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(ALIM) - 2020 Q2 - Quarterly Report