UNITED STATES Washington, D.C. 20549 |
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FORM CURRENT REPORT |
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PURSUANT TO SECTION 13 OR 15(d) OF THE |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
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Securities registered pursuant to Section 12(b) of the Act:
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Item 2.02. Results of Operations and Financial Condition.
On August 8, 2024, IRIDEX Corporation (the "Company") issued a press release discussing its financial results for its second fiscal quarter ended June 29, 2024. The press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 8.01 Other Events
On August 7, 2024, the Company closed its previously announced financing with Lind Global Asset Management IX LLC, an entity managed by The Lind Partners, LLC, raising net proceeds of approximately $3.4 million and issued it a convertible promissory note (the “Note”) in the form previously provided as an exhibit to our 8-K filed on August 5, 2024.
Item 9.01. Financial Statements and Exhibits.
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Exhibits |
Exhibit No. |
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Description |
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99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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IRIDEX CORPORATION |
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By: |
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/s/ David I. Bruce |
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David I. Bruce |
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Chief Executive Officer |
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Date: August 8, 2024 |
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Exhibit 99.1
Iridex Reports Second Quarter 2024 Financial Results
MOUNTAIN VIEW, Calif., August 8, 2024 -- Iridex Corporation (Nasdaq: IRIX), a worldwide leader providing innovative and versatile laser-based medical systems, delivery devices, and procedure probes for the treatment of glaucoma and retinal diseases, today reported financial results for the second quarter ended June 29, 2024, and provided a business update.
Second Quarter 2024 Financial and Recent Highlights
“Our second quarter results demonstrate stabilization of the business. We drove solid year-over-year growth in our Retina business while growing glaucoma probe units 14% over the first quarter. We have observed a firmer capital environment as we closed on more extended-cycle equipment sales but generally cycles remain elongated. In glaucoma, stabilized procedure reimbursement in the U.S. supported sequential improvements in glaucoma probe shipments as expected,” said David Bruce, CEO of Iridex.
“I want to reiterate we are prioritizing pursuit of our strategic review process and seek to reach a transaction this fiscal year. The recent convertible note funding provides discounted prepayment options that can be utilized in the event of transaction completion, and when combined with further prudent expense reductions, maintains solid liquidity runway to continue growth recovery and reach completion of our strategic process. .”
Second Quarter 2024 Financial Results
Revenue for the three months ended June 29, 2024 was $12.6 million, representing sequential growth of 7% from the first quarter of 2024, and generally flat compared to $12.9 million in the same period of the prior year. Retina product revenue increased to $7.3 million, representing growth of 8% compared
to the first quarter of 2024 and growth of 6% compared to the prior year period, primarily driven by higher Pascal system sales and conversions from longer purchasing cycles experienced in the first quarter of 2024. Total product revenue from the Cyclo G6® Glaucoma product group was $3.3 million, an increase of $0.4 million compared to the first quarter of 2024, primarily driven by 12% growth in probe sales, and a decrease of $0.3 million compared to the second quarter of 2023, due to softness in system sales impacted by the ongoing capital purchasing constraints. Other revenue decreased $0.3 million to $2.0 million in the second quarter of 2024 compared to the prior year period, primarily driven by reduction of royalty revenue from expired patent licensing.
Gross profit for the second quarter of 2024 was $5.1 million or a 40.7% gross margin, a decrease compared to $5.4 million, or a 41.7% gross margin, in the same period of the prior year driven by shifts in product mix.
Operating expenses of $7.8 million in the second quarter of 2024, decreased $0.5 million compared to $8.3 million in the same period of the prior year due to cost reduction initiatives, despite higher general and administrative expenses related to the company’s strategic process not seen in the prior year period.
Net loss for the second quarter of 2024 was $2.7 million, or $0.16 per share, compared to a net loss of $2.8 million, or $0.17 per share, in the same period of the prior year.
Cash and cash equivalents totaled $4.1 million as of June 29, 2024, not including $3.4 million in net proceeds from the convertible note offering funded August 7, 2024. Cash use in the second quarter of 2024 was $1.3 million.
Webcast and Conference Call Information
Iridex’s management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET. Investors interested in listening to the conference call may do so by dialing (646) 307-1963 for domestic callers or (800) 715-9871 for international callers, using conference ID: 9156340. A live and recorded webcast on the “Event Calendar” page of the “Investors” section of the Company’s website at www.iridex.com.
About Iridex Corporation
Iridex Corporation is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable instrumentation for the ophthalmology market. The Company’s proprietary MicroPulse® technology delivers a differentiated treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. Iridex’s current product line is used for the treatment of glaucoma and diabetic macular edema (DME) and other retinal diseases. Iridex products are sold in the United States through a direct sales force and internationally primarily through a network of independent distributors into more than 100 countries. For further information, visit the Iridex website at www.iridex.com.
MicroPulse® is a registered trademark of Iridex Corporation, Inc. in the United States, Europe and other jurisdictions. © 2024 Iridex Corporation. All rights reserved.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, including those statements concerning clinical expectations and commercial trends, market adoption and
expansion, value-maximizing transactions, demand for and utilization of the Company's products and results and expected sales volumes. The Company can provide no assurance that it will complete any value-maximizing transactions on behalf of its stockholders. These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors. Please see a detailed description of these and other risks contained in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 14, 2024. Forward-looking statements contained in this announcement are made as of this date and will not be updated.
Investor Relations Contact
Philip Taylor
Gilmartin Group
investors@iridex.com
IRIDEX Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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June 29, 2024 |
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July 1, 2023 |
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June 29, 2024 |
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July 1, 2023 |
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Total revenues |
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$ |
12,631 |
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$ |
12,855 |
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$ |
24,392 |
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$ |
26,561 |
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Cost of revenues |
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7,496 |
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7,492 |
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14,799 |
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15,260 |
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Gross profit |
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5,135 |
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5,363 |
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9,593 |
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11,301 |
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Operating expenses: |
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Research and development |
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1,501 |
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1,845 |
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3,037 |
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3,594 |
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Sales and marketing |
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3,487 |
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4,264 |
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7,233 |
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8,547 |
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General and administrative |
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2,785 |
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2,148 |
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5,253 |
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4,398 |
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Total operating expenses |
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7,773 |
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8,257 |
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15,523 |
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16,539 |
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Loss from operations |
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(2,638 |
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(2,894 |
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(5,930 |
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(5,238 |
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Other income (expense), net |
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(22 |
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138 |
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(156 |
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404 |
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Loss from operations before provision for income taxes |
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(2,660 |
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(2,756 |
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(6,086 |
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(4,834 |
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Provision for income taxes |
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19 |
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10 |
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57 |
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22 |
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Net loss |
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$ |
(2,679 |
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$ |
(2,766 |
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$ |
(6,143 |
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$ |
(4,856 |
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Net loss per share: |
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Basic |
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$ |
(0.16 |
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$ |
(0.17 |
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$ |
(0.38 |
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$ |
(0.30 |
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Diluted |
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$ |
(0.16 |
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$ |
(0.17 |
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$ |
(0.38 |
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$ |
(0.30 |
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Weighted average shares used in computing net loss per common share: |
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Basic |
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16,287 |
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16,036 |
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16,270 |
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16,018 |
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Diluted |
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16,287 |
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16,036 |
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16,270 |
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16,018 |
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IRIDEX Corporation
Condensed Consolidated Balance Sheets
(In thousands)
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June 29, 2024 |
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December 30, 2023 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
4,111 |
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$ |
7,034 |
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Accounts receivable, net |
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8,042 |
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9,654 |
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Inventories |
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11,124 |
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9,906 |
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Prepaid expenses and other current assets |
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1,730 |
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856 |
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Total current assets |
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25,007 |
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27,450 |
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Property and equipment, net |
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209 |
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351 |
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Intangible assets, net |
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1,475 |
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1,642 |
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Goodwill |
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965 |
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965 |
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Operating lease right-of-use assets, net |
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2,172 |
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2,632 |
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Other long-term assets |
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1,421 |
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1,396 |
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Total assets |
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$ |
31,249 |
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$ |
34,436 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
8,386 |
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$ |
4,727 |
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Accrued compensation |
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2,139 |
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1,619 |
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Accrued expenses |
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868 |
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1,996 |
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Other current liabilities |
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1,467 |
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1,233 |
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Deferred revenue, current |
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2,290 |
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2,404 |
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Operating lease liabilities, current |
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995 |
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995 |
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Total current liabilities |
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16,145 |
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12,974 |
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Long-term liabilities: |
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Deferred revenue |
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9,261 |
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10,025 |
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Operating lease liabilities |
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1,294 |
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1,751 |
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Other long-term liabilities |
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303 |
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164 |
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Total liabilities |
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27,003 |
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24,914 |
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Stockholders’ equity: |
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Common stock |
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172 |
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172 |
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Additional paid-in capital |
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89,257 |
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88,444 |
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Accumulated other comprehensive income (loss) |
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2 |
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(52 |
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Accumulated deficit |
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(85,185 |
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(79,042 |
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Total stockholders’ equity |
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4,246 |
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9,522 |
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Total liabilities and stockholders’ equity |
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$ |
31,249 |
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$ |
34,436 |
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