SAN DIEGO, Aug. 12, 2010 (GLOBE NEWSWIRE) -- TearLab Corporation (Nasdaq:TEAR) (TSX:TLB) today reported its consolidated financial results for the quarter ended June 30, 2010. 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 June 30, 2010, TearLab's net revenues were $418,134 as compared to $96,849 for the same period in 2009. The Company's loss for the second quarter of 2010 was approximately $1.5 million, or $0.10 per share, as compared to $1.0 million, or $0.10 per share, for the 2009 second quarter.
For the six-months ended June 30, 2010, TearLab's net revenues were $693,129 as compared to $340,107 for the same period in 2009. The Company's loss for the first two quarters of 2010 was approximately $3.6 million, or $0.27 per share, as compared to $2.0 million, or $0.21 per share, for six months ended June 30, 2009.
As of June 30, 2010, the Company had cash and cash equivalents and short-term investments of $4.8 million. Management believes that the Company has sufficient cash to cover its operating and other cash demands for at least the next 12 months.
"While our financial statements continue to reflect the very early stages of commercialization of the TearLab™ Osmolarity System in Europe and Canada, as demonstrated by our revenue growth this quarter, interest by clinicians in both markets has been building as evidence has continued to point to tear film osmolarity as the preferred tool in the evaluation of patients suffering from DED," commented Elias Vamvakas, TearLab's Chief Executive Officer.
Mr. Vamvakas continued, "We continue to endeavor to obtain the CLIA waiver categorization and approval for Medicare reimbursement as we believe that both of these milestones are key – not only to the widespread use and commercial success of the TearLab™ Osmolarity System in the U.S., but also to maximum penetration of the European and Canadian markets. As we wait for our full launch into the U.S., we continue to make strategic placements with key opinion leaders there."
Conference Call and Webcast Information
TearLab will hold a conference call to discuss these results today, August 12, at 8:30am Eastern Time at 877-303-6310, website at www.tearlab.com under the "webcasts" link in the Investor Relations section. For those wishing to listen to a recording of the call via telephone, a replay will be made available as soon as possible after the conclusion of the live call and will remain posted for a period of seven days. To listen to the recording, simply telephone (Toll free) 800-642-1687 or Toll 706-645-9291 and enter reservation #92168732 when prompted.
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. Headquartered in San Diego, CA, 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 may contain forward-looking statements. These statements relate to future events and are subject to risks, uncertainties and assumptions about TearLab. Examples of forward-looking statements in this press released include predictions regarding the sufficiency of current cash and cash equivalents to fund operations for 12 months or more, building clinician interest in the TearLab™ Osmolarity System in Europe and Canada, seeking CLIA waiver and Medicare reimbursement, the potential for osmolarity measurement to be the preferred tool in the evaluation of patients suffering from DED, the potential impact of Medicare reimbursement and CLIA waiver on the commercial success of the TearLab™ Osmolarity System in the U.S., Europe and Canada, the intention to launch the TearLab™ Osmolarity System to a broader market in the U.S. if CLIA waiver is granted, and the future commercial adoption of the TearLab™ Osmolarity System. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. Many factors may cause our actual results to differ materially from any forward-looking statement, including the factors detailed in our filings with the Securities and Exchange Commission and Canadian securities regulatory authorities, including but not limited to our annual and quarterly reports on Forms 10-K and 10-Q. We do not undertake to update any forward-looking statements.
| TearLab Corp. (formerly OccuLogix, Inc.) | ||
|
CONSOLIDATED STATEMENTS OF OPERATIONS (expressed in U.S. dollars except number of shares) (Unaudited) |
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| Three months ended June 30, | ||
| 2010 | 2009 | |
| Revenue | ||
| TearLab | $ 418,134 | $ 96,849 |
| Total revenue | 418,134 | 96,849 |
| Cost of goods sold | ||
| TearLab -- product cost | 198,170 | 130,618 |
| Total cost of goods sold (excluding amortization of intangible assets) | 198,170 | 130,618 |
| Gross profit (loss) | 219,964 | (33,769) |
| Operating expenses | ||
| Amortization of intangible assets | 303,631 | 303,631 |
| General and administrative | 1,025,033 | 910,352 |
| Clinical, regulatory and research & development | 297,049 | 306,625 |
| Sales and marketing | 346,155 | 168,550 |
| Total operating expenses | 1,971,868 | 1,689,158 |
| Loss from continuing operations | (1,751,904) | (1,722,927) |
| Other income (expense) | ||
| Interest income | 8,093 | 438 |
| Changes in fair value of warrant obligations | 402,424 | 9,742 |
| Interest expense | (52,503) | — |
| Amortization of deferred financing charges, warrants & beneficial conversion values | (138,942) | — |
| Other income (loss) | (7,298) | 11,408 |
| Total other income | 211,774 | 21,588 |
| Loss from continuing operations before income taxes | (1,540,130) | (1,701,339) |
| Recovery of income taxes | — | 680,331 |
| Net loss | $ (1,540,130) | $ (1,021,008) |
| Weighted average shares outstanding – basic and diluted | 14,765,794 | 9,858,179 |
| Loss per common share – basic and diluted | $(0.10) | $(0.10) |
| TearLab Corp. (formerly OccuLogix, Inc.) | ||
|
CONSOLIDATED STATEMENTS OF OPERATIONS (expressed in U.S. dollars except number of shares) (Unaudited) |
||
| Six months ended June 30, | ||
| 2010 | 2009 | |
| Revenue | ||
| TearLab | $ 693,129 | $ 340,107 |
| Total revenue | 693,129 | 340,107 |
| Cost of goods sold | ||
| TearLab -- product cost | 387,592 | 249,817 |
| Total cost of goods sold (excluding amortization of intangible assets) | 387,592 | 249,817 |
| Gross profit | 305,537 | 90,290 |
| Operating expenses | ||
| Amortization of intangible assets | 607,261 | 607,261 |
| General and administrative | 1,990,505 | 1,893,331 |
| Clinical, regulatory and research & development | 765,115 | 638,931 |
| Sales and marketing | 620,611 | 382,854 |
| Total operating expenses | 3,983,492 | 3,522,377 |
| Loss from continuing operations | (3,677,955) | (3,432,087) |
| Other income (expense) | ||
| Interest income | 9,534 | 2,268 |
| Changes in fair value of warrant obligations | 473,402 | 31,437 |
| Interest expense | (105,005) | — |
| Amortization of deferred financing charges, warrants & beneficial conversion values | (292,979) | — |
| Other income (loss) | (27,148) | 25,571 |
| Total other income | 57,804 | 59,276 |
| Loss from continuing operations before income taxes | (3,620,152) | (3,372,811) |
| Recovery of income taxes | — | 1,349,212 |
| Net loss | $ (3,620,152) | $ (2,023,599) |
| Weighted average shares outstanding – basic and diluted | 13,417,021 | 9,845,155 |
| Loss per common share – basic and diluted | $(0.27) | $(0.21) |
| TearLab Corp. (formerly OccuLogix, Inc.) | ||
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CONSOLIDATED BALANCE SHEETS (expressed in U.S. dollars except number of shares) |
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| June 30, | December 31, | |
| 2010 | 2009 | |
| ASSETS | (Unaudited) | |
| Current assets | ||
| Cash and cash equivalents | $ 4,753,943 | $ 106,200 |
| Accounts receivable, net | 210,665 | 149,039 |
| Due from related party | 51,266 | — |
| Inventory, net | 340,335 | 196,461 |
| Prepaid expenses | 185,684 | 337,602 |
| Deferred finance charges | 15,600 | 23,679 |
| Other current assets | 35,628 | 30,911 |
| Total current assets | 5,593,121 | 843,892 |
| Fixed assets, net | 133,017 | 139,589 |
| Patents and trademarks, net | 206,529 | 220,583 |
| Other non-current assets | 33,333 | 175,578 |
| Intangible assets, net | 7,746,239 | 8,353,501 |
| Total assets | $ 13,712,239 | $ 9,733,143 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Accounts payable | $ 298,358 | $ 447,527 |
| Accrued liabilities | 1,033,453 | 1,093,404 |
| Due to stockholders | 31,422 | 38,422 |
| Deferred revenue | 134,153 | 150,977 |
| Obligations under warrants | 266,564 | 3,195 |
| Notes payable and accrued interest | 1,626,850 | 1,242,403 |
| Total current liabilities | 3,390,800 | 2,975,928 |
| Stockholders' equity | ||
| Capital stock | ||
| Preferred Stock | — | — |
|
Par value of $0.001 per share; authorized 10,000,000: zero issued and outstanding at both June 30, 2010 and December 31, 2009 |
||
| Common stock | 14,766 | 9,866 |
| Par value of $0.001 per share; | ||
| Authorized: 40,000,000; | ||
| Issued and outstanding: June 30, 2010 – 14,765,794; December 31, 2009 – 9,866,685 | ||
| Additional paid-in capital | 385,969,414 | 378,789,938 |
| Accumulated deficit | (375,662,741) | (372,042,589) |
| Total stockholders' equity | 10,321,439 | 6,757,215 |
| $ 13,712,239 | $ 9,733,143 | |