RxSight, Inc., an ophthalmic medical device company dedicated to
improving the vision of patients following cataract surgery, today
reported financial results for the three months ended June 30,
2021.
Recent Highlights
- Achieved second quarter 2021 revenue of $4.9 million,
representing growth of 81% compared to the prior year period,
driven by:
- Sale of 25 Light Delivery Devices (LDD™s), expanding the
installed base to 130 LDDs as of June 30, 2021; and
- Sale of 1,825 Light Adjustable Lenses (LAL®s)
- Received U.S. Food & Drug Administration (FDA) approval and
launched the updated LAL with ActivShield™ technology in the third
quarter of 2021, providing redundant ultraviolet light (UV)
protection to simplify patient compliance and scheduling;
- Expanded commercial leadership with the addition of Steve
Everly as Vice President of U.S. Sales and appointed three new
Directors to its Board including Robert (Bob) Palmisano, Robert
Warner and Julie Andrews; and
- Completed an initial public offering (IPO) in July raising
approximately $120 million of net proceeds.
“Our second quarter performance was driven by
further adoption of our Light Adjustable Lens system, which
provides doctors with a premium intraocular lens (IOL) that
can be customized after surgery to achieve optimal outcomes for
patients,” said Ron Kurtz, Chief Executive Officer of
RxSight®. Dr. Kurtz continued, “As a result of the
post-operative adjustability provided by the RxSight system doctors
can be confident they will deliver the visual acuity and quality
all patients expect, overcoming one of the major factors that has
limited growth of the premium IOL market. We are excited that
following the completion of our IPO, we have the resources to grow
our business, including advancing our technology with features like
ActivShield.”
Financial Results Total revenue
for the second quarter of 2021 was $4.9 million, an increase of 81%
compared to $2.7 million for the second quarter of 2020. The growth
was primarily driven by increased LDD and LAL unit sales and a more
favorable market environment because of the reduced impact from the
COVID-19 pandemic.
Gross (loss) for the second quarter of 2021 was
$(0.8) million compared to $(0.5) million for the second quarter of
2020. The decline in gross profit was due to a $1.7 million
inventory reserve for excess LAL inventory resulting from the
recent introduction of an updated LAL with ActivShield
technology.
Total operating expenses for the second quarter of
2021 were $13.1 million, a 57% increase from $8.3 million in the
second quarter of 2020. The increase was primarily driven by higher
headcount in sales and marketing to support the growth of the
business and continued investments in research and development.
Net (loss) was $(13.5) million, or $(3.28) and
$(3.53) per share on a basic and diluted basis, respectively, in
the second quarter of 2021, compared to a net (loss) attributable
to common shareholders of $(17.0) million, or $(4.66) per
share in the second quarter of 2020.
Adjusted net (loss) was $(13.3) million, or
$(3.24) per share on a basic and diluted basis, in the second
quarter of 2021, compared to $(11.7) million, or $(3.21) per share
on both a basic and diluted basis, in the second quarter of
2020.
Cash, cash equivalents and short-term investments
as of June 30, 2021 were $61.7 million and long-term debt was $40.0
million. On July 29, 2021 $120 million in net proceeds were raised
through the completion of an initial public offering.
Conference Call On Thursday,
September 9, 2021, at 1:30 p.m. Pacific Time, the company will host
a conference call to discuss its second quarter 2021 financial
results. The call may be accessed through a live and archived
webcast of the event available for one year at
https://investors.rxsight.com/.
About RxSight, Inc. RxSight, Inc.
is a commercial-stage medical technology company dedicated to
improving the vision of patients following cataract surgery. The
RxSight Light Adjustable Lens system, comprised of the RxSight
Light Adjustable Lens (LAL), RxSight Light Delivery Device (LDD)
and accessories, is the first and only commercially available
intraocular lens (IOL) technology that enables doctors to customize
and optimize visual acuity for patients after cataract surgery. The
LAL now features ActivShield technology, a revolutionary UV
protection layer built into the lens. Additional information about
RxSight can be found at www.rxsight.com.
Forward-Looking Statements This
press release contains forward-looking statements, including those
related physician adoption of the RxSight Light Adjustable Lens
system, optimal outcomes for patients, the ability to deliver the
visual acuity and quality patients expect and the ability to
overcome one of the major factors that has limited growth of the
premium market with the RxSight Adjustable Lens system, the ability
to continue advancement of the RxSight technology and the ability
of the IPO proceeds to fill the resource needs for growth in the
Company’s business. Such statements relate to future events
or our future financial performance and involve known and unknown
risks, uncertainties and other factors that may cause our or our
industry's actual results, levels of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed, implied
or inferred by these forward-looking statements, and among other
things, our ability to maintain cash balances and successfully
commercialize or partner our product candidates currently under
development. In some cases, you can identify forward-looking
statements by terminology such as "may," "will," "should," "could,"
"would," "expects," "plans," "intends," "anticipates," "believes,"
"estimates," "predicts," "projects," "potential," or "continue" or
the negative of such terms and other same terminology. 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. In evaluating these statements, you should specifically
consider various factors. These and other factors may cause
our actual results to differ materially from any forward-looking
statement. We undertake no obligation to update any of the
forward-looking statements after the date of this press release to
conform those statements to reflect the occurrence of unanticipated
events, except as required by applicable law.
Investor Relations Contact:
Philip Taylor Gilmartin Group 415.937.5406 IR@rxsight.com
Company contact: Roy Freeman Sr.
Director, Marketing rfreeman@rxsight.com
|
RXSIGHT, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(UNAUDITED) (in thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Sales |
|
$ |
4,897 |
|
|
$ |
2,706 |
|
|
$ |
8,381 |
|
|
$ |
5,594 |
|
Cost of sales |
|
|
5,709 |
|
|
|
3,180 |
|
|
|
8,074 |
|
|
|
5,989 |
|
Gross profit (loss) |
|
|
(812 |
) |
|
|
(474 |
) |
|
|
307 |
|
|
|
(395 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
6,502 |
|
|
|
3,249 |
|
|
|
12,113 |
|
|
|
6,948 |
|
Research and development |
|
|
6,563 |
|
|
|
5,084 |
|
|
|
13,206 |
|
|
|
10,861 |
|
Total operating expenses |
|
|
13,065 |
|
|
|
8,333 |
|
|
|
25,319 |
|
|
|
17,809 |
|
Loss from operations |
|
|
(13,877 |
) |
|
|
(8,807 |
) |
|
|
(25,012 |
) |
|
|
(18,204 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of warrants |
|
|
1,214 |
|
|
|
(4,178 |
) |
|
|
1,214 |
|
|
|
(11,585 |
) |
Expiration of warrant |
|
|
— |
|
|
|
— |
|
|
|
5,018 |
|
|
|
— |
|
Interest expense |
|
|
(826 |
) |
|
|
(4 |
) |
|
|
(1,524 |
) |
|
|
(9 |
) |
Interest and other income |
|
|
15 |
|
|
|
147 |
|
|
|
32 |
|
|
|
459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(13,474 |
) |
|
|
(12,842 |
) |
|
|
(20,272 |
) |
|
|
(29,339 |
) |
Income tax expense |
|
|
3 |
|
|
|
40 |
|
|
|
10 |
|
|
|
45 |
|
Net loss |
|
|
(13,477 |
) |
|
|
(12,882 |
) |
|
|
(20,282 |
) |
|
|
(29,384 |
) |
Accretion to redemption value of redeemable preferred stock and
redeemable stock options |
|
|
— |
|
|
|
(4,097 |
) |
|
|
— |
|
|
|
(8,343 |
) |
Net loss attributable to common stockholders |
|
|
(13,477 |
) |
|
|
(16,979 |
) |
|
|
(20,282 |
) |
|
|
(37,727 |
) |
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on short-term investments |
|
|
(4 |
) |
|
|
(112 |
) |
|
|
3 |
|
|
|
(35 |
) |
Foreign currency translation gain (loss) |
|
|
1 |
|
|
|
3 |
|
|
|
(3 |
) |
|
|
2 |
|
Total other comprehensive loss |
|
|
(3 |
) |
|
|
(109 |
) |
|
|
— |
|
|
|
(33 |
) |
Comprehensive loss |
|
$ |
(13,480 |
) |
|
$ |
(12,991 |
) |
|
$ |
(20,282 |
) |
|
$ |
(29,417 |
) |
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to redeemable common stock, basic and diluted |
|
$ |
— |
|
|
$ |
(4.66 |
) |
|
$ |
— |
|
|
$ |
(10.46 |
) |
Attributable to Series G common stock, basic and diluted |
|
$ |
(0.32 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.48 |
) |
|
$ |
(1.24 |
) |
Attributable to common stock, basic |
|
$ |
(3.28 |
) |
|
$ |
— |
|
|
$ |
(5.00 |
) |
|
$ |
— |
|
Attributable to common stock, diluted |
|
$ |
(3.53 |
) |
|
$ |
— |
|
|
$ |
(5.23 |
) |
|
$ |
— |
|
Weighted-average shares used in computing net loss per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to redeemable common stock, basic and diluted |
|
|
— |
|
|
|
3,645,699 |
|
|
|
— |
|
|
|
3,608,190 |
|
Attributable to Series G common stock, basic and diluted |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Attributable to common stock, basic |
|
|
4,106,403 |
|
|
|
— |
|
|
|
4,052,920 |
|
|
|
— |
|
Attributable to common stock, diluted |
|
|
4,166,439 |
|
|
|
— |
|
|
|
4,113,249 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RXSIGHT,
INC. CONDENSED CONSOLIDATED BALANCE
SHEETS (in thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 (1) |
|
|
|
(Unaudited) |
|
|
|
|
Assets |
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
41,731 |
|
|
$ |
13,994 |
|
Short-term investments |
|
|
19,998 |
|
|
|
54,981 |
|
Accounts receivable |
|
|
3,936 |
|
|
|
2,865 |
|
Inventories |
|
|
8,543 |
|
|
|
8,288 |
|
Prepaid and other current assets |
|
|
1,338 |
|
|
|
1,372 |
|
Total current assets |
|
|
75,546 |
|
|
|
81,500 |
|
Property and
equipment, net |
|
|
12,686 |
|
|
|
13,287 |
|
Operating
leases right-of-use assets |
|
|
4,749 |
|
|
|
5,319 |
|
Restricted
cash |
|
|
561 |
|
|
|
461 |
|
Other
assets |
|
|
1,344 |
|
|
|
110 |
|
Total assets |
|
$ |
94,886 |
|
|
$ |
100,677 |
|
Liabilities, redeemable common stock, stock options,
convertible preferred stock and stockholders'
deficit |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
2,342 |
|
|
$ |
1,134 |
|
Accrued expenses and other current liabilities |
|
|
4,781 |
|
|
|
4,174 |
|
Warrant liability |
|
|
2,614 |
|
|
|
5,018 |
|
Lease liabilities |
|
|
1,365 |
|
|
|
1,274 |
|
Total current liabilities |
|
|
11,102 |
|
|
|
11,600 |
|
Long-term
warrant liability |
|
|
— |
|
|
|
3,828 |
|
Long-term
lease liabilities |
|
|
4,374 |
|
|
|
5,079 |
|
Term loan,
net |
|
|
39,506 |
|
|
|
24,399 |
|
Total liabilities |
|
|
54,982 |
|
|
|
44,906 |
|
Commitments
and contingencies |
|
|
|
|
|
|
Redeemable
common stock: |
|
|
|
|
|
|
Common stock, $0.001 par value, 24,545,966 shares authorized,
3,813,450 shares issued and outstanding as of December 31,
2020 |
|
|
— |
|
|
|
80,780 |
|
Notes receivable for common stock issued |
|
|
— |
|
|
|
(803 |
) |
Redeemable stock options |
|
|
— |
|
|
|
53,085 |
|
Convertible
preferred stock: |
|
|
|
|
|
|
Preferred stock, $0.001 par value, 16,572,792 shares authorized,
14,376,272 shares issued and outstanding as of June 30, 2021 and
December 31, 2020 (redeemable), respectively |
|
|
353,300 |
|
|
|
353,300 |
|
Stockholders' deficit: |
|
|
|
|
|
|
Common stock, $0.001 par value, 24,545,966 shares authorized,
4,124,211 shares issued and outstanding as of June 30, 2021 |
|
|
4 |
|
|
|
— |
|
Additional paid-in capital |
|
|
137,838 |
|
|
|
— |
|
Notes receivable for common stock issued |
|
|
(365 |
) |
|
|
— |
|
Series G common stock, $0.001 par value, 1 share authorized and
outstanding as of June 30, 2021 and December 31, 2020 |
|
|
— |
|
|
|
— |
|
Series W common stock, $0.001 par value, 1 share authorized and no
shares outstanding as of June 30, 2021 and December 31, 2020 |
|
|
— |
|
|
|
— |
|
Accumulated other comprehensive loss |
|
|
(3 |
) |
|
|
(3 |
) |
Accumulated deficit |
|
|
(450,870 |
) |
|
|
(430,588 |
) |
Total stockholders' deficit |
|
|
(313,396 |
) |
|
|
(430,591 |
) |
Total liabilities, redeemable common stock, stock options,
convertible preferred stock and stockholders'
deficit |
|
$ |
94,886 |
|
|
$ |
100,677 |
|
|
|
|
|
|
|
|
|
|
(1) The balance sheet at December 31,2020 has been derived from the
audited consolidated financial statements included in RxSight,
Inc.'s final prospectus for its public offering filed on July 29,
2021. |
|
|
|
Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated
financial statements presented under generally accepted accounting
principles in the United States (“GAAP”), we believe certain
non-GAAP measures, including Adjusted net (loss), and Adjusted net
(loss) per share, basic and diluted, provide useful information to
investors and are useful in evaluating our operating performance.
For example, we exclude stock-based compensation expense and the
change in fair value of warrants because these are non-cash in
nature and excluding these items provides meaningful supplemental
information regarding our operational performance and allows
investors the ability to make more meaningful comparisons between
our operating results and those of other companies.
We believe that non-GAAP financial information,
when taken collectively, may be helpful to investors because it
provides consistency and comparability with past financial
performance. However, non-GAAP financial information is presented
for supplemental informational purposes only, has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. In addition, other companies, including companies in our
industry, may calculate similarly titled non-GAAP measures
differently or may use other measures to evaluate their
performance. A reconciliation is provided below for each non-GAAP
financial measure to the most directly comparable financial measure
stated in accordance with GAAP. Investors are encouraged to review
the related GAAP financial measures and the reconciliation of these
non-GAAP financial measures to their most directly comparable GAAP
financial measures, and not to rely on any single financial measure
to evaluate our business.
Adjusted Net (Loss) and Adjusted Net
(Loss) Per Share
Adjusted net (loss) is a non-GAAP financial
measure that we define as net (loss) adjusted for (i) stock-based
compensation and (ii) change in fair value of warrants. We believe
Adjusted net (loss) provides investors with useful information on
period-to-period performance as evaluated by management and
comparison with our past financial performance and is useful in
evaluating our operating performance compared to that of other
companies in our industry, as this metric generally eliminates the
effects of certain items that may vary from company to company for
reasons unrelated to overall operating performance. Adjusted net
(loss) for Series G Common Stock is not impacted by the
adjustments.
Reconciliations of net (loss) to Adjusted net
(loss) and the presentation of Adjusted net (loss) per share, basic
and diluted, are as follows:
|
Reconciliation of U.S. GAAP to Other Non-GAAP Financial
Measures(unaudited)(in thousands, except
share and per share amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
Non-GAAP Adjusted Net (Loss) and Adjusted Net (Loss) per
Share |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) available to stockholders, basic |
|
$ |
(13,477 |
) |
|
$ |
(16,979 |
) |
|
$ |
(20,282 |
) |
|
$ |
(37,727 |
) |
Net (loss) available to stockholders, diluted |
|
|
(14,691 |
) |
|
|
(16,979 |
) |
|
|
(21,496 |
) |
|
|
(37,727 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
1,406 |
|
|
|
1,083 |
|
|
|
2,645 |
|
|
|
1,706 |
|
Change in fair value of warrants |
|
|
(1,214 |
) |
|
|
4,178 |
|
|
|
(1,214 |
) |
|
|
11,585 |
|
Adjusted net
(loss) available to common stockholders, basic: |
|
$ |
(13,285 |
) |
|
$ |
(11,717 |
) |
|
$ |
(18,851 |
) |
|
$ |
(24,436 |
) |
Adjusted net
(loss) available to common stockholders, diluted: |
|
$ |
(13,285 |
) |
|
$ |
(11,717 |
) |
|
$ |
(18,851 |
) |
|
$ |
(24,436 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding, basic |
|
|
4,106,403 |
|
|
|
3,645,699 |
|
|
|
4,052,920 |
|
|
|
3,608,190 |
|
Weighted-average shares outstanding, diluted |
|
|
4,166,439 |
|
|
|
3,645,699 |
|
|
|
4,113,249 |
|
|
|
3,608,190 |
|
Adjusted net
(loss) per share, basic |
|
$ |
(3.24 |
) |
|
$ |
(3.21 |
) |
|
$ |
(4.65 |
) |
|
$ |
(6.77 |
) |
Adjusted net
(loss) per share, diluted |
|
$ |
(3.24 |
) |
|
$ |
(3.21 |
) |
|
$ |
(4.65 |
) |
|
$ |
(6.77 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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