ReShape Lifesciences Announces Record Revenue for First Quarter 2018
Recent Highlights and Accomplishments
- Achieved record revenues of
$950 thousand for the first quarter of 2018 - Sold 521 ReShape BalloonsTM in the quarter, a 47% increase compared to the fourth quarter of 2017
- Placed 61 ReShape vBlocTM units in the first quarter of 2018, as compared to 21 in the fourth quarter of 2017
- Signed a supply agreement with the group purchasing organization of Ascension Hospital System to provide ReShape Balloons to the 2,500 Ascension sites of care in
the United States - Received approvals in
Saudi Arabia andBahrain and submitted for approval inCanada for the sale of the ReShape Balloon in those markets
"2018 is off to a great start for ReShape Lifesciences. Amongst our accomplishments, our team achieved record revenues and secured product approvals in markets with some of the highest obesity rates in the world," said
First Quarter 2018 Financial Results
For the three months ended
As of
Conference Call
Management will host an investment community conference call today beginning at
Individuals interested in listening to the conference call may do so by dialing (877) 280-7473 for domestic callers or (707) 287-9370 for international callers, using Conference ID: 3895426. To listen to a live webcast or a replay, please visit the investor relations section of the Company website at: http://ir.reshapelifesciences.com/.
About
ReShape Lifesciences™ is a medical device company focused on technologies to treat obesity and metabolic diseases. The
Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release include statements about our belief that we are well set up for a solid year ahead with our proprietary suite of safe and effective minimally invasive technologies for the obesity continuum of care. These forward-looking statements generally can be identified by the use of words such as "expect," "plan," "anticipate," "could," "may," "intend," "will," "continue," "future," other words of similar meaning and the use of future dates. These forward-looking statements are based on the current expectations of our management and involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others: risks and uncertainties related to our acquisitions of ReShape Medical, Inc. and BarioSurg, Inc.; risks related to the U.S. Food and Drug Administration's announcement to alert health care providers of unanticipated deaths involving the ReShape Balloon; our proposed ReShape Vest product may not be successfully developed and commercialized; our ability to continue as a going concern if we are unsuccessful in our pursuit of various funding options; our limited history of operations; our losses since inception and for the foreseeable future; our limited commercial sales experience; the competitive industry in which we operate; our ability to maintain compliance with the Nasdaq continued listing requirements; our dependence on third parties to initiate and perform our clinical trials; the need to obtain regulatory approval for our ReShape Vest and any modifications to our vBloc system or ReShape Balloon; physician adoption of our products; our ability to obtain third party coding, coverage or payment levels; ongoing regulatory compliance; our dependence on third party manufacturers and suppliers; the successful development of our sales and marketing capabilities; our ability to raise additional capital when needed; international commercialization and operation; our ability to attract and retain management and other personnel and to manage our growth effectively; potential product liability claims; the cost and management time of operating a public company; potential healthcare fraud and abuse claims; healthcare legislative reform; and our ability to obtain and maintain intellectual property protection for our technology and products. These and additional risks and uncertainties are described more fully in the Company's filings with the Securities and Exchange Commission, particularly those factors identified as "risk factors" in our annual report on Form 10-K filed April 2, 2018. We are providing this information as of the date of this press release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
| |||||||
Condensed Consolidated Statements of Operations | |||||||
(unaudited) | |||||||
Three Months Ended | |||||||
2018 |
2017 | ||||||
Product sales |
$ |
941,431 |
$ |
40,040 | |||
Other revenue |
8,567 |
— | |||||
Total revenues |
949,998 |
40,040 | |||||
Cost of goods sold |
828,958 |
29,523 | |||||
Gross profit |
121,040 |
10,517 | |||||
Operating expenses: |
|||||||
Selling, general and administrative |
10,046,694 |
5,928,986 | |||||
Research and development |
2,687,535 |
1,124,413 | |||||
Total operating expenses |
12,734,229 |
7,053,399 | |||||
Operating loss |
(12,613,189) |
(7,042,882) | |||||
Other income (expense): |
|||||||
Interest income |
411 |
100 | |||||
Interest expense |
(1,823) |
— | |||||
Change in value of warrant liability |
1,157 |
(323,130) | |||||
Other, net |
(2,058) |
(900) | |||||
Pretax loss |
(12,615,502) |
(7,366,812) | |||||
Income tax benefit |
1,382,053 |
— | |||||
Net loss |
$ |
(11,233,449) |
$ |
(7,366,812) | |||
Net loss per share - basic and diluted |
$ |
(0.36) |
$ |
(1.27) | |||
Shares used to compute basic and diluted net loss per share |
30,957,113 |
5,788,282 |
| ||||||
Condensed Consolidated Balance Sheets (unaudited) | ||||||
(in thousands) | ||||||
|
| |||||
2018 |
2017 | |||||
ASSETS | ||||||
Cash, cash equivalents and short-term investments |
$ |
842 |
$ |
10,163 | ||
Accounts receivable |
962 |
489 | ||||
Inventory |
2,795 |
2,817 | ||||
Prepaid expenses and other current assets |
723 |
468 | ||||
Property and equipment, net |
349 |
439 | ||||
|
27,187 |
27,187 | ||||
Intangibles, net |
45,478 |
46,153 | ||||
Other assets |
232 |
989 | ||||
Total assets |
$ |
78,568 |
$ |
88,705 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Liabilities: |
||||||
Accounts payable |
$ |
2,918 |
$ |
1,088 | ||
Deferred income taxes |
3,910 |
5,292 | ||||
Other liabilities |
5,866 |
5,958 | ||||
Total liabilities |
12,694 |
12,338 | ||||
Stockholders' equity |
65,874 |
76,367 | ||||
Total liabilities and stockholders' equity |
$ |
78,568 |
$ |
88,705 |
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