Rockley Photonics Announces Fourth Quarter and Full Year 2021 Financial Results|||

Client Demand Drives Early Introduction of Bioptx™ Biomarker Sensing Platform, Calculation Professional Healthcare Solution to Previously Announced Consumer Wearables Solution, VitalSpex™

Rockley Ends 2021 with 17 Consumer Electronics and Medtech Contracted Customers, Showtime Commercial Products Expected to Be Bachelor as Early as 2d Half 2022 and Volume Ramp Expected in 2023

OXFORD, England & PASADENA, Calif.–(BUSINESS WIRE)–$RKLY #earnings–Rockley Photonics Holdings Limited (NYSE: RKLY) (“the Visitor” or “Rockley”), a global leader in photonics-based wellness monitoring and communications solutions, today announced its fiscal results for the fourth quarter and total year concluded December 31, 2021.

“Throughout 2021, nosotros made tremendous progress in production development and with our customers, exceeding many of our goals for the year,” said Dr. Andrew Rickman, chairman and primary executive officer of Rockley. “The recently appear Bioptx platform for medtech, coupled with our VitalSpex solution for consumer wearables, demonstrates the success that we’re having in both aspects of our business concern. Today, we believe we are well-positioned at the center of two large, converging markets, offering a unique biomarker sensing platform that addresses the needs and demands of our globe-class customer base.”

Dr. Rickman continued, “Our belief in our sensing platform’south ability to provide a more consummate, more accurate view into an individual’s health and to provide these insights in a non-invasive manner is supported past our initial human studies. The recently released results from our core body temperature and blood pressure studies suggest that our approach will allow continuous insight into a person’s private health and health. We believe that the apply of our platform could have a profound affect on the lives of individuals, patients, seniors, outset responders, and more than. The platform has the potential to help the electric current system evolve from ‘sick-care’ to preventative healthcare by empowering individuals and by providing ameliorate tools for professional healthcare.”

“During the quarter, we achieved many of our goals and strengthened our financial position,” said Mahesh Karanth, primary fiscal officer of Rockley. “Nosotros implemented programs to help usa to preserve capital letter and ameliorate our greenbacks efficiency, correlating expenditures to initiatives tied to accelerating the commercialization of our consumer wearables and medtech products. We are in the process of redeploying datacom engineers to biosensing projects.”

Business Highlights:

  • VitalSpex to Drive Connected Momentum in Consumer Wearables –
    During the quarter, the Company announced a pregnant expansion of its footprint in the consumer wearables market by signing new agreements with six global consumer electronics manufacturers. Rockley is actively working with 12 consumer electronics customers, including six of the acme 10 largest manufacturers of smart watches and wristbands, to design its chipsets and modules into consumer products as well as offer products that will provide access to its AI cloud suite.
  • Bioptx Biomarker Sensing Platform to Serve Professional Healthcare Marketplace –
    The Company appear its Bioptx product line, a platform featuring a non-invasive, continuous biosensing wristband enabled with technology that will mensurate an all-encompassing range of biomarkers and leverage custom cloud analytics and AI. Bioptx was launched two years alee of schedule to encounter increasing demand from customers, accelerating the development of not-invasive remote monitoring solutions for healthcare. Engineering samples shipped in January to multiple customers, and availability of the beginning commercial products is expected in the second half of 2022. The Company as well plans to generate recurring revenue from its AI cloud suite and subscription sales. Rockley plans to seek certification from the U.S. Food and Drug Administration and other regulatory agencies.
  • Homo Studies of Biomarkers to Go on in 2022
    – Rockley recently announced initial results of its human studies of core body temperature and blood pressure level. In the temperature study, Rockley demonstrated the initial efficacy of its photonics-based sensor for measuring core body temperature, surpassing the results achieved past auxiliary sensors like oral, ear, and infrared thermometers. Next, the Company released the results of its airplane pilot blood pressure level human study, using a cuffless, Rockley-powered, wrist-worn device. The results demonstrated promising bespeak quality, potentially providing an alternative method for measuring cardiovascular health, and also suggested a strong correlation to heart charge per unit and eye rate variability measurements, which are commonly used in electrocardiogram equipment. Additional human studies for these and other biomarkers, including hydration, booze, lactate, and glucose trends, are ongoing, and the results are expected to be released throughout 2022.
  • Membership in Center to Stream Healthcare in Place (C2SHIP) Accustomed –
    During the quarter, Rockley joined C2SHIP, a consortium of academic centers and industry partners, including many leading researchers and academics, with a mission to develop technologies and approaches for loftier-quality personalized healthcare delivered at habitation. C2SHIP is sponsored by the National Science Foundation.
  • ISO 9001 Certification Demonstrates Commitment to Quality Solutions
    – Following an extensive review process, Rockley achieved ISO 9001 certification, demonstrating its delivery to its customers, to optimizing its leadership team, to improving and fine-tuning its internal processes, and to the practice of continuous improvement. The Company is proud that its commitment to quality management principles has been recognized.
Popular:   Medpace Holdings, Inc. Reports Fourth Quarter and Full Year 2021 Results|||

Fourth Quarter and Fiscal Year 2021 Financial Highlights:

(in millions except per share)

Three Months Ended

Years Ended

December 31, 2021

September 30, 2021

Variance

($)

December 31, 2021

December 31, 2020

Variance

($)

Revenue

$

2.4

$

one.8

$

0.6

$

8.2

$

22.3

$

(fourteen.i

)

Gross profit

$

2.7

$

(1.6

)

$

four.three

$

(3.2

)

$

(1.9

)

$

(1.iii

)

SG&A expense

$

12.4

$

13.six

$

(1.2

)

$

forty.0

$

20.3

$

19.seven

R&D expense

$

12.six

$

26.4

$

(13.8

)

$

72.half-dozen

$

35.9

$

36.vii

Internet loss

$

(14.7

)

$

(58.0

)

$

43.3

$

(168.0

)

$

(80.3

)

$

(87.seven

)

Cyberspace loss per share

$

(0.12

)

$

(0.54

)

$

0.42

$

(ane.66

)

$

(0.96

)

$

(0.70

)

Cash, greenbacks equivalents, and investments at flow stop

$

81.4

$

125.0

$

(43.6

)

$

81.four

$

19.ii

$

62.ii

Cash used in operations

$

(34.1

)

$

(37.iv

)

$

3.3

$

(126.0

)

$

(48.4

)

$

(77.6

)

Non-GAAP Financial Highlights:

SG&A expense

$

10.ane

$

9.4

$

0.vii

$

thirty.9

$

fourteen.4

$

16.5

R&D expense

$

viii.i

$

24.3

$

(16.2

)

$

62.5

$

29.6

$

32.9

Net loss

$

(7.i

)

$

(51.4

)

$

44.iii

$

(147.0

)

$

(65.8

)

$

(81.two

)

Cyberspace loss per share

$

(0.06

)

$

(0.48

)

$

0.42

$

(1.46

)

$

(0.79

)

$

(0.67

)

Adjusted EBITDA

$

(14.7

)

$

(35.6

)

$

twenty.9

$

(95.0

)

$

(43.vi

)

$

(51.4

)

A reconciliation of GAAP financial measures to not-GAAP financial measures is included in the financial statement tables included in this printing release. For more data regarding the non-GAAP fiscal measures discussed in this press release, please run into “Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Fiscal Measures” below.

Revised Outlook for Fiscal Twelvemonth 2022:

Revenue

$twenty – $xxx million

Actual results may differ materially from Rockley’s financial outlook as a outcome of several factors, including the factors described under “Cautionary Statement Regarding Forward-Looking Statements” below.

Conference Call Information

Rockley volition host a conference phone call and webcast to discuss the fourth quarter and full year results at 5:00 p.m. Eastern Time today, March 8, 2022. The live audio webcast forth with accompanying presentation materials volition exist accessible on the Company’s Investor Relations website at investors.rockleyphotonics.com.

The U.S. punch-in for the call is 877-407-0784 or +1 201-689-8560 for international callers. Please reference access lawmaking 13727060. A replay of the briefing telephone call will be bachelor until March 22, 2022, at 11:59 p.m. Eastern Time, while an archived version of the webcast will exist available on Rockley’s Investor Relations website for one year. The U.S. dial-in for the briefing call replay is 844-512-2921 or +one 412-317-6671. The replay admission code is 13727060.

Disclosure Data

In compliance with disclosure obligations under Regulation FD, Rockley announces fabric information to the public through a diverseness of ways, including filings with the Securities and Exchange Commission, press releases, public conference calls and webcasts, as well equally the investor relations website.

About Rockley

A global leader in photonics-based wellness monitoring and communications solutions, Rockley is developing a comprehensive range of photonic integrated circuits and associated modules, sensors, and total-stack solutions. From adjacent-generation sensing platforms specifically designed for mobile health monitoring and car vision to high-speed, high-book solutions for data communications, Rockley is laying the foundation for a new generation of applications across multiple industries. Rockley believes that photonics volition somewhen go as pervasive every bit micro-electronics, and it has developed a platform with the power and flexibility needed to address both mass markets and a wide variety of vertical applications.

Formed in 2013, Rockley is uniquely positioned to support hyper-calibration manufacturing and accost a multitude of high-book markets. Rockley has partnered with numerous Tier-1 customers across a diverse range of industries to evangelize the complex optical systems required to bring transformational products to market place.

To learn more virtually Rockley, visit rockleyphotonics.com.

Cautionary Argument Regarding Forward-Looking Statements

Certain statements in this printing release that are non historical facts constitute “forward-looking statements” for purposes of the safety harbor provisions of the Private Securities Litigation Reform Human action of 1995. These forward-looking statements include statements regarding Rockley’southward futurity expectations, beliefs, plans, objectives, and assumptions regarding future events or performance. The words “anticipate,” “believe,” “keep,” “could,” “develop,” “enable,” “estimate,” “eventual,” “wait,” “hereafter,” “intend,” “may,” “might,” “opportunity,” “outlook,” “program,” “possible,” “position,” “potential,” “predict,” “project,” “revolutionize,” “seem,” “should,” “trend,” “will,” “would” and other terms that predict or indicate future events, trends, or expectations, and similar expressions or the negative of such expressions may identify forward-looking statements, just the absenteeism of these words or terms does not mean that a statement is not forward-looking. Forwards-looking statements in this press release include, but are not limited to, statements regarding the following: (a) the potential of the Company’s solutions to improve individuals’ health and well-being and enable the transition from reactive to proactive healthcare; (b) the anticipated retirement of the Company’s remaining debt obligation and timing thereof; (c) the Company’s financing agreement with Lincoln Park; (d) the status and timing of the Company’s qualification of a second source for its silicon photonics chip supply; (east) excess; (f) the anticipated and potential features, telescopic, goals, and benefits of the Company’southward platform, products, applied science, and partnerships with 3rd parties; (chiliad) the Visitor’due south continued development of a range of photonic integrated circuits and associated modules, sensors, and full-stack solutions; (h) Rockley’s belief that photonics will eventually go as pervasive as micro-electronics; and (i) Rockley’s potential to back up hyper-scale manufacturing, accost a multitude of loftier-volume markets, and deliver the complex optical systems required to bring transformational products to market.

Popular:   OpenVPN, Inc. Promotes “Operation Information Freedom”|||

Forward-looking statements are subject to several risks and uncertainties (many of which are beyond the Company’due south control) or other assumptions that may crusade actual results or performance to differ materially from those expressed or unsaid by these frontward-looking statements. These risks and uncertainties include, but are not limited to, the following: (i) the Company’s ability to achieve commercial production of its products and engineering science, including in a timely and toll-effective manner; (ii) the Company’due south ability to achieve customer blueprint wins, convert memoranda of understanding and development contracts into product contracts, and reach customer acceptance of its products and technology; (3) risks related to buy orders, including the lack of long-term purchase commitments, the cancellation, reduction, filibuster, or other changes in client purchase orders, and if and to the extent customers seek to enter into licensing arrangements in lieu of purchases; (iv) the Company’south history of losses and demand for additional capital and its ability to access boosted financing to back up its operations and execute on its business concern plan, too equally the risks associated with any future financings; (5) legal and regulatory risks, including those related to its products and technology and any threatened or actual litigation; (vi) risks associated with its fabless manufacturing model and dependency on tertiary-party suppliers; (vii) the Visitor’due south reliance on a few significant customers for a majority of its revenue and its power to expand and diversify its client base; (viii) the Visitor’s fiscal performance; (nine) the impacts of COVID-19 on the Company, its customers and suppliers, its target markets, and the economy; (x) the Company’s ability to successfully manage growth and its operations as a public company; (xi) fluctuations in the Visitor’south stock cost and the Company’southward ability to maintain the list of its ordinary shares on the NYSE; (xii) the Visitor’s ability to anticipate and respond to industry trends and customer requirements; (xiii) changes in the Company’s current and hereafter target markets; (xiv) intellectual property risks; (15) the Visitor’s power to compete successfully; (sixteen) market opportunity and marketplace demand for, and acceptance of, the Visitor’s products and engineering science, as well every bit the client products into which the Company’due south products and applied science are incorporated; (xvii) risks related to international operations; (18) risks related to cybersecurity, privacy, and infrastructure; (nineteen) risks related to fiscal and accounting matters; (xx) general economic, financial, legal, political, and business concern weather and changes in domestic and foreign markets; (xxi) the Company’due south ability to realize the anticipated benefits of the business combination; (xxii) changes adversely affecting the businesses or markets in which the Visitor is engaged; and (xxiii) risks related to the Company’due south excess, including the take chances that excess may non translate into hereafter revenue, as well equally other factors described under the heading “Risk Factors” in the registration statement on Form S-i filed by the Company on October 7, 2021, and declared effective on Oct 19, 2021, and in other documents the Company files with the Securities and Exchange Commission in the time to come. The forrard-looking statements contained in this press release are based on diverse assumptions, whether or not identified in this press release, and on the Company’southward electric current expectations, behavior, and assumptions and are non predictions of bodily performance. If whatever of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, actual results may differ materially from those discussed in or implied by these frontward-looking statements. There can be no balls that futurity developments affecting the Company will be those that have been anticipated. These forward-looking statements speak only every bit of the date hereof and the Company does not intend to update or revise whatsoever forward-looking statements, whether because of new information, hereafter events, or otherwise, except as required by law.

ROCKLEY PHOTONICS HOLDINGS LIMITED

Consolidated Statements of Operations and Comprehensive Loss (Unaudited)

(in thousands, except share and per share amounts)

Three Months Ended

Years Ended

December 31, 2021

September 30, 2021

Dec 31, 2020

December 31, 2021

Dec 31, 2020

Acquirement

$

2,408

$

ane,839

$

iii,282

$

8,213

$

22,343

Cost of revenue

(326

)

3,459

6,140

xi,416

24,240

Gross turn a profit

2,734

(1,620

)

(2,858

)

(3,203

)

(one,897

)

Operating expenses:

Selling, general and administrative expenses

12,388

13,568

vii,657

39,976

20,260

Research and development expenses

12,624

26,418

viii,893

72,573

35,900

Full operating expenses

25,012

39,986

16,550

112,549

56,160

Loss from operations

(22,278

)

(41,606

)

(xix,408

)

(115,752

)

(58,057

)

Other income (expense):

Forgiveness of PPP loan

2,860

Involvement expense, net

(two,868

)

(1,587

)

(116

)

(iv,781

)

(189

)

Disinterestedness method investment loss

17

40

(333

)

(703

)

(1,274

)

Modify in fair value of debt

(14,255

)

(14,616

)

(59,916

)

(20,163

)

Change in fair value of warrant

10,312

515

10,827

Gain (loss) on foreign currency

(31

)

(481

)

1,344

119

(25

)

Total other income (expense)

seven,430

(fifteen,768

)

(thirteen,721

)

(51,594

)

(21,651

)

Loss before income taxes

(xiv,848

)

(57,374

)

(33,129

)

(167,346

)

(79,708

)

Provision for income tax

(141

)

598

195

667

569

Net loss and comprehensive loss

$

(14,707

)

$

(57,972

)

$

(33,324

)

$

(168,013

)

$

(80,277

)

Internet loss per share:

Basic and diluted

$

(0.12

)

$

(0.54

)

$

(0.40

)

$

(i.66

)

$

(0.96

)

Weighted-average shares outstanding:

Basic and diluted

127,355,926

107,633,037

83,652,056

100,917,939

83,457,400

Popular:   MeridianLink Reports Fourth Quarter and Fiscal Year 2021 Results|||

ROCKLEY PHOTONICS HOLDINGS LIMITED

Consolidated Balance Sheets (Unaudited)

(in thousands, except share amounts and par value)

Dec 31, 2021

December 31, 2020

Assets

Electric current avails

Greenbacks and cash equivalents

$

36,786

$

19,228

Curt-term investments, at fair value

26,965

Accounts receivable, internet of allowance of $302 and $0

1,359

4,925

Other receivables, net of allowance of $141 and $0

47,462

xviii,024

Prepaid expenses

half-dozen,795

i,605

Other current assets

vii

609

Full current assets

119,374

44,391

Long-term investments, at off-white value

17,659

Property, equipment, net

ten,187

6,182

Equity method investment

iv,879

5,202

Intangible assets

3,048

3,048

Other non-electric current avails

7,683

one,607

Total assets

$

162,830

$

60,430

Liabilities and Shareholders’ Equity (Arrears)

Current liabilities

Trade payables

$

half-dozen,882

$

iv,413

Accrued expenses

17,360

10,395

Debt, electric current portion

26,312

Other current liabilities

1,238

998

Total electric current liabilities

51,792

15,806

Long-term debt, cyberspace of current portion

74,804

Warrant liabilities

3,477

Other long-term liabilities

3,743

one,127

Total liabilities

59,012

91,737

Shareholders’ equity (deficit)

Ordinary shares, $0.000004 par value; 12,417,500,000 and 139,033,366 authorized equally of December 31, 2021 and Dec 31, 2020; 127,860,639 and 83,539,382 issued and outstanding equally of December 31, 2021 and Dec 31, 2020, respectively

Additional paid-in-capital

504,714

201,576

Accumulated deficit

(400,896

)

(232,883

)

Total shareholders’ disinterestedness (arrears)

103,818

(31,307

)

Total liabilities and shareholders’ equity (deficit)

$

162,830

$

threescore,430

ROCKLEY PHOTONICS HOLDINGS Limited

Consolidated Statements of Greenbacks Flows (Unaudited)

(in thousands)

Three Months Ended

Years Concluded

December 31, 2021

September xxx, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Cash flows from operating activities:

Net loss

$

(14,707

)

$

(57,972

)

$

(33,324

)

$

(168,013

)

$

(fourscore,277

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation of property and equipment

1,412

1,229

692

iv,640

2,787

Gain on disposal of holding and equipment

(9

)

(107

)

Amortization of debt issuance costs

(26

)

Bad debt expense and allowance for hundred-to-one accounts

443

820

Accretion of marketable securities to redemption value

(xc

)

(32

)

(122

)

Stock-based compensation

six,157

2,155

2,178

12,013

8,043

Change in equity-method investment

(23

)

(145

)

333

323

one,274

Change in fair value of debt instrument

14,255

14,616

59,916

20,163

Change in fair value of warrant liabilities

(10,312

)

(515

)

(10,827

)

Forgiveness of Paycheck Protection Program loan

(2,860

)

Changes in operating assets and liabilities:

Accounts receivable

(145

)

895

2,569

ii,887

1,458

Other receivables

(22,637

)

(one,929

)

(6,110

)

(29,579

)

(2,074

)

Prepaid expenses and other current assets

2,991

(ii,090

)

429

(four,868

)

1,307

Other not-electric current assets

(4,465

)

403

119

(5,795

)

604

Trade payables

516

one,277

789

1,663

(3,126

)

Accrued expenses

5,146

5,398

(769

)

ten,946

iii,537

Other electric current and long-term liabilities

i,615

(374

)

(ane,103

)

2,855

(ane,943

)

Net cash used in operating activities

(34,099

)

(37,445

)

(19,616

)

(126,001

)

(48,354

)

Cash flows from investing activities:

Purchase of property and equipment

(2,142

)

(2,876

)

(326

)

(7,840

)

(1,416

)

Purchase of marketable securities

112

(54,800

)

(54,688

)

Proceeds from auction of marketable securities

5,000

5,000

x,000

Proceeds from maturity of marketable securities

156

30

186

Payment for asset acquisition

(250

)

(500

)

(250

)

Investment in equity method investee

(2,490

)

(4,990

)

Cyberspace cash used in investing activities

3,126

(52,646

)

(3,066

)

(52,842

)

(half-dozen,656

)

Cash flows from financing activities:

Proceeds from convertible loan notes

23,067

76,723

51,781

Principal payments on long-term debt

(5,000

)

27

(5,000

)

(1,952

)

Proceeds from issuance of ordinary shares

167,966

167,966

1,961

Proceeds from Paycheck Protection Program loan

2,860

Proceeds from exercise of options

563

86

22

932

42

Proceeds from the do of warrants

146

379

seven

Proceeds from issuance of warrants

360

263

360

Debt issuance costs incurred

iii,173

(494

)

(383

)

(494

)

Transaction costs

(two,995

)

(41,484

)

(44,479

)

Main payments on finance lease

(1,231

)

Net cash provided by financing activities

(seven,432

)

129,887

22,982

196,401

53,334

Cyberspace increase (decrease) in cash and cash equivalents

(38,405

)

39,796

300

17,558

(one,676

)

Cash and cash equivalents:

Beginning of menstruation

75,191

35,395

18,928

xix,228

twenty,904

Terminate of menstruum

$

36,786

$

75,191

$

19,228

$

36,786

$

19,228

Use of Non-GAAP Financial Measures

In add-on to financial information presented in accordance with GAAP, this press release includes sure fiscal measures that are not prepared in accord with mostly accepted accounting principles in the United states of america, including: non-GAAP SG&A, not-GAAP R&D, non-GAAP cyberspace loss, non-GAAP net loss per share, and adjusted EBITDA, each of which is a not-GAAP fiscal measure.

Contacts

Read full story here

Source: https://www.dailyhostnews.com/rockley-photonics-announces-fourth-quarter-and-full-year-2021-financial-results