TEARLAB CORPORATION (NASDAQ:TEAR) Files An 8-K Costs Associated with Exit or Disposal Activities

TEARLAB CORPORATION (NASDAQ:TEAR) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05 Costs Associated with Exit or Disposal Activities.

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On December 15, 2017, TearLab Corporation (the “Company”) approved a new business model plan designed to maintain its current customer and annuity revenue base, focus resources on the development and generation of clinical data for its next generation TearLab DiscoveryTM Platform and reduce the Company’s cash burn rate.

As a result of the new business model, the Company will reduce headcount across its commercial, administrative and technical functions. As part of the implementation of the new business model, the Company currently expects to incur a charge in the range of $200,000 to $250,000 related to employee severance costs which will be accrued as a pre-tax charge in the fourth quarter of 2017. The Company expects to substantially complete the implementation of the new business model, including payment of the accrued severance charges in cash, by December 31, 2017.

Forward-Looking Statements

In order to provide TearLab’s investors with an understanding of our current intentions and future prospects, this filing may contain statements that are forward-looking. Any statements contained in this filing that are not statements of historical fact may be deemed to be forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “will,” “intends,” “potential,” “possible” and similar expressions are intended to identify forward-looking statements. Forward-looking statements contained in this Current Report on Form 8-K include, among others, statements relating to TearLab’s current expected restructuring costs and savings, and the favorable impact on operating expenses.

Forward-looking statements involve risks and uncertainties related to our business and the general economic environment, many beyond our control. These risks, uncertainties and other factors could cause our actual results to differ materially from those projected in forward-looking statements, including market risk and the risks we identify in reports filed with the SEC.

Although we believe that the forward-looking statements contained herein are reasonable, we can give no assurance that our expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. For a detailed description of our risks and uncertainties, you are encouraged to review the official corporate documents filed with the SEC. TearLab does not undertake any obligation to publicly update its forward-looking statements based on events or circumstances after the date hereof except as required by law.


TearLab Corporation is an in-vitro diagnostic company. The Company has commercialized a tear testing platform, the TearLab Osmolarity System, which enables eye care practitioners to test for sensitive and specific biomarkers using nanoliters of tear film at the point-of-care. The Company, through its subsidiary TearLab Research, Inc., develops technologies to enable eye care practitioners to test a range of biomarkers (chemistries, metabolites, genes and proteins) at the point-of-care. Its product, the TearLab Osmolarity System, enables the measurement of tear osmolarity in the doctor’s office. The TearLab Osmolarity System consists of approximately three components: the TearLab disposable, the TearLab Pen, and the TearLab Reader. The TearLab disposable is a single-use microfluidic microchip. The TearLab Pen is a hand-held device that interfaces with the TearLab disposable. The TearLab Reader is a small desktop unit that allows for the docking of the TearLab Pen.

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