Glaukos(US:GKOS)2025-02-24 23:11Financial Performance - Net sales for 2024 reached $383.481 million, a 21.9% increase from $314.711 million in 2023[354]. - Gross profit for 2024 was $289.454 million, up from $239.136 million in 2023, reflecting a gross margin improvement[354]. - Total operating expenses increased to $411.820 million in 2024, compared to $367.836 million in 2023, primarily driven by higher selling, general and administrative expenses[354]. - The net loss for 2024 was $146.372 million, slightly higher than the net loss of $134.661 million in 2023[354]. - Cash and cash equivalents increased to $169.626 million in 2024, up from $93.467 million in 2023, indicating improved liquidity[353]. - Total assets grew to $974.756 million in 2024, compared to $940.414 million in 2023, reflecting a strong balance sheet[353]. - Stockholders' equity increased significantly to $766.931 million in 2024, up from $461.766 million in 2023, driven by additional paid-in capital[353]. - The company reported a net operating loss (NOL) of $147.8 million for the year ended December 31, 2024, compared to $138.2 million in 2023 and $101.3 million in 2022[512]. Revenue and Sales - The company’s revenue is derived from product sales in the U.S. and internationally, with revenue adjustments for volume-based rebates and other incentives[348]. - Total revenue for glaucoma products increased from $237.0 million in 2023 to $303.3 million in 2024, representing a growth of 27.9%[464]. - The company has faced challenges in auditing net sales, particularly in evaluating discounts and incentives related to customer programs[350]. Cash and Liquidity - The company has significant amounts of cash and cash equivalents at U.S. financial institutions that exceed federally insured limits, posing credit risk[337]. - Cash, cash equivalents, and restricted cash at the end of the period increased to $174.4 million from $99.3 million at the beginning of the period[362]. - The company maintains cash balances exceeding federally insured amounts, indicating a strong liquidity position[376]. Expenses and Costs - Research and development expenses were $136.425 million in 2024, slightly down from $138.768 million in 2023, indicating a focus on cost management[354]. - The company recorded advertising costs of approximately $3.6 million, $3.4 million, and $2.5 million for the years ended December 31, 2024, 2023, and 2022, respectively[413]. - Depreciation and amortization expense related to property and equipment rose to $10.1 million in 2024, up from $7.3 million in 2023, marking an increase of approximately 38.4%[438]. Risks and Challenges - The company reported a significant risk related to the commercial success of its iDose TR product, which could materially impact its business[19]. - The company faces potential supply and manufacturing disruptions that could reduce gross margins and negatively affect operating results[19]. - The company has not yet achieved sustained profitability and may fail to generate sufficient sales of its commercialized products[19]. - The company is exposed to foreign currency exchange risks, particularly as international operations grow, which could increase operational costs[338]. Foreign Currency and Hedging - A hypothetical 10% fluctuation in foreign exchange rates would have an immaterial impact on the company's net loss as of December 31, 2024[340]. - The company has not entered into foreign currency hedging contracts but may consider doing so in the future[339]. Stock and Equity - The weighted-average shares outstanding used to compute basic and diluted net loss per share increased to 52.755 million in 2024 from 48.433 million in 2023[354]. - The company has 5,000,000 authorized preferred stock issuable, with no preferred stock outstanding as of December 31, 2024, and December 31, 2023[428]. - The total stock-based compensation cost for the year ended December 31, 2024, was $50.2 million, an increase of 15.4% from $43.5 million in 2023[510]. Tax and Deferred Assets - Deferred tax assets increased to $269.6 million as of December 31, 2024, from $224.0 million in 2023, primarily due to an increase in net operating loss carryforwards[513]. - The valuation allowance for deferred tax assets increased by $50.7 million in 2024, indicating management's expectation that a portion of these assets may not be realized[514]. - The company had approximately $527.5 million in federal NOL carryforwards as of December 31, 2024, with $322.8 million subject to an 80% limitation on future taxable income[515]. Acquisitions and Investments - The company acquired a clinical stage biopharma company for $5.0 million in stock and $5.1 million in cash, with potential future payments of up to $201.0 million based on development and sales milestones[370]. - The company’s investment portfolio is primarily in marketable securities, with all investments stated at fair value[377]. Lease and Liabilities - Operating lease liabilities increased from $30.4 million in 2023 to $33.9 million in 2024, an increase of approximately 11.5%[455]. - The total lease liabilities rose from $103.2 million in 2023 to $105.9 million in 2024, indicating an increase of approximately 2.6%[455]. - The contingent consideration liability increased from $1.4 million to $1.6 million during 2024, reflecting a change in fair value due to updated assumptions[447].