10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-40690

 

RxSIGHT, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

94-3268801

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

100 Columbia

Aliso Viejo, CA

92656

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (949) 521-7830

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share

 

RXST

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

 

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of April 28, 2023, the registrant had 33,981,877 shares of common stock, $0.001 par value per share, outstanding.

 

 

 

 


 

 

 

Page

PART I.

FINANCIAL INFORMATION

Item 1.

Financial Statements (Unaudited)

6

Condensed Consolidated Balance Sheets

6

Condensed Consolidated Statements of Operations and Comprehensive Loss

7

 

Condensed Consolidated Statements of Stockholders' Equity

8

 

Condensed Consolidated Statements of Cash Flows

10

Notes to Unaudited Condensed Consolidated Financial Statements

11

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

36

Item 4.

Controls and Procedures

36

PART II.

OTHER INFORMATION

Item 1.

Legal Proceedings

37

Item 1A.

Risk Factors

37

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

99

Item 3.

Defaults Upon Senior Securities

99

Item 4.

Mine Safety Disclosures

99

Item 5.

Other Information

99

Item 6.

Exhibits

100

Signatures

102

 


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The following discussion and analysis should be read together with our condensed consolidated financial statements and the condensed notes to those statements included elsewhere in this report. This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on our management’s beliefs and assumptions and on information currently available to our management. In this report, “we,” “us” and “our” refer to RxSight, Inc., a Delaware corporation, and its consolidated subsidiaries.

Forward-looking statements include, but are not limited to, statements concerning the following:

the sufficiency of our existing capital resources to fund our future operating expenses and capital expenditure requirements, including our expectation that we do not anticipate the need to raise additional capital or incur additional debt in order to reach profit from operations, as disclosed in the Company’s future Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission (“SEC”), provided that we may opportunistically access our at-the-market (“ATM”) facility under advantageous circumstances;
our plans to conduct further clinical trials and any expectations related to the timing or outcomes of such trials;
our plans and expected timelines related to our products, or developing new products, to address additional indications or otherwise;
the expected acceptance and use of our products by doctors;
our ability to obtain, maintain and expand regulatory clearances for our products and any new products we create;
the expected growth of our business and our organization;
our intentions regarding investment in our business as we pursue growth;
our expected uses of our existing resources;
the expectations regarding government and third-party payer coverage and reimbursement;
our ability to recruit and retain key personnel, including the continued development of a sales and marketing infrastructure;
our ability to obtain an adequate supply of materials and components for our products from our third-party suppliers, including single- and sole-source suppliers;
our ability to manufacture sufficient quantities of our products with appropriate quality;
our ability to obtain, maintain and enforce intellectual property protection for our products and protect our intellectual property rights;
our ability to expand our business into new geographic markets;
our ability to comply with applicable SEC rules and Nasdaq continued listing requirements;
our ability to comply with existing and future government laws, rules and regulations both in the United States and internationally;
our expectations regarding allocation of resources toward expenses associated with being a public company;
our estimates of our expenses, ongoing losses, future revenue, capital requirements and our need for, or ability to obtain, additional financing;
our expectations regarding the time during which we will be an emerging growth company under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) and a smaller reporting company under the Exchange Act;

 

3

 

 

 


 

the volatility of the trading price of our common stock;
our ability to identify and develop new and planned products and/or acquire new products;
development and projections relating to our competitors or our industry, including anticipated growth rates for the conventional and premium intraocular lens (“IOL”) markets;
the impact of local, regional, national or political conditions and events;
the impact of the COVID-19 pandemic, including currently known and unknown coronavirus variants, on our business or personnel; and
the impact of worldwide political and economic conditions and unknown future events on our business, financial condition and results of operations.

Forward-looking statements include statements that are not historical facts and can be identified by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” or “continue,” or the negative of such terms and other same terminology.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. We discuss these risks in greater detail in Part II, Item 1A, “Risk Factors,” elsewhere in this report. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

The forward-looking statements made in this report relate only to events as of the date on which the statements are made. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

DISCUSSION AND ANALYSIS OF OUR FINANCIAL CONDITION

Our discussion and analysis of our financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate our estimates including those related to revenue recognition, the realization of income tax assets and estimates of tax liabilities, and obsolete, excess and slow-moving inventory. We base our estimates on historical experience and on various other assumptions we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities not readily apparent from other sources. Actual results may differ materially from these estimates. Our critical accounting policies and estimates are discussed in the Company’s Annual Report on Form 10-K filed with the SEC on March 6, 2023.

INDUSTRY, BUSINESS AND MARKET DATA

This report also contains estimates, projections and other information concerning our industry, our business, and market opportunity, including data regarding the estimated size of the market. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise expressly stated, we obtained this industry, business, market and other data from reports, research surveys, studies and similar data prepared by market research firms and other third parties, industry, medical and general publications, government data and similar sources.

 

4

 

 

 


 

TRADEMARKS, SERVICE MARKS AND TRADE NAMES

This report contains references to trademarks and service marks belonging to other entities. Solely for convenience, trademarks and trade names referred to in this report may appear without the ® or TM symbols, but such references are not intended to indicate, in any way, that the applicable licensor will not assert, to the fullest extent under applicable law, its rights to these trademarks and trade names. We do not intend our use or display of other companies’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of it by, any other companies.

 

5

 

 

 


 

Item 1: Financial Statements (Unaudited)

RxSIGHT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

 

 

March 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,012

 

 

$

11,834

 

Short-term investments

 

 

142,927

 

 

 

93,968

 

Accounts receivable

 

 

12,668

 

 

 

10,956

 

Inventories

 

 

18,067

 

 

 

14,835

 

Prepaid and other current assets

 

 

2,992

 

 

 

2,962

 

Total current assets

 

 

187,666

 

 

 

134,555

 

Property and equipment, net

 

 

9,804

 

 

 

10,138

 

Operating leases right-of-use assets

 

 

3,555

 

 

 

3,943

 

Restricted cash

 

 

761

 

 

 

761

 

Other assets

 

 

746

 

 

 

767

 

Total assets

 

$

202,532

 

 

$

150,164

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

3,717

 

 

$

2,595

 

Accrued expenses and other current liabilities

 

 

9,181

 

 

 

12,672

 

Lease liabilities

 

 

1,978

 

 

 

1,970

 

Total current liabilities

 

 

14,876

 

 

 

17,237

 

Long-term lease liabilities

 

 

2,338

 

 

 

2,856

 

Term loan, net

 

 

40,309

 

 

 

40,169

 

Total liabilities

 

 

57,523

 

 

 

60,262

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $0.001 par value, 900,000,000 shares authorized, 33,966,697 shares issued and
  outstanding as of March 31, 2023 and
28,268,389 shares issued and
  outstanding as of December 31, 2022

 

 

34

 

 

 

28

 

Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued
  and outstanding

 

 

 

 

 

 

Additional paid-in capital

 

 

704,228

 

 

 

636,001

 

Accumulated other comprehensive loss

 

 

(9

)

 

 

(95

)

Accumulated deficit

 

 

(559,244

)

 

 

(546,032

)

Total stockholders' equity

 

 

145,009

 

 

 

89,903

 

Total liabilities and stockholders' equity

 

$

202,532

 

 

$

150,164

 

 

 

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

6

 

 

 


 

RxSIGHT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS (UNAUDITED)

(In thousands, except share and per share amounts)

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Sales

 

$

17,489

 

 

$

8,942

 

Cost of sales

 

 

7,123

 

 

 

5,181

 

Gross profit

 

 

10,366

 

 

 

3,761

 

Operating expenses:

 

 

 

 

 

 

Selling, general and administrative

 

 

16,255

 

 

 

13,620

 

Research and development

 

 

7,208

 

 

 

6,719

 

Total operating expenses

 

 

23,463

 

 

 

20,339

 

Loss from operations

 

 

(13,097

)

 

 

(16,578

)

Other income (expense), net:

 

 

 

 

 

 

Interest expense

 

 

(1,507

)

 

 

(1,060

)

Interest and other income

 

 

1,392

 

 

 

46

 

Loss before income taxes

 

 

(13,212

)

 

 

(17,592

)

Income tax expense

 

 

 

 

 

4

 

Net loss

 

$

(13,212

)

 

$

(17,596

)

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

Unrealized gain (loss) on short-term investments

 

 

84

 

 

 

(74

)

Foreign currency translation gain (loss)

 

 

2

 

 

 

(4

)

Total other comprehensive income (loss)

 

 

86

 

 

 

(78

)

Comprehensive loss

 

$

(13,126

)

 

$

(17,674

)

Net loss per share:

 

 

 

 

 

 

Basic & diluted

 

$

(0.42

)

 

$

(0.64

)

Weighted-average shares used in computing net loss per share:

 

 

 

 

 

 

Attributable to common stock, basic & diluted

 

 

31,637,097

 

 

 

27,425,610

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

7

 

 

 


 

RxSIGHT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands, except number of shares)

 

 

 

 

 

Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

Additional paid-in

 

 

Accumulated other

 

 

Accumulated

 

 

Total stockholders'

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

comprehensive loss

 

 

deficit

 

 

equity

 

Balance at December 31, 2022

 

 

28,268,389

 

 

$

28

 

 

$

636,001

 

 

$

(95

)

 

$

(546,032

)

 

$

89,902

 

Shares issued for the exercise of stock options
 and vesting of restricted stock units

 

 

243,598

 

 

 

 

 

 

761

 

 

 

 

 

 

 

 

 

761

 

Shares redeemed for employee tax withholdings

 

 

(24,631

)

 

 

 

 

 

(337

)

 

 

 

 

 

 

 

 

(337

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,295

 

 

 

 

 

 

 

 

 

3,295

 

Issuance of common stock for public offering, net of underwriting discounts, commissions and offering costs

 

 

4,600,000

 

 

 

5

 

 

 

53,595

 

 

 

 

 

 

 

 

 

53,600

 

Issuance of common stock for at-the-market offerings,
net of issuance costs

 

 

879,341

 

 

 

1

 

 

 

10,913

 

 

 

 

 

 

 

 

 

10,914

 

Unrealized gain on short-term investments
 and cash equivalents, net of tax

 

 

 

 

 

 

 

 

 

 

 

84

 

 

 

 

 

 

84

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,212

)

 

 

(13,212

)

Balance at March 31, 2023

 

 

33,966,697

 

 

$

34

 

 

$

704,228

 

 

$

(9

)

 

$

(559,244

)

 

$

145,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to unaudited condensed consolidated financial statements

 

 

8

 

 

 


 

RxSIGHT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands, except number of shares)

 

 

 

 

Three Months Ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

Additional paid-in

 

 

Accumulated other

 

 

Accumulated

 

 

Total stockholders'

 

 

 

Shares

 

 

Amount

 

 

capital

 

 

comprehensive loss

 

 

deficit

 

 

equity

 

Balance at December 31, 2021

 

 

27,366,746

 

 

$

27

 

 

$

617,511

 

 

$

(20

)

 

$

(479,276

)

 

$

138,242

 

Shares issued for the exercise of stock options
 and vesting of restricted stock units

 

 

145,922

 

 

 

 

 

 

308

 

 

 

 

 

 

 

 

 

308

 

Shares redeemed for employee tax withholdings

 

 

(26,983

)

 

 

 

 

 

(362

)

 

 

 

 

 

 

 

 

(362

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,649

 

 

 

 

 

 

 

 

 

2,649

 

Unrealized loss on short-term investments
 and cash equivalents, net of tax

 

 

 

 

 

 

 

 

 

 

 

(74

)

 

 

 

 

 

(74

)

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

(4

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,596

)

 

 

(17,596

)

Balance at March 31, 2022

 

 

27,485,685

 

 

$

27

 

 

$

620,106

 

 

$

(98

)

 

$

(496,872

)

 

$

123,163

 

 

 

 

See accompanying notes to unaudited condensed consolidated financial statements

 

9

 

 

 


 

RxSIGHT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Operating Activities:

 

 

 

 

 

 

Net loss

 

$

(13,212

)

 

$

(17,596

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

955

 

 

 

1,016

 

Amortization of right-of-use lease assets

 

 

44

 

 

 

19

 

Amortization of debt issuance costs and premium

 

 

141

 

 

 

130

 

Amortization of discount on short-term investments

 

 

(1,257

)

 

 

(47

)

Stock-based compensation

 

 

3,295

 

 

 

2,649

 

Provision for excess and obsolete inventory

 

 

10

 

 

 

73

 

Change in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(1,712

)

 

 

(764

)

Inventories

 

 

(3,241

)

 

 

(530

)

Prepaid and other assets

 

 

(460

)

 

 

814

 

Accounts payable

 

 

1,163

 

 

 

701

 

Accrued expenses and other liabilities

 

 

(3,490

)

 

 

(1,450

)

Net cash used in operating activities

 

 

(17,764

)

 

 

(14,985

)

Investing Activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(747

)

 

 

(370

)

Maturity of short-term investments

 

 

60,000

 

 

 

90,000

 

Purchases of short-term investments

 

 

(107,618

)

 

 

(74,771

)

Net cash (used in) provided by investing activities

 

 

(48,365

)

 

 

14,859

 

Financing Activities:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

761

 

 

 

308

 

Proceeds from issuance of common stock from public offering

 

 

54,050

 

 

 

 

Proceeds from issuance of common stock for at-the-market offerings

 

 

11,102

 

 

 

 

Payments for employee taxes related to stock compensation

 

 

(337

)

 

 

(362

)

Principal payments on finance lease liabilities

 

 

(41

)

 

 

(44

)

Payments of deferred offering costs

 

 

(230

)

 

 

 

Net cash provided by (used in) financing activities

 

 

65,305

 

 

 

(98

)

Effect of foreign exchange rate on cash, cash equivalents and restricted cash

 

 

2

 

 

 

(5

)

Net decrease in cash, cash equivalents and restricted cash

 

 

(822

)

 

 

(229

)

Cash, cash equivalents and restricted cash - beginning of period

 

 

12,595

 

 

 

25,172

 

Cash, cash equivalents and restricted cash - end of period

 

$

11,773

 

 

$

24,943

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flows from operating leases

 

 

546

 

 

 

499

 

Cash paid for income taxes

 

 

 

 

 

 

Cash paid for interest on financing leases

 

 

4

 

 

 

3

 

Cash paid for interest on term loan

 

 

1,344

 

 

 

925

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

Operating lease

 

 

 

 

 

87

 

Finance lease

 

 

 

 

 

192

 

Lease obligations recorded for right-of-use assets:

 

 

 

 

 

 

Operating lease

 

 

 

 

 

87

 

Finance lease

 

 

 

 

 

166

 

Acquisition of property and equipment included in accounts payable and accrued expenses
  and other current liabilities

 

 

259

 

 

 

197

 

Deferred offering costs included in accounts payable and accrued liabilities

 

 

466

 

 

 

 

Reclassification of deferred financing costs

 

 

(55

)

 

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

 

10

 

 

 


 

RxSIGHT, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Organization and Basis of Presentation

Description of Business

RxSight®, Inc. (the “Company”) is a Delaware corporation headquartered in Aliso Viejo, California with one wholly owned subsidiary located in Amsterdam, Netherlands. The wholly owned subsidiary has a registered branch in the United Kingdom and a wholly owned subsidiary located in Germany. The Company is engaged in the research and development, manufacture and sale of light adjustable intraocular lenses used in cataract surgery along with capital equipment used with the lenses.

The Company’s products, which include the light adjustable lens (“LAL®”) and a specially designed machine for delivering light to the eye, the Light Delivery Device (“LDD™”), are approved by the United States (“U.S.”) Food and Drug Administration (“FDA”) primarily for sale in the U.S. and have regulatory approval in the U.S., Europe, Canada and Mexico. The Company began marketing its products in 2019. The LAL is a premium intraocular lens (“IOL”) which is partially reimbursable under Medicare. The Company competes with other IOLs in the premium market.

The accompanying unaudited condensed consolidated financial statements include the accounts of RxSight, Inc. and its wholly owned subsidiaries, RxSight, B.V. and RxSight GmbH. All significant inter-company balances and transactions have been eliminated in consolidation.

Basis of Presentation and Principles of Consolidation

The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The unaudited interim financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair statement of the results for the periods presented. All such adjustments are of a normal and recurring nature. The December 31, 2022 balance sheet data was derived from audited financial statements; however, the accompanying notes to the condensed consolidated financial statements do not include all of the annual disclosures required under GAAP and should be read in conjunction with the audited consolidated financial statements included in the Company’s 2022 Annual Report on Form 10-K filed with the SEC on March 6, 2023. The operating results presented in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for any future periods.

Operating Segments

The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company’s chief operating decision-maker (“CODM”), its Chief Executive Officer, reviews its consolidated operating results for the purpose of allocating resources and evaluating financial performance.

The Company determined that it operates and manages its business (including its non-U.S. subsidiaries) in one reportable segment: the research and development, manufacture and sale of light adjustable lenses and related capital equipment.

Liquidity

Shelf Registration Statement

On August 8, 2022, the Company filed a $200.0 million shelf registration statement on Form S-3 (“shelf registration statement”) which became effective on August 12, 2022. The shelf registration statement is effective for three years and permits the Company to sell, from time to time, up to $200.0 million in aggregate value of common stock, preferred stock, debt securities, warrants, and/or units. The shelf registration statement is intended to provide the Company with flexibility to access additional capital. At the time of filing the shelf registration statement, the

 

11

 

 

 


 

Company also filed a prospectus supplement to sell up to an aggregate value of $50.0 million dollars of common stock through an “at-the-market” (“ATM”) offering.

ATM Offering

As of March 31, 2023, through the ATM offering, a total of 1,355,216 shares of the Company's common stock, for total net proceeds of $16.9 million, have been issued and sold, of which 879,341 shares of the Company's common stock, for net proceeds of $10.9 million, were sold during the quarter ended March 31, 2023.

Public Offering

On February 7, 2023, the Company entered into an underwriting agreement with BofA Securities, Inc., in which the Company agreed to issue and sell 4,000,000 shares of the Company's common stock in a public offering (“Public Offering”), pursuant to the shelf registration statement. The shares of common stock were sold at a price to the public of $12.50 per share. Under the terms of the underwriting agreement, the Company also granted the underwriters an option exercisable for 30 days from the date of the underwriting agreement to purchase up to an additional 600,000 shares of common stock on the same terms and conditions. The underwriters' option was exercised in full on February 10, 2023 and closed on February 14, 2023. The Company received net proceeds of approximately $53.6 million from the Public Offering, after deducting underwriters' discounts and commissions of $3.5 million and offering expenses of $0.5 million.

As of March 31, 2023 and December 31, 2022 the Company had cash, cash equivalents and short-term investments of $153.9 million and