SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): August 5, 2021
LENSAR, INC.
(Exact name of registrant as specified in its charter)
|
Delaware |
001-39473 |
32-0125724 |
|
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
Orlando, Florida 32826
(Address of principal executive offices)
Registrant’s telephone number, including area code:
(888) 536-7271
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 registrants 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(s) |
Name of each exchange on which registered |
|
Common stock, par value $0.01 per share |
LNSR |
The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 August 5, 2021, LENSAR, Inc. (the “Company”) issued a press release announcing financial results for the fiscal quarter ended June 30, 2021. A copy of the Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The Company will host an earnings call on August 5, 2021, during which the Company will discuss its financial results for the fiscal quarter ended June 30, 2021.
The information furnished in this Current Report on Form 8-K (including Exhibit 99.1) 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, nor shall it be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No. |
Description
|
|
99.1 |
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.
LENSAR, INC.
|
Date: August 5, 2021 |
By: |
/s/ Nicholas T. Curtis |
|
|
Name: |
Nicholas T. Curtis |
|
|
Title: |
Chief Executive Officer |
Exhibit 99.1
LENSAR Reports Second Quarter 2021 Financial Results and Provides Business Update
Second Quarter and First Half 2021 Procedure Volumes Increase 70% and 42% over 2020 Levels
Cash and Cash Equivalents of $34.6 Million reflects Cash Utilization of $1.3 Million in the Second Quarter
ORLANDO, Fla. (August 5, 2021) – LENSAR, Inc. (Nasdaq: LNSR) (“LENSAR” or “the Company”), a global medical technology company focused on advanced femtosecond laser surgical solutions for the treatment of cataracts, today announced financial results for the quarter ended June 30, 2021 and provided an update on key strategic and operational initiatives.
“We have made significant progress across a number of fronts. Our commercial operations have rebounded from the COVID-19 pandemic, and we have returned to growing the business as we did prior to pandemic shutdowns and interruptions in 2020. Specifically, we had procedure volume growth of 70% and an increase in total revenue of 57% in the second quarter, as compared to second quarter 2020, as well as a 42% increase in procedure volume in the first half of 2021 as compared to the first half of 2020,” said Nick Curtis, Chief Executive Officer of LENSAR. “On the development side of the business, we continue to progress toward the submission and launch of ALLY™ in 2022, navigating supply-chain challenges to maintain on our first quarter 2022 510(k) filing timeline. At the recent ASCRS Meeting we hosted more than 100 surgeons for demonstrations of the ALLY Adaptive Cataract Treatment System and received an overwhelmingly positive response. The need for technology like ALLY, a fully integrated femtosecond laser and phacoemulsification system, is evident and we are truly excited to deliver a desired and disruptive technology to cataract and refractive surgeons in the near-future.”
Second Quarter 2021 Financial Results
Total revenue for the quarter ended June 30, 2021 was $7.9 million, an increase of $2.9 million, or 57%, compared to total revenue of $5.0 million for the quarter ended June 30, 2020. The increase was primarily driven by increased procedure volume, and to a lesser extent lease placements. Procedure volume exceeded pre-COVID levels, particularly in the United States, as the Company returned to its history of growth and market expansion.
For the quarter ended June 30, 2021, approximately 90% of our revenue was attributable to recurring sources compared to 78% for the quarter ended June 30, 2020. In the quarter ended June 30, 2020, recurring revenue was uncharacteristically low as it was significantly impacted by suspensions of non-essential medical services due to COVID-19.
Selling, general and administrative expenses for the quarter ended June 30, 2021 were $5.5 million, an increase of $1.5 million, or 37%, compared to $4.0 million for the quarter ended June 30, 2020. The increase was primarily due to increased personnel expenses, which was largely due to stock-based compensation expense, as well as expenses associated with being a public company and returning to normal operations as pandemic restrictions were eased.
Research and development (“R&D”) expenses were $3.0 million and $1.4 million for the quarters ended June 30, 2021, and 2020, respectively, an increase of $1.6 million or 110%. The increase in
R&D expense was primarily due to additional costs for the continued development of ALLY in anticipation of a 510(k) filing with the U.S. Food and Drug Administration in the first quarter of 2022, as well as increased personnel costs.
Net loss for the quarter ended June 30, 2021, was $4.4 million, or ($0.47) per share, compared to net loss of $4.5 million, or ($4.20) per share, for the quarter ended June 30, 2020, reflecting a decrease in both dollars and loss per share for the quarter ended June 30, 2021. Included within operating expenses are stock-based compensation expenses recorded for the quarters ended June 30, 2021 and 2020 of $1.4 million and $41,000, respectively. These costs reflect, and are the result of, the Company’s recapitalization and becoming a standalone public company in the fourth quarter of 2020.
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the quarter ended June 30, 2021 was ($3.7) million, compared with ($3.2) million for the quarter ended June 30, 2020. Adjusted EBITDA, which we calculate by adding back stock-based compensation expense to EBITDA, was ($2.3) million for the quarter ended June 30, 2021 and ($3.2) million for the quarter ended June 30, 2020. EBITDA and Adjusted EBITDA are non-GAAP financial measures, and a reconciliation of these measures to net loss is set forth below in this press release.
As of June 30, 2021, the Company had cash and cash equivalents of $34.6 million as compared to $40.6 million at December 31, 2020. Cash utilized in the quarter ended June 30, 2021 was $1.3 million and $6.0 million for first half of 2021. Based on its cash position and operational forecast, the Company believes it has sufficient cash to fund operations through the filing of its 510(k) application and expected launch of ALLY in 2022.
Conference Call:
LENSAR management will host a conference call and live webcast to discuss the second quarter results and provide a business update today, August 5, 2021 at 8:30 a.m. ET.
To participate by telephone, please dial (833) 312-1363 (Domestic) or (236) 712-2498 (International). The conference ID number is 2436922. The live webcast can be accessed under “Events & Presentations" in the Investor Relations section of the company's website at https://ir.lensar.com. Please log in approximately 5-10 minutes prior to the call to register and to download and install any necessary software. The call and webcast replay will be available until August 19, 2021.
About LENSAR
LENSAR is a commercial-stage medical device company focused on designing, developing and marketing an advanced femtosecond laser system for the treatment of cataracts and the management of pre-existing or surgically induced corneal astigmatism. Its LENSAR Laser System incorporates a range of proprietary technologies designed to assist the surgeon in obtaining better visual outcomes, efficiency and reproducibility by providing advanced imaging, simplified procedure planning, efficient design and precision.
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. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the Company’s development and the future market potential of ALLY™. In
some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate,” “target,” “mission,” “may,” “will,” “would,” “should,” “could,” “target,” “potential,” “project,” “predict,” “contemplate,” “potential,” or the negative thereof and similar words and expressions.
Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from those, express or implied, in these forward-looking statements. Important factors that could impair the value of the Company’s assets and business include, without limitation, its history of operating losses and ability to generate revenue; its ability to maintain, grow market acceptance of and enhance its LENSAR Laser System; the impact of the COVID-19 pandemic and the Company’s ability to grow revenues; the Company’s ability to obtain the necessary clearances or approvals for ALLY; the willingness of patients to pay the price difference for LENSAR products; its ability to grow a U.S. sales and marketing organization; its ability to meet its future capital needs; the impact of any material disruption to the supply or manufacture of the LENSAR Laser Systems; the ability of the Company to compete against competitors that have longer operating histories and more established products than the Company; the Company’s ability to address numerous international business risks; and the other important factors that are disclosed under the heading “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in its other filings with the SEC, including, but not limited to, its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021 to be filed with the SEC, each accessible on the SEC’s website at www.sec.gov and the Investor Relations section of the Company’s website at https://ir.lensar.com. All forward-looking statements are expressly qualified in their entirety by such factors. Except as required by law, the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. These forward-looking statements should not be relied upon as representing LENSAR’s views as of any date subsequent to the date of this press release.
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Contacts: |
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Lee Roth / Cameron Radinovic |
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Thomas R. Staab, II, CFO |
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Burns McClellan for LENSAR |
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ir.contact@lensar.com |
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lroth@burnsmc.com / cradinovic@burnsmc.com |
Non-GAAP Financial Measures
The Company prepares and analyzes operating and financial data and non-GAAP measures to assess the performance of its business, make strategic and offering decisions and build its financial projections. The key non-GAAP measures it uses are EBITDA and Adjusted EBITDA.
EBITDA is defined as net loss before interest expense, interest income, income tax expense, depreciation and amortization expenses. EBITDA is a non-GAAP financial measure. EBITDA is specifically disclosed because the Company believes that EBITDA provides meaningful supplemental information for investors regarding the performance of its business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Adjusted EBITDA is also a non-GAAP financial measure. The Company believes Adjusted EBITDA, which excludes stock-based compensation expense, provides meaningful supplemental information for investors when evaluating its results and comparing it to peer companies as stock-based compensation expense is a significant non-cash charge due to the recapitalization of the Company. It uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in its underlying business from quarter to quarter. However, there are a number of limitations
related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance and, therefore, any non-GAAP measures it use may not be directly comparable to similarly titled measures of other companies.
A reconciliation of EBITDA and Adjusted EBITDA to their most comparable GAAP financial measure are set forth below.
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Three Months Ended |
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Six Months Ended |
||||||
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(Dollars in thousands) |
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2021 |
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2020 |
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2021 |
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2020 |
||
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Net loss |
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$ (4,362) |
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$ (4,497) |
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$ (9,544) |
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$ (8,183) |
||
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Add: Interest expense |
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— |
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671 |
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— |
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1,275 |
||
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Less: Interest income |
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(13) |
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(17) |
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(31) |
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(34) |
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Add: Depreciation expense |
|
342 |
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331 |
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670 |
|
808 |
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Add: Amortization expense |
|
309 |
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314 |
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622 |
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631 |
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EBITDA |
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(3,724) |
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(3,198) |
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(8,283) |
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(5,503) |
||
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Add: Stock-based compensation expense |
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1,430 |
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41 |
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3,750 |
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126 |
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Adjusted EBITDA |
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$ (2,294) |
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$ (3,157) |
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$ (4,533) |
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$ (5,377) |
||
Exhibit 99.1
LENSAR, Inc.
STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
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|
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Three Months Ended |
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Six Months Ended |
||||
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2021 |
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2020 |
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2021 |
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2020 |
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Revenue |
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|
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Product |
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$ 6,056 |
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$ 3,993 |
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$ 11,214 |
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$ 8,096 |
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Lease |
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1,140 |
|
470 |
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2,251 |
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1,446 |
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Service |
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726 |
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584 |
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1,500 |
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1,411 |
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Total revenue |
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7,922 |
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5,047 |
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14,965 |
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10,953 |
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Cost of revenue (exclusive of amortization) |
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|
|
|
|
|
|
|
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Product |
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2,366 |
|
2,262 |
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4,456 |
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3,468 |
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Lease |
|
268 |
|
280 |
|
519 |
|
696 |
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Service |
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830 |
|
559 |
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1,638 |
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1,275 |
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Total cost of revenue |
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3,464 |
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3,101 |
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6,613 |
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5,439 |
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Operating expenses |
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|
|
|
|
|
|
|
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Selling, general and administrative expenses |
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5,518 |
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4,041 |
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11,553 |
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8,820 |
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Research and development expenses |
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3,006 |
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1,434 |
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5,752 |
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3,005 |
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Amortization of intangible assets |
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309 |
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314 |
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622 |
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631 |
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Operating loss |
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(4,375) |
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(3,843) |
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(9,575) |
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(6,942) |
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Other income (expense) |
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|
|
|
|
|
|
|
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Interest expense |
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— |
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(671) |
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— |
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(1,275) |
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Other income, net |
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13 |
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17 |
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31 |
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34 |
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Net loss attributable to common stockholders |
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$ (4,362) |
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$ (4,497) |
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$ (9,544) |
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$ (8,183) |
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Net loss per share attributable to common stockholders |
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|
|
|
|
|
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Basic and diluted |
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$ (0.47) |
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$ (4.20) |
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$ (1.03) |
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$ (7.65) |
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Weighted-average number of shares used in calculation of net loss per share: |
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|
|
|
|
|
|
|
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Basic and diluted |
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9,296 |
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1,070 |
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9,242 |
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1,070 |
LENSAR, Inc.
BALANCE SHEETS
(In thousands, except per share amounts)
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|
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June 30, 2021 |
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December 31, 2020 |
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Assets |
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Current assets: |
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|
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Cash and cash equivalents |
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$ 34,554 |
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$ 40,599 |
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Accounts receivable, net of allowance of $27 and $19, respectively |
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2,695 |
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2,012 |
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Notes receivable, net of allowance of $9 and $9, respectively |
|
436 |
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444 |
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Inventories |
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12,449 |
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13,473 |
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Prepaid and other current assets |
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1,432 |
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1,857 |
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Total current assets |
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51,566 |
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58,385 |
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Property and equipment, net |
|
734 |
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832 |
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Equipment under lease, net |
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4,937 |
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3,583 |
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Notes and other receivables, long-term, net of allowance of $6 and $9, respectively |
|
275 |
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452 |
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Intangible assets, net |
|
11,487 |
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12,110 |
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Other assets |
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3,485 |
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3,758 |
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Total assets |
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$ 72,484 |
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$ 79,120 |
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Liabilities and stockholders’ equity |
|
|
|
|
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Current liabilities: |
|
|
|
|
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Accounts payable |
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$ 2,858 |
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$ 2,481 |
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Accrued liabilities |
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3,292 |
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4,570 |
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Deferred revenue |
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1,071 |
|
923 |
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Other current liabilities |
|
502 |
|
493 |
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Total current liabilities |
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7,723 |
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8,467 |
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Long-term operating lease liabilities |
|
3,061 |
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3,314 |
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Other long-term liabilities |
|
72 |
|
129 |
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Total liabilities |
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10,856 |
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11,910 |
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Stockholders’ equity: |
|
|
|
|
|
Preferred stock, par value $0.01 per share, 10,000 shares authorized at June 30, 2021 and December 31, 2020; no shares issued and outstanding at June 30, 2021 and December 31, 2020 |
|
— |
|
— |
|
Common stock, par value $0.01 per share, 150,000 shares authorized at June 30, 2021 and December 31, 2020; 10,957 and 10,933 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively |
|
110 |
|
109 |
|
Additional paid-in capital |
|
129,055 |
|
125,094 |
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Accumulated deficit |
|
(67,537) |
|
(57,993) |
|
Total stockholders’ equity |
|
61,628 |
|
67,210 |
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Total liabilities and stockholders’ equity |
|
$ 72,484 |
|
$ 79,120 |