LENSAR(LNSR) - 2021 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2021, was $7,043,000, a 19.2% increase from $5,906,000 in the same period of 2020[21] - Product revenue increased to $5,158,000, up 25.7% from $4,103,000 year-over-year[21] - Operating loss for the three months ended March 31, 2021, was $5,200,000, compared to a loss of $3,099,000 in the same period of 2020[21] - Net loss attributable to common stockholders was $5,182,000, compared to $3,686,000 in the prior year[21] - Revenue increased from $5.9 million for the three months ended March 31, 2020, to $7.0 million for the same period in 2021, representing a 19.3% increase[140] - Total revenue for the three months ended March 31, 2021 increased by $1.1 million, or 19.3%, compared to the same period in 2020, reaching $7.0 million[157] - The company reported a net loss of $5.2 million for the three months ended March 31, 2021, compared to a net loss of $3.7 million for the same period in 2020, indicating an increase in losses of 41%[206] Cash and Liquidity - Cash and cash equivalents decreased to $35,866,000 from $40,599,000 as of December 31, 2020[23] - The company will need to raise additional capital through equity or debt financings to continue operations beyond 2022, as its liquidity needs are tied to the success of its operations and the launch of ALLY[40] - As of March 31, 2021, the company had cash and cash equivalents of $35.9 million, which are held in demand deposit accounts exceeding the FDIC insurance coverage limit of $250,000[195] - The company expects to incur additional costs as a stand-alone public company, impacting future liquidity needs[182] Assets and Liabilities - Total assets decreased to $73,543,000 from $79,120,000 at the end of 2020[23] - Total liabilities decreased to $9,214,000 from $11,910,000 as of December 31, 2020[23] - The company has contractual obligations totaling $5.9 million as of March 31, 2021, including operating leases and purchase obligations[192] Research and Development - Research and development expenses for the three months ended March 31, 2021 were $2.7 million, an increase of $1.2 million, or 74.8%, compared to $1.6 million for the same period in 2020[165] - The company anticipates that the development of the ALLY system will consume significant capital resources, leading to increased research and development expenditures[152] Regulatory and Market Challenges - The company operates in a highly competitive environment with risks related to regulatory approvals, clinical trials, and reliance on international distributors[141] - The company faces risks related to regulatory compliance, including obtaining necessary clearances for new products and modifications[217] - The development of the ALLY dual-function device is expected to take considerable time and resources, with uncertainty regarding timely completion and FDA clearance[211] - Market research indicates limited interest in the dual-function device among a small population of cataract surgeons, which may not reflect actual market demand[212] Impact of COVID-19 - The COVID-19 pandemic significantly disrupted business operations, impacting revenues and cash flows in 2020, although procedure volume has returned to pre-pandemic levels in the U.S. and Europe[144] - COVID-19 has significantly impacted the business, leading to a decrease in demand for elective surgeries, including cataract procedures, during 2020[215] - The pandemic has resulted in increased economic uncertainty and volatility in capital markets, affecting access to capital and operational stability[216] Stock-Based Compensation - Stock-based compensation expense for the three months ended March 31, 2021, was $2,320,000, compared to $38,000 in the same period of 2020[26] - The total unrecognized stock-based compensation expense is expected to be amortized over a total of $12,407, with $3,835 expected in the remainder of 2021[114] - The total fair value of options vested during the three months ended March 31, 2021 was approximately $40[102] - The total fair value of restricted stock awards vested during the three months ended March 31, 2021 was approximately $3,575[108] Future Outlook - The company expects to continue incurring losses and cash outflows from operating activities for the foreseeable future due to ongoing challenges, including the impact of COVID-19[38] - The company anticipates an increase in selling, general, and administrative expenses as it approaches the commercial launch of ALLY later in 2022[39] - The company expects selling, general and administrative expenses to increase as it prepares for the regulatory clearance and launch of the ALLY system in 2022[164] - The company has made estimates regarding the impact of the COVID-19 pandemic on its financial condition, which may change in future periods[61]