UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
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(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation) |
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(Address of principal executive offices) (Zip code)
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(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
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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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| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
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| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
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| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
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| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
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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).
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.
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 11, 2022, Pulse Biosciences, Inc. announced its financial results for the fiscal quarter ended March 31, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
This information, as well as Exhibit 99.1, is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor 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 9.01. FINANCIAL STATEMENTS AND EXHIBITS
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(d) |
| Exhibits. | ||
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Exhibit No. |
| Description | ||
| Press Release issued by Pulse Biosciences, Inc. dated May 11, 2022* | |||
104 |
| Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||
* The exhibit shall be deemed to be furnished, and not filed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| PULSE BIOSCIENCES, INC. | |
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| By: | /s/ Sandra A. Gardiner |
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| Sandra A. Gardiner Chief Financial Officer, Executive Vice President of Finance and Administration, and Treasurer (Principal Financial and Accounting Officer) |
Date: May 11, 2022
Pulse Biosciences Reports First Quarter 2022 Financial Results
HAYWARD, Calif. [Business Wire] – May 11, 2022 – Pulse Biosciences, Inc. (Nasdaq: PLSE), a novel bioelectric medicine company commercializing the CellFX® System powered by Nano-Pulse Stimulation™ (NPS™) technology, today announced financial results for the first quarter of 2022.
Company Updates
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Increased the average CellFX System commercial session utilization four week moving average during Q1 with decreasing trend in early Q2 due to transition in commercial strategy. |
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· |
Appointed new commercial leadership and began initiation of the CellFX System utilization program in May with nine commercial clinics to establish commercial integration best practices. Established program goal for each clinic of 40 commercial sessions per month. Average monthly utilization of the nine participating clinics during Q1 was 14 sessions per month. |
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Generated first quarter 2022 revenue of $444 thousand. |
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Completed one commercial sale of a CellFX System in the first quarter of 2022. |
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Transitioned 10 Controlled Launch Program participants to commercial use in the first quarter totaling 39 commercial conversions at the end of the first quarter. There are 20 clinics remaining in the Controlled Launch program after a total of 11 clinics have opted out as of the end of Q1. |
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Met with FDA regarding the Additional Information (AI) letter response to the sebaceous hyperplasia 510(k). Provided additional analysis of the clinical data following the meeting, at FDA’s request, and anticipate further communication prior to any formal response to the AI letter. |
“In the first quarter of 2022 we took steps to refocus our CellFX dermatology efforts by bringing in new commercial leadership. We have prioritized increasing CellFX System utilization at a subset of our commercial clinics, with the goal of developing commercial integration best practices that will drive utilization across all clinics. While these best practices are being established there will be a reduced focus on capital sales,” said Darrin Uecker, President and CEO of Pulse Biosciences. “We also continue to prioritize indication expansion for the CellFX System and are actively working with FDA on this process.”
First Quarter 2022 Results
Revenue for the three months ended March 31, 2022 was $444 thousand. System revenue for the three months ended March 31, 2022 was $367 thousand. Cycle units revenue for the three months ended March 31, 2022 was $77 thousand resulting from the purchase of cycle units to be used with commercial systems. Total revenues of $331 thousand were recognized on a non-cash basis resulting from the Controlled Launch Participants opting to acquire CellFX Systems during the quarter.
Total GAAP cost and expenses representing cost of revenues, research and development, sales and marketing and general and administrative expenses for the three months ended March 31, 2022 were $17.7 million, compared to $18.5 million for the prior year period. Non-GAAP cost and expenses for the three months ended March 31, 2022 were $14.7 million, compared to $11.3 million for the same period in the prior year. The year-over-year increase in non-GAAP cost and expenses was primarily driven by the expansion of commercial and operational infrastructure, including increased headcount, to support commercialization activities. The first quarter of 2022 also included a discrete restructuring charge of $733 thousand, of which $706 thousand remains in accrued expenses as of March 31, 2022.
GAAP net loss for the three months ended March 31, 2022 was ($17.3) million compared to ($18.6) million for the three months ended March 31, 2021. Non-GAAP net loss for the three months ended March 31, 2022 was ($14.2) million compared to ($11.4) million for the three months ended March 31, 2021.
Cash, cash equivalents and investments totaled $12.7 million as of March 31, 2022 compared to $59.9 million as of March 31, 2021 and $28.6 million as of December 31, 2021. Cash used in the first quarter of 2022 totaled $15.9 million compared to $10.7 million used in the same period in the prior year and $13.4 million used in the fourth quarter of 2021.
Reconciliations of GAAP to non-GAAP cost and expenses and net loss have been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Webcast and Conference Call Information
Pulse Biosciences’ management will host a conference call today, May 11, 2022, beginning at 1:30pm PT. Investors interested in listening to the conference call may do so by dialing 1-877-704-4453 for domestic callers or 1-201-389-0920 for international callers. A live and recorded webcast of the event will be available at https://investors.pulsebiosciences.com/.
About Pulse Biosciences®
Pulse Biosciences is a novel bioelectric medicine company committed to health innovation that has the potential to improve the quality of life for patients. The Company’s proprietary Nano-Pulse Stimulation technology delivers nano-second pulses of electrical energy to non-thermally clear cells while sparing adjacent non-cellular tissue. The CellFX® System is the first commercial product to harness the distinctive advantages of NPS technology to treat a variety of applications for which an optimal solution remains unfulfilled. The initial commercial use of the CellFX System is to address a range of dermatologic conditions that share high demand among patients and practitioners for improved dermatologic outcomes. Designed as a multi-application platform, the CellFX System offers customer value with a utilization-based revenue model. Visit pulsebiosciences.com to learn more.
To stay informed about the CellFX System, please visit CellFX.com and sign-up for updates.
Pulse Biosciences, CellFX, Nano-Pulse Stimulation, NPS and the stylized logos are among the trademarks and/or registered trademarks of Pulse Biosciences, Inc. in the United States and other countries.
Non-GAAP Financial Measures
In this press release, in order to supplement the Company’s condensed consolidated financial statements presented in accordance with Generally Accepted Accounting Principles, or GAAP, management has disclosed certain non-GAAP financial measures for the statement of operations. The Company believes that an evaluation of its ongoing operations (and comparisons of its current operations with historical and future operations) would be difficult if the disclosure of its financial results were limited to financial measures prepared in accordance with GAAP. As a result, the Company is disclosing certain non-GAAP results in order to supplement investors’ and other readers’ understanding and assessment of the Company’s financial performance. Company management uses these measurements as aids in monitoring the Company’s ongoing financial performance from quarter to quarter, and year to year, on a regular basis and for financial and operational decision-making. Non-GAAP adjustments include stock-based compensation, depreciation and amortization and restructuring charges. From time to time in the future, there may be other items that the Company may exclude if the Company believes that doing so is consistent with the goal of providing useful information to management and investors. The Company has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures as analytical tools. Investors are encouraged to review these reconciliations, and not to rely on any single financial measure to evaluate the Company’s business.
Non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies, which could reduce the usefulness of the Company’s non-GAAP financial measures as tools for comparison. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP measures to their most directly comparable GAAP measures set forth below and should consider non-GAAP measures only as a supplement to, not as a substitute for or as a superior measure to, measures of financial performance prepared in accordance with GAAP. Non-GAAP financial measures in this earnings release exclude the following:
Non-cash expenses for stock-based compensation. The Company has excluded the effect of stock-based compensation expenses in calculating the Company’s non-GAAP cost and expenses and net loss measures. Although stock-based compensation is a key incentive offered to employees, the Company continues to evaluate its business performance excluding stock-based compensation expenses. The Company records stock-based compensation expense related to grants of performance and time-based options. Depending upon the size, timing and terms of the grants, as well as the probability of achievement of performance-based awards, this expense may vary significantly but will recur in future periods. The Company believes that excluding stock-based compensation better allows for comparisons from period to period.
Depreciation and amortization. The Company has excluded depreciation and amortization expense in calculating its non-GAAP cost and expenses and net loss measures. Depreciation and amortization are non-cash charges to current operations.
Restructuring charges. The Company has excluded restructuring charges in calculating its non-GAAP cost and expenses and net loss measures. Restructuring programs involve discrete initiatives designed to improve operating efficiencies and include employee termination, contract termination, and other exit costs associated with the restructuring program. The Company believes that excluding discrete restructuring charges allows for better comparisons from period to period.
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements, including, among other things, statements relating to Pulse Biosciences’ expectations regarding the Company’s Controlled Launch program and the Company’s other activities to develop and commercialize NPS technology to drive growth, such as statements concerning the timing and prospects for converting participants in the Controlled Launch into commercial customers, statements concerning customer adoption and future use of the CellFX System, and statements concerning the use of best practices to drive utilization across clinics, statements about market opportunities in aesthetic dermatology and in other areas of medicine, statements about potential future regulatory clearances and about expanding the CellFX System’s indications for use, statements relating to the effectiveness of the Company’s NPS technology and the CellFX System to improve patient outcomes, statements relating to the Company’s current and planned future clinical studies and its ability to execute these studies successfully, statements about the Company’s pipeline of product candidates and ability to pursue applications for NPS technology outside of dermatology, statements relating to the impact of COVID-19, statements concerning the impact of the Company’s recent corporate restructuring on its operations, statements about the Company’s rights offering or any other of its future financing activities, and other future events. These forward-looking statements are not historical facts but rather are based on Pulse Biosciences’ current expectations, estimates, and projections regarding Pulse Biosciences’ business, operations and other similar or related factors. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” and other similar or related expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond Pulse Biosciences’ control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in Pulse Biosciences’ filings with the Securities and Exchange Commission. Pulse Biosciences undertakes no obligation to revise or update information in this release to reflect events or circumstances in the future, even if new information becomes available.
Contacts:
Investors:
Pulse Biosciences
Sandra Gardiner, EVP and CFO
510.241.1077
IR@pulsebiosciences.com
or
Gilmartin Group
Philip Trip Taylor
415.937.5406
philip@gilmartinir.com
Media:
Tosk Communications
Nadine D. Tosk
504.453.8344
nadinepr@gmail.com or
press@pulsebiosciences.com
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PULSE BIOSCIENCES, INC. |
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Condensed Consolidated Balance Sheets |
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(In thousands, except per share amounts) |
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(Unaudited) |
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March 31, |
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December 31, |
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2022 |
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2021 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
12,676 |
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$ |
28,614 |
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Accounts Receivable |
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21 |
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61 |
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Inventory |
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7,487 |
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5,824 |
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Prepaid expenses and other current assets |
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1,979 |
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2,131 |
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Total current assets |
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22,163 |
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36,630 |
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Property and equipment, net |
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2,554 |
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2,462 |
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Intangible assets, net |
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3,050 |
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3,216 |
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Goodwill |
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2,791 |
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2,791 |
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Right-of-use assets |
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8,611 |
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8,785 |
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Other assets |
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365 |
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365 |
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Total assets |
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$ |
39,534 |
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$ |
54,249 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
3,486 |
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$ |
2,904 |
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Accrued expenses |
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4,604 |
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4,389 |
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Deferred revenue |
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16 |
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16 |
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Lease liability, current |
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799 |
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774 |
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Note payable, current |
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— |
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436 |
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Total current liabilities |
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8,905 |
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8,519 |
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Lease liability, less current |
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9,833 |
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10,040 |
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Total liabilities |
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18,738 |
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18,559 |
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Stockholders’ equity: |
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Preferred stock, $0.001 par value; |
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— |
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— |
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Common stock, $0.001 par value: |
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29 |
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29 |
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Additional paid-in capital |
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274,240 |
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271,861 |
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Accumulated other comprehensive income (loss) |
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— |
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— |
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Accumulated deficit |
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(253,473) |
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(236,200) |
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Total stockholders’ equity |
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20,796 |
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35,690 |
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Total liabilities and stockholders’ equity |
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$ |
39,534 |
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$ |
54,249 |
PULSE BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share data)
(Unaudited)
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Three-Month Periods Ended |
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March 31, |
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2022 |
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2021 |
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Revenues: |
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Product revenues |
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$ |
444 |
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$ |
— |
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Total revenues |
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444 |
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— |
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Cost and expenses: |
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Cost of revenues |
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909 |
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— |
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Research and development |
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6,769 |
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9,063 |
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Sales and marketing |
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5,541 |
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4,146 |
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General and administrative |
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4,498 |
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5,316 |
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Total cost and expenses |
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17,717 |
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18,525 |
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Loss from operations |
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(17,273) |
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(18,525) |
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Other income (expense): |
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Interest income (expense), net |
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— |
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(114) |
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Total other income (expense) |
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— |
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(114) |
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Net loss |
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(17,273) |
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(18,639) |
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Other comprehensive gain (loss): |
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Unrealized gain (loss) on available-for-sale securities |
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— |
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1 |
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Comprehensive loss |
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$ |
(17,273) |
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$ |
(18,638) |
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Net loss per share: |
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Basic and diluted net loss per share |
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$ |
(0.58) |
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$ |
(0.71) |
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Weighted average shares used to compute net loss per common share — basic and diluted |
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29,745 |
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26,072 |
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Three-Month Periods Ended |
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March 31, |
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Stock Based Compensation Expense: |
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2022 |
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2021 |
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Cost of revenues |
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$ |
90 |
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$ |
— |
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Research and development |
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457 |
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3,166 |
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Sales and marketing |
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454 |
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1,761 |
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General and administrative |
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1,006 |
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2,038 |
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Total stock-based compensation expense |
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$ |
2,007 |
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$ |
6,965 |
PULSE BIOSCIENCES, INC.
Consolidated Revenue Financial Highlights
(In thousands)
(Unaudited)
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Three-Month Periods Ended |
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March 31, |
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2022 |
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2021 |
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Revenue by category: |
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Systems |
$ |
367 |
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83% |
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$ |
— |
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- |
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Cycle units |
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77 |
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17% |
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— |
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- |
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Total revenue |
$ |
444 |
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100% |
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$ |
— |
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- |
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Revenue by geography: |
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North America |
$ |
312 |
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70% |
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$ |
— |
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- |
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Rest of World |
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132 |
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30% |
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— |
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- |
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Total revenue |
$ |
444 |
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100% |
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$ |
— |
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- |
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Reconciliation of GAAP to Non-GAAP Financial Measures The following table presents the reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures: (In thousands) (Unaudited) |
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Three-Month Periods Ended |
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March 31, |
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2022 |
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2021 |
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Reconciliation of GAAP to non-GAAP Cost of revenues: |
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GAAP Cost of revenues |
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$ |
909 |
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$ |
— |
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Less: Stock-based compensation expense |
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(90) |
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— |
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Less: Depreciation and amortization |
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(5) |
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— |
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Less: Restructuring |
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(19) |
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— |
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Non-GAAP Cost of revenues |
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$ |
795 |
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$ |
— |
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Reconciliation of GAAP to non-GAAP Research and development: |
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GAAP Research and development |
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$ |
6,769 |
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$ |
9,063 |
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Less: Stock-based compensation expense |
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(457) |
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(3,166) |
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Less: Depreciation and amortization |
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(59) |
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(39) |
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Less: Restructuring |
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(127) |
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— |
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Non-GAAP Research and development |
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$ |
6,126 |
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$ |
5,858 |
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Reconciliation of GAAP to non-GAAP Sales and marketing: |
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GAAP Sales and Marketing |
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$ |
5,541 |
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$ |
4,146 |
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Less: Stock-based compensation expense |
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(454) |
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(1,761) |
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Less: Depreciation and amortization |
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(13) |
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— |
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Less: Restructuring |
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(546) |
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— |
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Non-GAAP Sales and marketing |
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$ |
4,528 |
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$ |
2,385 |
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Reconciliation of GAAP to non-GAAP General and administrative: |
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GAAP General and administrative |
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$ |
4,498 |
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$ |
5,316 |
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Less: Stock-based compensation expense |
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(1,006) |
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(2,038) |
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Less: Depreciation and amortization |
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(249) |
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(240) |
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Less: Restructuring |
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(41) |
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— |
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Non-GAAP General and administrative |
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$ |
3,202 |
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$ |
3,038 |
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Reconciliation of GAAP to non-GAAP Cost and expenses: |
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GAAP Cost and expenses |
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$ |
17,717 |
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$ |
18,525 |
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Less: Stock-based compensation expense |
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(2,007) |
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(6,965) |
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Less: Depreciation and amortization |
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(326) |
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(279) |
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Less: Restructuring |
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(733) |
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|
— |
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Non-GAAP Cost and expenses |
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$ |
14,651 |
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$ |
11,281 |
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Reconciliation of GAAP to non-GAAP Net loss: |
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GAAP Net loss |
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$ |
(17,273) |
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$ |
(18,639) |
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Add: Stock-based compensation expense |
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2,007 |
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6,965 |
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Add: Depreciation and amortization |
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326 |
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|
279 |
|
Add: Restructuring |
|
|
733 |
|
|
— |
|
Non-GAAP Net loss |
|
$ |
(14,207) |
|
$ |
(11,395) |