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ReShape Lifesciences Inc. (RSLS-7.28%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $2.3 million from $2.2 million in the same quarter the previous year. The increase is attributed to a small rise in sales volume, despite pressure from GLP-1 pharmaceutical weight-loss alternatives.
Cost of revenue for the quarter was $853,000, representing 37.2% of sales, compared to 40.2% in the same quarter of the previous year. The decrease in cost ratio is due to reduced overhead costs, primarily payroll.
The company reported a gross profit of $1.4 million for the quarter, compared to $1.3 million in the previous year, with the increase attributed to reduced overhead costs.
Sales and marketing expenses decreased to $719,000 from $1.8 million, primarily due to a shift to a targeted digital marketing campaign and reductions in payroll-related expenditures.
General and administrative expenses increased slightly to $2.1 million from $2.1 million, mainly due to increased professional services related to merger and asset sale transactions.
Research and development expenses decreased to $399,000 from $542,000, due to a reduction in payroll and consulting costs.
The company reported an operating loss of $1.8 million for the quarter, compared to $3.9 million in the previous year.
Net loss for the quarter was $1.6 million, down from $3.5 million in the previous year. The loss per share was $3.11, compared to $59.36 in the previous year.
Cash used in operating activities was $3.7 million for the nine months ended September 30, 2024, compared to $14.5 million in the previous year.
ReShape had a working capital of $1.3 million as of September 30, 2024. The company acknowledges its dependence on additional financing to continue operations beyond the next twelve months.
The filing also details a planned merger with Vyome Therapeutics, Inc. and an asset sale to Biorad (BIO+0.08%), aimed at continuing operations and expanding the company's portfolio.
ReShape identified material weaknesses in its internal controls over financial reporting, including insufficient internal resources and ineffective processes for journal entry approvals.
The company continues to focus on its Lap-Band product line and the development of the Diabetes Bloc-Stim Neuromodulation device.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ReShape Lifesciences Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.