- 6,675 Quell® Devices
Shipped, Up 48% Compared to Q3 2015
- DPNCheck® Shipments at
All-Time High of 54,300 Biosensors
- Revenue Up 94% to $2.7 Million
Compared to Q4 2014
NeuroMetrix, Inc. (Nasdaq: NURO), today reported financial and
business highlights for the full year and quarter ended December
31, 2015.
The Company operates in two markets - wearable therapeutic
technology and point-of-care diagnostic tests. Its newest product
is Quell, an over-the-counter wearable therapeutic device for
chronic pain that was launched during the second quarter of 2015.
Its point-of-care neuropathy test, DPNCheck, provides accurate and
cost-effective screening, diagnosis and monitoring of peripheral
neuropathies including diabetic peripheral neuropathy.
Recent Highlights:
- Quell shipments totaled 6,675 devices
and 6,760 electrode reorder packages with a total invoiced value of
$1.48 million. This was an increase from 4,514 devices and 5,472
electrode reorder packages with a total invoiced value of $0.98
million in Q3 2015. Devices shipped grew 48%, electrode reorder
packages shipped increased 24%, and the total invoiced value of
shipments was up 50% on a sequential quarter basis.
- Quell distribution channels continued
to expand with Hammacher Schlemmer, The Grommet and FSA Store added
to existing channels of www.QuellRelief.com, Amazon, QVC, and
physician dispensing.
- The Company had a high profile at CES
2016; participating in two panel discussions – “The Roadmap to FDA
Approval” and “The Future of Wearables”. In addition, Quell was
covered in over 27 news outlets including Newsweek, Boston Globe,
Drug Store News, Pain Medicine News, and Consumer Reports.
- The Company obtained FDA 510(k)
clearance for the next generation Quell which includes the ability
to control therapy directly from a smartphone.
- DPNCheck shipments reached an all-time
high of 54,300 biosensors during Q4 2015 compared to 31,375
biosensors in Q4 2014.
- The China Food and Drug Administration
(CFDA) approved DPNCheck.
- The Company completed a private equity
financing on December 31, 2015 raising net proceeds of
approximately $7.5 million before fees and expenses.
Business Outlook:
NeuroMetrix’ primary initiative for 2016 is the launch of Quell
into retail distribution. Negotiations with potential retailers are
at an advanced stage and may result in shipments starting in Q2
2016. The Company believes that broad retail availability of Quell
in locations where consumers shop for chronic pain solutions will
positively impact Quell sales during 2016. To support this
initiative, the Company is planning an expanded media campaign,
including television promotion, to begin in Q2 2016. The campaign’s
goal is to broaden awareness of Quell.
The Company recently secured regulatory approval for DPNCheck in
Mexico and China. Mexico sales have commenced with an initial
shipment to a governmental healthcare organization. China will
require more time to address marketing and logistical issues. The
Company believes the developments in Mexico and China are positive
and will be beneficial over time as the local business develops;
however, they will likely not have a significant impact on revenue
during 2016.
“Virtually all our attention and available resources are
directed at expanding Quell distribution,” said Shai N. Gozani,
M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix.
“In 2015 we successfully demonstrated consumer demand and rapid
growth with Quell. This progress has positioned us to take the next
major step into retail merchandising. We have a clearly-charted
pathway, strong advisors, and are determined to successfully
penetrate retail with the support of television promotion. Fiscal
2016 will be a very important year for NeuroMetrix.”
Financial Results:
The Company reported its financial results for Q4 2015. Total
revenues were $2.74 million versus $1.41 million for Q4 2014, an
increase of 94%. Gross margin was 41.6% of total revenues, reduced
from 53.2% in Q4 2014, reflecting a higher weighting of lower
margin Quell devices as the Company builds its installed base.
Operating expenses increased to $4.46 million compared to $3.16
million in Q4 2014, reflecting Quell marketing and promotion. The
Company recorded a non-cash credit of $0.61 million at December 31,
2015 for the revaluation at fair value of outstanding common stock
warrants compared to a $0.50 million revaluation charge at December
31, 2014. Net loss was $2.71 million. This compared to a net loss
of $2.91 million for Q4 2014. NeuroMetrix reported Q4 2015 net cash
usage of $3.48 million and ended the period with cash and cash
equivalents of $12.46 million.
For the year ended December 31, 2015, the Company reported
revenues of $7.30 million and a net loss of $9.19 million. In the
year ended December 31, 2014, the Company recorded revenues of
$5.51 million and a net loss of $7.77 million.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today,
January 28, 2016 at 8:00 a.m., Eastern Time. To access the call in
the United States, dial 877-703-6109 and use the confirmation code
39553957. Internationally, the conference call may be accessed by
dialing 857-244-7308 and using the same confirmation code. The call
will also be webcast and will be accessible from the Company's
website at http://www.NeuroMetrix.com under the "Investor
Relations" tab. A replay of the conference call will be available
starting two hours after the call by dialing 888-286-8010,
domestically and 617-801-6888, internationally. The confirmation
code to access the replay is 43271874. The replay will be available
for two weeks after the conference call.
About NeuroMetrix
NeuroMetrix is an innovative health-care company that develops
wearable medical technology and point-of-care tests that help
patients and physicians better manage chronic pain, nerve diseases,
and sleep disorders. The company is located in Waltham,
Massachusetts and was founded as a spinoff from the Harvard-MIT
Division of Health Sciences and Technology in 1996. For more
information, please visit http://www.NeuroMetrix.com.
Safe Harbor Statement
The statements contained in this press release include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, without
limitation, statements regarding the company’s or management’s
expectations regarding the business, as well as events that could
have a meaningful impact on the company’s revenues. While the
company believes the forward-looking statements contained in this
press release are accurate, there are a number of factors that
could cause actual events or results to differ materially from
those indicated by such forward-looking statements, including,
without limitation, estimates of future performance, and the
ability to successfully develop, receive regulatory clearance,
commercialize and achieve market acceptance for any products. There
can be no assurance that future developments will be those that the
company has anticipated. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors including
those risks, uncertainties and factors referred to in the company’s
most recent Annual Report on Form 10-K, Quarterly Reports on Form
10-Q, as well as other documents that may be filed from time to
time with the Securities and Exchange Commission or otherwise made
public. The company is providing the information in this press
release only as of the date hereof, and expressly disclaims any
intent or obligation to update the information included in this
press release or revise any forward-looking statements.
NeuroMetrix, Inc. Condensed Statements of Operations
(Unaudited)
Quarters EndedDecember
31,
Year EndedDecember 31,
2015 2014 2015 2014 Revenues $
2,737,451 $ 1,409,629 $ 7,299,830 $ 5,512,764 Cost of revenues
1,599,267 659,159 3,950,746 2,568,602 Gross profit 1,138,184
750,470 3,349,084 2,944,162 Operating expenses: Research and
development 1,069,197 802,076 3,894,786 4,075,976 Sales and
marketing 2,049,376 1,234,447 7,232,971 2,913,112 General and
administrative 1,340,431 1,120,076 5,497,513 4,725,123 Total
operating expenses 4,459,004 3,156,599 16,625,270 11,714,211
Loss from operations (3,320,820 ) (2,406,129 ) (13,276,186 )
(8,770,049 ) Interest income 1,882 1,245 5,232 4,606 Warrants
offering costs — — — (50,874 ) Change in fair value of warrant
liability 609,802 (504,316 ) 4,083,606 1,050,095 Net loss $
(2,709,136 ) $ (2,909,200 ) $ (9,187,348 ) $ (7,766,222 )
Condensed Balance Sheets (Unaudited)
December 31,
2015
December 31,
2014
Cash and cash equivalents $ 12,462,872 $ 9,221,985 Other
current assets 2,684,398 1,868,140 Noncurrent assets 887,220
312,105 Total assets $ 16,034,490 $ 11,402,230
Current liabilities $ 3,191,479 $ 2,698,148 Noncurrent liabilities:
Common stock warrants 280,303 5,307,332 Other — 9,635 Stockholders’
equity 12,562,708 3,387,115 Total liabilities and stockholders’
equity $ 16,034,490 $ 11,402,230
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160128005283/en/
NeuroMetrix, Inc.Thomas T. Higgins, 781-314-2761SVP and Chief
Financial Officerneurometrix.ir@neurometrix.com
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