SAN DIEGO, May 12, 2021 (GLOBE NEWSWIRE) -- Obalon Therapeutics, Inc. (NASDAQ:OBLN), a vertically integrated medical technology company with the first and only FDA-approved swallowable, gas-filled intragastric balloon system for the treatment of obesity, today announced its financial results for the first quarter ended March 31, 2021. On January 19, 2020 the Company signed a definitive agreement for a merger with ReShape Lifesciences Inc.
Financial results for the first quarter of 2021
Revenue for the first quarter of 2021 was none, compared to $0.8 million for the first quarter of 2020, with the decrease primarily due to the suspension of operations in the second quarter of 2020. Net loss for the first quarter of 2021 was $4.2 million, compared to $5.3 million for the first quarter of 2020. Net loss per share for the first quarter of 2021 was $0.44, compared to $0.68 for the first quarter of 2020.
Cost of revenue was none for the first quarter of 2021, down from $0.5 million for the first quarter of 2020. Gross profit for the first quarter of 2021 was none compared to a gross profit of $0.2 million for the first quarter of 2020.
Research and Development expense for the first quarter of 2021 totaled $0.1 million, down from $1.3 million for the first quarter of 2020. Selling, General and Administrative expense increased to $4.1 million for the first quarter of 2021, compared to $3.9 million for the first quarter of 2020.
Operating loss for the first quarter of 2021 was $4.2 million, down from a loss of $4.9 million for the first quarter of 2020.
As of March 31, 2021, the Company had cash and cash equivalents of $9.0 million and $0.4 million of debt related to its Payroll Protection Program loan.
About Obalon Therapeutics, Inc.
Obalon Therapeutics, Inc. (NASDAQ:OBLN) is a San Diego-based company focused on developing and commercializing novel technologies for weight loss.
Cautionary Statement Regarding Forward Looking Statements
This press release contains forward-looking statements that are not purely historical regarding Obalon’s or its management’s intentions, beliefs, expectations and strategies for the future, including those related to new products and their potential benefits. All forward-looking statements and reasons why results might differ included in this press release are made as of the date of this release, based on information currently available to Obalon, deal with future events, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in those forward looking statements. The risks and uncertainties that may cause actual results to differ materially from Obalon’s current expectations are more fully described in Obalon’s annual report on Form 10-K for the fiscal year ended December 31, 2020 and its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2021, and its other reports, each as filed with the Securities and Exchange Commission. Except as required by law, Obalon assumes no obligation to update any such forward-looking statement after the date of this report or to conform these forward-looking statements to actual results.
OBALON THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except shares and per share data)
| Three Months ended March 31, | |||||||
| 2021 | 2020 | ||||||
| Revenue | $ | — | $ | 780 | |||
| Cost of revenue | — | 541 | |||||
| Gross profit | — | 239 | |||||
| Operating expenses: | |||||||
| Research and development | 112 | 1,257 | |||||
| Selling, general and administrative | 4,056 | 3,893 | |||||
| Total operating expenses | 4,168 | 5,150 | |||||
| Loss from operations | (4,168 | ) | (4,911 | ) | |||
| Interest income (expense), net | 1 | 35 | |||||
| Other expense | — | (385 | ) | ||||
| Net loss | (4,167 | ) | (5,261 | ) | |||
| Net loss and comprehensive loss | $ | (4,167 | ) | $ | (5,261 | ) | |
| Net loss per share, basic and diluted | $ | (0.44 | ) | $ | (0.68 | ) | |
| Weighted-average common shares outstanding, basic and diluted | 9,444,241 | 7,725,205 | |||||
OBALON THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and par value data)
| March 31, | December 31, | ||||||
| 2021 | 2020 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 8,972 | $ | 3,905 | |||
| Other current assets | 3,822 | 3,930 | |||||
| Total current assets | 12,794 | 7,835 | |||||
| Lease right-of-use assets | 421 | 521 | |||||
| Property and equipment, net | 891 | 957 | |||||
| Clinical-use assets | 1,304 | 1,304 | |||||
| Other long-term assets | 1,933 | — | |||||
| Total assets | $ | 17,343 | $ | 10,617 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 582 | $ | 615 | |||
| Accrued compensation | 602 | 65 | |||||
| Debt | 430 | — | |||||
| Other current liabilities | 4,699 | 3,802 | |||||
| Current portion of lease liabilities | 550 | 564 | |||||
| Total current liabilities | 6,863 | 5,046 | |||||
| Lease liabilities, long-term | 344 | 438 | |||||
| Long-term debt | — | 430 | |||||
| Other long-term liabilities | 38 | 38 | |||||
| Total liabilities | 7,245 | 5,952 | |||||
| Commitments and contingencies (See Note 10) | |||||||
| Stockholders’ equity: | |||||||
| Common stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2021 and December 31, 2020, 10,021,568 and 7,770,698 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively | 10 | 8 | |||||
| Additional paid-in capital | 199,019 | 189,421 | |||||
| Accumulated deficit | (188,931 | ) | (184,764 | ) | |||
| Total stockholders’ equity | 10,098 | 4,665 | |||||
| Total liabilities and stockholders’ equity | $ | 17,343 | $ | 10,617 | |||
OBALON THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
| Three months ended March 31, | |||||||
| 2021 | 2020 | ||||||
| Operating activities: | |||||||
| Net loss | $ | (4,167 | ) | $ | (5,261 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation | 66 | 103 | |||||
| Stock-based compensation | 91 | 470 | |||||
| Amortization of right-of-use assets | 100 | 122 | |||||
| Change in operating assets and liabilities: | |||||||
| Accounts receivable, net | — | (176 | ) | ||||
| Inventory | — | (326 | ) | ||||
| Other current assets | 108 | (2,828 | ) | ||||
| Other long-term assets | (1,933 | ) | — | ||||
| Accounts payable | (33 | ) | 422 | ||||
| Accrued compensation | 537 | (446 | ) | ||||
| Deferred revenue | — | 38 | |||||
| Lease liabilities, net | (108 | ) | (14 | ) | |||
| Other current and long-term liabilities | 897 | 3,082 | |||||
| Net cash used in operating activities | (4,442 | ) | (4,814 | ) | |||
| Investing activities: | |||||||
| Purchases of property and equipment | — | (326 | ) | ||||
| Net cash used in investing activities | — | (326 | ) | ||||
| Financing activities: | |||||||
| Proceeds from exercise of warrants | 9,509 | — | |||||
| Net cash provided by financing activities | 9,509 | — | |||||
| Net increase (decrease) in cash and cash equivalents | 5,067 | (5,140 | ) | ||||
| Cash and cash equivalents at beginning of period | 3,905 | 14,055 | |||||
| Cash and cash equivalents at end of period | $ | 8,972 | $ | 8,915 | |||