Cash and cash equivalents at end of period||$||21,108||$||72,975|
|Supplemental cash flow information:|
|Income taxes paid||$||2||$||—|
|Conversion of convertible preferred stock to common stock||$||—||$||70,498|
|Net exercises of warrants||$||—||$||591|
|Conversion of customer deposit from related party to preferred stock||$||—||$||1,283|
|Property and equipment in accounts payable||$||83||$||140|
Source:Obalon Therapeutics, Inc.