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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 September 30, 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 October 31, 2023, the registrant had 35,861,604 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 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

26

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

37

Item 4.

Controls and Procedures

37

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

97

Item 3.

Defaults Upon Senior Securities

98

Item 4.

Mine Safety Disclosures

98

Item 5.

Other Information

98

Item 6.

Exhibits

99

Signatures

100

 


 

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”);
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;
our 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 the 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; 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)

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

9,859

 

 

$

11,834

 

Short-term investments

 

 

122,023

 

 

 

93,968

 

Accounts receivable

 

 

15,244

 

 

 

10,956

 

Inventories

 

 

18,924

 

 

 

14,835

 

Prepaid and other current assets

 

 

1,897

 

 

 

2,962

 

Total current assets

 

 

167,947

 

 

 

134,555

 

Property and equipment, net

 

 

10,262

 

 

 

10,138

 

Operating leases right-of-use assets

 

 

2,793

 

 

 

3,943

 

Restricted cash

 

 

711

 

 

 

761

 

Other assets

 

 

137

 

 

 

767

 

Total assets

 

$

181,850

 

 

$

150,164

 

 

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

4,105

 

 

$

2,595

 

Accrued expenses and other current liabilities

 

 

12,861

 

 

 

12,672

 

Lease liabilities

 

 

1,976

 

 

 

1,970

 

Total current liabilities

 

 

18,942

 

 

 

17,237

 

Long-term lease liabilities

 

 

1,354

 

 

 

2,856

 

Term loan, net

 

 

 

 

 

40,169

 

Other long-term liabilities

 

 

75

 

 

 

 

Total liabilities

 

 

20,371

 

 

 

60,262

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, $0.001 par value, 900,000,000 shares authorized, 35,847,685 shares
  issued and outstanding as of September 30, 2023 and
28,268,389 shares
  issued and outstanding as of December 31, 2022

 

 

36

 

 

 

28

 

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

 

 

 

 

 

 

Additional paid-in capital

 

 

746,966

 

 

 

636,001

 

Accumulated other comprehensive loss

 

 

(60

)

 

 

(95

)

Accumulated deficit

 

 

(585,463

)

 

 

(546,032

)

Total stockholders' equity

 

 

161,479

 

 

 

89,902

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

181,850

 

 

$

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

22,199

 

 

$

12,615

 

 

$

60,497

 

 

$

32,917

 

Cost of sales

 

 

8,468

 

 

 

7,259

 

 

 

24,386

 

 

 

19,011

 

Gross profit

 

 

13,731

 

 

 

5,356

 

 

 

36,111

 

 

 

13,906

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

19,142

 

 

 

14,926

 

 

 

53,634

 

 

 

42,934

 

Research and development

 

 

7,101

 

 

 

6,388

 

 

 

21,710

 

 

 

19,300

 

Total operating expenses

 

 

26,243

 

 

 

21,314

 

 

 

75,344

 

 

 

62,234

 

Loss from operations

 

 

(12,512

)

 

 

(15,958

)

 

 

(39,233

)

 

 

(48,328

)

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(230

)

 

 

(1,299

)

 

 

(3,304

)

 

 

(3,495

)

Interest and other income

 

 

1,746

 

 

 

439

 

 

 

4,913

 

 

 

681

 

Loss on extinguishment of term loan

 

 

(1,407

)

 

 

 

 

 

(1,769

)

 

 

 

Loss before income taxes

 

 

(12,403

)

 

 

(16,818

)

 

 

(39,393

)

 

 

(51,142

)

Income tax expense

 

 

12

 

 

 

 

 

 

38

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(12,415

)

 

$

(16,818

)

 

$

(39,431

)

 

$

(51,146

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on short-term investments

 

 

19

 

 

 

55

 

 

 

38

 

 

 

(95

)

Foreign currency translation (loss)

 

 

(6

)

 

 

(10

)

 

 

(3

)

 

 

(23

)

Total other comprehensive income (loss)

 

 

13

 

 

 

45

 

 

 

35

 

 

 

(118

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

$

(12,402

)

 

$

(16,773

)

 

$

(39,396

)

 

$

(51,264

)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic & diluted

 

$

(0.35

)

 

$

(0.61

)

 

$

(1.16

)

 

$

(1.86

)

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

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to common stock, basic & diluted

 

 

35,662,397

 

 

 

27,665,842

 

 

 

33,947,331

 

 

 

27,551,333

 

 

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)

 

 

 

Nine Months Ended September 30, 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

 

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

 

 

316,092

 

 

 

 

 

 

2,599

 

 

 

 

 

 

 

 

 

2,599

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,955

 

 

 

 

 

 

 

 

 

3,955

 

Shares issued for the employee stock purchase plan

 

 

50,504

 

 

 

 

 

 

536

 

 

 

 

 

 

 

 

 

536

 

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

 

 

834,748

 

 

 

1

 

 

 

18,956

 

 

 

 

 

 

 

 

 

18,957

 

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

 

 

 

 

 

 

 

 

 

 

 

(65

)

 

 

 

 

 

(65

)

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13,804

)

 

 

(13,804

)

Balance at June 30, 2023

 

 

35,168,041

 

 

$

35

 

 

$

730,274

 

 

$

(73

)

 

$

(573,048

)

 

$

157,188

 

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

 

 

289,010

 

 

 

 

 

 

1,994

 

 

 

 

 

 

 

 

 

1,994

 

Shares redeemed for employee tax withholdings

 

 

(37,366

)

 

 

 

 

 

(1,084

)

 

 

 

 

 

 

 

 

(1,084

)

Stock-based compensation expense

 

 

 

 

 

 

 

 

4,071

 

 

 

 

 

 

 

 

 

4,071

 

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

 

 

428,000

 

 

 

1

 

 

 

11,711

 

 

 

 

 

 

 

 

 

11,712

 

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

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

 

 

 

19

 

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

 

 

 

(6

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,415

)

 

 

(12,415

)

Balance at September 30, 2023

 

 

35,847,685

 

 

$

36

 

 

$

746,966

 

 

$

(60

)

 

$

(585,463

)

 

$

161,479

 

 

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)

 

 

 

 

Nine Months Ended September 30, 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

 

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

 

 

99,743

 

 

 

 

 

 

277

 

 

 

 

 

 

 

 

 

277

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,904

 

 

 

 

 

 

 

 

 

2,904

 

Shares issued for the employee stock purchase plan

 

 

46,051

 

 

 

 

 

 

459

 

 

 

 

 

 

 

 

 

459

 

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

 

 

 

 

 

 

 

 

 

 

 

(76

)

 

 

 

 

 

(76

)

Foreign currency translation adjustment

 

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

 

 

 

(9

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,732

)

 

 

(16,732

)

Balance at June 30, 2022

 

 

27,631,479

 

 

$

27

 

 

$

623,746

 

 

$

(183

)

 

$

(513,604

)

 

$

109,986

 

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

 

 

110,126

 

 

 

1