Financial Performance - Revenue for the three months ended September 30, 2024, was $2.292 million, representing a 6.4% increase compared to $2.155 million in the same period of 2023[85]. - Gross profit for the three months ended September 30, 2024, was $1.439 million, with a gross profit margin of 62.8%, up from 59.8% in the same period of 2023[86]. - Operating loss for the three months ended September 30, 2024, was $(1.761) million, compared to $(3.880) million for the same period in 2023, indicating an improvement[78]. - The company recorded a net loss of $(1.581) million for the three months ended September 30, 2024, compared to $(3.534) million for the same period in 2023[78]. - Total revenue for the nine months ended September 30, 2024, was $6.2 million, representing a contraction of 7.4%, or $0.5 million compared to the same period in 2023[95]. - Gross profit for the nine months ended September 30, 2024, was $3.7 million, with a gross profit margin of 60.3%, compared to 55.3% for the same period in 2023[98]. Expenses - Total operating expenses for the three months ended September 30, 2024, were $3.200 million, which is 139.6% of revenue, compared to 239.9% in the same period of 2023[78]. - Research and development expenses for the three months ended September 30, 2024, were $399 thousand, representing 17.4% of total revenue, down from 25.2% in the same period of 2023[78]. - Sales and marketing expenses for the three months ended September 30, 2024, were $719 thousand, significantly lower than $1.791 million in the same period of 2023[78]. - General and administrative expenses increased by $24 thousand, or 1.2%, to approximately $2.1 million for the three months ended September 30, 2024, compared to $2.1 million for the same period in 2023[91]. - Research and development expenses decreased by $0.1 million, or 26.4%, to $0.4 million for the three months ended September 30, 2024, compared to the same period in the prior year[92]. - Sales and marketing expenses for the nine months ended September 30, 2024, decreased by $3.7 million, or 60.8%, to $2.4 million compared to $6.2 million for the same period in 2023[99]. - General and administrative expenses decreased by $2.7 million, or 30.4%, to $6.1 million for the nine months ended September 30, 2024, compared to $8.7 million for the same period in 2023[100]. - Research and development expenses decreased by $0.3 million, or 18.7%, to $1.3 million for the nine months ended September 30, 2024, compared to approximately $1.6 million for the same period in the prior year[101]. Cash Flow and Working Capital - As of September 30, 2024, the company had net working capital of approximately $1.3 million, primarily due to cash and cash equivalents and restricted cash of $0.8 million[105]. - Net cash used in operating activities was $3.7 million for the nine months ended September 30, 2024, compared to $14.5 million for the same period in 2023[106]. - Net cash provided by financing activities was $12.1 million for the nine months ended September 30, 2023, due to proceeds from public offerings completed in February and April 2023[112]. - Management expects to run out of cash during the fourth quarter of 2024 if additional cash is not raised beyond the funds raised in October 2024[113]. Strategic Developments - The company is developing the Diabetes Bloc-Stim Neuromodulation device as a new treatment for type 2 diabetes, with no revenue recorded yet as it is still in the development stage[75]. - The company has entered into a merger agreement with Vyome Therapeutics, which may enhance its market position and product offerings[76]. - The company plans to merge with Vyome Therapeutics, Inc. and sell certain assets to Biorad, which will continue operations[113]. - The company aims to grow sales and operations of the Lap-Band product line both domestically and internationally, while introducing Lap-Band 2.0 FLEX to the market[113]. - Development of the Diabetes Bloc-Stim Neuromodulation device is ongoing, with future capital requirements dependent on various factors and to be decided by Biorad post-asset sale[114]. Accounting Policies - There were no material changes to significant accounting policies during the nine months ended September 30, 2024[116].
ReShape Lifesciences (RSLS) - 2024 Q3 - Quarterly Report