ReShape Lifesciences$(R)$ is America's premier weight loss and metabolic health-solutions company, offering an integrated portfolio of proven products and services that manage and treat obesity and metabolic disease. The FDA-approved Lap-Band(R) System provides minimally invasive, long-term treatment of obesity and is an alternative to more invasive surgical stapling procedures such as the gastric bypass or sleeve gastrectomy. The investigational Diabetes Bloc-Stim Neuromodulation$(TM)$ (DBSN(TM)) system utilizes a proprietary vagus nerve block and stimulation technology platform for the treatment of type 2 diabetes and metabolic disorders. The Obalon(R) balloon technology is a non-surgical, swallowable, gas-filled intra-gastric balloon that is designed to provide long-lasting weight loss. For more information, please visit www.reshapelifesciences.com.
Forward-Looking Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those discussed due to known and unknown risks, uncertainties, and other factors. These forward-looking statements generally can be identified by the use of words such as "expect," "plan," "anticipate," "could," "may," "intend," "will," "continue," "future," other words of similar meaning and the use of future dates. Forward-looking statements in this press release include statements about the company's projected decrease in operating expenses for 2024, its expectation that the market opportunity for Lap-Band will increase, and the expected adoption of the Lap-Band(R) 2.0 by surgeons. These and additional risks and uncertainties are described more fully in the company's filings with the Securities and Exchange Commission, including those factors identified as "risk factors" in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. We are providing this information as of the date of this press release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Disclosures
In addition to the financial information prepared in conformity with GAAP, we provide certain historical non-GAAP financial information. Management believes that these non-GAAP financial measures assist investors in making comparisons of period-to-period operating results.
Management believes that the presentation of this non-GAAP financial information provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, and amortization methods, which provides a more complete understanding of our financial performance, competitive position, and prospects for the future. However, the non-GAAP financial measures presented in this release have certain limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with GAAP. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Further, the non-GAAP financial measures presented by the company may be different from similarly named non-GAAP financial measures used by other companies.
Adjusted EBITDA
Management uses Adjusted EBITDA in its evaluation of the company's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Adjusted EBITDA is defined as net loss before interest, taxes, depreciation and amortization, stock-based compensation, and other one-time costs. Management uses Adjusted EBITDA in its evaluation of the company's core results of operations and trends between fiscal periods and believes that these measures are important components of its internal performance measurement process. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. Further, the non-GAAP financial measures presented by the company may be different from similarly named non-GAAP financial measures used by other companies.
CONTACTS:
ReShape Lifesciences Contact:
Paul F. Hickey
President and Chief Executive Officer
949-276-7223
ir@ReShapeLifesci.com
Investor Relations Contact:
Rx Communications Group
Michael Miller
917-633-6086
mmiller@rxir.com
RESHAPE LIFESCIENCES INC.
Consolidated Balance Sheets
(dollars in thousands)
December 31, December 31,
2023 2022
-------------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $ 4,459 $ 3,855
Restricted cash 100 100
Accounts and other receivables 1,659 2,180
Inventory 3,741 3,611
Prepaid expenses and other current
assets 337 165
--------- ---------
Total current assets 10,296 9,911
Property and equipment, net 60 698
Operating lease right-of-use assets 250 171
Deferred tax asset, net 28 56
Other intangible assets, net -- 260
Other assets 29 46
--------- ---------
Total assets $ 10,663 $ 11,142
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,689 $ 1,926
Accrued and other liabilities 1,814 5,040
Warranty liability, current 163 344
Operating lease liabilities,
current 111 171
--------- ---------
Total current liabilities 3,777 7,481
Operating lease liabilities,
noncurrent 151 --
Common stock warrant liability 72 --
--------- ---------
Total liabilities 4,000 7,481
--------- ---------
Stockholders' equity:
Preferred stock -- --
Common stock 23 1
Additional paid-in capital 642,302 627,935
Accumulated deficit (635,574) (624,187)
Accumulated other comprehensive
loss (88) (88)
--------- ---------
Total stockholders' equity 6,663 3,661
--------- ---------
Total liabilities and
stockholders' equity $ 10,663 $ 11,142
========= =========
RESHAPE LIFESCIENCES INC.
Consolidated Statements of Operations
(dollars in thousands)
Year Ended December 31,
-------------------------------
2023 2022
----------------- ------------
Revenue $ 8,678 $ 11,240
Cost of revenue 3,130 4,438
--------- --------
Gross profit 5,548 6,802
--------- --------
Operating expenses:
Sales and marketing 7,548 14,093
General and administrative 10,324 17,250
Research and development 2,315 2,537
Impairment of long-lived assets 777 18,744
(Gain) loss on disposal of assets,
net (33) 529
--------- --------
Total operating expenses 20,931 53,153
--------- --------
Operating loss (15,383) (46,351)
Other expense (income), net:
Interest (income) expense, net (26) 113
Gain on changes in fair value of
liability warrants (3,878) --
(Gain) loss on foreign currency
exchange, net (22) 141
Other (122) (11)
--------- --------
Loss before income tax provision (11,335) (46,594)
Income tax expense (benefit) 52 (380)
--------- --------
Net loss $ (11,387) $ (46,214)
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