U.S. markets open in 4 hours 42 minutes
  • S&P Futures

    3,713.00
    +43.00 (+1.17%)
     
  • Dow Futures

    29,625.00
    +282.00 (+0.96%)
     
  • Nasdaq Futures

    11,463.75
    +147.50 (+1.30%)
     
  • Russell 2000 Futures

    1,686.70
    +24.20 (+1.46%)
     
  • Crude Oil

    78.08
    +1.37 (+1.79%)
     
  • Gold

    1,642.90
    +9.50 (+0.58%)
     
  • Silver

    18.64
    +0.16 (+0.84%)
     
  • EUR/USD

    0.9633
    +0.0021 (+0.22%)
     
  • 10-Yr Bond

    3.8780
    0.0000 (0.00%)
     
  • Vix

    30.85
    +0.93 (+3.11%)
     
  • GBP/USD

    1.0821
    +0.0138 (+1.29%)
     
  • USD/JPY

    144.3320
    -0.3480 (-0.24%)
     
  • BTC-USD

    20,174.90
    +1,007.68 (+5.26%)
     
  • CMC Crypto 200

    460.66
    +27.56 (+6.36%)
     
  • FTSE 100

    7,034.51
    +13.56 (+0.19%)
     
  • Nikkei 225

    26,571.87
    +140.32 (+0.53%)
     

Obalon Announces Fourth Quarter and Full Year 2020 Financial Results

·8 min read

SAN DIEGO, March 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 fourth quarter and full year ended December 31, 2020. On November 10, 2020, the Company signed a non-binding term sheet for merger with ReShape Lifesciences Inc. and, on January 20, 2021, announced that a definitive agreement had been signed on January 19, 2020 for a merger with ReShape Lifesciences Inc.

Financial results for the fourth quarter of 2020
Revenue for the fourth quarter of 2020 was $0.1 million, compared to $0.8 million for the fourth quarter of 2019, with the decrease primarily due to the suspension of operations in the second quarter of 2020. Net loss for the fourth quarter of 2020 was $1.3 million, compared to $4.9 million for the fourth quarter of 2019. Net loss per share for the fourth quarter of 2020 was $0.17, compared to $0.64 for the fourth quarter of 2019.

Cost of revenue was $0 for the fourth quarter of 2020, down from $0.6 million for the fourth quarter of 2019. Gross profit for the fourth quarter of 2020 was $0.1 million compared to $0.2 million for the fourth quarter of 2019.

Research and Development expense for the fourth quarter of 2020 totaled $0.2 million, down from $1.5 million for the fourth quarter of 2019. Selling, General and Administrative expense decreased to $1.2 million for the fourth quarter of 2020, compared to $3.6 million for the fourth quarter of 2019.

Operating loss for the fourth quarter of 2020 was $1.4 million, down from a loss of $5.0 million for the fourth quarter of 2019.

As of December 31, 2020, the Company had cash and cash equivalents of $3.9 million and $0.4 million of debt related to its Payroll Protection Program loan.

Financial results for the full year of 2020
Revenue for the full year of 2020 was $1.6 million, compared to $3.3 million for the full year of 2019, with the decrease primarily due to the suspension of operations in the second quarter of 2020. Net loss for the full year of 2020 was $12.3 million, compared to $23.7 million for the full year of 2019. Net loss per share for the full year of 2020 was $1.59, compared to $5.03 for the full year of 2019.

Cost of revenue was $1.0 million for the full year of 2020, down from $3.0 million for the full year of 2019. Gross profit for the full year of 2020 was $0.6 million compared to $0.3 million for the full year of 2019.

Research and Development expense for the full year of 2020 totaled $2.5 million, down from $6.9 million for the full year of 2019. Selling, General and Administrative expense decreased to $8.8 million for the full year of 2020, compared to $16.7 million for the full year of 2019. Operating loss for the full year of 2020 was $12.0 million, down from a loss of $23.2 million for the full year of 2019.

Subsequent Events

From January 1, 2021 through March 2, 2021, the Company’s warrant holders covering 2.3 million shares exercised the warrants and common stock was issued in exchange for proceeds of $9.5 million.

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 the potential merger with ReShape Lifesciences Inc. 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 period ended December 31, 2020, 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 December 31,

Twelve Months Ended December 31,

2020

2019

2020

2019

Revenue

$

61

$

787

$

1,588

$

3,281

Cost of revenue

(1

)

627

1,004

2,950

Gross profit (deficit)

62

(160

)

584

331

Operating expenses:

Research and development

157

1,492

2,450

6,893

Selling, general and administrative

1,230

3,643

8,776

16,668

Asset impairment and other charges

1,310

Total operating expenses

1,387

5,135

12,536

23,561

Loss from operations

(1,326

)

(4,975

)

(11,952

)

(23,230

)

Interest (expense) income, net

63

29

(385

)

Other expense, net

(1

)

(411

)

(61

)

Net loss and comprehensive loss

$

(1,326

)

$

(4,913

)

$

(12,334

)

$

(23,676

)

Net loss per share, basic and diluted

$

(0.17

)

$

(0.64

)

$

(1.59

)

$

(5.03

)

Weighted-average common shares outstanding, basic and diluted

7,770,698

7,692,673

7,738,355

4,706,775

OBALON THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except shares and par value data)

December 31,

2020

2019

Assets

Current assets:

Cash and cash equivalents

$

3,905

$

14,055

Accounts receivable, net

285

Inventory

1,936

Other current assets

3,930

1,959

Total current assets

7,835

18,235

Lease right-of-use assets

521

1,077

Property and equipment, net

957

1,081

Other long-term assets

1,304

Total assets

$

10,617

$

20,393

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

615

$

648

Accrued compensation

65

820

Deferred revenue

424

Other current liabilities

3,802

1,524

Current portion of lease liabilities

564

561

Total current liabilities

5,046

3,977

Lease liabilities, long-term

438

567

Long-term debt

430

Other long-term liabilities

38

Total liabilities

5,952

4,544

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.001 par value; 100,000,000 shares authorized as of December 31, 2020 and December 31, 2019; 7,770,698 and 7,724,100 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively

8

8

Additional paid-in capital

189,421

188,271

Accumulated deficit

(184,764

)

(172,430

)

Total stockholders’ equity

4,665

15,849

Total liabilities and stockholders’ equity

$

10,617

$

20,393

OBALON THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)

Year ended December 31,

2020

2019

Operating activities:

Net loss

$

(12,334

)

$

(23,676

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation

340

479

Stock-based compensation

1,089

2,983

Fair value of cash-settled options

38

Issuance of warrants for the purchase of common stock

45

Amortization of right-of-use assets

503

415

Loss on disposal of fixed asset

128

Accretion of investment discount, net

(2

)

Amortization of debt discount

70

Impairment of long-lived assets and other charges

1,257

Impairment of inventory

53

Change in operating assets and liabilities:

Accounts receivable, net

285

585

Inventory

(525

)

12

Other current assets

(1,804

)

411

Accounts payable

(33

)

(543

)

Accrued compensation

(740

)

(2,985

)

Deferred revenue

(424

)

72

Lease liabilities, net

(427

)

(364

)

Other current and long-term liabilities

2,268

(451

)

Net cash used in operating activities

(10,409

)

(22,866

)

Investing activities:

Maturities of short-term investments

2,550

Purchases of property and equipment

(171

)

(194

)

Net cash (used in) provided by investing activities

(171

)

2,356

Financing activities:

Proceeds from issuance of common stock and warrants, net of issuance costs

23,377

Proceeds from long-term loan, net of issuance costs

430

10,000

Repayments of long-term loans

(20,000

)

Proceeds from sale of common stock upon exercise of stock options

1

Net cash provided by financing activities

430

13,378

Net (decrease) increase in cash and cash equivalents

(10,150

)

(7,132

)

Cash and cash equivalents at beginning of period

14,055

21,187

Cash and cash equivalents at end of period

$

3,905

$

14,055

Supplemental cash flow information:

Interest paid

$

$

719

Income taxes paid

$

$

Property and equipment in accounts payable

$

$

32

CONTACT: For Obalon Therapeutics, Inc. Investor Contact: Andrew Rasdal President and Chief Executive Officer Obalon Therapeutics, Inc. Office: +1 844 362 2566 arasdal@obalon.com