ReShape Lifesciences (US:RSLS)2023-11-08 23:19Financial Performance - Revenue for Q3 2023 was $2.155 million, a decrease of 23.0% compared to $2.798 million in Q3 2022[101] - Gross profit for Q3 2023 was $1.288 million, representing 59.8% of total revenue, down from 75.1% in Q3 2022[104] - Operating loss for Q3 2023 was $3.880 million, compared to an operating loss of $12.301 million in Q3 2022[94] - Total operating expenses for Q3 2023 were $5.168 million, significantly higher than $2.605 million in Q3 2022, reflecting a 239.9% increase[94] - The company recorded a net loss of $3.534 million in Q3 2023, compared to a net loss of $12.186 million in Q3 2022[94] - Total revenue for the nine months ended September 30, 2023, was $6.7 million, a decrease of 17.6% or $1.4 million compared to $8.1 million in the same period in 2022[108] - The company reported a net loss of $8.9 million for the nine months ended September 30, 2023[119] Expenses and Cost Management - Research and development expenses for Q3 2023 were $542 thousand, accounting for 25.2% of revenue[94] - Sales and marketing expenses for the nine months ended September 30, 2023, decreased by $5.8 million, or 48.5%, to approximately $6.1 million, compared to $11.9 million for the same period in 2022[112] - General and administrative expenses for the nine months ended September 30, 2023, decreased by $4.3 million, or 33.1%, to approximately $8.7 million, compared to $13.0 million for the same period in 2022[113] - Operating expenses for the nine months ended September 30, 2023, totaled $17.2 million, a decrease of 50.7% or $17.7 million from $34.9 million in the same period in 2022[112] - The Company is managing growth of expenditures based on available cash flows, which may include reducing marketing and development costs[125] Future Outlook and Strategy - The company anticipates FDA approval for the LAP-BAND 2.0 in early 2024, which is expected to boost sales[101] - The company is focusing on a targeted digital media campaign to increase demand for the Lap-Band system[101] - The Company aims to increase brand recognition and patient demand through focused marketing efforts[125] - Plans include growing sales of the Lap-Band product line domestically and internationally, and introducing ReShapeCare and ReShape Marketplace[125] - The Company is focusing on a metrics-driven approach through a sustainable and scalable business model via a digital lead generation strategy[117] - The Company anticipates FDA approval for Lap-Band 2.0 before the end of fiscal year 2023[127] - Future capital requirements are uncertain and depend on various factors including market acceptance and costs associated with clinical supplies[126] - The Company is exploring synergistic opportunities to expand its portfolio in minimally invasive treatments for obesity[125] Operational Changes - The company has relocated its principal executive offices to a new facility in Irvine, California, with a lease term of 36 months[92] - As of September 30, 2023, the company had net working capital of approximately $2.9 million, primarily due to cash and cash equivalents of $1.5 million[117] - Net cash used in operating activities for the nine months ended September 30, 2023, was $14.5 million, compared to $19.1 million for the same period in 2022[119] Risks and Challenges - The Company does not currently generate sufficient revenue to cover operating costs and expects this trend to continue due to a modified strategy[125] - The Company faces risks related to the development of medical devices, impacting capital outlays and operating expenditures[126] - There have been no material changes to significant accounting policies during the nine months ended September 30, 2023[130]