In April 2020, a
100-Dog Veterinary Study Showing
Fortetropin®'s Impact on Dogs Recovering from TPLO
Surgery, was Published in the Peer-Reviewed Journal, PLOS
ONE
CEDAR KNOLLS, N.J.,
May 8, 2020 /PRNewswire/ --
Company Conference Call: Today, May 8, 2020, at 11:30 AM
ET
Dial In: 877-407-9120 from the U.S.; International
callers may telephone 412-902-1009 approximately 15 minutes
before the call. For Webcast:
please visit the Company's Investor Relations page.
A digital replay will be available shortly
after the call until May 22,
2020 by dialing 877-660-6853 from the U.S.; or
201-612-7415 for international callers, using Conference
ID# 13703019.
MYOS RENS Technology Inc. ("MYOS" or "the Company") (NASDAQ:
MYOS), an advanced nutrition company and the owner of
Fortetropin®, a proprietary bioactive composition that
helps build lean muscle, announces its results for the three
months ended March 31,
2020.
"During the three months ended March 31,
2020, we continued expanding Fortetropin-based brand
presence in the areas of animal health, age management and sports
nutrition," said MYOS CEO Joseph Mannello. "We further reduced
expenses through greater operating efficiencies, redeployed staff,
and modified Company policy at the outset of the coronavirus
pandemic. We will watch closely, as this situation unfolds,
and adjust as needed going forward.
"As an essential business, with one-of-a-kind, science-backed
products that support muscle health, we felt compelled to lower the
economic barriers to product access during a time when overall
health is critical to get through this. Therefore, we
implemented a discount outreach program for our customers and
launched educational webinars geared to professional health care
providers concerned with both human and animal muscle health.
"Meanwhile, MYOS immediately undertook measures to protect our
employees and customers by limiting internal/external contact and
product processing, modifying work schedules to accommodate
essential needs and ensuring that staff take precautions to work
safely under the mandated health guidelines. We applied for and
received SBA funding under the Paycheck Protection Program ("PPP")
which gave us the ability to keep our staff employed. We are
doing everything we can to keep operations flowing so we can emerge
stronger when the crisis passes.
"As we collectively navigate through these uncertain times, we,
as well as many of our core customers (veterinarians, anti-aging
doctors, chiropractors, and gym owners) have had to take a step
back from 'business as usual'. Our educational webinars
were well-received prior to the pandemic, but they are now spiking
in attendance. We are pleased to provide this type of support
to the general and professional public regarding muscle health
during this downtime and plan to expand the series. Additionally,
we will continue to look for new ways to connect with our customers
so as to provide valuable products and services and discount
programs to soften some of the impacts of the
pandemic.
"We look forward to the effective containment of the pandemic
fallout, a restoration of those affected, and the rebuilding of the
economy. With that in mind, I have outlined, below, the financial
and business highlights of the first quarter of 2020," stated Mr.
Mannello.
FINANCIAL HIGHLIGHTS
Net revenues for the three months ended March 31, 2020 increased by $141 or 95% to $290
compared to net revenues of $149 for
the three months ended March 31,
2019. This increase is primarily due to an increase of
$155 for Myos Canine Muscle Formula,
an increase of $17 for our White
Label business offset by a decrease of $31 from our older product lines.
Cost of revenues for the three months ended March 31, 2020 increased by $97 or 160% to $158
compared to cost of revenues of $61 for the three months ended March 31, 2019. The increase is primarily due to
costs related to manufacturing products related to an increase in
our product sales.
Operating Expenses for the three months ended
March 31, 2020 decreased by
$66 or 6% to $985, compared to operating expenses of
$1,051 for the three months ended
March 31, 2019. The decrease is
primarily due to a 27% decrease in selling, marketing and research
expenses of $73, an 11% decrease in
general and administrative of $41,
offset by an 11% increase in personnel and benefits of $48 due to the hiring of additional members to
our sales and marketing teams.
Results of
Operations
Three Months Ended March 31,
2020 Compared to Three Months Ended March 31, 2019
(amounts in
thousands)
|
|
March
31,
|
|
|
Change
|
|
|
|
2020
|
|
|
2019
|
|
|
Dollars
|
|
|
%
|
|
Net
revenues
|
|
$
|
290
|
|
|
$
|
149
|
|
|
$
|
141
|
|
|
|
95
|
%
|
Cost of
revenues
|
|
|
158
|
|
|
|
61
|
|
|
|
97
|
|
|
|
160
|
%
|
Gross
profit
|
|
|
132
|
|
|
|
88
|
|
|
|
44
|
|
|
|
50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, marketing
and research
|
|
|
202
|
|
|
|
275
|
|
|
|
(73)
|
|
|
|
-27
|
%
|
Personnel and
benefits
|
|
|
468
|
|
|
|
420
|
|
|
|
48
|
|
|
|
11
|
%
|
General and
administrative
|
|
|
315
|
|
|
|
356
|
|
|
|
(41)
|
|
|
|
-11
|
%
|
Total operating
expenses
|
|
|
985
|
|
|
|
1,051
|
|
|
|
(66)
|
|
|
|
-6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(853)
|
|
|
|
(963)
|
|
|
|
110
|
|
|
|
-11
|
%
|
Interest
expense
|
|
|
(13)
|
|
|
|
(12)
|
|
|
|
(1)
|
|
|
|
12
|
%
|
Net loss
|
|
$
|
(866)
|
|
|
$
|
(975)
|
|
|
$
|
109
|
|
|
|
-11
|
%
|
Liquidity and Capital Resources:
In connection with the closing of a private placement on
March 5, 2020, the Company issued
851,240 shares of common stock for aggregate cash proceeds of
$1,030 and $825 of the principal amount of the Note was
exchanged for 681,818 shares of common stock. The Company intends
to use the net proceeds from the private placement primarily for
working capital, research and development, strategic initiatives
and other general corporate purposes. At March 31, 2020, we had cash of $678 and a– Summary of our cash flows for the
three months ended March 31, 2020 and
2019 are as follows:
|
|
March
31,
|
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
Change
|
|
Net cash (used in)
provided by operating activities
|
|
$
|
(944)
|
|
|
$
|
104
|
|
|
$
|
(1,048)
|
|
Net cash provided by
financing activities
|
|
|
1,558
|
|
|
|
2,078
|
|
|
|
(520)
|
|
Net increase
(decrease) in cash
|
|
$
|
614
|
|
|
$
|
2,182
|
|
|
$
|
(1,568)
|
|
Paycheck Protection Program Loan
On April 22, 2020, the Company
received loan proceeds in the amount of $310 under the Paycheck Protection Program. The
PPP, established as part of the CARES Act, provides for loans to
qualifying businesses for amounts up to 2.5 times of the average
monthly payroll expenses of the qualifying business. The Company
intends to use the loan proceeds for eligible purposes, including
payroll, benefits, rent and utilities.
BUSINESS HIGHLIGHTS:
In February 2020 MYOS presented
results from our University of California,
Berkeley clinical trial at a prestigious international
conference that is dedicated to sarcopenia research.
"In April 2020, a
100-dog veterinary study on Fortetropin's impact on dogs
recovering from TPLO surgery was published in the peer-reviewed
journal, PLOS ONE, and we received notification
that seven top-tier pet insurance companies are partially
reimbursing the cost of Foretropin for dogs," remarked Mr.
Mannello. "Additionally, the esteemed Dr.
Leilani Alvarez, Director,
Integrative & Rehabilitative Medicine, Animal Medical Center,
New York (one of the world's
top veterinary hospitals), and a well-published expert on
veterinary nutraceuticals, has been using Fortetropin to great
effect over the last five years, '…in older dogs and canines with
muscle atrophy'."
OTHER HIGHLIGHTS:
- Signed a Distribution Partnership for MYOS Canine Muscle
Formula® with Chewy (www.chewy.com), a leading
online retailer of pet food and pet-related products.
- Hired college football icon and inspirational speaker
Eric LeGrand as a Special Advisor
for its YOLKED® Sports Nutrition Brand.
- Signed an agreement with KVP International, Inc.
(www.kvpvet.com), a leading supplier of innovative
products for the veterinary rehabilitation market such as surgical
supplies, recovery collars and braces to distribute, consult, and
co-market our MYOS Canine Muscle Formula products.
- Prof. William Evans,
University of California, Berkeley gave
an Oral Presentation at the International Conference on
Frailty & Sarcopenia Research in Toulouse, France titled, "Effects of
Fortetropin® on the rate of muscle protein synthesis in
older men and women: a randomized, double blinded,
placebo-controlled study." A manuscript based on this
human clinical trial that demonstrated Fortetropin upregulates
muscle protein synthesis in older adults has been submitted to
a peer reviewed journal for publication.
The following tables should be read in conjunction with the
footnotes accompanying the consolidated financial statements
contained within the Quarterly Report on Form 10-Q filed by
the Company on May 6, 2020.
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONDENSED
Consolidated Balance Sheets
|
(in thousands,
except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2020
|
|
|
2019
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
678
|
|
|
$
|
64
|
|
Accounts receivable,
net
|
|
|
23
|
|
|
|
5
|
|
Inventories,
net
|
|
|
1,570
|
|
|
|
1,666
|
|
Prepaid
expenses
|
|
|
127
|
|
|
|
23
|
|
Total current
assets
|
|
|
2,398
|
|
|
|
1,758
|
|
|
|
|
|
|
|
|
|
|
Operating lease right
of use asset
|
|
|
178
|
|
|
|
192
|
|
Deferred offering
costs
|
|
|
79
|
|
|
|
95
|
|
Fixed assets,
net
|
|
|
92
|
|
|
|
97
|
|
Intangible assets,
net
|
|
|
844
|
|
|
|
896
|
|
Total assets
|
|
$
|
3,591
|
|
|
$
|
3,038
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
130
|
|
|
$
|
277
|
|
Accrued expenses and
other current liabilities
|
|
|
18
|
|
|
|
230
|
|
Operating lease
liabilities – current portion
|
|
|
37
|
|
|
|
46
|
|
Related party
promissory note payable and accrued interest
|
|
|
646
|
|
|
|
1,159
|
|
Total current
liabilities
|
|
|
831
|
|
|
|
1,712
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Operating lease
liabilities – net of current portion
|
|
|
146
|
|
|
|
146
|
|
Total liabilities
|
|
|
977
|
|
|
|
1,858
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies (Note 11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock, $0.001 par value; 500,000 shares authorized; no
shares issued and
outstanding
|
|
|
|
|
|
|
|
|
Common
stock, $0.001 par value; 15,000,000 shares authorized;
11,030,100
and 9,176,908 shares issued and outstanding at
March 31, 2020 and
December 31, 2019,
respectively
|
|
|
11
|
|
|
|
9
|
|
Additional paid-in
capital
|
|
|
42,794
|
|
|
|
40,496
|
|
Accumulated
deficit
|
|
|
(40,191)
|
|
|
|
(39,325)
|
|
Total stockholders'
equity
|
|
|
2,614
|
|
|
|
1,180
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,591
|
|
|
$
|
3,038
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited; in
thousands, except share and per share amounts)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
290
|
|
|
$
|
149
|
|
Cost of
revenues
|
|
|
158
|
|
|
|
61
|
|
Gross
profit
|
|
|
132
|
|
|
|
88
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, marketing
and research
|
|
|
202
|
|
|
|
275
|
|
Personnel and
benefits
|
|
|
468
|
|
|
|
420
|
|
General and
administrative
|
|
|
315
|
|
|
|
356
|
|
Total operating
expenses
|
|
|
985
|
|
|
|
1,051
|
|
Operating
loss
|
|
|
(853)
|
|
|
|
(963)
|
|
Other expense,
net
|
|
|
(13)
|
|
|
|
(12)
|
|
Net loss
|
|
$
|
(866)
|
|
|
$
|
(975)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.09)
|
|
|
$
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
9,717,438
|
|
|
|
7,669,181
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited; in
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2020
|
|
|
2019
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(866)
|
|
|
$
|
(975)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
5
|
|
|
|
7
|
|
Amortization
|
|
|
52
|
|
|
|
72
|
|
Stock-based
compensation
|
|
|
217
|
|
|
|
243
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
(Increase) decrease
in accounts receivable
|
|
|
(18)
|
|
|
|
59
|
|
Decrease (increase)
in inventories
|
|
|
96
|
|
|
|
(10)
|
|
Increase in operating
lease right of use asset
|
|
|
14
|
|
|
|
224
|
|
(Increase) decrease
in prepaid expenses and other assets
|
|
|
(88)
|
|
|
|
995
|
|
Decrease in operating
lease liabilities
|
|
|
(9)
|
|
|
|
(231)
|
|
Increase in accrued
interest expense
|
|
|
13
|
|
|
|
-
|
|
Decrease in accounts
payable and accrued expenses
|
|
|
(359)
|
|
|
|
(280)
|
|
Net cash (used in)
provided by operating activities
|
|
|
(944)
|
|
|
|
104
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
registered direct offering of common stock
|
|
|
228
|
|
|
|
228
|
|
Proceeds from related
party promissory note
|
|
|
300
|
|
|
|
-
|
|
Proceeds from
issuance of common stock in private placement
|
|
|
1,030
|
|
|
|
1,850
|
|
Net cash provided by
financing activities
|
|
|
1,558
|
|
|
|
2,078
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash
|
|
|
614
|
|
|
|
2,182
|
|
Cash at beginning of
period
|
|
|
64
|
|
|
|
15
|
|
Cash at end of
period
|
|
$
|
678
|
|
|
$
|
2,197
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
Conversion of related
party promissory note payable into shares of common
stock
|
|
|
825
|
|
|
|
250
|
|
Reclassification of
deferred offering costs to additional paid in capital
|
|
|
-
|
|
|
|
16
|
|
About MYOS RENS Technology Inc.
MYOS RENS Technology
Inc. (MYOS), "The Muscle Company®", is a Cedar Knolls, NJ-based advanced nutrition
company that develops and markets products that improve muscle
health and performance. MYOS is the owner of
Fortetropin®, a fertilized egg yolk-based product
manufactured via a proprietary process to retain and optimize its
biological activity. Fortetropin has been clinically shown to
increase muscle size, lean body mass and reduce muscle atrophy.
MYOS believes Fortetropin has the potential to redefine existing
standards of physical health and wellness and produces muscle
health support products featuring Fortetropin under the names of
Yolked®, Physician Muscle Health
Formula®, MYOS Canine Muscle
Formula®, (Regular & Vet Strength) and
Qurr®. For more information, please visit
www.myosrens.com.
Forward-Looking Statements
Any statements in
this release that are not historical facts are forward-looking
statements. Actual results may differ materially from those
projected or implied in any forward-looking statements. Such
statements involve risks and uncertainties, including but not
limited to those relating to product and customer demand, market
acceptance of our products, the ability to create new products
through research and development, the successful results of
strategic initiatives, the success of our products,
including Yolked®, Physician Muscle
Health Formula®, MYOS Canine Muscle Formula®,
Qurr®, and MYOS Enteral
Nutrition Formula™, the success of our research and
development, the results of the clinical evaluation
of Fortetropin® and its effects, the
ability to enter into new partnership opportunities and the success
of our existing partnerships, the ability to generate revenue and
cash flow from sales of our products, the ability to increase our
revenue and gross profit margins, the ability to achieve a
sustainable, profitable business, the effect of economic
conditions, the ability to protect our intellectual property
rights, competition from other providers and products, the
continued listing of our securities on the Nasdaq Stock
Market, risks in product development, our ability to raise capital
to fund continuing operations, the adverse impact of the
coronavirus pandemic on the economy and our business, and
other factors discussed from time to time in our filings with
the Securities and Exchange Commission. We undertake no obligation
to update or revise any forward-looking statement for events or
circumstances after the date on which such statement is made except
as required by law.
These statements have not been evaluated by the Food and Drug
Administration. Our products are not intended to diagnose, treat,
cure or prevent any disease.
Investor Relations:
MYOS RENS Technology
Joanne Goodford
Phone: 973-509-0444
Email: jgoodford@myoscorp.com
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