Full Press Release Details
TELA Bio Announces Third Quarter 2019 Financial Results
MALVERN, Pa., December 18, 2019 (GLOBE NEWSWIRE) -- TELA Bio,
Inc. ("TELA") (Nasdaq: TELA), a commercial stage medical technology company focused on designing, developing and marketing
a new category of tissue reinforcement materials to address unmet needs in soft tissue reconstruction, today reported financial
results for the three months ended September 30, 2019.
growth in the third quarter demonstrates that customers recognize the value of our products, including improved performance over
existing soft tissue reconstruction materials," said Antony Koblish, co-founder, President and Chief Executive Officer of
TELA Bio. "In November we successfully completed our initial public offering, which enables us to expand our marketing activities
to support the ongoing commercialization of our OviTex and OviTex PRS product lines."
Recent Business Highlights
commercial stage medical technology company focused on designing, developing and marketing a new category of tissue reinforcement
materials to address unmet needs in soft tissue reconstruction. TELA's products are designed to improve on shortcomings of
existing biologics and minimize long-term exposure to permanent synthetic material. TELA's portfolio is supported by quality, data-driven
science and extensive pre-clinical research that has consistently demonstrated advantages over other commercially available products.
Caution Regarding Forward-Looking Statements
This press release may contain forward-looking
statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as "may," "might,"
"will," "should," "believe," "expect," "anticipate," "estimate,"
"continue," "predict," "forecast," "project," "plan," "intend"
or similar expressions, or statements regarding intent, belief, or current expectations are forward-looking statements and reflect
the current beliefs of TELA's management. These statements are not guarantees of future performance and are subject to certain
risks, uncertainties and other factors that could cause actual results and events to differs materially and adversely from those
indicated by such forward-looking statements including, among others: our ability to gain market acceptance for our products and
to accurately forecast customer demand, our ability to enhance our product offerings, development and manufacturing problems, capacity
constraints or delays in production of our products. These and other risks and uncertainties are described more fully in the "Risk
Factors" section and elsewhere in our filings with the with the Securities and Exchange Commission and available at www.sec.gov,
including in our prospectus dated November 7, 2019. Any forward-looking statements that we make in this announcement speak only
as of the date of this press release, and TELA assumes no obligation to updates forward-looking statements whether as a result
of new information, future events or otherwise after the date of this press release, except as required under applicable law.
President, Corporate Development and Investor Relations
Consolidated Balance Sheets
(In thousands, except share and per share
| September 30, | December 31, | |||||||
| 2019 | 2018 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,701 | $ | 17,278 | ||||
| Accounts receivable | 2,278 | 1,298 | ||||||
| Inventory | 4,272 | 4,348 | ||||||
| Prepaid expenses and other | 365 | 330 | ||||||
| Total current assets | 17,616 | 23,254 | ||||||
| Property and equipment, net | 716 | 758 | ||||||
| Intangible assets, net | 2,987 | 3,215 | ||||||
| Deferred offering costs | 1,731 | - | ||||||
| Total assets | $ | 23,050 | $ | 27,227 | ||||
| Liabilities, redeemable convertible preferred stock, and stockholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,701 | $ | 3,421 | ||||
| Accrued expenses | 3,600 | 5,153 | ||||||
| Other current liabilities | 1,008 | 985 | ||||||
| Total current liabilities | 6,309 | 9,559 | ||||||
| Long-term debt with related party | 30,108 | 29,733 | ||||||
| Preferred stock warrant liability | 1,644 | 1,640 | ||||||
| Other long-term liabilities | 5 | 5 | ||||||
| Total liabilities | 38,066 | 40,937 | ||||||
| Redeemable convertible preferred stock; $0.001 par value: | ||||||||
| Series A preferred stock: 22,501,174 shares authorized, issued, and outstanding at September 30, 2019 and December 31, 2018; liquidation value of $34,458 at September 30, 2019 | 34,458 | 33,112 | ||||||
| Series B preferred stock: 82,891,619 shares authorized,75,560,456 and 63,032,500 issued and outstanding at September 30, 2019 and December 31, 2018, respectively; liquidation value of $110,213 at September 30, 2019 | 110,926 | 91,038 | ||||||
| Total redeemable convertible preferred stock | 145,384 | 124,150 | ||||||
| Stockholders' deficit: | ||||||||
| Common stock; $0.001 par value: 127,157,585 shares authorized; 298,992 and 296,629 shares issued and 298,117 and 295,717 shares outstanding at September 30, 2019 and December 31, 2018, respectively | - | - | ||||||
| Accumulated other comprehensive loss | (2 | ) | - | |||||
| Accumulated deficit | (160,398 | ) | (137,860 | ) | ||||
| Total stockholders' deficit | (160,400 | ) | (137,860 | ) | ||||
| Total liabilities, redeemable convertible preferred stock and stockholders' deficit | $ | 23,050 | $ | 27,227 |
Consolidated Statements of Operations
(In thousands, except share and per share
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenue | $ | 3,973 | $ | 2,212 | $ | 10,582 | $ | 5,847 | ||||||||
| Cost of revenue (excluding amortization of intangible assets) | 1,293 | 769 | 4,045 | 3,224 | ||||||||||||
| Amortization of intangible assets | 76 | 76 | 228 | 709 | ||||||||||||
| Gross profit | 2,604 | 1,367 | 6,309 | 1,914 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 4,736 | 3,608 | 12,678 | 9,630 | ||||||||||||
| General and administrative | 1,208 | 1,399 | 3,737 | 3,366 | ||||||||||||
| Research and development | 516 | 1,044 | 3,230 | 3,362 | ||||||||||||
| Gain on litigation settlement | - | (2,160 | ) | - | (2,160 | ) | ||||||||||
| Total operating expenses | 6,460 | 3,891 | 19,645 | 14,198 | ||||||||||||
| Loss from operations | (3,856 | ) | (2,524 | ) | (13,336 | ) | (12,284 | ) | ||||||||
| Other (expense) income: | ||||||||||||||||
| Interest expense | (899 | ) | (309 | ) | (2,725 | ) | (1,037 | ) | ||||||||
| Loss on extinguishment of debt | - | - | - | (615 | ) | |||||||||||
| Change in fair value of preferred stock warrant liability | 34 | 17 | (4 | ) | 191 | |||||||||||
| Other income | 55 | 10 | 172 | 44 | ||||||||||||
| Total other (expense) income | (810 | ) | (282 | ) | (2,557 | ) | (1,417 | ) | ||||||||
| Net loss | (4,666 | ) | (2,806 | ) | (15,893 | ) | (13,701 | ) | ||||||||
| Accretion of redeemable convertible preferred stock to redemption value | (2,058 | ) | (1,871 | ) | (6,843 | ) | (6,848 | ) | ||||||||
| Net loss attributable to common stockholders | $ | (6,724 | ) | $ | (4,677 | ) | $ | (22,736 | ) | $ | (20,549 | ) | ||||
| Net loss per common share, basic and diluted | $ | (22.58 | ) | $ | (15.84 | ) | $ | (76.62 | ) | $ | (69.70 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 297,750 | 295,228 | 296,743 | 294,823 |