Workflow
ReShape Lifesciences (RSLS) - 2025 Q1 - Quarterly Report
RSLSReShape Lifesciences (RSLS)2025-05-20 20:56

Financial Performance - Revenue for Q1 2025 was 1,113,000,adecreaseof42.61,113,000, a decrease of 42.6% compared to 1,944,000 in Q1 2024[106] - Gross profit margin improved to 61.2% in Q1 2025 from 59.9% in Q1 2024, despite a decrease in revenue[106] - Total operating expenses for Q1 2025 were 2,887,000,representing259.42,887,000, representing 259.4% of revenue, compared to 3,375,000 or 173.6% of revenue in Q1 2024[106] - The company reported a net income of 1,474,000inQ12025,comparedtoanetlossof1,474,000 in Q1 2025, compared to a net loss of 2,193,000 in Q1 2024[106] - Adjusted EBITDA for Q1 2025 was (1,778,000),animprovementfrom(1,778,000), an improvement from (2,131,000) in Q1 2024[110] - Total revenue for the three months ended March 31, 2025, was 1.1million,adecreaseof42.71.1 million, a decrease of 42.7% or 0.8 million compared to the same period in 2024[111] - Gross profit for the same period was 0.7million,representing61.20.7 million, representing 61.2% of total revenue, an increase from 59.9% in 2024, attributed to reduced overhead costs[112] - Operating expenses totaled 2.9 million, a decrease of 14.5% from 3.4millionin2024,withsignificantreductionsinsalesandmarketingexpensesby48.13.4 million in 2024, with significant reductions in sales and marketing expenses by 48.1% to 0.5 million[114] - Net cash used in operating activities was 2.1millionforboththethreemonthsendedMarch31,2025,and2024,primarilyduetonetincomeandchangesinworkingcapital[120]MergersandAcquisitions−ThecompanyenteredintoamergeragreementwithVyomeTherapeutics,focusingonadvancingimmune−inflammatoryassets[95]−ThecompanyplanstomergewithVyomeTherapeutics,Inc.andexpandtheLap−Bandproductlinedomesticallyandinternationally[127]−ThecompanyplanstosellsubstantiallyallassetstoBioradforapurchasepriceof2.1 million for both the three months ended March 31, 2025, and 2024, primarily due to net income and changes in working capital[120] Mergers and Acquisitions - The company entered into a merger agreement with Vyome Therapeutics, focusing on advancing immune-inflammatory assets[95] - The company plans to merge with Vyome Therapeutics, Inc. and expand the Lap-Band product line domestically and internationally[127] - The company plans to sell substantially all assets to Biorad for a purchase price of 2.25 million, subject to adjustments[102] - Transaction costs for the three months ended March 31, 2025, were 0.4million,relatedtothependingmergerandassetsale[117]ProductDevelopmentandAgreements−AnexclusivedistributionagreementwassignedwithLiaisonMedicalLtd.fortheLap−Band®2.0FLEXsysteminCanada,effectiveuntilDecember31,2028[98]−AkeyinternationalpatentforDiabetesNeuromodulationtechnologywasgranted,providingprotectionuntilDecember4,2039[96]−Researchanddevelopmentexpensesdecreasedby24.80.4 million, related to the pending merger and asset sale[117] Product Development and Agreements - An exclusive distribution agreement was signed with Liaison Medical Ltd. for the Lap-Band® 2.0 FLEX system in Canada, effective until December 31, 2028[98] - A key international patent for Diabetes Neuromodulation technology was granted, providing protection until December 4, 2039[96] - Research and development expenses decreased by 24.8% to 0.4 million, primarily due to a pause in clinical trials[116] Financial Concerns - The company anticipates running out of cash by the fourth quarter of 2025, raising concerns about its ability to continue operations[128] - Future capital requirements for product development will depend on decisions made by Biorad after the pending asset sale[129] Stock and Shareholder Actions - A reverse stock split of 1-for-25 was executed on May 9, 2025, affecting the number of shares outstanding[104] - The company raised 4.8millioninFebruary2025fromapublicoffering,with4.8 million in February 2025 from a public offering, with 2.5 million in cash and cash equivalents as of March 31, 2025[118]