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RSLS ReShape Lifesciences

Obalon Therapeutics, Inc. is a San Diego-based company focused on developing and commercializing novel technologies for weight loss.

Company profile

Ticker
RSLS
Exchange
Website
CEO
Andrew Rasdal
Employees
Incorporated
Location
Fiscal year end
Former names
OBALON THERAPEUTICS INC
SEC CIK
Subsidiaries
Obalon Center for Weight Loss, Inc. ...

RSLS stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

16 Aug 21
17 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 40.21M 40.21M 40.21M 40.21M 40.21M 40.21M
Cash burn (monthly) (positive/no burn) (positive/no burn) 1.29M 910.5K (positive/no burn) 728.83K
Cash used (since last report) n/a n/a 4.65M 3.28M n/a 2.63M
Cash remaining n/a n/a 35.56M 36.93M n/a 37.59M
Runway (months of cash) n/a n/a 27.5 40.6 n/a 51.6

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Oct 21 Barton P. Bandy Common Stock, $0.001 par value per share Sell Dispose S No No 2.77 12,565 34.81K 878,947
1 Oct 21 Thomas Stankovich Common Stock, $0.001 par value per share Sell Dispose S No No 2.76 3,660 10.1K 354,331
30 Aug 21 Thomas Stankovich Common Stock, $0.001 par value per share Buy Acquire P No No 3.429 15,000 51.44K 32,613
20 Aug 21 Thomas Stankovich Common Stock, $0.001 par value per share Buy Acquire P No No 3.219 15,000 48.29K 17,613
22 Jul 21 Lori Courtney McDougal Common Stock, $0.001 par value per share Grant Acquire A No No 0 253,429 0 253,429

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

7.0% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 16 0 NEW
Opened positions 16 0 NEW
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares
Current Prev Q Change
Total value 5.23M 0 NEW
Total shares 1.11M 0 NEW
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
Armistice Capital 816.53K $4.08M NEW
STT State Street 110K $550K NEW
Domain Parters Vii L P 62.5K $0 NEW
Vanguard 51.12K $256K NEW
Jane Street 24.19K $121K NEW
Geode Capital Management 23.28K $116K NEW
Alpine Global Management 17K $85K NEW
UBS UBS Group AG - Registered Shares 2.83K $14K NEW
Advisor 1.29K $6K NEW
C Citigroup 167 $1K NEW
Largest transactions
Shares Bought/sold Change
Armistice Capital 816.53K +816.53K NEW
STT State Street 110K +110K NEW
Domain Parters Vii L P 62.5K +62.5K NEW
Vanguard 51.12K +51.12K NEW
Jane Street 24.19K +24.19K NEW
Geode Capital Management 23.28K +23.28K NEW
Alpine Global Management 17K +17K NEW
UBS UBS Group AG - Registered Shares 2.83K +2.83K NEW
Advisor 1.29K +1.29K NEW
C Citigroup 167 +167 NEW

Financial report summary

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Risks
  • RISKS RELATED TO THE MERGER
  • Although an application will be filed for the continued listing of our common stock on The Nasdaq Capital Market in connection with the Merger, there can be no assurance that our common stock will be so listed or, if listed, that the Combined Company following the Merger will be able to comply with the continued listing standards.
  • If the Merger is consummated, the composition of the board of directors and management of the Combined Company will be comprised of the current board of directors and management of ReShape and our current stockholders will not have a majority ownership and voting interest in the Combined Company, which may affect the strategy and operations of the Combined Company.
  • If we are unable to complete the Merger with ReShape and in the alternative unable to secure additional financing on favorable terms, or at all, we could be forced to liquidate all or some of our assets or seek bankruptcy protection to protect stakeholder value.
  • We have ceased our efforts to seek third-party reimbursement and are focused primarily on the successful close of the Merger with ReShape. If the Merger does not close and we are able to continue to operate as a standalone Company, our strategy to attain coverage and reimbursement by third-party payors may not be successful and will subject us to new risks, some of which we may not yet have identified.
  • If we are unable to reestablish commercial operations, including sales, marketing, manufacturing and distribution capabilities, whether after the completion of the Merger with ReShape, on our own or in collaboration with third parties, we may not be successful in commercializing our products.
  • We have received funding under the Coronavirus Aid, Relief and Economic Security (CARES) Act
  • We have limited operating experience and a history of net losses, and we recently discontinued all of our commercial operations.
  • We have historically maintained a high level of inventory, which could consume a significant amount of our resources, reduce our cash flows and lead to inventory impairment charges especially if we restart commercial operations and manufacturing in the future.
  • Physicians have been slow to adopt and use intragastric balloons, and adverse events or other negative developments involving other companies’ intragastric balloons or other obesity treatments may further slow patient adoption, which have negatively impacted our financial performance and strategic options and this could continue into the future.
  • The efficacy of our Obalon Balloon System depends on patient compliance with a moderate intensity diet and behavior modification program. If patients are unwilling to make dietary and behavioral changes, patient outcomes may suffer which could negatively impact perception of our product in the marketplace both in the past and in the future.
  • If patients are unable to successfully swallow the capsule or our balloon cannot otherwise be successfully deployed, patients may seek a refund or monetary damages in connection with the treatment.
  • Patients may experience serious injury related to the device or procedures as the result of the misuse or malfunction of, or design flaws in, our products, that could expose us to expensive litigation, divert management’s attention and harm our reputation and business.
  • In the past we have employed, and in the future we may employ social media and call center activities as part of our marketing strategy, which could give rise to regulatory violations, liability, breaches of data security or reputational damage.
  • We have limited experience manufacturing our Obalon Balloon System and Obalon Navigation System in commercial quantities and, if we restart manufacturing, we may experience production delays or issues in our manufacturing organization and be unable to meet current or future demand.
  • We depend on third-party suppliers, including single source suppliers, to manufacture some of our components and sub-assemblies, which could make us vulnerable to supply shortages, interruptions in production and price fluctuations that could harm our business. We have not ordered from those suppliers in approximately one year and they may be unwilling or unable to reinitiate supply of key materials and components.
  • Historically, all of our international revenue was derived from sales to a single distributor that accounted for a significant amount of our revenue.
  • If we were to restart commercial operations as a standalone company, we would not intend to devote significant additional resources in the near-term to market our Obalon Balloon System internationally, which will limit our potential revenue from our product.
  • The medical device industry, and the market for weight loss and obesity in particular, is highly competitive. If our competitors are able to develop and market products that are safer, more effective, easier to use or more readily adopted by patients and physicians, our commercial opportunities will be reduced or eliminated.
  • We have dramatically reduced our senior management team to only two full time employees and we cannot assure you that we have or would be able to recruit sufficient resources to manage our current operations or restart commercialization in the future.
  • From time to time, we engage outside parties to perform services related to certain of our clinical studies and trials, and any failure of those parties to fulfill their obligations could increase costs and cause delays.
  • RISKS RELATED TO REGULATORY MATTERS
  • In the future, our Obalon Balloon System may be subject to product recalls that could harm our reputation and business.
  • If patients using our products experience adverse events or other undesirable side effects, regulatory authorities could withdraw or modify our commercial approvals, which would adversely affect our reputation and commercial prospects and/or result in other significant negative consequences.
  • Even though we have received FDA approval of our PMA application to commercially market the Obalon balloon system in the United States, we will continue to be subject to extensive FDA regulatory oversight.
  • Material modifications to our Obalon Balloon System and Obalon Navigation System may require new premarket approvals and may require us to recall or cease marketing our Obalon Balloon System until approvals are obtained.
  • If we or our suppliers fail to comply with the FDA and international quality system requirements, our manufacturing operations could be delayed or shut down and sales of our Obalon Balloon System could suffer.
  • Our success depends on our ability to obtain FDA approval or other regulatory approvals for our future products and product improvements.
  • The FDA and other regulatory agencies actively enforce the laws and regulations governing the development, approval and commercialization of medical devices. If we are found to have failed to comply with these laws and regulations, we may become subject to significant liability.
  • Disruptions at the FDA and other government agencies caused by funding shortages or global health concerns could hinder their ability to hire, retain or deploy key leadership and other personnel, or otherwise prevent new or modified products from being developed, cleared or approved or commercialized in a timely manner or at all, which could negatively impact our business.
  • If we fail to obtain and maintain regulatory approval in foreign jurisdictions, our market opportunities will be limited.
  • If we fail to comply with healthcare regulations and fraud and abuse laws, we could face substantial penalties and our business, operations and financial condition could be adversely affected.
  • If retail arrangements with physicians or customers are found to violate state laws prohibiting the corporate practice of medicine or fee splitting, our business, financial condition and our ability to operate in those states could be adversely impacted.
  • If we or our affiliated physicians fail to comply with licensing and accreditation requirements applicable to our business, various governmental agencies may impose fines or preclude us from operating in certain states.
  • We are subject to data privacy and security laws and regulations governing our collection, use, disclosure, or storage of personally identifiable information, including personal health information, which may impose restrictions on us and our operations and subject us to penalties if we are unable to fully comply with such laws.
  • Compliance with environmental laws and regulations could be expensive. Failure to comply with environmental laws and regulations could subject us to significant liability.
  • RISKS RELATED TO OUR INTELLECTUAL PROPERTY
  • If we are unable to adequately protect our proprietary technology or maintain issued patents that are sufficient to protect our Obalon Balloon System or our other products, others could compete against us more directly, which would have a material adverse impact on our business, results of operations, financial condition and prospects.
  • If we are unable to protect the confidentiality of our proprietary information and know-how, the value of our technology and products could be adversely affected.
  • We may be subject to claims challenging the inventorship or ownership of our patents and other intellectual property.
  • We may infringe or be alleged to infringe the intellectual property rights of others, which may result in costly and time-consuming litigation, delay our product development efforts or prevent us from commercializing the Obalon Balloon System.
  • Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.
  • We may be involved in legal proceedings to protect or enforce our intellectual property, which could be expensive, time-consuming, and unsuccessful.
  • Issued patents covering our products could be found invalid or unenforceable if challenged in court or before administrative bodies.
  • We do not seek to protect our intellectual property rights in all jurisdictions throughout the world and we may not be able to adequately enforce our intellectual property rights even in the jurisdictions where we seek protection.
  • Changes in U.S. patent law could diminish the value of patents in general, thereby impairing our ability to protect our products.
  • We may be subject to damages resulting from claims that we, our employees, consultants or third parties we engage to manufacture our products have wrongfully used, or disclosed, alleged trade secrets of our competitors or are in breach of non-competition or non-solicitation agreements with our competitors.
  • RISKS RELATED TO OWNERSHIP OF OUR COMMON STOCK
  • The sale or issuance of our common stock to Lincoln Park may cause dilution and the sale of the shares of common stock acquired by Lincoln Park, or the perception that such sales may occur, could cause the price of our common stock to fall.
  • Our stock price may be volatile, and you may not be able to resell shares of our common stock at or above the price you paid.
  • If we fail to meet all applicable Nasdaq Capital Market requirements, Nasdaq could delist our common stock, which could adversely affect the market liquidity of our common stock and the market price of our common stock could decrease.
  • If securities or industry analysts do not publish research or reports about our business, publish negative reports about our business, or publish financial projections that we are unable to achieve, our share price and trading volume could decline.
  • We are an emerging growth company, and intend to take advantage of reduced disclosure requirements applicable to emerging growth companies, which could make our common stock less attractive to investors.
  • Our executive officers, directors, principal stockholders and their affiliates have significant influence over our company, which will limit your ability to influence corporate matters and could delay or prevent a change in corporate control.
  • We are subject to securities class action litigation.
  • Because we do not anticipate paying any cash dividends on our common stock in the foreseeable future, capital appreciation, if any, will be your sole source of gain.
  • We may face product liability claims that could result in costly litigation and significant liabilities.
  • If we are unable to implement and maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may decrease.
  • Fluctuations in insurance cost and availability could adversely affect our profitability or our risk management profile.
  • Our ability to utilize our net operating loss carryovers may be limited.
  • Future sales and issuances of our common stock or other securities may result in significant dilution and could cause the price of our common stock to decline.
  • Provisions in our corporate charter documents and under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current board directors or management.
  • Our restated certificate of incorporation designates the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or agents.
Management Discussion
  • Revenue.   Revenue decreased $1.7 million to $1.6 million during the year ended December 31, 2020, compared to $3.3 million during the year ended December 31, 2019. During the second quarter of 2020, we fundamentally changed our commercialization efforts and restructured operations, eliminating the field sales force and transitioned to a centralized customer support model to support our existing physician customers. We launched the first Obalon branded retail center during September 2019, as part of our strategy of shifting towards a retail treatment center business model, which we subsequently closed in the second quarter of 2020. As a result, revenue from U.S sales decreased $1.1 million stemming from selling fewer balloons in the U.S. Furthermore, sales to our Middle East distributors in 2020 declined $0.6 million over 2019 sales outside the U.S.
Content analysis
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Positive
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Uncertain
Constraining
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Litigous
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H.S. junior Avg
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