BUSINESS LensAR’s 2Q Revenue Holds Steady as it Preps for Launch of FDA-Cleared Laser Cataract Surgery System By Staff Wednesday, August 10, 2022 12:15 AM ORLANDO, Fla.—LensAR, Inc. (Nasdaq: LNSR), a medical technology company focused on femtosecond laser treatment of cataracts, generated $8.0 million in revenue for the quarter ended June 30, 2022, an increase of $0.1 million, or 1 percent, compared to total revenue of $7.9 million for the quarter ended June 30, 2021. LensAR attributed the slight increase primarily to higher procedure volume versus second quarter of 2021, partially offset by a decline in revenue associated with lower LLS system (LensAR Laser Systems) sales in 2022 ahead of the commercial launch of its newer Ally Adaptive Cataract Treatment System in third quarter 2022.For the quarter ended June 30, 2022, approximately 99 percent of revenue was attributable to recurring sources compared to 90 percent for the quarter ended June 30, 2021. “In June, we achieved a significant milestone in LensAR’s history, the Food and Drug Administration clearance of our Ally Adaptive Cataract Treatment System. Interest in the Ally System has been high since we initiated our pre-clearance marketing efforts and continues to increase as we near the commercial placement of the first system. We are navigating supply chain challenges and expect to have approximately 10 Ally systems placed in the U.S. in 2022,” said LensAR CEO Nick Curtis. “Our results for the second quarter were impacted by several factors: strong U.S. procedure volumes were partially offset by softness in the rest of the world and a decline in product revenues as we completed placements of our last new LensAR Laser Systems. We are extremely pleased with our continued progress and ability to navigate and successfully pivot around challenges outside of our company. "We are proud of our ongoing accomplishments, including increasing U.S. femtosecond laser cataract procedure market share over the last few quarters, which we believe positions us well for our Ally System launch this upcoming quarter. We view the initial launch and rollout of the Ally System as the foundation for LensAR’s sustainable growth and success over the long-term,” Curtis said. LensAR reported that selling, general and administrative expenses for the quarter ended June 30, 2022 were $7.6 million, an increase of $2.1 million, or 37 percent, compared to $5.5 million for the quarter ended June 30, 2021. The increase was primarily attributable to increases in sales and marketing expenses of $0.9 million, which was primarily the result of increased trade show and travel activity, and an increase in professional fees of $0.7 million, the company said. Second quarter procedure volume increased 8 percent, in the aggregate, and 15 percent in the U.S. over Q2 2021 levels. R&D expenses were $3.8 million and $3.0 million for the quarters ended June 30, 2022 and 2021, respectively, an increase of $0.8 million or 28 percent. This increase was primarily due to inventory purchased for the manufacture of Ally Systems, which was approximately $1.0 million. Net loss for the quarter ended June 30, 2022 was $6.8 million compared to net loss of $4.4 million for the quarter ended June 30, 2021. Included within operating expenses recorded for the quarters ended June 30, 2022 and 2021 are stock-based compensation expenses recorded for the quarters ended June 30, 2022 and 2021 of $1.6 million and $1.4 million, respectively, and Ally System inventory costs of $1.0 million and $1.1 million, respectively. EBITA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the second quarter was $5.9 million, compared with $3.7 million for the quarter ended June 30, 2021. Adjusted EBITDA was $4.3 million for the quarter ended June 30, 2022 and $2.3 million for the quarter ended June 30, 2021. As of June 30, 2022, LensAR had cash and cash equivalents of $25.2 million as compared to $31.6 million as of Dec. 31, 2021. Based on its cash position and operational forecasts, the company believes it has sufficient cash to fund operations into 2024.