Eyenovia Reports Modest Revenue Growth, Substantial Net Losses in Q3 2024

Eyenovia, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and overall financial position compared to the previous fiscal period. The company, focused on ophthalmic technology, particularly the Optejet medication dispensing platform, generated revenue of $1,625 for the third quarter of 2024, a modest increase from $1,198 in the same period of 2023. For the nine months ended September 30, 2024, revenue surged to $29,243, compared to just $1,198 in the prior year, primarily driven by sales of Mydcombi, which was launched in August 2023.

Despite the revenue growth, Eyenovia continued to experience substantial net losses. The net loss for the third quarter of 2024 was $(7.9 million), slightly higher than the $(7.3 million) reported in the same quarter of 2023. For the nine-month period, the net loss increased to $(29.9 million) from $(19.3 million) in the previous year. The company’s accumulated deficit as of September 30, 2024, stood at approximately $(175.4 million).

Total operating expenses for the third quarter of 2024 reached $7.2 million, up from $6.5 million in the same quarter of 2023. Research and development expenses were $3.5 million, a slight decrease from $3.6 million year-over-year, while selling, general, and administrative expenses rose significantly to $3.7 million, reflecting increased staffing and travel costs associated with commercialization efforts.

Eyenovia's financial position showed a decline in cash and cash equivalents, which fell to $7.2 million as of September 30, 2024, down from $14.8 million at the end of 2023. The company reported a working capital deficit of approximately $(4.1 million) and total liabilities of $19.1 million, with total stockholders’ equity decreasing to $3.7 million.

Strategically, Eyenovia entered into a license agreement with Formosa Pharmaceuticals in August 2023, granting exclusive U.S. rights to a novel formulation of clobetasol propionate ophthalmic suspension. The agreement included an upfront payment of $2 million and potential milestone payments totaling up to $84 million. Additionally, the company has expanded its manufacturing capabilities and is developing new products, including MicroPine for pediatric progressive myopia, targeting a multi-billion-dollar market.

Eyenovia's ongoing financial challenges raise concerns about its ability to continue as a going concern, necessitating significant product revenues to sustain operations. The company has also faced a Nasdaq notification regarding its stock price, which fell below the $1.00 threshold, requiring compliance by March 2025.