UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
May 4, 2016
TEARLAB CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 000-51030 | 59-343-4771 | ||
| (State
or other jurisdiction of incorporation) |
(Commission
File Number) |
(IRS
Employer Identification No.) |
9980 Huennekens St., Ste 100
San Diego, CA 92121
(Address of principal executive offices, including zip code)
(858) 455-6006
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On May 4, 2016, Tearlab Corporation issued a press release reporting its financial results for the first quarter ended March 31, 2016. A copy of the press release is furnished herewith as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit | Description | |
| 99.1 | Press Release, dated May 4, 2016. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TEARLAB CORPORATION | ||
| By: | /s/ Wes Brazell | |
|
Wes Brazell Chief Financial Officer | ||
Date: May 4, 2016
TearLab Corporation Reports Q1-16 Financial Results
San Diego, CA —May 4, 2016— TearLab Corporation (NASDAQ:TEAR; TSX:TLB) (“TearLab” or the “Company”) today reported its consolidated financial results for the first quarter ended March 31, 2016. 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 March 31, 2016, TearLab’s net revenues were $6.8 million, up 25% from $5.4 million for the same period in 2015. A net total of 257 TearLab Osmolarity® Systems were added in the first quarter of 2016, of which 167 were under the Company’s new Flex program and 61 were purchased outside of the United States.
The following table sets out the estimated annualized revenue per U.S. device and account analysis for the first quarter ended March 31, 2016:
Active |
Active | Annualized Revenues | Annualized Revenues | |||||||||||||
| Program | Devices | Accounts | Per Device | Per Account | ||||||||||||
| Purchased | 302 | 251 | $ | 1,863 | $ | 2,242 | ||||||||||
| Use | 357 | 356 | $ | 5,798 | $ | 5,814 | ||||||||||
| Masters | 1,747 | 229 | $ | 3,921 | $ | 29,912 | ||||||||||
| Flex | 1,705 | 756 | $ | 8,447 | $ | 19,050 | ||||||||||
| Total: | 4,111 | 1,592 | ||||||||||||||
The Company’s net loss for the 2016 first quarter was approximately $7.3 million, or $0.21 basic loss per share, compared with net loss of approximately $8.2 million, or $0.24 basic loss per share, in Q1-2015.
“While we had to make some difficult decisions in the quarter to reduce spending and improve our operating efficiency, we have re-deployed our sales force and support staff levels to optimize the new commercial model,” commented Seph Jensen, TearLab’s Chief Executive Officer. “With increases in our device placements, accounts and average revenues for Flex customers, it is clear these changes are already starting to pay off. Overall, we are pleased with our Q1 performance, and believe the Company is well-positioned for continued growth and improvement through the remainder of the year.”
Current Business Outlook
TearLab continues to expect annual revenue growth of 15% - 20% for the full year 2016. In addition, as previously reported, the Company completed its previously announced strategic restructuring in the first quarter of 2016 and finalized the divestment of its OcuHub subsidiary on April 8, 2016. The Company believes it will start realizing the full impact of an annualized operating expense reduction of $12.9 million ($9.4 million from the strategic restructuring and $3.5 million from the OcuHub divestment) due to these changes, beginning in the second quarter of 2016. As a result, the Company expects its cash burn under its new operating model for the remainder of 2016 to be in the range of $7.5 million to $8.5 million.
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. 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 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among others, statements concerning our future financial and operational performance including anticipated savings from the strategic restructuring and divestment of OcuHub, opportunities associated with new program offerings, accessing future capital, and plans with respect to our marketing strategy. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. Forward-looking statements are based on management’s current, preliminary expectations and are subject to various risks and uncertainties. Many factors, risks and uncertainties may cause our actual results to differ materially from forward-looking statements, including the factors, risks, and uncertainties 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, 2015, filed with the SEC on March 9, 2016, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, expected to be filed with the SEC on May 9, 2016. We do not undertake to update any forward-looking statements except as required by law.
CONTACTS:
Investors:
Stephen Kilmer
(647) 872-4849
skilmer@tearlab.com
TearLab Corp.
Condensed Consolidated Statements of Operations and Consolidate Loss
(Expressed in U.S. Dollars (000’s) except for number of shares and net loss per share)
(Unaudited)
| Three months | ||||||||
| ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Revenue | ||||||||
| Product sales | $ | 5,502 | $ | 4,092 | ||||
| Reader equipment rentals | 1,265 | 1,316 | ||||||
| Total revenue | 6,767 | 5,408 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 2,540 | 2,387 | ||||||
| Cost of goods sold - reader equipment depreciation | 554 | 392 | ||||||
| Gross profit | 3,673 | 2,629 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 4,636 | 5,278 | ||||||
| Clinical, regulatory and research & development | 1,138 | 1,404 | ||||||
| General and administrative | 3,931 | 3,637 | ||||||
| Amortization of intangible assets | 304 | 381 | ||||||
| Total operating expenses | 10,009 | 10,700 | ||||||
| Loss from operations | (6,336 | ) | (8,071 | ) | ||||
| Other income (expense) | (918 | ) | (97 | ) | ||||
| Net loss and comprehensive loss | $ | (7,254 | ) | $ | (8,168 | ) | ||
| Weighted average shares outstanding - basic | 33,825,669 | 33,642,720 | ||||||
| Net loss per share – basic | $ | (0.21 | ) | $ | (0.24 | ) | ||
| Weighted average shares outstanding - diluted | 33,825,669 | 33,692,507 | ||||||
| Net loss per share – diluted | $ | (0.21 | ) | $ | (0.25 | ) | ||
TearLab Corp.
Consolidated Balance Sheets
(Expressed in U.S. Dollars (000’s)
(Unaudited)
| March 31, 2016 | December 31, 2015 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 7,200 | $ | 13,838 | ||||
| Accounts receivable, net | 3,026 | 3,021 | ||||||
| Inventory | 3,642 | 3,972 | ||||||
| Prepaid expenses and other current assets | 1,265 | 790 | ||||||
| Total current assets | 15,133 | 21,621 | ||||||
| Fixed assets, net | 5,220 | 5,352 | ||||||
| Intangible assets, net | 885 | 1,197 | ||||||
| Other non-current assets | 213 | 181 | ||||||
| Total assets | $ | 21,451 | $ | 28,351 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 3,013 | $ | 2,292 | ||||
| Accrued liabilities | 3,578 | 5,047 | ||||||
| Deferred Rent | 111 | 114 | ||||||
| Obligations under warrants | 2 | 29 | ||||||
| Total current liabilities | 6,704 | 7,482 | ||||||
| Long-term debt | 25,195 | 24,859 | ||||||
| Total liabilities | 31,899 | 32,341 | ||||||
| Exchange right | — | 250 | ||||||
| Stockholders’ equity (deficit) | ||||||||
| Capital stock | ||||||||
| Preferred Stock, $0.001 par value, authorized 10,000,000, none issued and outstanding | — | — | ||||||
| Common stock, $0.001 par value, 65,000,000 authorized, 33,760,904 and 33,641,302 issued and outstanding at December 31, 2015 and December 31, 2014, respectively | 34 | 34 | ||||||
| Additional paid-in capital | 489,561 | 488,514 | ||||||
| Accumulated deficit | (500,043 | ) | (492,788 | ) | ||||
| Total stockholders’ equity (deficit) | (10,448 | ) | (4,240 | ) | ||||
| Total liabilities and stockholders’ equity | $ | 21,451 | $ | 28,351 | ||||