OREANDA-NEWS. Miramar Labs, Inc., (OTCQB:MRLB), a global aesthetic company, announced today financial results for the first quarter ended March 31, 2016.

Michael Kleine, President and Chief Executive Officer of Miramar Labs, said, "Momentum in our business continues to grow as we drive adoption of our technology with the placement of miraDry® systems. We also shipped a record number of high margin bioTip consumables in the quarter. We believe the global market opportunity for the miraDry® system is extremely large and underpenetrated given that it provides a non-invasive, permanent solution to unwanted underarm sweat and odor. There are over 15,000 aesthetic practices in the U.S. alone, a growing number of which continue to adopt novel aesthetic procedures to attract patients and expand their business opportunity. Our recently introduced optimized treatment protocol for miraDry® has been well received by physicians in the U.S., driving shorter procedures times and increased patient satisfaction. Outside of the U.S., Asia Pacific represents a key market opportunity for the miraDry® system, given the social stigmas related to sweat and odor, with large and underpenetrated markets across China, Japan, Taiwan, Korea and Australia. We recently shipped an initial order to our new China distributor, Meheco, which expands our presence in Asia, and we believe provides us with a significant opportunity to further penetrate this untapped marketplace."

Earlier this month, Miramar Labs announced its successful completion of a reverse merger, with the combined entity focused on the miraDry® system, which delivers microwave energy to non-invasively destroy sweat and odor glands in the underarm.  Miramar Labs will trade on the OTC Markets under the symbol “MRLB”. Concurrently with the reverse merger, Miramar Labs also completed a private placement with gross proceeds of approximately $9.0 million from the issuance and sale of 1.8 million shares of its common stock. Proceeds from the private placement will be used to support the ongoing commercialization of the miraDry® system, for the development and clinical studies related to products targeted for new indications, and for general corporate purposes, including working capital.

Financial Results

Total revenue in the first quarter of 2016 was $4.3 million, a 45% increase compared to $3.0 million in the first quarter of 2015.

Cost of product revenue was $2.0 million in the first quarter of 2016, compared to $1.3 million in the first quarter of 2015. Total gross profit in the first quarter of 2016 was $2.3 million, representing a gross margin of 53%, compared to $1.6 million in the first quarter of 2015, representing a gross margin of 55%.

Total operating expenses in the first quarter of 2016 were $5.3 million, compared to $5.9 million in the first quarter of 2015, primarily due to lower research and development spending associated with program and study costs in 2015.

Net loss in the first quarter of 2016 was $(3.3) million, or $(8.32) per share, compared to $(4.5) million, or $(11.81) per share in the first quarter of 2015.

Miramar Labs had total cash and cash equivalents of $1.4 million at March 31, 2016. As noted above, in June 2016 the Company completed a private placement with gross proceeds of approximately $9.0 million.

About Miramar Labs:
Founded in 2006, Miramar Labs, Inc. is a global medical device company dedicated to bringing innovative applications to treat unmet needs in the aesthetic marketplace. Supported by rigorous clinical research, Miramar Labs is focused on addressing aesthetic medical conditions for which there are significant unmet clinical needs. The company’s first priority is the treatment of bothersome underarm sweat, an issue that millions of people deal with daily. The miraDry® procedure has an established safety and efficacy profile with over 55,000 patients treated worldwide.

MIRAMAR LABS, INC.  
Condensed Consolidated Statements of Operations (Unaudited)  
 
    Three Months Ended March 31,  
      2016       2015    
           
Revenue   $ 4,287,333     $ 2,960,433    
Cost of revenue:     2,028,557       1,345,081    
Gross margin     2,258,776       1,615,352    
Operating expenses:          
Research and development     921,589       1,468,352    
Selling and marketing     3,023,009       3,126,713    
General and administrative     1,337,996       1,327,338    
Total operating expenses:     5,282,594       5,922,403    
Loss from operations     (3,023,818 )     (4,307,051 )  
Interest income     1,140       2,140    
Interest expense     (315,748 )     (281,539 )  
Other expense, net     25,355       65,380    
Net loss before provision for income taxes     (3,313,071 )     (4,521,070 )  
Provision for income taxes     (1,525 )     (1,425 )  
Net and comprehensive loss   $ (3,314,596 )   $ (4,522,495 )  
Accretion of redeemable convertible preferred stock     -       (13,020 )  
Net loss attributable to common stockholders   $ (3,314,596 )   $ (4,535,515 )  
Net loss per share attributable to common stockholders, basic and diluted   $ (8.32 )   $ (11.81 )  
 
MIRAMAR LABS, INC.  
Condensed Consolidated Balance Sheets  
    (unaudited)      
    March 31,   December 31,  
      2016       2015    
           
ASSETS          
Current assets:          
Cash and cash equivalents   $ 1,426,985     $ 2,642,509    
Accounts receivable, net     2,813,299       2,683,053    
Inventories     4,813,631       4,791,741    
Prepaid expenses and other current assets     277,533       290,481    
Total current assets     9,331,448       10,407,784    
Property and equipment, net     944,119       1,211,129    
Restricted cash     295,067       295,067    
Other noncurrent assets     19,560       11,860    
TOTAL ASSETS     10,590,194       11,925,840    
           
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT          
Current liabilities:          
Notes payable, net of discount   $ 13,549,222     $ 10,829,375    
Accounts payable     879,366       1,288,107    
Accrued and other current liabilities     3,630,655       3,572,441    
Deferred revenue     241,203       739,786    
Total current liabilities     18,300,446       16,429,709    
Preferred stock warrant liability     475,738       499,616    
Deferred rent, noncurrent     106,414       112,065    
Capital lease payable, noncurrent     11,841       16,865    
           
TOTAL LIABILITIES     18,894,439       17,058,255    
           
Redeemable convertible preferred stock, $.001 par value; 40,000,000 shares authorized and 2,826,981 shares issued and outstanding at  March 31, 2016 and December 31, 2015; (Liquidation preference of $61,179,942)     61,179,942       61,179,942    
Stockholders’ deficit:          
Series A convertible preferred stock, $.001 par value; 2,100,000 shares authorized and 147,864 shares issued and outstanding at March 31, 2016 and December 31, 2015 (Liquidation preference of $2,000,000)     148       148    
Series B convertible preferred stock, $.001 par value; 9,000,000 shares authorized and 589,784 shares issued and outstanding at March 31, 2016 and December 31, 2015 (Liquidation preference of $14,359,244)     590       590    
Common stock, par value $0.01 per share; 105,000,000 shares authorized and 398,540 shares issued and outstanding at March 31, 2016 and December 31, 2015     399       399    
Additional paid-in capital     27,276,400       27,133,634    
Accumulated deficit     (96,761,724 )     (93,447,128 )  
           
TOTAL STOCKHOLDERS’ DEFICIT     (69,484,187 )     (66,312,357 )  
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT     10,590,194       11,925,840