Highlights:
- First quarter revenue of $4.3 million, up 45% year-over-year
- Initial shipment of systems and consumables to new China distributor
- Shipped record number consumables in first quarter
- Recently completed an Alternative Public Offering
SANTA CLARA, Calif., June 28, 2016 (GLOBE NEWSWIRE) -- Miramar Labs, Inc., (OTCQB:MRLB), a global aesthetic company, announced today financial results for the first quarter ended March 31, 2016.
Michael Kleine, President and Chief Executive Officer of Miramar Labs, said, "Momentum in our business continues to grow as we drive adoption of our technology with the placement of miraDry® systems. We also shipped a record number of high margin bioTip consumables in the quarter. We believe the global market opportunity for the miraDry® system is extremely large and underpenetrated given that it provides a non-invasive, permanent solution to unwanted underarm sweat and odor. There are over 15,000 aesthetic practices in the U.S. alone, a growing number of which continue to adopt novel aesthetic procedures to attract patients and expand their business opportunity. Our recently introduced optimized treatment protocol for miraDry® has been well received by physicians in the U.S., driving shorter procedures times and increased patient satisfaction. Outside of the U.S., Asia Pacific represents a key market opportunity for the miraDry® system, given the social stigmas related to sweat and odor, with large and underpenetrated markets across China, Japan, Taiwan, Korea and Australia. We recently shipped an initial order to our new China distributor, Meheco, which expands our presence in Asia, and we believe provides us with a significant opportunity to further penetrate this untapped marketplace."
Earlier this month, Miramar Labs announced its successful completion of a reverse merger, with the combined entity focused on the miraDry® system, which delivers microwave energy to non-invasively destroy sweat and odor glands in the underarm. Miramar Labs will trade on the OTC Markets under the symbol “MRLB”. Concurrently with the reverse merger, Miramar Labs also completed a private placement with gross proceeds of approximately $9.0 million from the issuance and sale of 1.8 million shares of its common stock. Proceeds from the private placement will be used to support the ongoing commercialization of the miraDry® system, for the development and clinical studies related to products targeted for new indications, and for general corporate purposes, including working capital.
Financial Results
Total revenue in the first quarter of 2016 was $4.3 million, a 45% increase compared to $3.0 million in the first quarter of 2015.
Cost of product revenue was $2.0 million in the first quarter of 2016, compared to $1.3 million in the first quarter of 2015. Total gross profit in the first quarter of 2016 was $2.3 million, representing a gross margin of 53%, compared to $1.6 million in the first quarter of 2015, representing a gross margin of 55%.
Total operating expenses in the first quarter of 2016 were $5.3 million, compared to $5.9 million in the first quarter of 2015, primarily due to lower research and development spending associated with program and study costs in 2015.
Net loss in the first quarter of 2016 was $(3.3) million, or $(8.32) per share, compared to $(4.5) million, or $(11.81) per share in the first quarter of 2015.
Miramar Labs had total cash and cash equivalents of $1.4 million at March 31, 2016. As noted above, in June 2016 the Company completed a private placement with gross proceeds of approximately $9.0 million.
About Miramar Labs:
Founded in 2006, Miramar Labs, Inc. is a global medical device company dedicated to bringing innovative applications to treat unmet needs in the aesthetic marketplace. Supported by rigorous clinical research, Miramar Labs is focused on addressing aesthetic medical conditions for which there are significant unmet clinical needs. The company’s first priority is the treatment of bothersome underarm sweat, an issue that millions of people deal with daily. The miraDry® procedure has an established safety and efficacy profile with over 55,000 patients treated worldwide. Physicians and patients are encouraged to visit www.miramarlabs.com or www.miradry.com for additional information.
Forward Looking Statements:
This press release contains forward-looking statements. Statements in this press release that are not purely historical are forward-looking statements. Such forward-looking statements include, among other things, references to Miramar Lab’s technologies, anticipated uses of proceeds from the private placement, business and product development plans, physician adoption and market information. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue Miramar Lab’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize the miraDry® system, competition in the industry in which Miramar Labs operates and overall market conditions. These forward-looking statements are made as of the date of this press release, and Miramar Labs assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should review all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents Miramar Labs files with the SEC, available at www.sec.gov.
| MIRAMAR LABS, INC. | |||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2016 | 2015 | ||||||||
| Revenue | $ | 4,287,333 | $ | 2,960,433 | |||||
| Cost of revenue: | 2,028,557 | 1,345,081 | |||||||
| Gross margin | 2,258,776 | 1,615,352 | |||||||
| Operating expenses: | |||||||||
| Research and development | 921,589 | 1,468,352 | |||||||
| Selling and marketing | 3,023,009 | 3,126,713 | |||||||
| General and administrative | 1,337,996 | 1,327,338 | |||||||
| Total operating expenses: | 5,282,594 | 5,922,403 | |||||||
| Loss from operations | (3,023,818 | ) | (4,307,051 | ) | |||||
| Interest income | 1,140 | 2,140 | |||||||
| Interest expense | (315,748 | ) | (281,539 | ) | |||||
| Other expense, net | 25,355 | 65,380 | |||||||
| Net loss before provision for income taxes | (3,313,071 | ) | (4,521,070 | ) | |||||
| Provision for income taxes | (1,525 | ) | (1,425 | ) | |||||
| Net and comprehensive loss | $ | (3,314,596 | ) | $ | (4,522,495 | ) | |||
| Accretion of redeemable convertible preferred stock | - | (13,020 | ) | ||||||
| Net loss attributable to common stockholders | $ | (3,314,596 | ) | $ | (4,535,515 | ) | |||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (8.32 | ) | $ | (11.81 | ) | |||
| | |||||||||
| MIRAMAR LABS, INC. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (unaudited) | |||||||||
| March 31, | December 31, | ||||||||
| 2016 | 2015 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 1,426,985 | $ | 2,642,509 | |||||
| Accounts receivable, net | 2,813,299 | 2,683,053 | |||||||
| Inventories | 4,813,631 | 4,791,741 | |||||||
| Prepaid expenses and other current assets | 277,533 | 290,481 | |||||||
| Total current assets | 9,331,448 | 10,407,784 | |||||||
| Property and equipment, net | 944,119 | 1,211,129 | |||||||
| Restricted cash | 295,067 | 295,067 | |||||||
| Other noncurrent assets | 19,560 | 11,860 | |||||||
| TOTAL ASSETS | 10,590,194 | 11,925,840 | |||||||
| LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | |||||||||
| Current liabilities: | |||||||||
| Notes payable, net of discount | $ | 13,549,222 | $ | 10,829,375 | |||||
| Accounts payable | 879,366 | 1,288,107 | |||||||
| Accrued and other current liabilities | 3,630,655 | 3,572,441 | |||||||
| Deferred revenue | 241,203 | 739,786 | |||||||
| Total current liabilities | 18,300,446 | 16,429,709 | |||||||
| Preferred stock warrant liability | 475,738 | 499,616 | |||||||
| Deferred rent, noncurrent | 106,414 | 112,065 | |||||||
| Capital lease payable, noncurrent | 11,841 | 16,865 | |||||||
| TOTAL LIABILITIES | 18,894,439 | 17,058,255 | |||||||
| Redeemable convertible preferred stock, $.001 par value; 40,000,000 shares authorized and 2,826,981 shares issued and outstanding at March 31, 2016 and December 31, 2015; (Liquidation preference of $61,179,942) | 61,179,942 | 61,179,942 | |||||||
| Stockholders’ deficit: | |||||||||
| Series A convertible preferred stock, $.001 par value; 2,100,000 shares authorized and 147,864 shares issued and outstanding at March 31, 2016 and December 31, 2015 (Liquidation preference of $2,000,000) | 148 | 148 | |||||||
| Series B convertible preferred stock, $.001 par value; 9,000,000 shares authorized and 589,784 shares issued and outstanding at March 31, 2016 and December 31, 2015 (Liquidation preference of $14,359,244) | 590 | 590 | |||||||
| Common stock, par value $0.01 per share; 105,000,000 shares authorized and 398,540 shares issued and outstanding at March 31, 2016 and December 31, 2015 | 399 | 399 | |||||||
| Additional paid-in capital | 27,276,400 | 27,133,634 | |||||||
| Accumulated deficit | (96,761,724 | ) | (93,447,128 | ) | |||||
| TOTAL STOCKHOLDERS’ DEFICIT | (69,484,187 | ) | (66,312,357 | ) | |||||
| TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | 10,590,194 | 11,925,840 | |||||||