CEDAR KNOLLS, N.J.,
May 9, 2018 /PRNewswire/ -- MYOS
RENS Technology Inc. ("MYOS" or the "Company") (NASDAQ: MYOS), a
bionutrition company and owner of Fortetropin®, the product
that helps build lean muscle in conjunction with resistance
training, announced today its financial results for the first
quarter ended March 31, 2018.
(Amounts in thousands except where noted.)
FINANCIAL HIGHLIGHTS:
First Quarter 2018:
- Gross profit margin was 46% for the first quarter of 2018.
- Net revenues decreased 62% to $57
for the first quarter of 2018, compared to $150 for the first quarter of 2017. The decrease
in net revenues was primarily due to a non-recurring sale to a
related party of $116 for the three
months ended March 31, 2017.
- Gross profit was $26, compared to
$15 for the first quarter of
2017.
- Operating expenses increased 9% to $1,238, compared to $1,137 for the first quarter of 2017.
- Net loss increased 9% to $1,212,
compared to $1,117 for the first
quarter of 2017.
Liquidity
As of March 31, 2018, the Company had
no debt and had $1.7 million in
working capital. The Company raised approximately $287 from the sale of 140,295 shares of common
stock for $2.11 per share through its
at-the-market program with H.C. Wainwright & Co., LLC.
Subsequent to the end of the quarter, the Company consummated a
private placement of shares of common stock on April 25, 2018, issuing 806,452 shares at a
purchase price of $1.24 per share to
a group of accredited investors, including MYOS CEO Joseph Mannello and a member of the Company's
board of directors, for aggregate gross proceeds of $1.0 million.
MANAGEMENT COMMENTARY:
Joseph
Mannello, Chief Executive Officer of MYOS, commented, "Our
results for the first quarter of 2018 are in-line with our
expectations. I am optimistic about our sports nutrition vertical,
as several key initiatives have begun which we believe will be a
strong catalyst for additional sales growth for Myos.
We recently secured the prestigious NSF "Certified for
Sport®" certification for the manufacture of our new
Yolked™ line of products. Gaining this
certification activated our marketing relationship with IMG
College, a division of IMG. We have begun meeting with several
Division I universities in the northeast part of the country. We
will place our product in these universities, and based on the
overall demand, will establish accounts at these universities. I
can't emphasize enough how efficient this process has been in terms
of gaining entry into these universities, thanks to our marketing
partnership with IMG.
In the coming days, we will debut a new, more focused website
for our products. Based on feedback from customers and visitors, we
learned that we needed to improve our messaging in terms of
educating the marketplace about the science-based benefits of
Fortetropin®. We are optimistic that our new website can
be a central hub for learning about our products, as well as a tool
to help people learn more about muscle health and nutrition.
Recently, we hired two direct sales organizations to support our
internal sales team. These sales organizations allow us to run more
efficient marketing campaigns, identifying key decision makers for
advancing and selling our products across sports nutrition and
veterinary products. We anticipate meaningful results from their
efforts to begin in Q3 of 2018.
As I've stated in previous communications, we continue to be
fully committed towards building shareholder value through science.
We now have four active studies– Kansas State
University; UC Berkeley; Rutgers, The State University of New Jersey; and today's announced pre-clinical
cachexia study with Weill Cornell Medical Center.
I want to highlight our study with Kansas
State University, relating to Fortetropin® and
its impact on muscle health in dogs. As we announced in 2017, this
is a randomized, double blind, placebo‐controlled clinical study
initiated with Dr. Kenneth Harkin,
College of Veterinary Medicine, Kansas State
University, to determine if daily supplementation of
Fortetropin® can reduce muscle atrophy in dogs that
undergo TPLO surgery, which is comparable to ACL surgery in humans.
The study involves 100 dogs, where 50 dogs receive daily
supplementation of Fortetropin® over the course of 12
weeks following surgery, while the remaining 50 dogs will receive a
macronutrient‐matched placebo control. The primary endpoint of this
study is muscle thickness of coxofemoral extensors and flexors. The
secondary end‐points are epaxial muscle thickness, muscle condition
score and stance analysis. To date, the study is more than 90%
complete and we expect to announce results before the end of
2018.
I'm very excited about the potential for our veterinary product;
we continue to receive great feedback from veterinarians who have
been using the product on dogs and cats. This is an important part
of the MYOS story, and we have found several veterinary industry
indicators that demonstrate the great promise of market success and
acceptance for our Fortetropin®-based product.
Simply put, pet owners are paying more today for their pets than
ever before. Nontraditional veterinary care and nutrition
techniques have grown significantly in the past several years.
Veterinarians are adopting new treatment protocols, including
Integrative Veterinary Medicine, combining western veterinary
science with nontraditional approaches. These methods include
homeopathic and herbal remedies, along with massage, chiropractic
work, and nutritional counseling. Now why is this all important?
Because new technologies and a changing marketplace of pet
owners have spurred greater interest in more nontraditional
supplements and therapies for pets. During the past decade, a
majority of pet owners in the US were middle-aged. As millennials
begin to outnumber baby boomers, however, this particular pet owner
demographic has reached a tipping point. Now ranking the highest
among generations, millennial pet ownership has surpassed baby
boomers, according to a December 2017
Packaged Facts report on pet food in the US. The report also
states that millennials account for 35% of all pet owners.
Research has shown that pets are living longer, thanks to
advances in care, and have very different veterinary needs, both
for wellness and sickness, compared to prior generations. In fact,
some veterinary practices now offer customized wellness programs
for aged pets. Many pet owners are willing to pay for treatments
that were once reserved for only humans and are willing to pay a
significant sum for these treatments. We can see this in the pet
insurance business where policies have become more popular over the
past few years. The US market for pet health insurance is expected
to nearly double from more than $530
million in 2013 to almost $1
billion by 2020 according to a report by Packaged
Facts.
As I mentioned earlier, this is just one of four ongoing
clinical studies. The results of these and other studies will
determine just how large the long-term potential for this company
is going forward. I view our company today as a bio-nutrition
company, with a portfolio of brands that are entering the
marketplace and supporting our scientific initiatives. I believe
that the best way to value MYOS over the long-term is through our
scientific initiatives that will potentially provide large revenue
opportunities. It is my belief and optimism in the long-term
potential of MYOS that led me to participate, along with one of our
board members and others, in an additional $1 million investment into the Company. We
continue to have no debt. Fortetropin® is truly a
disruptive and remarkable product that improves muscle health. Our
strong balance sheet, conservative cash management strategy,
improved scientific profile and brand development will yield both
short-term and long-term success. We look forward to sharing more
on our developing story in the months to come.
CONFERENCE CALL
MYOS will host a conference call tomorrow, Thursday, May 10, 2018 at 11:00 am ET, at which time MYOS Chief Executive
Officer Joseph Mannello will provide
highlights and commentary on earnings results and developments on
clinical studies for the first quarter ended March 31, 2018.
Call Date/Time: Thursday, May 10,
2018 at 11:00 am ET
Call
Title:
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MYOS RENS Technology
First Quarter 2018 Financial Results Conference Call
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Dial
In:
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877-407-4019 from the
U.S.;
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International callers
may telephone 201-689-8337
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Please call in
approximately 10 minutes before the call.
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A digital replay will be available by telephone approximately
two hours after the completion of the call until July 31, 2018 and may be accessed by dialing
877-660-6853 from the U.S. or 201-612-7415 for international
callers, using the Conference ID# 13679724.
This call will be simultaneously webcast. The webcast will be
available on the MYOS website, www.myosrens.com, in the "Investor
Relations" section. The webcast will be archived and available at
the same web address for two weeks following the call.
About MYOS RENS Technology Inc.
MYOS RENS Technology Inc. (MYOS), "The Muscle Company™", is a
Cedar Knolls, NJ-based
bionutrition 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 and lean body mass in conjunction with resistance training.
MYOS believes Fortetropin® has the potential to redefine existing
standards of physical health and wellness. 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 successful launch of our products,
including Qurr® products, 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 the forecasted revenue stream and cash flow
from sales of our products, the ability to continue increasing 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, and other factors discussed from time to
time in the Company's Securities and Exchange Commission filings.
The Company undertakes 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.
The following tables should be read in conjunction with the
footnotes accompanying the consolidated financial statements
contained within the Form 10Q issued on May
9, 2018.
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands,
except share and per share amounts)
|
|
|
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March 31,
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December 31,
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|
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2018
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2017
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(Unaudited)
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ASSETS
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Current
assets:
|
|
|
|
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Cash
|
|
$
|
230
|
|
|
$
|
923
|
|
Accounts receivable,
net
|
|
|
1
|
|
|
|
4
|
|
Inventories,
net
|
|
|
1,782
|
|
|
|
1,779
|
|
Prepaid expenses and
other current assets
|
|
|
161
|
|
|
|
163
|
|
Total current
assets
|
|
|
2,174
|
|
|
|
2,869
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Deferred offering
costs
|
|
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96
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|
|
|
102
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Fixed assets,
net
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|
|
173
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|
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184
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|
Intangible assets,
net
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1,568
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|
|
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1,640
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Total
assets
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$
|
4,011
|
|
|
$
|
4,795
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|
|
|
|
|
|
|
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LIABILITIES AND
STOCKHOLDERS EQUITY
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Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
184
|
|
|
$
|
176
|
|
Accrued expenses and
other current liabilities
|
|
|
263
|
|
|
|
255
|
|
Total current
liabilities
|
|
|
447
|
|
|
|
431
|
|
|
|
|
|
|
|
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Total
liabilities
|
|
|
447
|
|
|
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431
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|
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Commitments and
contingencies
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-
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-
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|
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Stockholders'
equity:
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|
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|
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Preferred stock,
$.001 par value; 500,000 shares authorized; no shares issued
and
outstanding
|
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-
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|
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-
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Common stock, $.001
par value; 12,000,000 shares authorized at March 31, 2018
and at December 31, 2017;
6,536,046 and 6,340,604 shares issued and
outstanding at March 31, 2018 and
December 31, 2017, respectively
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7
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|
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|
6
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Additional paid-in
capital
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36,614
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36,202
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Accumulated
deficit
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(33,057)
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(31,844)
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Total stockholders'
equity
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3,564
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4,364
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Total liabilities and
stockholders' equity
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$
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4,011
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$
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4,795
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MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in
thousands, except share and per share amounts)
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Three Months
Ended
|
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March
31,
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2018
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|
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2017
|
|
|
|
|
|
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Net
revenues
|
|
$
|
57
|
|
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$
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150
|
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Cost of
sales
|
|
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31
|
|
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135
|
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Gross
profit
|
|
|
26
|
|
|
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15
|
|
|
|
|
|
|
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Selling, marketing
and research
|
|
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394
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|
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300
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Personnel and
benefits
|
|
|
417
|
|
|
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333
|
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General and
administrative
|
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427
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|
504
|
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Total operating
expenses
|
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1,238
|
|
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|
1,137
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Operating
loss
|
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(1,212)
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(1,122)
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Other (expense)
income, net
|
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(1)
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5
|
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Net loss
|
|
$
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(1,213)
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|
$
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(1,117)
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|
|
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Net loss per share
attributable to common shareholders:
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Basic and
diluted
|
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$
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(0.19)
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$
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(0.20)
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|
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|
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Weighted average
number of common shares outstanding:
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Basic and
diluted
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6,504,590
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5,627,705
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MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in
thousands)
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|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2018
|
|
|
2017
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
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Net loss
|
|
$
|
(1,213)
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|
|
$
|
(1,117)
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Adjustments to
reconcile net loss to net cash used in operating
activities:
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|
|
|
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Depreciation
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11
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|
|
|
13
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Amortization
|
|
|
72
|
|
|
|
53
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Stock-based
compensation
|
|
|
123
|
|
|
|
41
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
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Decrease (increase)
in accounts receivable
|
|
|
3
|
|
|
|
(57)
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Increase in
inventories
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|
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(3)
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(3)
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Decrease (increase)
in prepaid expenses
|
|
|
2
|
|
|
|
(181)
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Decrease in deferred
revenue
|
|
|
-
|
|
|
|
(56)
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Increase (decrease)
in accounts payable and accrued expenses
|
|
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16
|
|
|
|
(121)
|
|
Net cash used in
operating activities
|
|
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(989)
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|
|
|
(1,428)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Deferred offering
costs from at the market transaction
|
|
|
-
|
|
|
|
(125)
|
|
Proceeds from
registered direct offering of common stock
|
|
|
296
|
|
|
|
1,926
|
|
Net cash provided by
financing activities
|
|
|
296
|
|
|
|
1,801
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash
|
|
|
(693)
|
|
|
|
373
|
|
Cash at beginning of
period
|
|
|
923
|
|
|
|
1,866
|
|
Cash at end of
period
|
|
$
|
230
|
|
|
$
|
2,239
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash investing and financing
activities:
|
|
|
|
|
|
|
Recognition of
deferred offering costs
|
|
|
6
|
|
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|
-
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Investor Relations:
Porter LeVay & Rose
Michael Porter, President
Phone: 212-564-4700
Email: MYOS@plrinvest.com
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SOURCE MYOS RENS Technology Inc.