Plenity quarterly product revenue increased
114% year-over-year to $6.4 million, with 23,500 new members and
92,000 units sold in Q3
Quarterly gross profit increased by $2.6
million year-over-year, with gross margin improving from 8% to
44%
Company is preparing to submit Plenity for Over
the Counter (OTC) status, which would make it available without the
need for a prescription and further reduce cost of customer
acquisition
Gelesis Holdings, Inc. (NYSE: GLS) (“Gelesis” or the “Company”),
the maker of Plenity for weight management, today reported
financial results for the third quarter of 2022. Plenity is a novel
orally administered, FDA-cleared weight management therapy that
helps people feel satisfied with smaller portions, so they can eat
less and lose weight, while still enjoying the foods they love.
Plenity is the only FDA-cleared aid for weight management for
people with a BMI as low as 25, up to a BMI of 40, with the largest
addressable market of any prescription weight management approach
on the market today.
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Plenity quarterly product revenue
increased 114% year-over-year to $6.4 million, with 23,500 new
members and 92,000 units sold in Q3. (Photo: Business Wire)
“We continued to see strong uptake of Plenity among consumers
and physicians in the third quarter with 114% topline growth this
quarter compared to the prior year period as well as 36% of
additional gross margin. Despite a significant reduction in
marketing spend compared to the first two quarters this year, we
acquired over 23,500 new members and sold over 92,000 units during
the third quarter of 2022, more than twice as many units as we sold
in the prior year quarter. As expected, the reduced level of
marketing investment had an impact on revenues this quarter, in
line with our current guidance,” said Yishai Zohar, Founder and CEO
of Gelesis.
“We believe that to take advantage of Plenity’s differentiated
profile, affordability, and broad label, Plenity should be widely
available and easily accessible, and I am excited to announce that
we are pursuing an application with the FDA to change the
classification of Plenity to over-the-counter, which would make it
available without the need for a prescription. If approved, Plenity
would become only one of two FDA-regulated oral treatments for
weight management available without a prescription. Importantly for
Gelesis, the change to OTC should improve our cost of acquiring new
members and allow other cost reductions associated with the
prescription granting process, thereby reducing our reliance on
capital markets to reach profitability. We believe we will be able
to grow sales more efficiently as we potentially open up new sales
channels and build towards the long-term potential of Plenity.
“Now is the right time to pursue an OTC pathway based on
Plenity’s best in class safety data, as demonstrated in over
185,000 patients. An effective, affordable, and trusted personal
weight management product like Plenity available over the counter
will be a game changer for individuals struggling with excess
weight. We intend to submit our application to the FDA in the
coming months and could potentially receive market clearance by the
middle of next year. We are confident that an OTC classification,
if approved, will enhance our ability to acquire new members and
allow other cost reductions associated with the prescription
granting process while sustaining revenue growth in a capital
efficient way, thus reducing our reliance on the capital markets to
reach profitability.”
Key Business Metrics
For the Three Months
Ended
September 30,
For the Nine Months
Ended
September 30,
2022
2021
2022
2021
In thousands
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
New members acquired
23,500
15,700
107,700
44,000
Units sold
92,070
45,825
336,530
132,602
Product revenue, net
$
6,443
$
3,014
$
22,930
$
8,293
Average selling price per unit, net
$
69.98
$
65.77
$
68.14
$
62.54
Gross profit
$
2,827
$
251
$
9,615
$
709
Gross margin
44%
8%
42%
9%
Third Quarter 2022 Results
- Product revenue, net, was $6.4 million for the third quarter
2022 compared to $3.0 million for the third quarter 2021, a 114%
increase year-over-year.
- A total of 23,500 members joined during third quarter 2022
compared to 15,700 members joined during the third quarter 2021, a
50% increase year-over-year, while 92,070 units were sold during
the third quarter 2022 compared to 45,825 during the third quarter
2021, a 101% increase year-over-year.
- Gross profit was $2.8 million for the third quarter 2022
compared to $0.2 million for the third quarter 2021, with gross
margin for the third quarter 2022 increasing to 44% from 8% in the
third quarter 2021, attributable to increased sales volume and
lower costs of goods sold per unit.
- Net loss was $(14.1) million and Adjusted EBITDA was $(12.3)
million for the third quarter 2022, compared to net loss of $(30.7)
million and Adjusted EBITDA of $(26.2) million for the third
quarter 2021.
A reconciliation of Adjusted EBITDA, a non-GAAP financial
measure, to net loss, its most comparable financial measure under
generally accepted accounting principles in the United States
(“U.S. GAAP”), is included in the tables accompanying this press
release. See “Non-GAAP Financial Measures” for additional important
information regarding Adjusted EBITDA.
Recent Business Highlights
- Gelesis is preparing an application to the FDA to change the
classification of Plenity from prescription-only to be available
over the counter (“OTC”). An OTC classification would make Plenity
widely available and easily accessible, empowering individuals
struggling with excess weight with an easier path to an effective,
affordable, and trusted weight management product. With Plenity’s
unprecedented safety and efficacy profiles, demonstrated in over
185,000 patients, the Company believes this is the optimal time to
pursue an OTC pathway with the FDA. Based on Gelesis’ timelines,
Plenity could receive clearance from the FDA to market as an OTC
product by the middle of 2023.
- Earlier this month, Dr. Frank Greenway, principal investigator,
presented data from Gelesis’ LIGHT-UP Study at Obesity Week. Waist
to Height Ratio, known to be correlated with insulin resistance and
metabolic syndrome, was a predictor of weight loss response in the
study based on a post-hoc analysis.
- Gelesis presented additional data at Obesity Week demonstrating
that its investigational clinical-stage hydrogel, Gel-B,
preferentially enhances the growth of Akkermansia muciniphilia in
preclinical models compared to prebiotics. Akkermansia muciniphilia
is a bacteria associated with thickened mucosal lining of the gut,
that encourages improved gut barrier function, and lean body
mass.
- In August, Gelesis presented its LIGHT-UP study at the
International Congress of Endocrinology in Singapore. Clinical data
from the study suggests that Gelesis’ new oral hydrogel, GS200, may
improve insulin sensitivity and favorably impact metabolic
syndrome. The 25-week study also examined the effects of GS200 on
insulin resistance, indicating it is helpful in improving weight
loss among those with prediabetes and type-2 diabetes.
- In July and August, Gelesis completed a private placement of
$25.0 million in promissory notes with existing top tier
shareholders.
Financial Outlook for Fiscal Year 2022
The Company is reiterating its guidance for the full year fiscal
year 2022:
- Product revenue, net, to be in the range of $27.0 million to
$30.0 million.
- Gross profit to be in the range of $11.0 million to $13.0
million.
- Adjusted EBITDA to be in the range of $(75.0) million to
$(80.0) million.
The guidance provided above constitutes forward-looking
statements which are subject to uncertainty. Actual results may
differ materially. Refer to the “Forward-Looking Statements” safe
harbor section below for information on the factors that could
cause our actual results to differ materially from these
forward-looking statements.
Conference Call and Webcast Information
Gelesis management will host a conference call today at 8:30 am
ET to discuss the third quarter 2022 results, followed by a
question-and-answer period. The live call can be accessed via
webcast on the “Events & Presentations” section of the Gelesis
Investor Relations website at https://ir.gelesis.com/. The webcast
will also be archived and available for replay shortly after the
call has concluded. Those who are interested in participating in
the live call can dial 844-200-6205 from the U.S. and 929-526-1599
internationally and enter the access code 849038.
About Gelesis
Gelesis Holdings Inc. (NYSE: GLS) (“Gelesis”) is a
consumer-centered biotherapeutics company and the maker of
Plenity®, which is inspired by nature and FDA cleared to aid in
weight management. Our first-of-their-kind non-systemic
superabsorbent hydrogels are made entirely from naturally derived
building blocks. They are inspired by the composition and
mechanical properties of raw vegetables, taken by capsule, and act
locally in the digestive system, so people feel satisfied with
smaller portions. Our portfolio includes Plenity® and potential
therapies in development for patients with Type 2 Diabetes,
Non-alcoholic Fatty Liver Disease (NAFLD)/Non-alcoholic
Steatohepatitis (NASH), and Functional Constipation. For more
information, visit gelesis.com, or connect with us on Twitter
@GelesisInc. Plenity® is indicated to aid weight management in
adults with excess weight or obesity, a Body Mass Index (BMI) of
25–40 kg/m², when used in conjunction with diet and exercise.
Important Safety Information about Plenity
- Patients who are pregnant or are allergic to cellulose, citric
acid, sodium stearyl fumarate, gelatin, or titanium dioxide should
not take Plenity.
- To avoid impact on the absorption of medications:
- For all medications that should be taken with food, take them
after starting a meal.
- For all medications that should be taken without food (on an
empty stomach), continue taking on an empty stomach or as
recommended by your physician.
- The overall incidence of side effects with Plenity was no
different than placebo. The most common side effects were diarrhea,
distended abdomen, infrequent bowel movements, and flatulence.
- Contact a doctor right away if problems occur. If you have a
severe allergic reaction, severe stomach pain, or severe diarrhea,
stop using Plenity until you can speak to your doctor.
Rx Only. For the safe and proper use of Plenity or more
information, talk to a healthcare professional, read the Patient
Instructions for Use, or call 1-844-PLENITY.
Forward-Looking Statements
Certain statements, estimates, targets and projections in this
press release may constitute “forward-looking statements” within
the meaning of the federal securities laws. The words “anticipate,”
“believe,” continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “possible,” “potential,” “predict,”
“project,” “should,” “strive,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words
does not mean that statement is not forward looking.
Forward-looking statements are predictions, projections and other
statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties. Forward-looking statements include, but are not
limited to, statements regarding Gelesis’ or its management team’s
expectations, hopes, beliefs, intentions or strategies regarding
the future, including those relating to Gelesis’ expected operating
and financial performance and market opportunities. In addition,
any statements that refer to guidance, projections, forecasts, or
other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Gelesis assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise. Gelesis gives no assurance that any expectations set
forth in this press release will be achieved. Various risks and
uncertainties (some of which are beyond Gelesis’ control) or other
factors could cause actual future results, performance or events to
differ materially from those described herein. Some of the factors
that may impact future results and performance may include, without
limitation: (i) the ability of Gelesis to raise financing, if and
when needed and/or to issue or sell common stock pursuant to our
committed equity financing agreement; (ii) the ability of Gelesis
to continue as a going concern; (iii) Gelesis’ ability to achieve
and maintain widespread market acceptance of Plenity; (iv) the
impact of current and future applicable laws and regulations and
Gelesis’ ability to comply with such laws and regulations; (v)
Gelesis’ ability to produce adequate supply of Plenity, including
Gelesis’ ability to continue to invest in manufacturing capacity
and to build additional manufacturing sites; (vi) the development
of the telehealth market and regulations related to remote
healthcare; (vii) global economic, political and social conditions
and uncertainties in the markets that Gelesis serves, including
risks and uncertainties caused by the COVID-19 pandemic or other
natural or man-made disasters; (viii) Gelesis’ ability to enter
into strategic collaborations, to acquire businesses or products or
form strategic alliances and to realize the benefits of such
collaborations, acquisitions and alliances; (ix) the level of
demand, and willingness of potential members to pay out-of-pocket
for, Plenity; (x) the ability of Gelesis to enforce its
intellectual property rights and proprietary technology ; (xi) the
risk that a third-party’s activities, including with respect to
third parties that Gelesis has granted out licenses to or granted
limited exclusive or non-exclusive commercial rights, may overlap
or interfere with the commercialization of Plenity; (xii) Gelesis’
ability to successfully develop and expand its operations and
manufacturing and to effectively manage such growth; (xiii)
Gelesis’ business partners’ ability to successfully launch and
commercialize Plenity in certain key markets; (xiv) risk relating
to the loss of Gelesis’ suppliers or distributors, or their
inability to provide adequate supply of materials or distribution;
(xv) the risk that Gelesis’ business partners may experience
significant disruptions in their operations; (xvi) Gelesis’ ability
to retain its senior executive officers and to attract and keep
senior management and key scientific and commercial personnel;
(xvii) Gelesis’ ability to identify and discover additional product
candidates and to obtain and maintain regulatory approval for such
candidates, including GS200; (xviii) risks related to potential
product liability exposure for Plenity, GS200, or other future
product candidates; (xix) risks related to adverse publicity in the
weight management industry, changes in the perception of Gelesis’
brands, and the impact of negative information or inaccurate
information about Gelesis on social media; (xx) Gelesis’ ability to
enhance its brand recognition, increase distribution of Plenity and
generate product sales and reduce operating losses going forward;
(xxi) the impact of risks associated with economic, financial,
political, environmental and social matters and conditions on
Gelesis’ supply chain, its manufacturing operations and other
aspects of its business; (xxii) Gelesis’ ability to accurately
forecast revenue and appropriately monitor its associated expenses
in the future; (xxiii) Gelesis’ ability to compete against other
weight management and wellness industry participants or other more
effective or more favorably perceived weight management methods,
including pharmaceuticals, devices and surgical procedures; (xxiv)
foreign currency fluctuations and inflation; (xxv) the risk that
Gelesis fails to maintain adequate operational and financial
resources or to raise additional capital or generate sufficient
cash flows; (xxvi) Gelesis’ ability to successfully protect against
security breaches and other disruptions to its information
technology structure; (xxvii) the ability of Gelesis to maintain
its listing on the New York Stock Exchange; (xxviii) failure to
realize the anticipated benefits of the business combination;
(xxix) our ability to successfully pursue OTC classification for
Plenity and the timing for market clearance of such classification;
and (xxx) other important factors discussed in the “Risk Factors”
section of Gelesis’ most recent Annual Report on Form 10-K and in
other filings that Gelesis makes with the Securities and Exchange
Commission. These filings address other important risks and
uncertainties that could cause actual results and events to differ
materially from those contained in the forward-looking
statements.
Disclaimer
Gelesis assumes no obligation and does not intend to update or
revise the results provided in this press release. The results
provided in this press release represent past performance and are
not necessarily predictive of future results.
Plans to Make Plenity Available Without a
Prescription
We believe Plenity’s advantages are its differentiated
safety-to-efficacy profile, broad approved labeling, and
affordability to the consumer. Accordingly, we believe it is
important that Plenity be widely available and easily accessible to
consumers. We plan to pursue an application with the FDA to change
Plenity's classification in the United States from
prescription-only to over-the-counter. In addition to making
Plenity more accessible to people struggling with excess weight, we
believe making Plenity available over-the-counter could reduce
costs associated with acquiring new members and allow us to reduce
costs associated with the prescription granting process, while also
enabling new sales channels for the Company. We plan to submit our
application to the FDA during the first quarter of 2023 and could
receive market clearance by the third quarter of 2023.
Key Business Metrics
We monitor the following key metrics to help us evaluate our
business, identify trends affecting our business, formulate
business plans and make strategic decisions. We believe the
following metrics are useful in evaluating our business:
New members acquired
We define new members acquired as the number of consumers in the
United States who have begun their weight loss journey with Plenity
during the financial period presented. This is the total number of
recurring and non-recurring consumers who have begun their weight
loss journey during the financial period presented. We do not
differentiate from recurring and non-recurring consumers as of this
date as (i) we strongly believe every member’s weight-loss journey
is chronic and long-term in nature, and (ii) we have not initiated
our long-term strategy and mechanisms to retain and/or win-back
members. We will continue to evaluate the utility of this business
metric in future periods.
Units sold
Units sold is defined as the number of 28-day supply units of
Plenity sold through strategic partnerships with online pharmacies
and telehealth providers as well as the units sold to our strategic
partners outside the United States. Note that the terms “units” and
“monthly kits”, as mentioned in Gelesis’ various public disclosures
and filings, are synonymous when used to describe the sales volume
of Plenity.
Product revenue, net
We recognize product revenue in accordance with Accounting
Standards Codification Topic 606, Revenue from Contracts with
Customers, when we transfer promised goods or services to customers
in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services.
Our product revenue is derived from product sales of Plenity,
net of estimates of variable consideration for which reserves are
established for expected product returns, shipping charges to
end-users, pharmacy dispensing and platform fees, merchant and
processing fees, and promotional discounts offered to
end-users.
Average selling price per unit, net
Average selling price per unit, net is the gross price per unit
sold during the period net of estimates of per unit variable
consideration for which reserves are established for expected
product returns, shipping charges to end-users, pharmacy dispensing
and platform fees, merchant and processing fees, and promotional
discounts offered to end-users.
Gross profit and gross margin
Our gross profit represents product revenue, net, less our total
cost of goods sold, and our gross margin is our gross profit
expressed as a percentage of our product revenue, net. Our gross
profit and gross margin have been and will continue to be affected
by a number of factors, including the prices we charge for our
product, the costs we incur from our vendors for certain components
of our cost of goods sold, the mix of channel sales in a period,
and our ability to sell our inventory.
Non-GAAP Financial Measures
In addition to our financial results determined in accordance
with GAAP, we believe that Adjusted EBITDA, a non-GAAP measure, is
useful in evaluating our operating performance. We define “Adjusted
EBITDA” as net (loss) income before depreciation and amortization
expenses, provision for (benefit from) income taxes, interest
expense, net, stock-based compensation and (gains) and losses
related to changes in fair value of our warrant liability, our
convertible promissory note liability, our tranche rights
liability, our earnout liability and the One S.r.l. call option. We
use Adjusted EBITDA to evaluate our ongoing operations and for
internal planning and forecasting purposes because it facilitates
internal comparisons of our historical operating performance. We
believe that this non-GAAP financial measure, when taken together
with the corresponding GAAP financial measure, net loss, provides
meaningful supplemental information regarding our performance by
excluding certain items that may not be indicative of our business,
results of operations, or outlook. We consider Adjusted EBITDA to
be an important measure because it helps illustrate underlying
trends in our business and our historical operating performance on
a more consistent basis. We believe that Adjusted EBITDA is helpful
to our investors as it is a metric used by management in assessing
the health of our business and our operating performance.
However, non-GAAP financial information is presented for
supplemental informational purposes only, has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. In addition, other companies, including companies in our
industry, may calculate similarly titled non-GAAP financial
measures differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of Adjusted
EBITDA as a tool for comparison. A reconciliation is provided below
for Adjusted EBITDA to the most directly comparable financial
measure stated in accordance with GAAP. Investors are encouraged to
review the related GAAP financial measure and the reconciliation of
this non-GAAP financial measure to its most directly comparable
GAAP financial measure, and not to rely on any single financial
measure to evaluate our business.
SELECTED UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30,
December 31,
2022
2021
ASSETS
Cash and cash equivalents
$
24,847
$
28,397
Accounts receivable and grants
receivable
5,564
9,903
Inventories
18,411
13,503
Property and equipment, net
55,152
58,515
All other current and non-current
assets
26,543
35,983
Total assets
$
130,517
$
146,301
LIABILITIES, REDEEMABLE
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Accounts payable
$
7,969
$
10,066
Accrued expenses and other current
liabilities
12,256
13,660
Deferred income, current portion
28,895
32,370
Notes and convertible notes payable,
current portion
30,101
29,078
Warrant liabilities
590
15,821
Earnout liability
3,376
—
Deferred income, non-current portion
8,150
8,914
Notes payable, non-current portion
26,716
35,131
All other current and non-current
liabilities
5,585
7,648
Total liabilities
123,638
152,688
Noncontrolling interest
10,474
11,855
Redeemable convertible preferred stock
—
311,594
Total stockholders’ deficit
(3,595)
(329,836)
Total liabilities, noncontrolling
interest, redeemable convertible preferred stock and stockholders’
deficit
$
130,517
$
146,301
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2022
2021
2022
2021
Revenue:
Product revenue, net
$
6,443
$
3,014
$
22,930
$
8,293
Licensing revenue
209
—
209
—
Total revenue, net
6,652
3,014
23,139
8,293
Operating expenses:
Costs of goods sold
3,616
2,763
13,315
7,584
Selling, general and administrative
17,032
24,725
87,188
50,642
Research and development
3,365
3,238
16,298
13,206
Amortization of intangible assets
567
567
1,700
1,700
Total operating expenses
24,580
31,293
118,501
73,132
Loss from operations
(17,928
)
(28,279
)
(95,362
)
(64,839
)
Change in the fair value of earnout
liability
2,814
—
55,495
—
Change in the fair value of convertible
promissory notes
(852
)
—
(1,008
)
—
Change in the fair value of warrants
540
(2,231
)
6,624
(9,282
)
Interest expense, net
(164
)
(361
)
(485
)
(949
)
Other income, net
1,441
141
2,371
1,032
Loss before income taxes
(14,149
)
(30,730
)
(32,365
)
(74,038
)
Provision for income taxes
—
—
—
17
Net loss
(14,149
)
(30,730
)
(32,365
)
(74,055
)
Accretion of Legacy Gelesis senior
preferred stock to redemption value
—
(23,111
)
(37,934
)
(139,237
)
Accretion of noncontrolling interest put
option to redemption value
(80
)
(95
)
(253
)
(285
)
Net loss attributable to common
stockholders
$
(14,229
)
$
(53,936
)
$
(70,552
)
$
(213,577
)
Net loss per share attributable to common
stockholders—basic and diluted
$
(0.20
)
$
(9.61
)
$
(1.02
)
$
(38.19
)
Weighted average common shares
outstanding—basic and diluted
72,772,627
5,615,192
69,349,679
5,592,931
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Nine Months
Ended
September 30,
2022
2021
Cash flows from operating
activities:
Net loss
$
(32,365
)
$
(74,055
)
Adjustments to reconcile net loss to net
cash used in operating activities:
.
Amortization of intangible assets
1,700
1,700
Reduction in carrying amount of
right-of-use assets
343
133
Depreciation
2,133
591
Stock-based compensation
26,539
4,180
Issuance of common stock commitment
shares
500
—
Gain on sales of common stock
(1
)
—
Unrealized loss on foreign currency
transactions
1,305
132
Non-cash interest (income) expense
(29
)
65
Gain on CMS amendment
(209
)
—
Loss on One S.r.l. amendment
278
—
Accretion on marketable securities
—
(1
)
Change in the fair value of earnout
liability
(55,495
)
—
Change in the fair value of warrants
(6,624
)
9,282
Change in the fair value of convertible
promissory notes
1,008
—
Change in fair value of One S.r.l. call
option
(808
)
601
Change in fair value of interest rate swap
contract
(758
)
95
Changes in operating assets and
liabilities:
Account receivables
(745
)
618
Grants receivable
3,407
(1,145
)
Prepaid expenses and other current
assets
5,246
(5,981
)
Inventories
(4,928
)
(4,470
)
Other assets
229
(5,137
)
Accounts payable
(1,758
)
3,278
Accrued expenses and other current
liabilities
2,742
16,161
Operating lease liabilities
(341
)
(123
)
Deferred income
(2,799
)
34,542
Other long-term liabilities
(23
)
(6,861
)
Net cash used in operating activities
(61,453
)
(26,395
)
Cash flows from investing
activities:
Purchases of property and equipment
(8,473
)
(18,383
)
Maturities of marketable securities
—
24,000
Net cash (used in) provided by investing
activities
(8,473
)
5,617
Cash flows from financing
activities:
Proceeds from Business Combination, net of
transaction costs
70,479
Principal repayment of notes payable
(1,342
)
(226
)
Repayment of convertible promissory notes,
held at fair value
(27,284
)
—
Proceeds from convertible promissory
notes, held at fair value
25,000
—
Proceeds from issuance of promissory
notes
—
5,679
Proceeds from exercise of warrants
4
10
Proceeds from exercise of share-based
awards
110
9
Proceeds from sales of common stock, net
of issuance costs
39
—
Net cash provided by financing
activities
67,006
5,472
Effect of exchange rates on cash
(630
)
(816
)
Net decrease in cash
(3,550
)
(16,122
)
Cash and cash equivalents at beginning of
year
28,397
48,144
Cash and cash equivalents at end of
period
$
24,847
$
32,022
Noncash investing and financing
activities:
Purchases of property and equipment
included in accounts payable and accrued expense
$
958
$
2,086
Deferred financing costs included in
accounts payable and accrued expense
$
—
$
564
Recognition of earnout liability
$
58,871
$
—
Recognition of private placement warrant
liability
$
8,140
$
—
Acquisitions of right-of-use assets under
operating leases
$
101
$
190
Supplemental cash flow
information:
Interest paid on notes payable
$
233
$
199
NET LOSS TO ADJUSTED EBITDA
RECONCILIATION
(In thousands,
Unaudited)
For the Three Months
Ended
September 30,
For the Nine Months
Ended
September 30,
2022
2021
2022
2021
In thousands
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Adjusted EBITDA
Net loss
$
(14,149
)
$
(30,730
)
$
(32,365
)
$
(74,055
)
Provision for income taxes
—
—
—
17
Depreciation and amortization
1,260
800
3,833
2,291
Stock based compensation expense
4,574
1,086
26,539
4,180
Change in fair value of earnout
liability
(2,814
)
—
(55,495
)
—
Change in fair value of warrants
(540
)
2,231
(6,624
)
9,282
Change in fair value of convertible
promissory notes
852
—
1,008
—
Change in fair value of One S.r.l. call
option
(1,673
)
47
(808
)
601
Interest expense, net
164
361
485
949
Adjusted EBITDA
$
(12,326
)
$
(26,205
)
$
(63,427
)
$
(56,735
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221114005413/en/
Investors & Media: Katie Sullivan
ksullivan@gelesis.com
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