SAN DIEGO--(BUSINESS WIRE)--DexCom, Inc. (NASDAQ:DXCM) today reported a net loss of $12.1 million and $30.8 million for the three and twelve months ended December 31, 2005 compared to $3.8 million and $13.9 million for the three and twelve months ended December 31, 2004. Net loss attributable to common stockholders was $12.1 million and $30.9 million for the three and twelve months ended December 31, 2005 compared to $4.6 million and $17.2 million for the three and twelve months ended December 31, 2004. Included in the net loss attributable to common stockholders was accretion to redemption value on DexCom's Series B, C, and D redeemable convertible preferred stock of $0 and $122,000 for the three and twelve months ended December 31, 2005 compared to $809,000 and $3.2 million for the three and twelve months ended December 31, 2004. Basic and diluted net loss per share was $0.48 and $1.63 for the three and twelve months ended December 31, 2005 compared to $1.98 and $7.51 for the three and twelve months ended December 31, 2004.
Research and development expense, excluding stock based compensation, increased $13.3 million to $25.5 million for the twelve months ended December 31, 2005, compared to $12.2 million for the twelve months ended December 31, 2004. The increase was primarily related to $7.7 million in increased manufacturing expenses, $3.7 million in higher development costs and $1.9 million in increased clinical and regulatory expense as we scaled our operations after completing our approval support trial and submitting our application for pre market approval (PMA) to the Food and Drug Administration (FDA). Included in the higher research and development spending were $6.4 million in higher material procurements including a $2.0 million loss on firm purchase commitments, $3.4 million in increased salary, fringe and temporary employee expenses, $1.2 million in greater product and tooling design costs, $1.0 million in higher clinical trial expense and $0.5 million in increased depreciation. To date, we have expensed purchases of material, some of which may be used to generate product sales, if and when we receive FDA approval.
Selling, general and administrative expense, excluding stock based compensation, increased $3.7 million to $5.1 million for the twelve months ended December 31, 2005, compared to $1.4 million for the twelve months ended December 31, 2004. The increase was primarily due to $1.4 million in initial marketing costs, $1.2 million related to expenses associated with operating as a public company and increased litigation expenses.
Conference Call
Management will hold a conference call starting at 4:30 pm (Eastern Time) today. The conference call will be concurrently webcast. The link to the webcast will be available on the DexCom Inc. website www.dexcom.com under the investor webcast section and will be archived for future reference. To listen to the conference call, please dial (800) 818-5264 (US/Canada) or (913) 981-4910 (International) and use the participant code "5466376" approximately five minutes prior to the start time.
Cautionary Statement Regarding Forward-Looking Statements
Our products have not yet been approved for sale. The regulatory approval process for our continuous glucose monitoring systems involves, among other things, successfully completing clinical trials and obtaining a pre-market approval, or PMA, from the FDA. The PMA process requires us to prove the safety and efficacy of our systems to the FDA's satisfaction. This process can be expensive and uncertain, and there is no guarantee that the PMA application we submitted for our three-day sensor, or any future submissions, will be approved by the FDA in any specific timeframe or at all. In addition, clinical testing of our products and eventual commercialization of our products are subject to all of the risks and uncertainties set forth in our registration statement and other reports filed with the Securities and Exchange Commission.
About DexCom, Inc.
DexCom, Inc., headquartered in San Diego, CA, is developing continuous glucose monitoring systems for people with diabetes.
DexCom, Inc.
(a development stage company)
BALANCE SHEETS
December 31,
-----------------------------
2005 2004
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 37,247,064 $ 27,229,208
Short-term marketable securities,
available-for-sale 13,277,688 --
Prepaid and other current assets 488,015 43,781
------------ ------------
Total current assets 51,012,767 27,272,989
Property and equipment, net 5,463,491 1,851,892
Restricted cash 250,000 200,000
Deferred offering costs and other assets -- 33,000
------------ ------------
Total assets $ 56,726,258 $ 29,357,881
============ ============
Liabilities, redeemable convertible
preferred stock and stockholders'
equity (deficit)
Current liabilities:
Accounts payable and accrued
liabilities $ 6,008,194 $ 1,018,879
Accrued payroll and related expenses 889,362 328,476
Accrued clinical trials 176,540 220,875
------------ ------------
Total current liabilities 7,074,096 1,568,230
Deferred rent 240,099 125,241
Commitments and contingencies
Redeemable convertible Series B preferred
stock, $0.001 par value, no shares and
11,304,114 shares authorized, issued and
outstanding at December 31, 2005 and
2004, respectively. -- 20,878,086
Redeemable convertible Series C preferred
stock, $0.001 par value, no shares and
13,043,478 shares authorized; no shares
and 12,790,870 shares issued and
outstanding at December 31, 2005 and
2004, respectively. -- 34,740,360
Redeemable convertible Series D preferred
stock, $0.001 par value, no shares and
8,700,000 shares authorized; no shares
and 8,355,886 shares issued and
outstanding at December 31, 2005 and
2004, respectively. -- 21,355,894
Stockholders' equity (deficit):
Preferred stock, $0.001 par value,
5,000,000 shares authorized; no shares
issued and outstanding at December 31,
2005 and 2004. -- --
Convertible Series A preferred stock,
$0.001 par value, no shares and
3,000,000 shares authorized; no shares
and 3,000,000 issued and outstanding at
December 31 2005 and 2004,
respectively. -- 3,000
Common stock, $0.001 par value,
100,000,000 and 50,000,000 authorized;
25,416,559 and 2,323,300 shares issued
and outstanding December 31 2005 and
2004, respectively. 25,417 2,323
Additional paid-in capital 134,257,379 6,218,012
Deferred stock-based compensation (1,084,214) (2,648,336)
Accumulated other comprehensive loss (11,928) --
Deficit accumulated during the
development stage (83,774,591) (52,884,929)
------------ ------------
Total stockholders' equity (deficit) 49,412,063 (49,309,930)
------------ ------------
Total liabilities, redeemable
convertible preferred stock and
stockholders' equity (deficit) $ 56,726,258 $ 29,357,881
============ ============
DEXCOM, INC.
(a development stage company)
STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------------------------------------
2005 2004 2005 2004
(Unaudited)
------------ ------------ ------------- ------------
Costs and
expenses:
Research and
development $ 10,738,440 $ 3,056,145 $ 25,496,747 $ 12,178,728
Selling,
general and
admin-
istrative 1,549,489 440,301 5,146,998 1,439,700
Stock-based
compensation:
Research and
development 207,436 218,717 1,272,767 291,114
Selling,
general and
admin-
istrative 109,158 85,622 512,962 157,575
------------ ----------- ------------ ------------
Total costs and
expenses 12,604,523 3,800,785 32,429,474 14,067,117
Interest and
other income 536,897 11,118 1,662,044 120,653
------------ ----------- ------------ ------------
Net loss (12,067,626) (3,789,667) (30,767,430) (13,946,464)
Accretion to
redemption
value of Series
B, Series C,
and Series D
redeemable
convertible
preferred
stock -- (808,628) (122,232) (3,234,512)
------------ ----------- ------------ ------------
Net loss
attributable to
common
stockholders $(12,067,626) $(4,598,295) $(30,889,662) $(17,180,976)
============ =========== ============ ============
Basic and
diluted net
loss per share
attributable
to common
stockholders $ (0.48) $ (1.98) $ (1.63) $ (7.51)
============ =========== ============ ============
Shares used to
compute basic
and diluted net
loss per share
attributable
to common
stockholders 25,373,769 2,318,459 18,944,208 2,286,320
============ =========== ============ ============
Period from
May 13, 1999
(inception)
through
December 31,
-------------
2005
------------
Costs and expenses:
Research and development $ 61,609,481
Selling, general and administrative 12,737,317
Stock-based compensation:
Research and development 1,563,881
Selling, general and administrative 670,537
------------
Total costs and expenses 76,581,216
Interest and other income 3,067,394
------------
Net loss (73,513,822)
Accretion to redemption value of Series B, Series C,
and Series D redeemable convertible preferred stock (10,260,769)
------------
Net loss attributable to common stockholders $(83,774,591)
============
Basic and diluted net loss per share attributable to
common stockholders
Shares used to compute basic and diluted net loss per
share attributable to common stockholders
CONTACT :
DexCom, Inc.
Steve Kemper
Chief Financial Officer
858-200-0200