HYPERION DEFI, INC. annual report, FY2022

Filing and business context

Filing identity: The supplied filing is Eyenovia, Inc.’s Form 10-K for the fiscal year ended December 31, 2022, filed March 31, 2023. This does not match the request metadata naming HYPERION DEFI, INC.; verify the issuer before relying on this summary. The filing reports annual results, not standalone 2022 fourth-quarter results.

Eyenovia is a pre-commercial ophthalmic technology company developing the Optejet drug-delivery device and related therapies: Mydcombi for pupil dilation, MicroLine for presbyopia, and MicroPine for pediatric progressive myopia. It had no product sales revenue and no product approved for sale at year-end.

Financial performance and liquidity

MetricFY 2022 / Dec. 31, 2022FY 2021 / Dec. 31, 2021
Revenue$0$14.0 million
Cost of revenue$0$1.6 million
Research and development$13.4 million$14.9 million
General and administrative$13.5 million$10.6 million
Operating loss$26.9 million$13.0 million
Net loss$28.0 million$12.8 million
Net loss per share, diluted$0.83$0.49
Cash used in operating activities$25.1 million$20.9 million
Cash and cash equivalents$22.9 million$19.5 million
Working capital$23.1 million$10.8 million
Gross notes payable$10.4 million$7.5 million

FY 2021 revenue was primarily upfront licensing income: $10.0 million from Bausch + Lomb and $4.0 million recognized from Arctic Vision. No revenue was recognized in 2022. Accordingly, a product-sales margin is not meaningful for 2022; the filing does not report a 2022 gross margin.

Year-end total assets were $31.0 million and total liabilities were $13.8 million. Avenue debt had $10.425 million gross principal and final-payment amounts outstanding, with an $8.731 million net carrying value after debt discounts. The loan is secured by substantially all company assets, including intellectual property. Its stated maturity is November 1, 2025; up to an additional $5 million was available subject to conditions.

Material changes versus the prior year

  • Revenue fell from $14.0 million to zero as prior-year licensing performance obligations were completed and no new revenue was earned.
  • Net loss more than doubled, from $12.8 million to $28.0 million; loss per share increased from $0.49 to $0.83.
  • Operating cash use increased to $25.1 million from $20.9 million. Cash and cash equivalents increased to $22.9 million from $19.5 million, but 2021 included $7.9 million of restricted cash that was used to repay the SVB loan in 2022.
  • R&D expense declined 10% to $13.4 million, partly because Bausch + Lomb assumed control and costs of the MicroPine trial and VISION-2 cost less than VISION-1. G&A expense rose 27% to $13.5 million, including higher personnel, stock compensation, and professional fees.
  • Interest expense rose to $1.38 million from $0.39 million, reflecting the SVB loan payoff and Avenue financing. Eyenovia repaid its $7.5 million SVB loan in November 2022 and entered into the Avenue facility later that month.
  • Shares issued and outstanding rose to 36.7 million from 28.4 million, reflecting equity offerings and financing-related issuances.

Outlook, risks and notable items

  • Going concern: Management and the auditor report substantial doubt about the company’s ability to continue as a going concern for at least one year from issuance of the financial statements, absent additional funding. Management says it may need to raise capital or complete licensing or business-development transactions; failure could require cuts to R&D and other costs. The company has incurred losses since inception and accumulated a $118.2 million deficit.
  • Runway and obligations: The filing reports $22.9 million of year-end cash and $25.1 million of annual operating cash use. Near-term commitments include $3.7 million of year-end payables and accruals, $0.5 million of lease payments, potential executive severance of $1.0 million, and $0.4 million of debt payments. Management does not provide a clear quantified cash-runway forecast.
  • Mydcombi: The FDA accepted the resubmitted NDA in December 2022 after a 2021 complete response letter related in part to classification of the dispenser as a device constituent of a drug-device combination product. The PDUFA target action date was May 8, 2023; that date is a stated target, not an approval assurance.
  • MicroLine: Eyenovia reported positive top-line VISION-2 results in fourth-quarter 2022 and expected a pre-NDA meeting in April 2023. MicroLine is also licensed to Arctic Vision in Greater China and South Korea.
  • MicroPine: Bausch + Lomb assumed sponsorship and responsibility for the CHAPERONE study and U.S./Canada development. Eyenovia may receive up to $35 million in regulatory and launch milestones, plus tiered royalties; timing and receipt are uncertain.
  • Licensing: Arctic Vision may owe up to approximately $37.7 million in remaining milestones, with the company anticipating performance obligations between late 2024 and late 2025. Royalties had not been earned by year-end. A portion of certain Arctic Vision proceeds is payable to Senju.
  • Other financing and developments: Subsequent to year-end, the company reported approximately $3.5 million of net proceeds from ATM share sales. In February 2023 it announced a development collaboration with Formosa Pharmaceuticals to assess Optejet delivery of Formosa’s formulations.
  • Key risks: Dependence on further financing and successful regulatory review; no commercial track record; manufacturing and third-party supply reliance; competition (including Vuity for presbyopia); reimbursement, adoption, and pricing uncertainty; potential dilution; and patent challenges. Three instituted inter partes review proceedings challenge Sydnexis patents, with final decisions expected by July 15, 2023.
  • The auditor issued an unmodified opinion on the financial statements with a going-concern explanatory paragraph. Management reported disclosure controls and internal control over financial reporting were effective as of December 31, 2022; the auditor did not provide an internal-control attestation.

Most important facts to verify

  1. Confirm issuer identity: the filing is for Eyenovia, Inc. (ticker EYEN), not HYPERION DEFI, INC.
  2. Check the FDA’s actual decision and current status of the Mydcombi NDA after its May 8, 2023 target date.
  3. Verify subsequent financing, cash balance, and current runway; year-end cash was below FY 2022 operating cash use and management disclosed substantial going-concern doubt.
  4. Review Avenue loan terms, collateral, covenants, conversion provisions, and whether the additional $5 million tranche was drawn.
  5. Confirm final VISION-2 results and the regulatory path for MicroLine, and the status, funding, and milestones of the Bausch and Arctic Vision programs.
  6. Assess dilution from ATM sales, outstanding warrants and options, and any later equity or debt financing.