NeuroMetrix Reports Q2 2020 Financial Results
July 23 2020 - 7:00AM
NeuroMetrix, Inc. (Nasdaq: NURO) today reported financial and
business highlights for the quarter ended June 30, 2020. The
Company is a leading developer of neurostimulation-based medical
devices that are used to diagnose and treat chronic health
conditions.
Q2 2020 Highlights:
- Total revenue of $1.4 million provided a gross margin of $0.9
million, at a gross margin rate of 63.6%. The COVID-19 effects on
the economy and health care delivery adversely affected customer
orders in all product lines.
- DPNCheck® contributed $0.8 million revenue with about 46%
coming from Asian markets. Quell® contributed $0.4 million revenue
and ADVANCE $0.1 million revenue.
- Operating expenses were reduced to $1.7 million with lower
variable spending in S&M and G&A. The R&D program
maintained its primary focus on the DPNCheck technology upgrade.
The Company is also making focused investments in Quell R&D,
including development of Quell Flex to support the previously
announced large fibromyalgia study by the University of Iowa and
Vanderbilt University.
- Expanded DPNCheck distribution was announced, both in the U.S.
Medicare Advantage market involving Biomedix, a data-oriented
provider of diagnostics for value-based care, and in the China
market involving Yabao Pharmaceutical Co., Ltd. Yabao, based in
north China, is focused on chronic diseases affecting the elderly,
women, and children, including those with diabetes. Yabao will work
with the Company’s exclusive distributor for China, Omron
Healthcare.
- The Company announced a Quell marketing initiative focusing on
chronic knee pain. The effort includes direct-to-consumer digital
marketing as well as informing physicians and other health care
providers about the use of Quell for patients with knee pain.
- The Company utilized its at-the-market (ATM) facility to raise
$3.7 million in net proceeds from sale of common stock.
"Early signs of commercial recovery became evident during June
in the Medicare Advantage sector of our DPNCheck business,” said
Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer
of NeuroMetrix. “The timing and pace of the ultimate recovery
remains an uncertainty. We’ve taken this opportunity to strengthen
our balance sheet and to broaden our business reach through the
recently reported collaborations with Biomedix and Yabao. Both hold
the potential to materially impact future DPNCheck revenue
growth.”
Financials:
In the second quarter of 2020, total revenues were $1.4 million,
down 42% from $2.4 million in the prior year period. Gross margin
was $0.9 million versus a negative $0.8 million in Q2 2019. The
gross margin rate of 63.6% improved from 53.9% in Q2 2019,
excluding the effect of inventory charges taken in the year ago
quarter. Operating expenses were $1.7 million, a reduction of $2.3
million from $4.0 million in Q2 2019. Other income was de minimis
in Q2 2020. In Q2 2019 other income included $1.4 million in
milestones under the Company’s GlaxoSmithKline collaboration. Net
loss was $0.9 million compared to a net loss of $3.4 million in Q2
2019. Net cash usage from operations was $1.1 million compared with
$2.2 million in Q2 2019. The Company ended the quarter with cash of
$5.4 million.
Company to Host Live Conference Call and
Webcast
NeuroMetrix will host a conference call at 8:00 a.m. Eastern
today, July 23, 2020. The call may be accessed in the United States
at 844-787-0799, international at 661-378-9630 using confirmation
code 4284442. A replay will be available starting two hours after
the call at 855-859-2056 United States and 404-537-3406
international using confirmation code 4284442. It will remain
available for one week. The call will also be webcast and
accessible at www.NeuroMetrix.com under "Investor Relations".
About NeuroMetrix
NeuroMetrix is a leading developer and manufacturer of
diagnostic and therapeutic neurostimulation-based medical devices
that are used throughout the world. The Company has three FDA
cleared commercial products. DPNCheck® is a point-of-care test
that is used to evaluate peripheral neuropathies. ADVANCE™ is a
point-of-care device that provides nerve conduction studies as an
aid in diagnosing and evaluating patients suspected of having focal
or systemic neuropathies. Quell® 2.0 is a wearable, mobile app
enabled, neurostimulation device indicated for symptomatic relief
and management of chronic pain and is available over-the-counter.
The Company maintains an active, industry-leading R&D program.
For more information, visit 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 and cash
resources. 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, the effects of the
COVID-19 pandemic on all aspects of the Company’s business,
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.
Source: NeuroMetrix, Inc.
Thomas T. HigginsSVP and Chief Financial
Officer781-314-2761neurometrix.ir@neurometrix.com
|
NeuroMetrix, Inc.Statements of
Operations(Unaudited) |
|
|
|
|
|
Quarters Ended June 30, |
|
Six Months Ended June 30, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Revenues |
$ |
1,359,979 |
|
|
$ |
2,354,683 |
|
|
$ |
3,532,015 |
|
|
$ |
5,477,618 |
|
|
|
|
|
|
|
|
|
Cost of revenues |
495,086 |
|
|
3,143,787 |
|
|
1,115,276 |
|
|
5,468,018 |
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
864,893, |
|
|
(789,104 |
) |
|
2,416,739 |
|
|
9,600 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
660,278 |
|
|
1,034,921 |
|
|
1,193,898 |
|
|
1,890,002 |
|
Sales and marketing |
379,113 |
|
|
1,373,949 |
|
|
803,462 |
|
|
3,399,237 |
|
General and administrative |
678,497 |
|
|
1,564,555 |
|
|
1,930,243 |
|
|
3,184,045 |
|
|
|
|
|
|
|
|
|
Total operating expenses |
1,717,888 |
|
|
3,973,425 |
|
|
3,927,603 |
|
|
8,473,284 |
|
|
|
|
|
|
|
|
|
Loss from operations |
(852,995 |
) |
|
(4,762,529 |
) |
|
(1,510,864 |
) |
|
(8,463,684 |
) |
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
Collaboration income |
— |
|
|
1,381,818 |
|
|
— |
|
|
7,116,667 |
|
Other income |
1,051 |
|
|
18,520 |
|
|
1,549 |
|
|
35,333 |
|
|
|
|
|
|
|
|
|
Total other income |
1,051 |
|
|
1,400,338 |
|
|
1,549 |
|
|
7,152,000 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(851,944 |
) |
|
$ |
(3,362,191 |
) |
|
$ |
(1,509,315 |
) |
|
$ |
(1,311,684 |
) |
|
NeuroMetrix, Inc.Condensed Balance
Sheets(Unaudited) |
|
|
|
|
|
|
|
|
June 30, 2020 |
|
|
December 31, 2019 |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,434,983 |
|
|
$ |
3,126,206 |
Other current assets |
|
|
1,968,699 |
|
|
|
2,304,608 |
Noncurrent assets |
|
|
1,201,846 |
|
|
|
1,462,872 |
Total assets |
|
$ |
8,605,528 |
|
|
$ |
6,893,686 |
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
2,418,784 |
|
|
$ |
3,446,778 |
Lease Obligation, net of
current portion |
|
|
698,128 |
|
|
|
916,674 |
Stockholders’ equity |
|
|
5,488,616 |
|
|
|
2,530,234 |
Total liabilities and stockholders’ equity |
|
$ |
8,605,528 |
|
|
$ |
6,893,686 |
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