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)
March 5, 2020
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.) |
150 La Terraza Blvd., Ste 101
Escondido, CA 92025
(Address of principal executive offices, including zip code)
(858) 455-6006
(Registrant’s telephone number, including area code)
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)) |
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||
| N/A | N/A | N/A |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.02. Results of Operations and Financial Condition.
On March 5, 2019, TearLab Corporation (the “Company”) issued a press release announcing financial results for its fourth quarter and twelve months ended December 31, 2019. A copy of this press release is attached hereto as Exhibit 99.1.
The information in this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, or the Exchange Act, except to the extent that we specifically incorporate it by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. |
Description | |
| 99.1 | Press Release, dated March 5, 2020 |
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/ Michael Marquez | |
| Michael Marquez | ||
| Chief Financial Officer | ||
Date: March 5, 2020
Exhibit 99.1
TearLab Corporation Reports Fourth Quarter and Full Year 2019 Financial Results
ESCONDIDO, Calif., March 5, 2020 — TearLab Corporation (OTCQB: TEAR) (“TearLab” or the “Company”) today reported its consolidated financial results for the fourth quarter and twelve months ended December 31, 2019. All dollar amounts are expressed in U.S. currency and results are reported in accordance with United States generally accepted accounting principles except where noted otherwise.
Recent Highlights
| - | Fourth quarter revenue of $5.5 million |
| - | Cash position of $7.1 million as of December 31, 2019 |
| - | Expanded the U.S. active device base to 4,834 and active accounts to 1,854 TearLab Osmolarity Systems |
For the three months ended December 31, 2019, TearLab’s net revenues were $5.5 million, down 8.3% from $6.0 million for the same period in 2018.
The following table sets out the estimated annualized revenue per U.S. device and account analysis for the fourth quarter ended December 31, 2019:
| Annualized | Annualized | |||||||||||||||
| Active | Active | Revenue | Revenue | |||||||||||||
| Program | Devices | Accounts | Per Device | Per Account | ||||||||||||
| Purchased | 1,308 | 1,083 | $ | 2,164 | $ | 2,613 | ||||||||||
| Masters | 1,767 | 209 | $ | 2,868 | $ | 24,245 | ||||||||||
| Flex | 1,759 | 562 | $ | 6,618 | $ | 20,713 | ||||||||||
| Total | 4,834 | 1,854 | ||||||||||||||
The Company’s reported net loss for the 2019 fourth quarter was approximately $1.2 million, or ($0.09) basic loss per share, compared to a reported net loss of approximately $0.5 million, or ($0.05) basic loss per share in the fourth quarter of 2018.
“We were pleased to continue the expansion of our customer base throughout 2019,” said Seph Jensen, TearLab’s Chief Executive Officer. “We remain focused on the resubmission of our 510(k) application to secure FDA clearance of our next-generation TearLab Discovery™ System.”
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 OTCQB Market under the symbol ‘TEAR’.
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, the ability to capitalize on the current market momentum for osmolarity and to bring the Tearlab Discovery™ system to the U.S. market. 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, including but not limited to our Annual Report on Form 10-K for the year ended December 31, 2019. We do not undertake to update any forward-looking statements except as required by law.
CONTACT: Investor Contact:
The Ruth Group
James Salierno / Cameron Willis
Tel: 646-536-7028 / 7038
jsalierno@theruthgroup.com / cwillis@theruthgroup.com
TearLab Corp.
Consolidated Statements of Operations
(Expressed in U.S. Dollars (000’s) except for number of shares and net loss per share)
(Unaudited)
| Three months | ||||||||
| December 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenue | ||||||||
| Product sales | $ | 4,810 | $ | 5,275 | ||||
| Reader equipment rentals | 683 | 713 | ||||||
| Total revenue | 5,493 | 5,988 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 1,945 | 2,143 | ||||||
| Cost of goods sold - reader equipment depreciation | 78 | 186 | ||||||
| Gross profit | 3,470 | 3,659 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 889 | 596 | ||||||
| Clinical, regulatory and research & development | 894 | 822 | ||||||
| General and administrative | 1,349 | 1,492 | ||||||
| Total operating expenses | 3,132 | 2,910 | ||||||
| Income from operations | 338 | 749 | ||||||
| Other income (expense) | (1,490 | ) | (1,261 | ) | ||||
| Net loss and comprehensive loss | $ | (1,152 | ) | $ | (512 | ) | ||
| Weighted average shares outstanding – basic and diluted | 12,560,635 | 11,296,998 | ||||||
| Net loss per share – basic and diluted | $ | (0.09 | ) | $ | (0.05 | ) | ||
TearLab Corp.
Consolidated Statements of Operations
(Expressed in U.S. Dollars (000’s) except for number of shares and net loss per share)
| Years ended December 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenue | ||||||||
| Product sales | $ | 19,903 | $ | 22,153 | ||||
| Reader equipment rentals | 2,752 | 2,846 | ||||||
| Total revenue | 22,655 | 24,999 | ||||||
| Cost of goods sold | ||||||||
| Cost of goods sold (excluding amortization of intangible assets) | 7,909 | 8,495 | ||||||
| Cost of goods sold - reader equipment depreciation | 447 | 961 | ||||||
| Gross profit | 14,299 | 15,543 | ||||||
| Operating expenses | ||||||||
| Sales and marketing | 3,652 | 3,334 | ||||||
| Clinical, regulatory and research & development | 3,817 | 3,587 | ||||||
| General and administrative | 6,555 | 6,160 | ||||||
| Total operating expenses | 14,024 | 13,081 | ||||||
| Income from operations | 275 | 2,462 | ||||||
| Other income (expense) | (5,691 | ) | (4,713 | ) | ||||
| Net loss and comprehensive loss | $ | (5,416 | ) | $ | (2,251 | ) | ||
| Weighted average shares outstanding - basic and diluted | 12,178,565 | 10,615,513 | ||||||
| Net loss per share – basic and diluted | $ | (0.44 | ) | $ | (0.21 | ) | ||
TearLab Corp.
Condensed Consolidated Balance Sheet
(Expressed in U.S. Dollars (000’s) except for number of shares and net loss per share)
| December 31, | December 31, | |||||||
| 2019 | 2018 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 7,108 | $ | 8,473 | ||||
| Accounts receivable, net | 917 | 1,186 | ||||||
| Inventory | 2,269 | 1,987 | ||||||
| Prepaid expenses and other current assets | 1,562 | 690 | ||||||
| Total current assets | 11,856 | 12,336 | ||||||
| Fixed assets, net | 1,670 | 2,024 | ||||||
| Intangible assets, net | 2 | 2 | ||||||
| Right of use assets | 645 | - | ||||||
| Other non-current assets | 120 | 151 | ||||||
| Total assets | $ | 14,293 | $ | 14,513 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 599 | $ | 681 | ||||
| Accrued liabilities | 2,336 | 2,363 | ||||||
| Deferred Rent | 2 | 13 | ||||||
| Current portion of long-term debt | 36,578 | - | ||||||
| Current portion of lease liability | 240 | - | ||||||
| Total current liabilities | 39,755 | 3,057 | ||||||
| Long-term debt, net | - | 32,014 | ||||||
| Long-term lease liability, net of current portion | 429 | - | ||||||
| Long-term third party payable | 130 | 111 | ||||||
| Total liabilities | 40,314 | 35,182 | ||||||
| Stockholders’ deficit | ||||||||
| Capital stock | ||||||||
| Preferred Stock, $0.001 par value, 10,000,000 authorized, 0 and 556 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | - | - | ||||||
| Common stock, $0.001 par value, and 40,000,000 authorized, 12,560,635 and 11,296,998 issued and outstanding at December 31, 2019 and December 31, 2018, respectively | 13 | 11 | ||||||
| Additional paid-in capital | 510,442 | 510,380 | ||||||
| Accumulated deficit | (536,476 | ) | (531,060 | ) | ||||
| Total stockholders’ deficit | (26,021 | ) | (20,669 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 14,293 | $ | 14,513 | ||||