|Bid||0.7913 x 2200|
|Ask||0.8070 x 1000|
|Day's Range||0.7450 - 0.8490|
|52 Week Range||0.6200 - 3.0200|
|Beta (5Y Monthly)||-1.11|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul. 30, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||0.75|
SAN DIEGO, July 30, 2020 (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 second quarter ended June 30, 2020. Financial results for the second quarter of 2020Revenue for the second quarter of 2020 was $0.7 million, compared to $0.4 million for the second quarter of 2019, primarily due to reversals of revenue reserves as a result of suspending business operations at the company-branded retail treatment centers. Net loss for the second quarter of 2020 was $4.2 million, compared to $6.8 million for the second quarter of 2019. Net loss per share for the second quarter of 2020 was $0.54, compared to $2.52 for the second quarter of 2019.Cost of revenue was $0.4 million for the second quarter of 2020, down from $0.7 million for the second quarter of 2019. Gross profit for the second quarter of 2020 was $0.3 million, compared to a gross deficit of $0.3 million for the second quarter of 2019.Research and Development expense for the second quarter of 2020 totaled $0.8 million, down from $1.8 million for the second quarter of 2019. Selling, General and Administrative expense decreased to $2.4 million for the second quarter of 2020, compared to $4.3 million for the second quarter of 2019.The Company recognized $1.3 million impairment expense and other charges related to its inventory and long-lived assets during the second quarter of 2020, as a result in the Company's shift in business strategy away from the retail treatment centers to reimbursement.Operating loss for the second quarter of 2020 was $4.2 million, down from a loss of $6.4 million for the second quarter of 2019.As of June 30, 2020, the Company had cash and cash equivalents of $6.8 million and $0.4 million of debt related to its Payroll Protection Program loan. The Company intends to continue exploring the potential for third-party reimbursement for the Obalon Balloon System, as well as exploring and evaluating financial alternatives to help meet its capital needs and strategic alternatives that might enhance stockholder value. There is no assurance that any financial or strategic alternative will be identified. If the Company is not able to raise additional capital to meet its needs or to identify a strategic alternative in the best interest of stockholders, it will have to discontinue all operations and may be required to declare bankruptcy or dissolve.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 StatementsThis 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 new products and their potential benefits. 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, 2019, periodic reports on Form 10-Q for the period ended June 30, 2020 and March 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenue$703 $386 $1,483 $2,161 Cost of revenue423 679 964 1,911 Gross profit (deficit)280 (293) 519 250 Operating expenses: Research and development765 1,788 2,022 4,227 Selling, general and administrative2,362 4,332 6,255 10,536 Asset impairment and other charges1,310 — 1,310 — Total operating expenses4,437 6,120 9,587 14,763 Loss from operations(4,157) (6,413) (9,068) (14,513) Interest (expense) income, net(5) (295) 30 (485) Other expense, net(26) (59) (411) (59) Net loss and comprehensive loss$(4,188) $(6,767) $(9,449) $(15,057) Net loss per share, basic and diluted$(0.54) $(2.52) $(1.22) $(6.02) Weighted-average common shares outstanding, basic and diluted7,728,624 2,687,829 7,726,915 2,500,619 OBALON THERAPEUTICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except shares and par value data) June 30, 2020 December 31, 2019 Assets(unaudited) Current assets: Cash and cash equivalents$6,804 $14,055 Accounts receivable, net— 285 Inventory— 1,936 Other current assets3,971 1,959 Total current assets10,775 18,235 Property and equipment, net1,055 1,081 Lease right-of-use assets748 1,077 Other long-term assets1,295 — Total assets$13,873 $20,393 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$1,054 $648 Accrued compensation240 820 Deferred revenue123 424 Other current liabilities3,603 1,524 Current portion of lease liabilities579 561 Total current liabilities5,599 3,977 Lease liabilities long-term666 567 Long-term debt430 — Total long-term liabilities1,096 567 Total liabilities6,695 4,544 Commitments and contingencies Stockholders’ equity: Common stock, $0.001 par value; 100,000,000 shares authorized as of June 30, 2020 and December 31, 2019; 7,731,633 and 7,724,100 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively8 8 Additional paid-in capital189,049 188,271 Accumulated deficit(181,879) (172,430) Total stockholders’ equity7,178 15,849 Total liabilities and stockholders’ equity$13,873 $20,393 OBALON THERAPEUTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) Six Months Ended June 30, 2020 2019 Operating activities: Net loss$(9,449) $(15,057) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation187 256 Stock-based compensation762 1,641 Loss on disposal of fixed assets— 95 Amortization of right-of-use assets239 186 Accretion of investment discount, net— (2) Amortization of debt discount— 70 Impairment of long-lived assets and other charges1,257 — Impairment of inventory53 — Change in operating assets and liabilities: Accounts receivable, net285 423 Inventory(524) (157) Other current assets(1,845) 1,760 Accounts payable405 (191) Accrued compensation(564) (2,712) Deferred revenue(302) (32) Lease liabilities, net(147) (136) Other current and long term liabilities2,079 (142) Net cash used in operating activities(7,564) (13,998) Investing activities: Maturities of short-term investments— 2,550 Purchase of property and equipment(117) (20) Net cash (used in) provided by investing activities(117) 2,530 Financing activities: Proceeds from long-term loan430 10,000 Payment on long-term loan— (15,000) Proceeds from issuance of common stock, net of issuance costs— 8,793 Proceeds from sale of common stock upon exercise of stock options— 1 Net cash provided by financing activities430 3,794 Net decrease in cash and cash equivalents(7,251) (7,674) Cash and cash equivalents at beginning of period14,055 21,187 Cash and cash equivalents at end of period$6,804 $13,513 Supplemental cash flow information: Interest paid$— $563 Unpaid issuance costs$— $377 CONTACT: For Obalon Therapeutics, Inc. Investor Contact: Andrew Rasdal President and Chief Executive Officer Obalon Therapeutics, Inc. Office: +1 844 362 2566 email@example.com
SAN DIEGO, June 19, 2020 -- Obalon Therapeutics, Inc. (Nasdaq: OBLN), a weight loss solutions company with the first and only FDA-approved swallowable, gas-filled intragastric.
Obalon Therapeutics, Inc. (“Obalon” or the “Company”) (NASDAQ:OBLN), a vertically integrated weight loss solutions company commercializing the first and only FDA-approved swallowable, gas-filled intragastric balloon system for the treatment of obesity, announces changes related to the impacts of the Covid-19 crisis and current business environment on its business, organization and strategic options. As previously announced, the overall uncertainty, the restriction on elective procedures and the specific directives issued by the Governor of California as a result of Covid-19 have had a significant impact on Obalon’s business. In March, the Company halted sales to new patients in its company-branded retail treatment centers and expansion plans for additional retail centers, which was particularly disappointing as it had generated an average of approximately 30 new patient sales per month at its San Diego center for the three months preceding the Covid-19 crisis.