Sight Sciences(US:SGHT)2023-08-07 20:35Revenue and Sales Performance - Revenue for the three months ended June 30, 2023, was $23.5 million, an increase of $6.2 million, or 36.2%, compared to the same period in 2022[117]. - Surgical Glaucoma revenue for the six months ended June 30, 2023, was $38.7 million, with gross margins of 87.6%[105]. - Dry Eye segment revenue for the six months ended June 30, 2023, was $3.6 million, with a gross margin of 54.4%, up from $2.3 million and 0.6% in the prior year[105]. - Surgical Glaucoma sales represented 91.2% of total revenue for the three months ended June 30, 2023[117]. - Revenue for the six months ended June 30, 2023, was $42.3 million, an increase of $10.2 million or 31.7% from the prior year, driven by increased sales of OMNI and SION units in the Surgical Glaucoma segment[125]. Financial Position and Cash Flow - As of June 30, 2023, the company had cash and cash equivalents of $154.5 million and an accumulated deficit of $271.1 million[107]. - The company expects that its current cash and cash equivalents, along with revenue from product sales, will fund operations for at least the next 12 months[140]. - The company had a net cash used in operating activities of $30.9 million for the six months ended June 30, 2023, an improvement from $40.3 million in the prior year[134]. Expenses and Margins - The cost of goods sold for the three months ended June 30, 2023, was $3.4 million, an increase of $0.6 million from $2.7 million in the prior year[118]. - Research and development expenses for the three months ended June 30, 2023, were $5.2 million, a decrease of 11.9% from the prior year[117]. - Total gross profit for the three months ended June 30, 2023, was $20.1 million, an increase of $5.6 million from the same period in 2022, with a gross margin of 85.6%[119]. - Gross margin for the six months ended June 30, 2023, increased to 84.8%, up from 82.0% in the prior year, primarily due to the impact of a voluntary recall in the Dry Eye segment[127]. - Selling, General, and Administrative expenses were $58.7 million for the six months ended June 30, 2023, a decrease of $1.1 million from the prior year, mainly due to lower marketing and consulting expenses[130]. Debt and Financing - The company expects to continue incurring net losses for at least the next several years and may seek additional debt and equity financing[106]. - The Term Loan agreement has a maturity date of November 1, 2025, with a floating interest rate of SOFR plus 7.00%, and principal payments are expected to begin in December 2023, potentially delayed to December 2024[145]. - A final payment fee of 6.0% on the $35.0 million Term Loan balance has been partially accrued, totaling $1.4 million as of June 30, 2023[145]. - Interest expense increased by $0.5 million for the six months ended June 30, 2023, attributed to rising lending rates compared to the same period in 2022[131]. Internal Controls and Accounting - A material weakness in internal control over financial reporting was identified, related to insufficient accounting personnel with requisite experience[156]. - Remediation efforts have been implemented, but not all aspects of the material weakness have been sufficiently addressed[158]. - No changes in internal control over financial reporting have materially affected the company's controls during the most recent fiscal quarter[159]. - There have been no material changes to critical accounting policies and estimates compared to the previous year[150]. - The company has elected to use an extended transition period under the JOBS Act, which may affect the comparability of its financial statements with other public companies[152]. - As of June 30, 2023, there are no significant Accounting Standard Updates expected to materially impact the financial statements[153]. Research and Development - Research and Development expenses decreased by $1.7 million during the six months ended June 30, 2023, primarily due to reductions in clinical studies and personnel costs[129]. - The company has dedicated significant resources to expand its sales organization and improve market access for TearCare[102]. Other Income - Other income, net was $3.6 million for the six months ended June 30, 2023, compared to $0.1 million in the prior year, due to amortization of purchase discounts on investments[132]. Leases - The company leases approximately 11,000 square feet of office and R&D space in Menlo Park, California, and 2,040 square feet in Southlake, Texas, with lease expirations in 2024[147].