Table of Contents Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period f ...

Alimera Sciences, Inc. (NASDAQ:ALIM) Q3 2020 Earnings Conference Call October 29, 2020 9:00 AM ET Company Participants Scott Gordon - President, CORE IR Rick Eiswirth - President & Chief Executive Officer Phil Jones - Chief Financial Officer Conference Call Participants Yi Chen - HC Wainwright Alex Nowak - Craig-Hallum Capital Group James Molloy - Alliance Global Partners Operator Ladies and gentlemen, thank you for standing by. Good morning, and welcome to the Alimera Sciences Third Quarter 2020 Financial ...

Revenue Performance - Net revenue decreased by approximately $900,000, or 8%, to approximately $10.0 million for the three months ended June 30, 2020, compared to approximately $10.9 million for the same period in 2019, primarily due to a revenue decrease of $3.9 million in the U.S. business related to the COVID-19 pandemic [144]. - Net revenue increased by approximately $900,000, or 4%, to approximately $24.6 million for the six months ended June 30, 2020, compared to approximately $23.7 million for the same period in 2019, driven by a $4.4 million increase in the international segment [145]. - The company experienced a $3.6 million decrease in U.S. business revenue due to the impact of the COVID-19 pandemic during the six months ended June 30, 2020 [145]. - Net revenue for the U.S. segment decreased by approximately $3.9 million, or 53%, to approximately $3.4 million for the three months ended June 30, 2020, compared to approximately $7.3 million for the same period in 2019 [172]. - Net revenue decreased by approximately $3.6 million, or 26%, to approximately $10.5 million for the six months ended June 30, 2020, compared to approximately $14.1 million for the same period in 2019 [178]. - International segment net revenue increased by approximately $4.4 million, or 45%, to approximately $14.1 million for the six months ended June 30, 2020, compared to approximately $9.7 million for the same period in 2019 [189]. Profit and Loss - The company reported a net loss of $2.5 million for the three months ended June 30, 2020, compared to a net loss of $5.0 million for the same period in 2019 [142]. - Gross profit for the three months ended June 30, 2020, was $8.6 million, down from $9.7 million for the same period in 2019 [142]. - Gross profit decreased by approximately $1.1 million, or 11%, to approximately $8.6 million for the three months ended June 30, 2020, with a gross margin of 85% compared to 89% for the same period in 2019 [150]. - Gross profit for the U.S. segment decreased to approximately $2.997 million for the three months ended June 30, 2020, compared to approximately $6.512 million for the same period in 2019 [172]. - Segment loss from operations for the U.S. segment increased to approximately $3.251 million for the three months ended June 30, 2020, compared to approximately $1.485 million for the same period in 2019 [172]. Expenses - The company recognized approximately $401,000 and $982,000 of royalty expense for the three and six months ended June 30, 2020, respectively, compared to approximately $434,000 and $950,000 for the same periods in 2019 [136]. - Cost of goods sold, excluding depreciation and amortization, increased by approximately $300,000, or 25%, to approximately $1.5 million for the three months ended June 30, 2020, compared to approximately $1.2 million for the same period in 2019 [147]. - Research, development and medical affairs expenses decreased by approximately $1.0 million, or 36%, to approximately $1.8 million for the three months ended June 30, 2020, compared to approximately $2.8 million for the same period in 2019 [153]. - General and administrative expenses decreased by approximately $700,000, or 19%, to approximately $3.0 million for the three months ended June 30, 2020, compared to approximately $3.7 million for the same period in 2019 [156]. - Sales and marketing expenses decreased by approximately $1.7 million, or 28%, to approximately $4.4 million for the three months ended June 30, 2020, compared to approximately $6.1 million for the same period in 2019 [160]. - Total operating expenses decreased by approximately $3.4 million, or 26%, to approximately $9.9 million for the three months ended June 30, 2020, compared to approximately $13.3 million for the same period in 2019 [162]. - Cost of goods sold decreased by approximately $300,000, or 20%, to approximately $1.2 million for the six months ended June 30, 2020, compared to approximately $1.5 million for the same period in 2019 [179]. - Research, development and medical affairs expenses decreased by approximately $100,000, or 3%, to approximately $3.0 million for the six months ended June 30, 2020, compared to approximately $3.1 million for the same period in 2019 [180]. - General and administrative expenses decreased by approximately $200,000, or 5%, to approximately $3.9 million for the six months ended June 30, 2020, compared to approximately $4.1 million for the same period in 2019 [181]. - Sales and marketing expenses decreased by approximately $800,000, or 10%, to approximately $7.5 million for the six months ended June 30, 2020, compared to approximately $8.3 million for the same period in 2019 [182]. - Operating expenses in the Other segment decreased by approximately $500,000, or 33%, to $1.0 million for the three months ended June 30, 2020, compared to approximately $1.5 million for the same period in 2019 [196]. Cash Flow and Financing - As of June 30, 2020, the company had approximately $13.5 million in cash and cash equivalents, an increase of $1.3 million from $12.2 million as of March 31, 2020 [209]. - For the six months ended June 30, 2020, cash provided by operations was approximately $220,000, despite a net loss of $3.7 million [213]. - The company received approximately $1.8 million from the Paycheck Protection Program, which is subject to forgiveness if used for eligible expenses [207]. - The company borrowed $2.5 million under the 2019 Solar Loan Agreement, contributing to net cash provided by financing activities of approximately $4.0 million for the six months ended June 30, 2020 [216]. - The company experienced a $2.8 million net decrease in accounts payable, accrued expenses, and other current liabilities for the six months ended June 30, 2020 [213]. - The company expects to use the remaining proceeds from the 2019 Solar Loan for additional working capital for general corporate purposes [205]. - The company has adjusted its commercial spending in response to the COVID-19 pandemic to operate with existing cash resources [209]. - The company reported a net cash used in investing activities of approximately $220,000 for the six months ended June 30, 2020, primarily due to the purchase of property and equipment [215]. - The company has a new minimum liquidity requirement of $8.5 million plus accounts payable not paid within 90 days, effective May 1, 2020 [206]. - The company cannot ensure that its commercial spending controls will be effective throughout the duration of the pandemic, raising concerns about its ability to continue as a going concern [212]. Strategic Initiatives - The company maintained staffing levels during the pandemic to support customers and patients, despite the adverse effects on revenue [134]. - The company has implemented cost management measures to mitigate anticipated revenue loss due to the pandemic [134]. - The company has received marketing authorization for ILUVIEN in 16 European countries for the treatment of diabetic macular edema and has obtained reimbursement approval in Germany and the U.K. [125]. - The company markets ILUVIEN directly in the U.S., Germany, the U.K., Portugal, Austria, and Ireland, and has agreements with distributors in several other countries [126]. - The company expects to incur approximately $13.5 million in expenses over the next three to four years associated with the NEW DAY Study [200]. - The company anticipates approximately $400,000 of capital expenditures associated with a new manufacturing facility through February 2021 [201]. - The company has incurred a deficit in stockholders' equity of $391.3 million through June 30, 2020 [197].

Alimera Sciences, Inc. (NASDAQ:ALIM) Q2 2020 Earnings Conference Call July 30, 2020 9:00 AM ET Company Participants Scott Gordon - President, CORE IR Rick Eiswirth - President and CEO Phil Jones - CFO Conference Call Participants Alex Nowak - Craig-Hallum Capital Group James Molloy - Alliance Global Partners Yi Chen - HC Wainwright Operator Ladies and gentlemen, thank you for standing by. Good morning and welcome to the Alimera Sciences Second Quarter 2020 Financial Results and Corporate Update Conference C ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share ALIM The Nasdaq Stock Market LLC (Nasdaq Global Market) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1 ...

Financial Data and Key Metrics Changes - Revenues for Q1 2020 were $14.5 million, up 12% compared to $12.9 million in Q1 2019 [6][10] - Adjusted EBITDA was $1.3 million in Q1 2020, compared to $27,000 in Q1 2019 [9] - Cash and cash equivalents increased to approximately $12.2 million as of March 31, 2020, up from $9.4 million on December 31, 2019 [11] Business Line Data and Key Metrics Changes - U.S. net sales were $7.1 million, a 4% increase over Q1 2019 [7] - End user demand for ILUVIEN in the U.S. declined to 855 units in Q1 2020 from 939 units in Q1 2019 [7] - International segment sales were $7.5 million, up 23% from $6.1 million in the previous year [8] Market Data and Key Metrics Changes - The international segment continues to grow as a percentage of total revenue, driven by both diabetic macular edema and uveitis indications [8] - The COVID-19 pandemic has limited patient access to physicians, impacting ILUVIEN utilization [12] Company Strategy and Development Direction - The company plans to manage costs by minimizing non-payroll spending while maintaining staffing levels [16] - There is a focus on leveraging the unique value of ILUVIEN, particularly its continuous microdosing technology, to reduce the need for frequent physician visits [13][14] - The company aims to increase unit demand for ILUVIEN in both U.S. and international markets, and expand geographically into new markets [19] Management's Comments on Operating Environment and Future Outlook - The management has withdrawn previously communicated guidance regarding revenue growth and cash flow for 2020 due to the uncertainty caused by COVID-19 [13] - There is cautious optimism about market reopening and a gradual return to normal operations [18] - The management believes that the pandemic highlights the value of ILUVIEN in treatment paradigms, especially for vulnerable patients [14] Other Important Information - The company achieved a revenue milestone of $30 million in trailing six-month revenue, allowing for an additional $2.5 million drawdown to strengthen the balance sheet [10] - The company received $1.8 million in support from the federal government under the Paycheck Protection Program [11] Q&A Session Summary Question: Have providers reached out for information on ILUVIEN related to COVID-19? - Management noted some anecdotal feedback from doctors expressing a desire for more ILUVIEN patients to help manage patient visits during the pandemic [22] Question: What factors contributed to strong European sales? - Management indicated that the strength was due to a combination of factors, including the uveitis indication and a strong presence at conferences [24] Question: How has the COVID-19 situation impacted patient volumes? - Management reported that patient volumes have decreased by 60% to 80% in some practices, but noted that their business has not been impacted to that extent [26] Question: What is the current status of the sales force? - The company has 30 sales reps in the U.S. and about 30 in Europe, with efforts to prepare them for virtual engagement with doctors [41][51] Question: Are there any updates on the stock shortage in the U.S.? - The shortage was due to increased demand and manufacturing equipment issues, but the company is now in good shape regarding inventory [48] Question: Will the company consider changes to its cost structure post-COVID? - Management indicated that they are evaluating their cost structure and may continue to adapt based on the evolving situation [38]

Part I [Business](index=6&type=section&id=Item%201.%20Business) Alimera Sciences is a pharmaceutical company focused on ophthalmic diseases with its sole product, ILUVIEN® - Alimera's only commercial product is ILUVIEN®, an intravitreal implant delivering a continuous microdose of fluocinolone acetonide (FAc) for up to 36 months to treat Diabetic Macular Edema (DME) and prevent relapse in recurrent non-infectious uveitis affecting the posterior segment of the eye (NIU-PS)[12](index=12&type=chunk) ILUVIEN Marketing & Sales Channels | Channel | Regions | | :--- | :--- | | **Direct Sales** | U.S., Germany, the U.K., Portugal, and Ireland. | | **Distributors** | France, Italy, Spain, Belgium, the Netherlands, Luxembourg, Australia, New Zealand, Canada, and several countries in the Middle East. | - The company's business strategy is to maximize ILUVIEN's commercial success for DME and NIU-PS, pursue regulatory approvals in additional countries, and expand its ophthalmic product offerings through in-licensing or acquisitions[18](index=18&type=chunk) - Alimera is entirely dependent on single-source third-party manufacturers for the ILUVIEN implant (Alliance Medical Products), applicator (Flextronics), and active pharmaceutical ingredient (FARMABIOS)[33](index=33&type=chunk)[35](index=35&type=chunk) - The company faces competition from major pharmaceutical companies with established treatments for retinal diseases, including anti-VEGF therapies like Lucentis®, Eylea®, and Avastin®, and other corticosteroids like Ozurdex®[38](index=38&type=chunk)[40](index=40&type=chunk) - Under a key licensing agreement with EyePoint Pharmaceuticals, Alimera pays a **6% royalty** on global net revenues, which increases to **8%** for annual revenues exceeding **$75.0 million**[42](index=42&type=chunk) - In the U.S., two large pharmaceutical distributors accounted for **60% of the company's consolidated revenues** for the year ended December 31, 2019[37](index=37&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks from its single-product dependency, reliance on single-source manufacturing, and precarious financial condition - The company is heavily reliant on a single manufacturer for the ILUVIEN applicator, Flextronics, whose contract will terminate on September 30, 2020[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - The company's recurring losses from operations raise **substantial doubt about its ability to continue as a going concern**, as noted in the independent auditor's report[90](index=90&type=chunk) - The company is not in compliance with Nasdaq's minimum Market Value of Listed Securities (MVLS) requirement, which could result in delisting[120](index=120&type=chunk) - The COVID-19 outbreak is identified as a significant risk that could disrupt sales, marketing, and the supply chain[74](index=74&type=chunk)[75](index=75&type=chunk) - Key licensed patents protecting ILUVIEN are set to expire between April 2020 and August 2027 in the U.S and between April 2021 and October 2024 in Europe[110](index=110&type=chunk) - The company's Loan and Security Agreement with Solar Capital contains restrictive operating and financial covenants, including minimum revenue requirements[73](index=73&type=chunk) [Unresolved Staff Comments](index=40&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - The company has no unresolved comments from the SEC staff[131](index=131&type=chunk) [Properties](index=40&type=section&id=Item%202.%20Properties) The company leases all its properties, including its U.S headquarters and smaller international offices - The company's U.S headquarters are located in a leased 18,000 square foot office space in Alpharetta, Georgia, with the lease expiring in September 2021[132](index=132&type=chunk) - Internationally, the company leases office space in Dublin, Ireland; Berlin, Germany; Lisbon, Portugal; and a 6,000 square foot facility in Aldershot, U.K[132](index=132&type=chunk) [Legal Proceedings](index=40&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no legal proceedings - There are no legal proceedings to report[132](index=132&type=chunk) [Mine Safety Disclosures](index=40&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations - This section is not applicable to the company's operations[132](index=132&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on Nasdaq, and it has never paid cash dividends, retaining earnings for growth - The company's common stock trades on The Nasdaq Global Market under the symbol "ALIM"[134](index=134&type=chunk) - As of February 27, 2020, there were **4,965,949 shares of common stock issued and outstanding**, held by 25 holders of record[135](index=135&type=chunk) - The company has never declared or paid cash dividends and does not plan to in the foreseeable future[136](index=136&type=chunk) [Selected Consolidated Financial Data](index=42&type=section&id=Item%206.%20Selected%20Consolidated%20Financial%20Data) This section is not applicable as the company qualifies as a "smaller reporting company" - The company is not required to provide selected consolidated financial data as it qualifies as a "smaller reporting company"[139](index=139&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue grew 16% in 2019, but a large accumulated deficit and low cash reserves raise going concern doubts - The company had an **accumulated deficit of $387.6 million** as of December 31, 2019[144](index=144&type=chunk) - On November 14, 2019, the company effected a **one-for-15 reverse stock split** of its common stock to regain compliance with Nasdaq's minimum bid price requirement[148](index=148&type=chunk)[149](index=149&type=chunk) - On December 31, 2019, the company refinanced its debt by entering into a new **$45.0 million Loan and Security Agreement** with Solar Capital, maturing on July 1, 2024[146](index=146&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Net revenue increased 16% to $53.9 million in 2019, reducing the net loss from operations to $5.3 million Consolidated Statement of Operations (2019 vs. 2018) | Financial Metric | 2019 (in thousands) | 2018 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Net Revenue** | **$53,943** | **$46,599** | **+15.8%** | | Gross Profit | $47,317 | $42,291 | +11.9% | | Operating Expenses | $52,591 | $51,961 | +1.2% | | Net Loss from Operations | ($5,274) | ($9,670) | -45.5% | | **Net Loss** | **($10,443)** | **($16,382)** | **-36.3%** | | Net (Loss) Income per Share - Basic | ($2.19) | $3.74 | N/A | - Net revenue increased by **16% to $53.9 million** in 2019, primarily due to growth in international distributor markets and increased sales volume in direct markets[154](index=154&type=chunk) - Gross margin decreased from 91% in 2018 to **88% in 2019**, mainly caused by an increase in royalty expense payable to EyePoint on global net revenue[156](index=156&type=chunk) - Total operating expenses increased by only 1% to $52.6 million, as a $1.5 million increase in sales and marketing expenses was largely offset by decreases in G&A and R&D expenses[161](index=161&type=chunk) [Segment Review](index=50&type=section&id=Segment%20Review) International segment revenue grew 49%, driving overall growth, while the U.S segment remained flat U.S. Segment Performance (2019 vs. 2018) | Metric (in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Net Revenue | $32,283 | $31,966 | | Gross Profit | $28,796 | $29,091 | | Operating Expenses | $31,983 | $31,173 | | **Segment Loss from Operations** | **($3,187)** | **($2,082)** | International Segment Performance (2019 vs. 2018) | Metric (in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Net Revenue | $21,660 | $14,633 | | Gross Profit | $18,521 | $13,200 | | Operating Expenses | $15,511 | $13,115 | | **Segment Income from Operations** | **$3,010** | **$85** | - International segment revenue grew **49% to $21.7 million**, driven by increased sales volume to international distributors, leading to a significant increase in operating income to $3.0 million[173](index=173&type=chunk) - U.S segment revenue grew only **1% to $32.3 million**, despite a 5% increase in end-user demand, and its operating loss increased by 53% to $3.2 million[170](index=170&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) Recurring losses and negative cash flow raise substantial going concern doubts despite a recent debt refinancing - The company's recurring losses and negative cash flows create **substantial doubt about its ability to continue as a going concern** for the next 12 months[177](index=177&type=chunk)[298](index=298&type=chunk) - As of December 31, 2019, the company had approximately **$9.4 million in cash and cash equivalents**[177](index=177&type=chunk) - Net cash used in operating activities was **$4.2 million in 2019**, a significant improvement from the $11.6 million used in 2018[177](index=177&type=chunk)[257](index=257&type=chunk) - The company refinanced its debt on December 31, 2019, entering into a new **$45.0 million loan agreement** with Solar Capital to provide additional working capital[177](index=177&type=chunk) [Qualitative and Quantitative Disclosures about Market Risk](index=58&type=section&id=Item%207A.%20Qualitative%20and%20Quantitative%20Disclosures%20about%20Market%20Risk) This section is not applicable as the company qualifies as a "smaller reporting company" - The company is not required to provide quantitative and qualitative disclosures about market risk as it qualifies as a "smaller reporting company"[201](index=201&type=chunk) [Financial Statements and Supplementary Data](index=58&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's consolidated financial statements indexed on page 67 - The consolidated financial statements and related schedules required for this item are indexed on page 67 and incorporated by reference[201](index=201&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=58&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants - There were no changes in or disagreements with accountants on accounting and financial disclosure[201](index=201&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2019[203](index=203&type=chunk) - Management's assessment concluded that the company maintained effective internal control over financial reporting as of December 31, 2019, based on the COSO framework[204](index=204&type=chunk) - The independent auditor, Grant Thornton LLP, issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of December 31, 2019[209](index=209&type=chunk) [Other Information](index=62&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - There is no other information to report in this section[216](index=216&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=63&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Required information is incorporated by reference from the company's 2020 Proxy Statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2020 Proxy Statement[216](index=216&type=chunk)[217](index=217&type=chunk)[219](index=219&type=chunk) [Executive Compensation](index=64&type=section&id=Item%2011.%20Executive%20Compensation) Required information is incorporated by reference from the company's 2020 Proxy Statement - Information regarding executive and director compensation is incorporated by reference from the 2020 Proxy Statement[220](index=220&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=65&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference, with details provided on equity compensation plans - Information regarding security ownership is incorporated by reference from the 2020 Proxy Statement[222](index=222&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2019) | Category | Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Securities Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | **Total** | **908,235** | **$35.46** | **491,867** | [Certain Relationships and Related Transactions, and Director Independence](index=66&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Required information is incorporated by reference from the company's 2020 Proxy Statement - Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the 2020 Proxy Statement[229](index=229&type=chunk) [Principal Accountant Fees and Services](index=66&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Required information is incorporated by reference from the company's 2020 Proxy Statement - Information regarding principal accountant fees and services is incorporated by reference from the 2020 Proxy Statement[230](index=230&type=chunk) Part IV [Exhibits and Financial Statements Schedules](index=67&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statements%20Schedules) This section indexes financial statements and exhibits, including an auditor's report with a going concern paragraph [Financial Statements](index=68&type=section&id=Financial%20Statements) Audited financial statements show a $387.6 million accumulated deficit and include a going concern warning - The independent auditor's report expresses an unqualified opinion on the financial statements but includes a paragraph highlighting that the company's recurring losses and negative cash flows raise **substantial doubt about its ability to continue as a going concern**[239](index=239&type=chunk)[241](index=241&type=chunk) Consolidated Balance Sheet Highlights (as of Dec 31) | Account (in thousands) | 2019 | 2018 | | :--- | :--- | :--- | | Cash and cash equivalents | $9,426 | $13,043 | | Total Assets | $50,309 | $54,108 | | Note payable (non-current) | $38,658 | $37,873 | | Total Liabilities | $54,754 | $51,386 | | Accumulated Deficit | ($387,570) | ($377,127) | | **Total Stockholders' (Deficit) Equity** | **($4,445)** | **$2,722** | - The company adopted the new lease accounting standard (ASC 842) on January 1, 2019, resulting in the recognition of right-of-use assets and lease liabilities on the balance sheet for the first time[242](index=242&type=chunk)[278](index=278&type=chunk) [Form 10-K Summary](index=67&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section is not applicable - This section is not applicable[234](index=234&type=chunk)

Alimera Sciences, Inc. (NASDAQ:ALIM) Q4 2019 Earnings Conference Call February 27, 2020 9:00 AM ET Company Participants Jules Abraham - CORE IR Rick Eiswirth - President & Chief Executive Officer Phil Jones - Chief Financial Officer Conference Call Participants Andrew D'Silva - B. Riley FBR Alex Nowak - Craig-Hallum Capital Group James Molloy - Alliance Global Partners Yi Chen - H.C. Wainwright Operator Good morning, and welcome to the Alimera Sciences Fourth Quarter and Full Year 2019 Financial Results and ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value per share ALIM The Nasdaq Stock Market LLC (Nasdaq Global Market) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ...

Financial Data and Key Metrics Changes - Consolidated net revenue for Q3 2019 was $12.9 million, a 16% increase compared to Q3 2018 and an 18% sequential growth from Q2 2019 [6][19] - U.S. net revenue was approximately $8.7 million, up 2% from $8.5 million in Q3 2018 and up 19% sequentially from Q2 2019 [20] - International segment revenue increased 62% to approximately $4.2 million compared to $2.6 million in Q3 2018 [21] - Net loss for Q3 2019 was approximately $3.1 million, a decrease from a net loss of approximately $3.5 million in Q3 2018 [23] - Cash and cash equivalents decreased to approximately $7.9 million from $13 million at the end of 2018 [25] Business Line Data and Key Metrics Changes - U.S. end-user demand was essentially flat, with a slight decrease to 973 units compared to 977 units in Q3 2018 [20] - The international segment's growth was driven by expansion into new markets, particularly France and Spain, which contributed significantly to revenue [10] Market Data and Key Metrics Changes - France ranked first in monthly end-user demand for ILUVIEN across all international markets in Q3 2019 [10] - The company expanded its agreement with Horus Pharma to sell ILUVIEN in the Benelux countries, targeting approximately 70,000 patients suffering from DME [10] Company Strategy and Development Direction - The company aims to leverage its global sales infrastructure to build a leading company dedicated to retinal physicians and their patients [30] - The focus is on driving the message of ILUVIEN's unique benefits in treating DME and posterior uveitis, emphasizing its continuous micro-dosing technology [13][15] - The company is exploring potential acquisitions to strengthen its portfolio, particularly in the retina space [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, expecting to generate breakeven to positive adjusted EBITDA moving forward [23] - The company anticipates that the collection of receivables and business growth will lead to neutral to positive cash flow from operations in the next two quarters [26] - Management highlighted the importance of the recent label approval for ILUVIEN in treating posterior uveitis, which is expected to drive future sales [11] Other Important Information - The company announced a $20 million common stock purchase agreement with Lincoln Park Capital Fund, providing flexibility for future capital needs [26] - The company is positioned as the 10th largest ophthalmology company based on 2018 revenue, with a unique focus on retinal diseases [30] Q&A Session Summary Question: What was the cash flow from operations and CapEx for the quarter? - Cash flow from operations in Q3 was a burn of $3.9 million, with CapEx at $110,000 [35] Question: What is the current status of the sales force? - The sales team has improved over the quarter, with some newer representatives leading in sales [33][34] Question: Are there benefits from OZURDEX shortages? - Management noted that they have not seen a significant impact from OZURDEX shortages yet, as larger accounts have stocked up [37] Question: What is the status of the Canadian market? - The Canadian partner is still working on pricing and reimbursement, with no updates expected until next year [41] Question: What is the guidance for the fourth quarter? - Management expects growth to remain consistent with the 16% year-to-date growth, absent the one-time revenue from OZURDEX last year [57]