NeuroMetrix Reports Q3 2020 Financial Results
October 22 2020 - 7:00AM
NeuroMetrix, Inc. (Nasdaq: NURO) today reported financial and
business highlights for the quarter ended September 30, 2020. The
Company is a leading developer of neurostimulation-based medical
devices that are used to diagnose and treat chronic health
conditions.
Q3 2020
Highlights:
- Revenue of $2.0 million was about level with $2.1 million in Q3
2019 reflecting an improving economic environment and broadening
delivery of health care services. Gross margin on revenue was $1.5
million or 73.6%, up 17.4 percentage points from Q3 2019 gross
margin of 56.2%.
- DPNCheck® posted record quarterly sales in Q3 2020. The
Medicare Advantage sector continued to be the main sales driver.
The recently announced collaboration with Biomedix, Inc.
contributed to DPNCheck sales.
- The Journal of Diabetes Investigation published the results of
a large study led by Dr. Hideki Kamiyo at the Aichi Medical
University Hospital (Nagakute, Japan). The study demonstrated that
DPNCheck® effectively determines the severity of diabetic
peripheral neuropathy (DPN).
- The Quell® Apple Watch® app was launched in September. This is
the first smartwatch app for an over-the-counter pain relief
device. It gives users the ability to control their Quell device
and monitor pain relief from the wrist.
- The first patients in an NIH-funded multi-site, randomized
sham-controlled trial evaluating the efficacy of Quell in
chemotherapy-induced peripheral neuropathy (CIPN) were enrolled.
The study was designed and is being run by the University of
Rochester School of Medicine and Dentistry.
- A U.S. utility patent was issued covering Quell core technology
that regulates electrical stimulation based on the user's body
position.
- A PAINWeek 2020 scientific presentation described a study of
over 1,000 Quell users with chronic knee pain. The study
demonstrated a clinically meaningful improvement in pain severity
and functional impairment.
“We are encouraged by the recovery of commercial activity in the
third quarter, particularly regarding DPNCheck,” said Shai N.
Gozani, M.D., Ph.D., President and Chief Executive Officer of
NeuroMetrix. “Although business uncertainty remains, we are meeting
our customers’ needs on a timely basis while strengthening our
unique Quell technology, including its clinical foundation and
intellectual property position. We remain on track to launch the
next generation DPNCheck in 2021. Importantly, we are also making
meaningful progress towards operating profitability.”
Financials:
In the third quarter of 2020, total revenues were $2.0 million,
approximately flat with $2.1 million in the prior year period.
Gross margin was $1.5 million versus $1.2 million in Q3 2019. The
gross margin rate of 73.6% was an improvement of 17.4 percentage
points from Q3 2019. Operating expenses were $1.8 million, a
reduction of $0.8 million or 32.1%, from $2.6 million in Q3 2019.
Net loss was $0.3 million compared to a net loss of $1.4 million in
Q3 2019. Net cash usage from operations was $0.5 million compared
with $1.7 million in Q3 2019. The Company ended the quarter with
cash of $4.9 million.
Company to Host Live Conference Call and
Webcast
NeuroMetrix will host a conference call at 8:00 a.m. Eastern
today, October 22, 2020. The call may be accessed in the United
States at 844-787-0799, international at 661-378-9630 using
confirmation code 9786945. 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 9786945. 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 EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
2,036,228 |
|
|
$ |
2,088,001 |
|
|
$ |
5,568,243 |
|
|
$ |
7,565,619 |
|
Cost of revenues |
|
537,614 |
|
|
914,322 |
|
|
1,652,890 |
|
|
6,382,340 |
|
Gross profit |
|
1,498,614 |
|
|
1,173,679 |
|
|
3,915,353 |
|
|
1,183,279 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
652,671 |
|
|
475,137 |
|
|
1,846,569 |
|
|
2,365,139 |
|
Sales and marketing |
|
340,927 |
|
|
647,719 |
|
|
1,144,389 |
|
|
4,046,956 |
|
General and administrative |
|
762,903 |
|
|
1,462,887 |
|
|
2,693,146 |
|
|
4,646,932 |
|
Total operating expenses |
|
1,756,501 |
|
|
2,585,743 |
|
|
5,684,104 |
|
|
11,059,027 |
|
Loss from operations |
|
(257,887 |
) |
|
(1,412,064 |
) |
|
(1,768,751 |
) |
|
(9,875,748 |
) |
Other income: |
|
|
|
|
|
|
|
|
Collaboration income |
|
— |
|
|
— |
|
|
— |
|
|
7,116,667 |
|
Other income |
|
774 |
|
|
7,464 |
|
|
2,323 |
|
|
42,797 |
|
Total other income |
|
774 |
|
|
7,464 |
|
|
2,323 |
|
|
7,159,464 |
|
Net loss |
|
$ |
(257,113 |
) |
|
$ |
(1,404,600 |
) |
|
$ |
(1,766,428 |
) |
|
$ |
(2,716,284 |
) |
NeuroMetrix, Inc.Condensed Balance
Sheets(Unaudited)
|
|
September 30,2020 |
|
December 31,2019 |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,929,175 |
|
|
$ |
3,126,206 |
|
Other current assets |
|
|
2,360,965 |
|
|
|
2,304,608 |
|
Noncurrent assets |
|
|
1,049,898 |
|
|
|
1,462,872 |
|
Total assets |
|
$ |
8,340,038 |
|
|
$ |
6,893,686 |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
2,386,363 |
|
|
$ |
3,446,778 |
|
Lease Obligation, net of
current portion |
|
|
581,903 |
|
|
|
916,674 |
|
Stockholders’ equity |
|
|
5,371,772 |
|
|
|
2,530,234 |
|
Total liabilities and stockholders’ equity |
|
$ |
8,340,038 |
|
|
$ |
6,893,686 |
|
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