IRIX IRIDEX Corporation

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	March 27, 2025
Date of Report (date of earliest event reported)
IRIDEX CORPORATION
(Exact name of registrant as specified in its charter)
Delaware		000-27598	77-0210467
(State or other jurisdiction of incorporation or organization)		(Commission File Number)	(I.R.S. Employer Identification Number)
1212 Terra Bella Avenue Mountain View, California 94043
(Address of principal executive offices, including zip code)
(650) 940-4700
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of Class		Trading Symbol		Name of Exchange on Which Registered
Common Stock, par value $0.01 per share		IRIX		Nasdaq Capital Market

 

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Item 2.02. Results of Operations and Financial Condition.

 

On March 27, 2025, IRIDEX Corporation (the "Company") issued a press release discussing its financial results for its fourth fiscal quarter ended December 28, 2024. The press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

 

This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

 

Item 9.01. Financial Statements and Exhibits.

(d)	Exhibits

 

Exhibit No.		Description
99.1		Press Release dated March 27, 2025.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934,as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

			IRIDEX CORPORATION
	By:		/s/ Patrick Mercer
			Patrick Mercer
			President and Chief Executive Officer
Date: March 27, 2025

 

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Exhibit 99.1

Iridex Reports Fourth Quarter and Full Year 2024 Financial Results

MOUNTAIN VIEW, Calif., March 27, 2025 (GLOBE NEWSWIRE) -- Iridex Corporation (Nasdaq: IRIX), a worldwide leader providing innovative and versatile laser-based medical systems, delivery devices, and procedure probes for the treatment of glaucoma and retinal diseases, today reported financial results for the fourth quarter and full year ended December 28, 2024.

Fourth Quarter 2024 Results & Recent Highlights

Full Year 2024 Results

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“We are pleased to announce the successful execution of the cost reduction program started in the second half of 2024, and the achievement of positive adjusted EBITDA operations in the fourth quarter,” said Patrick Mercer, Iridex's President and CEO. “We intend for this operating and spending discipline to continue in 2025, and for the Company to deliver positive cash flow for the year on revenue in-line with that seen in the prior year.”

Mr. Mercer continued, “We are seeing positive momentum in our business, including rising physician engagement following the November 2024 Local Coverage Determination (LCD), which we believe significantly altered the reimbursement landscape by introducing new limitations for implantable Micro-Invasive Glaucoma Surgery (MIGS) devices. This, together with our commitment to continued cost discipline, is expected to result in much improved bottom line results going forward. To that end, we intend to preannounce our first quarter 2025 results as soon as we are able to in April 2025. The purpose of this one-time preannouncement of first quarter results is to reaffirm and highlight the improved financial condition of our business, while also opening the Company’s insider trading window. This will provide employees and other insiders their first opportunity in over a year, due to the lengthy strategic process, to make open market purchases of the Company’s stock.”

Scott Shuda, Iridex’s Chairman of the Board of Directors, commented, “Iridex has frequently over the years participated in discussions relating to industry consolidation and the potential of selling various operating assets. Interested observers have likely noted recent announcements regarding transactions and potential deals involving the Company’s industry peers. The strategic investment in Iridex by Novel Innovations is an important development in the ongoing industry consolidation process. The Company expects to continue to be involved in discussions relating to industry consolidation, and the Board of Directors will consider all opportunities deemed likely to benefit the Company’s shareholders, including small accretive transactions, partnerships, and distribution agreements involving new product offerings.”

Investment by Novel Innovations at a Common Stock Price Equivalent of $2.00 Per Share

On March 19,2025, Iridex announced the closing of a strategic investment involving $6 million of new Series B Preferred Stock (the “Series B Preferred”) and $4 million in aggregate principal amount of notes convertible into Series B Preferred (the “Notes”). The Series B Preferred Stock and Convertible Notes were priced at a common stock equivalent of $2.00 per share. The Notes have three-year terms and bear interest at 12%, with such interest payable quarterly in the form of common stock, with the number of shares due based upon the company’s future public market common stock trading price, subject to a conversion price floor and escalating future maximum conversion prices.

The Company will host a special call to be scheduled in mid-April 2025 to discuss the partnership with Novel Innovations, and how it strengthens Iridex’s market position and bolsters its future business prospects.

Fourth Quarter 2024 Financial Results

Revenue for the three months ended December 28, 2024 was $12.7 million compared to $12.5 million during the same period of the prior year. Total product revenue from the Cyclo G6 Glaucoma product family was $3.3 million, an increase of 9% versus the fourth quarter of 2023. Retina product

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revenue was $7.3 million or a decrease of 3% compared to the prior year period. Other revenue increased to $2.1 million in the fourth quarter of 2024 compared to the prior year period of $2.0 million, primarily driven by higher service revenue.

In the retina business, deferral of capital purchases led to lower system sales internationally. The decrease, however, was partially offset by increased sales in the U.S. In the glaucoma business the reimbursement uncertainty in the U.S. led to temporary softness in glaucoma probe and new system sales. Internationally, glaucoma probe and new system sales increased.

Gross profit for the fourth quarter of 2024 was $5.6 million or a 44.0% gross margin, an increase compared to $4.9 million, or a 39.2% gross margin, in the same period of the prior year driven by geographic and product mix.

Operating expenses were $6.1 million in the fourth quarter of 2024, a decrease of $1.9 million compared to $8.0 million in the same period of the prior year, due to expense reduction measures implemented in the second half of 2024.

Net loss for the fourth quarter of 2024 was $0.8 million, or $0.05 per share, compared to $3.0 million, or $0.18 per share, in the same period of the prior year.

Total adjusted EBITDA for the fourth quarter of 2024 was $0.4 million, an improvement of $2.4 million, compared to adjusted EBITDA loss $2.0 million for the comparable quarter of the prior year.

Full Year 2024 Financial Results

Revenue for the year ended December 28, 2024 was $48.7 million compared to $51.9 million in 2023. The decrease in revenue was primarily driven by lower retina product sales combined with lower system and probe sales. Retina product revenue was $27.8 million compared to $29.4 million in the prior year, a decrease of 6%, driven by decreased capital system sales. Total product revenue from the Cyclo G6 glaucoma product family was $12.7 million compared to $13.4 million in fiscal year 2023, driven by lower capital system sales and probe utilization resulting from the reimbursement uncertainty in the United States. Other revenue was $8.1 million in 2024 compared to $9.1 million in the prior year primarily driven by decreased royalties due to expiration of licensed patents.

Gross profit for the full year 2024 was $19.5 million or a 40.1% gross margin, a decrease compared to $21.8 million, or a 42.0% gross margin in 2023 driven by lower manufacturing cost absorption due to the lower revenue, partially offset by lower manufacturing expenses.

Operating expenses for 2024 decreased 13% to $27.8 million compared to $31.8 million in the prior year. The decrease in operating expenses was due to expense reduction measures implemented in the second half of 2024.

Net loss for 2024 decreased to $8.9 million, or $0.54 per share, compared to a net loss of $9.6 million, or $0.59 per share in the prior year.

Total adjusted EBITDA loss for 2024 was $5.1 million, an improvement of $1.9 million, compared to adjusted EBITDA loss $7.0 million in 2023.

Cash and cash equivalents totaled $2.4 million as of December 28, 2024. Cash balance did not include closing of a strategic investment in the company resulting in $10 million of gross proceeds, along with an option by the investor to fund up to $10 million of additional proceeds for future growth initiatives announced on March 19, 2025.

Financial Outlook

The Company expects to achieve cash flow breakeven and positive adjusted EBITDA in 2025 on revenue generation consistent with 2024.

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Webcast and Conference Call Information
Iridex’s management team will host a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET. Investors interested in listening to the conference call may do so by accessing the live and recorded webcast on the “Event Calendar” page of the “Investors” section of the Company’s website at www.iridex.com.

About Iridex Corporation
Iridex Corporation is a worldwide leader in developing, manufacturing, and marketing innovative and versatile laser-based medical systems, delivery devices and consumable instrumentation for the ophthalmology market. The Company’s proprietary MicroPulse® technology delivers a differentiated laser treatment that provides safe, effective, and proven treatment for targeted sight-threatening eye conditions. Iridex’s current product line is used for the treatment of glaucoma and diabetic macular edema (DME) and other retinal diseases. Iridex products are sold in the United States through a direct sales force and internationally primarily through a network of independent distributors into more than 100 countries. For further information, visit the Iridex website at www.iridex.com.

MicroPulse® is a registered trademark of Iridex Corporation, Inc. in the United States, Europe and other jurisdictions. © 2024 Iridex Corporation. All rights reserved.

Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, including those statements concerning clinical expectations and commercial trends, market adoption and expansion, value-maximizing transactions, demand for and utilization of the Company's products and results and expected sales volumes. The Company can provide no assurance that it will complete any value-maximizing transactions on behalf of its stockholders. These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors. Please see a detailed description of these and other risks contained in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2024. Forward-looking statements contained in this announcement are made as of this date and will not be updated.

Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). Management evaluates and makes operating decisions using various performance measures. In addition to Iridex’s GAAP results, we consider Adjusted EBITDA. This non-GAAP result should not be considered as an alternative to net income, net cash provided by operating activities, or any other performance measure derived in accordance with GAAP. We present this non-GAAP result because management considers it to be an important supplemental measure of Iridex’s performance and refers to such measure when analyzing Iridex’s strategy and operations.

In calculating the above non-GAAP result: Adjusted EBITDA is defined as earnings before interest income and expense, taxes, depreciation, amortization, and share-based compensation, as well as excluding certain other non-GAAP adjustments. Adjusted EBITDA exclude from their GAAP equivalents items listed below;

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Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational or non-cash expenses involving stock compensation plans or other items.

A detailed reconciliation between Iridex’s non-GAAP and GAAP financial results is set forth in the financial tables at the end of this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results that are contained in this press release as well as in Iridex’s other reports filed with or furnished to the SEC.

Investor Relations Contact
Philip Taylor
Gilmartin Group
investors@iridex.com

 

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IRIDEX Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended								Twelve Months Ended
		December 28, 2024				December 30, 2023				December 28, 2024				December 30, 2023
Total revenues		$	12,696			$	12,458			$	48,669			$	51,869
Cost of revenues			7,110				7,573				29,167				30,062
Gross profit			5,586				4,885				19,502				21,807
Operating expenses:
Research and development			1,113				1,694				5,449				6,829
Sales and marketing			2,700				3,867				12,579				16,237
General and administrative			2,275				2,405				9,776				8,748
Total operating expenses			6,088				7,966				27,804				31,814
Loss from operations			(502	)			(3,081	)			(8,302	)			(10,007	)
Other income (expense), net			(338	)			181				(540	)			527
Loss from operations before provision for income taxes			(840	)			(2,900	)			(8,842	)			(9,480	)
Provision for income taxes			(6	)			60				68				90
Net loss		$	(834	)		$	(2,960	)		$	(8,910	)		$	(9,570	)
Net loss per share:
Basic		$	(0.05	)		$	(0.18	)		$	(0.54	)		$	(0.59	)
Diluted		$	(0.05	)		$	(0.18	)		$	(0.54	)		$	(0.59	)
Weighted average shares used in computing net loss per common share:
Basic			16,636				16,245				16,439				16,128
Diluted			16,636				16,245				16,439				16,128

 

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IRIDEX Corporation

Condensed Consolidated Balance Sheets

(In thousands)

		December 28, 2024				December 30, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	2,387			$	7,034
Accounts receivable, net			8,394				9,654
Inventories			10,817				9,906
Prepaid expenses and other current assets			1,964				856
Total current assets			23,562				27,450
Property and equipment, net			115				351
Intangible assets, net			1,307				1,642
Goodwill			965				965
Operating lease right-of-use assets, net			1,792				2,632
Other long-term assets			1,394				1,396
Total assets		$	29,135			$	34,436
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	7,594			$	4,727
Accrued compensation			1,672				1,619
Accrued expenses			477				1,996
Convertible note payable, current			1,734				—
Other current liabilities			1,812				1,233
Deferred revenue, current			2,176				2,404
Operating lease liabilities, current			1,094				995
Total current liabilities			16,559				12,974
Long-term liabilities:
Deferred revenue			8,350				10,025
Operating lease liabilities			811				1,751
Convertible note payable			1,004				—
Other long-term liabilities			314				164
Total liabilities			27,038				24,914
Stockholders’ equity:
Common stock			174				172
Additional paid-in capital			89,881				88,444
Accumulated other comprehensive income (loss)			51				(52	)
Accumulated deficit			(88,009	)			(79,042	)
Total stockholders’ equity			2,097				9,522
Total liabilities and stockholders’ equity		$	29,135			$	34,436

 

 

 

 

 

 

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IRIDEX Corporation

Reconciliation of GAAP Net Loss to Adjusted EBITDA

(In thousands)

 

		Three Months Ended								Twelve Months Ended
		December 28, 2024				December 30, 2023				December 28, 2024				December 30, 2023
Reconciliation of GAAP net loss to Adjusted EBITDA(a):
GAAP net loss		$	(834	)		$	(2,960	)		$	(8,910	)		$	(9,570	)
Less
Interest (income) expense, net			269				(18	)			332				(244	)
Other (income) expense, net			68				(162	)			208				(283	)
(Benefit from) provision for income taxes			(6	)			60				68				90
Depreciation and amortization			135				619				584				1,098
Stock-based compensation			316				406				1,243				1,650
Severance related expense (for head count reduction)			421				18				752				172
Strategic process legal expenses			—				80				633				80
Adjusted EBITDA		$	369			$	(1,957	)		$	(5,090	)		$	(7,007	)
(a)Defined as earnings before interest income and expense, taxes, depreciation, amortization, and share-based compensation, as well as certain non-GAAP adjustments.

 

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v3.25.1

Document and Entity Information	Mar. 27, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Mar. 27, 2025
Entity Registrant Name	IRIDEX CORPORATION
Entity Central Index Key	0001006045
Entity File Number	000-27598
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0210467
Entity Address, Address Line One	1212 Terra Bella Avenue
Entity Address, City or Town	Mountain View
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94043
City Area Code	650
Local Phone Number	940-4700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	IRIX
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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