SAN DIEGO, March 26, 2009 (GLOBE NEWSWIRE) -- OccuLogix, Inc., dba TearLab Corporation (Tearlab) (Nasdaq:TEAR) (TSX:TLB) today reported its consolidated financial results for the quarter and the year ended December 31, 2008. All dollar amounts are expressed in U.S. currency, and results are reported in accordance with United States generally accepted accounting principles.
For the year ended December 31, 2008, TearLab's net revenues were $458,202 as compared to $91,500 in the year ended December 31, 2007. The Company's loss from continuing operations for the year ended December 31, 2008 was $9.4 million, or $2.29 per share as compared to $34.4 million, or $15.19 per share for the year ended December 31, 2007. The Company's net loss available to common stockholders for the year ended December 31, 2008 was $14.2 million, or $3.47 per share compared to a net loss of $69.8 million or $30.83 per share including discontinued operations for the year ended December 31, 2007.
For the three-months ended December 31, 2008, TearLab's net revenues were $299,902 as compared to $1,500 for the same period in 2008. The Company's loss from continuing operations for the three-months ended December 31, 2008 was approximately $2.3 million, or $0.24 per share as compared to $9.4 million, or $4.10 per share for the three-months ended December 31, 2007. The Company's net loss available to common stockholders for the quarter ended December 31, 2008 was $7.13 million, or $0.76 per share compared to a net loss of $41.6 million or $18.13 per share including discontinued operations for the corresponding quarter in 2007.
The increase in revenues in the year and fourth quarter of 2008 compared to the corresponding periods in 2007 resulted from sales of the TearLab(tm) Osmolarity System for Dry Eye Disease or DED which qualified for the European CE Mark in October 2008. The Company's net loss per share for the quarter and year ended December 31, 2008 included $4.8 million representing the excess of purchase price over the carrying value of the non-controlling interest in OcuSense, Inc. related to the Company's acquisition during the fourth quarter of the shares of OcuSense that it did not already own.
During 2007 the Company discontinued its operations of SOLX its Glaucoma division. Accordingly, during the quarter and year ended December 31, 2007, the Company recognized a loss from discontinued operations of $32.2 million and $35.4 million, respectively. There was no corresponding loss form discontinued operation in the quarter or year ended December 31, 2008.
On October 7, 2008, Tearlab effected a 1:25 reverse stock split. As required, all earnings per share numbers have been presented on a post reverse stock split basis.
As of December 31, 2008, TearLab had cash and cash equivalents and short-term investments of $2.6 million.
"During the quarter and year ending December 31, 2008, we qualified for the European CE Mark and recognized our first sales of our Tearlab(tm) Osmolarity System product," said Eric Donsky, the Company's President and Chief Executive Officer. "We are very excited about this opportunity to make available this exciting new technology to patients that suffer from dry eye disease."
Other accomplishments during the year ended December 31, 2008 and to the current date included:
* Completed a series of restructuring transactions (including an investment by private investors, or PIPE, acquisition of minority interest in TearLab, Inc. (formerly OcuSense, Inc.), conversion of bridge loans, reverse 1:25 stock split) which allowed the Company to meet all NASDAQ listing requirements and to be in position for the commercialization of our Tearlab(tm) Osmolarity Systems: * Signed up 8 European distributors representing eleven countries for our Tearlab(tm) Osmolarity System products: * Filed the results of our Tearlab(tm) Osmolarity System 510(k) clinical trial with the FDA and are awaiting their response: * Presented positive data from the Tearlab(tm) Osmolarity System 510(k) submission at the American Academy of Ophthalmology and European Society of Ophthalmology 2008 Joint Meeting: and * TearLab initiated an international clinical study of the TearLab Osmolarity System, sponsored by Alcon, the world's leading eye care company.
About OccuLogix, Inc., dba TearLab Corporation
OccuLogix, Inc., dba TearLab Corporation (TearLab) (www.tearlab.com), is an in-vitro diagnostics company that develops and commercializes a proprietary tear testing platform, TearLab(tm), for use in the physician and clinical office. TearLab employs lab-on-a-chip technologies (integrating one or several laboratory functions on a chip only millimeters in size) that enable healthcare practitioners to rapidly test for highly sensitive and specific biomarkers in tears at the point-of-care. Headquartered in San Diego, California and with offices in Milton, Ontario and Alpharetta, Georgia, TearLab's common shares trade on the NASDAQ Capital Market under the symbol 'TEAR' and on the Toronto Stock Exchange under the symbol 'TLB'. TearLab received the CE Mark for its TearLab(tm) Osmolarity System in 2008. The TearLab(tm) Test for DED is currently available in the U.S. for investigational use only.
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 the Company. 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 Forms 10-K and 10-Q. We do not undertake to update any forward-looking statements.
OccuLogix, Inc. dba TearLab Corporation
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in U.S. dollars except number of shares)
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Three months ended Year ended
December 31, 2008 December 31, 2008
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2008 2007 2008 2007
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Revenue
Retina - to
related
parties $ -- $ -- $ 136,800 $ --
Retina - to
unrelated
parties -- 1,500 21,500 91,500
TearLab - to
unrelated
parties 299,902 -- 299,902 --
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Total revenue 299,902 1,500 458,202 91,500
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Cost of
goods sold
Retina -
product cost -- 45,295 26,500 2,398,103
TearLab -
product cost 136,848 -- 136,848 --
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Total cost of
goods sold 136,848 45,295 163,348 2,398,103
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Gross profit 163,054 (43,795) 294,854 (2,306,603)
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Operating
expenses
General and
administrative 1,621,937 418,142 5,439,823 8,104,405
Clinical,
regulatory and
research &
development 462,217 1,471,371 2,965,009 8,675,552
Sales and
marketing 190,385 (86,384) 819,722 1,413,459
Impairment of
intangible
asset -- -- -- 20,923,028
Restructuring
charges 1,411,174 1,312,721 2,440,820 1,312,721
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Total
operating
expenses 3,685,713 3,115,850 11,665,374 40,429,165
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Loss from
continuing
operations (3,522,658) (3,159,645) (11,370,520) (42,735,768)
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Other income
(expenses)
Interest income 8,038 41,124 76,533 609,933
Changes in fair
value of
warrant
obligation 10,615 248,797 (57,666) 1,882,497
Gain (impairment)
of investments 1,486,322 (1,036,250) 1,036,250 (1,036,250)
Interest expense (13,222) (8,986) (318,478) (17,228)
Amortization of
finance costs -- -- (180,000) --
Other 217,192 31,644 369,085 18,011
Beneficial
conversion on
bridge loan
shares issued (1,239,163) -- (1,239,163) --
Minority
interest 13,182 528,731 1,977,722 1,312,178
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Total other
income 482,964 (194,940) 1,664,283 2,769,141
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Loss from
continuing
operations
before
income taxes (3,039,694) (3,354,585) (9,706,237) (39,966,627)
Recovery of
income taxes 768,311 (6,050,007) 337,846 5,565,542
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Loss from
continuing
operations (2,271,383) (9,404,592) (9,368,391) (34,401,085)
Loss from
discontinued
operation -- (32,161,007) -- (35,428,898)
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Net loss (2,271,383) (41,565,599) (9,368,391) (69,829,983)
Excess of
purchase price
over carrying
value of the
non-controlling
interest in
OcuSense, Inc. (4,813,042) -- (4,813,042) --
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Net loss
available
to common
stockholders $ (7,084,425) $(41,565,599) $(14,181,433) $ (69,829,983)
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Weighted
average number
of shares
outstanding -
basic and
diluted 9,336,922 2,292,280 4,083,655 2,265,127
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Loss from
continuing
operations per
common share -
basic and
diluted $(0.24) $(4.10) $(2.29) $(15.19)
Loss from
discontinued
operations per
common share -
basic and
diluted -- $(14.03) -- $(15.64)
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Net loss per
common share -
basic and
diluted $(0.24) $(18.13) $(2.29) $(30.83)
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Net loss
available
to common
stockholders
per common
share - basic
and diluted $(0.76) $(18.13) $(3.47) $(30.83)
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OccuLogix, Inc. dba Tearlab Corporation
CONSOLIDATED BALANCE SHEETS
As of December 31,
---------------------------
2008 2007
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ASSETS
Current assets
Cash and cash equivalents $ 2,565,277 $ 2,235,832
Short-term investments -- --
Amounts receivable, net
of bad debt reserves
of $172,992 in 2008
and 2007 333,056 374,815
Inventory, net of provision
for inventory obsolescence
of $68,062 in 2008 and
$7,295,545 in 2007 148,201 --
Prepaid expenses 316,058 481,121
Other current assets 21,680 10,442
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Total current assets 3,384,272 3,102,210
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Fixed assets, net 183,384 122,286
Patents and trademarks, net 269,398 139,437
Investments -- 863,750
Intangible assets, net 9,568,023 11,085,054
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Total assets $ 13,405,077 $ 15,312,737
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 314,680 $ 1,192,807
Accrued liabilities 1,201,793 2,873,451
Due to stockholders 23,152 32,814
Deferred revenue 237,400 --
Obligations under warrants 57,666 --
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Total current liabilities 1,834,691 4,099,072
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Deferred tax liability, net 1,611,502 2,259,348
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Total liabilities 3,446,193 6,358,420
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Commitments and contingencies
Minority interest -- 4,953,960
Contingently redeemable common stock 250,000 --
Stockholders' equity
Capital stock
Preferred Stock -- --
Par value of $0.001 per share;
authorized 10,000,000: zero
issued and outstanding at
both December 31, 2008 and 2007
Common stock 9,708 2,292
Par value of $0.001 per share;
Authorized: 40,000,000; Issued
and outstanding:
Issued and outstanding:
December 31, 2008 - 9,828,409;
December 31, 2007 - 2,292,280
Additional paid-in capital 377,356,547 362,287,045
Accumulated deficit (367,657,371) (358,288,980)
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Total stockholders' equity 9,708,884 4,000,357
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$ 13,405,077 $ 15,312,737
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