CEDAR KNOLLS, N.J.,
May 8, 2019 /PRNewswire/ -- MYOS RENS
Technology Inc. ("MYOS" or the "Company") (NASDAQ: MYOS), an
advanced nutrition company and the owner of
Fortetropin®, a proprietary bioactive composition derive
from fertilized egg yolk that helps build lean muscle in
conjunction with resistance training, announced today its financial
results for the first quarter ended March
31, 2019. (Amounts in thousands except where
noted.)
FINANCIAL HIGHLIGHTS:
First Quarter 2019:
- Net revenues increased 161% to $149 for the first quarter of 2019, compared to
$57 for the first quarter of
2018.
-
- Revenues for Yolked®, which was launched in
March 2018, were $68.
- Revenues for Myos Canine Muscle Formula®, which was
launched in June 2018, were
$61.
- Gross profit increased 238% to $88 for the first quarter of 2019, compared to
$26 for the first quarter of
2018.
- Gross profit margin was 59% for the first quarter of 2019,
compared to 46% for the first quarter of 2018.
- Operating expenses decreased 15% to $1,051 for the first quarter of 2019, compared to
$1,238 for the first quarter of
2018.
- Net loss decreased 20% to $975
for the first quarter of 2019, compared to $1,213 for the first quarter of 2018.
Liquidity
As of March 31, 2019 the Company had
cash of $2,197 and working capital of
$2,905.
The Company raised approximately $211 in gross proceeds in the first quarter of
2019 through its at-the-market program by selling 32,489 shares of
common stock for $2.00 per share on
January 15, 2019 and 78,640 shares of
common stock for $1.85 per share on
March 19, 2019.
On March 27, 2019, the Company
consummated a private placement of 1,438,356 shares of common stock
at a purchase price of $1.46 per
share to a group of accredited investors, including MYOS CEO
Joseph Mannello and a member of the
Company's board of directors, for gross proceeds of $1,850 and $250
related to the conversion of a related party promissory note.
CLINICAL RESEARCH HIGHLIGHTS:
- Announced successful results from our study at Kansas State University demonstrating that
Fortetropin, the active ingredient in Myos Canine Muscle Formula,
prevents muscle loss in canines after surgery and enhances
recovery.
-
- Results from the study were presented at the North American
Veterinary Community (NAVC) Conference/VMX in Orlando, Florida by the principal investigator
of the study, Kenneth R. Harkin,
DVM, DACVIM (SAIM), Professor & Section Head, College of
Veterinary Medicine at Kansas State
University.
- Approved new study at College of Veterinary Medicine at
Kansas State University to evaluate the
impact of Fortetropin on quality of life and activity in geriatric
dogs.
BUSINESS & OPERATIONAL HIGHLIGHTS:
- Launched distribution of Yolked with The Vitamin
Shoppe®, a national specialty retailer and wellness
lifestyle company. The Vitamin Shoppe is carrying Yolked at its 775
store locations across the U.S. and online at
vitaminshoppe.com.
- Signed a national brokerage agreement with National Sales
Associates ("NSA"), which allows MYOS to sell its NSF "Certified
for Sport®" sports nutrition brand, Yolked, along with
MYOS Canine Muscle Formula throughout its national sales network of
eight regional offices with over 160 associates.
- Yolked, along with MYOS Canine Muscle Formula is being sold on
Amazon.com
- Announced the first endorsement partnership for Yolked with NBA
superstar Aaron Gordon of the
Orlando Magic.
- Expanded national college athletics marketing campaign through
our Learfield/IMG partnership to nine universities, which include
Virginia Tech, University of Connecticut, West Virginia University, Marshall University, Princeton
University, Rutgers University,
University of Pittsburgh, St. John's University, and University of Delaware.
- Received United States Patent # 10,165,785 titled, "Process for
Producing Composition for Increasing Muscle Mass" from the United
States Patent and Trademark Office (USPTO) on January 1st, 2019. This new patent
significantly enhances MYOS' existing intellectual property
portfolio, enabling MYOS to protect its advanced technologies for
the development of innovative nutrition products to address
musculoskeletal health.
LITIGATION UPDATE
- The litigation between MYOS and Rens Technologies in the
State of Nevada has been dismissed
and the parties are currently in settlement discussions regarding
the litigation in the State of New
York.
MANAGEMENT COMMENTARY
Joseph Mannello, Chief Executive
Officer of MYOS, commented, "Our strong first quarter results
support our commitment to driving sales, while efficiently scaling
the Company and executing on our growth strategy. We've managed to
significantly increase our revenues from a year ago, while reducing
our operating expenses, a remarkable achievement when considering
that a year ago, our NSF "Certified for Sport" sports nutrition
brand, Yolked had just launched, while our MYOS Canine Muscle
Formula was still a month away from launch. Today, both Yolked and
MYOS Canine Muscle Formula represent the building blocks for MYOS
to deliver long-term value for our shareholders.
"As an emerging company, we've had to weigh the costs of
expanding our internal efforts with partnerships with
long-established sales leaders. For our Yolked brand, we
established a collegiate marketing platform with IMG, which has
quickly expanded to nine universities' athletic departments, and
have begun making inroads with professional sports. We do not
believe we would have managed to build such a footprint so quickly
without the support of IMG.
"Similarly, we announced a distribution agreement in December
with Miller Veterinary Supply East, which allows us to sell MYOS
Canine Muscle Formula in more than 6,000 veterinary hospitals.
Together with the important results of our initial Kansas State University study, we've begun to
establish real sales momentum with veterinarians, as well as dog
owners.
"Adding to these efforts, we recently announced a national
brokerage agreement with National Sales Associates. This is the
first agreement we've signed with a distributor which will sell
both Yolked and MYOS Canine Muscle Formula. NSA specializes in
natural, organic, and specialty products across its national sales
network of eight regional offices with over 160 associates. This
partnership fits closely with our interests, particularly with
their ability to market unique products to a broad network of
retailers, through some of the largest distributors in the United States.
"Customers continue to enthusiastically respond to our products
and we have our eyes firmly fixed on our mission to change the way
people think about the importance of muscle health, both in humans
and dogs.
"Discipline continues to drive how we allocate capital to create
long-term shareholder value. We managed to reduce our costs from a
year ago, while raising the necessary capital to ensure
sustainability for our business. I personally invested in our
recent private placement offering, as well as prior offerings,
because I wholeheartedly believe in what we have built at MYOS and
because of the growth opportunities over the long-term. We will
continue to execute on our growth plans and continue to build
shareholder value," concluded Mr. Mannello.
CONFERENCE CALL
MYOS will host a conference call tomorrow, Thursday, May 9, 2019 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, 2019.
Conference Call Details:
Call
Date/Time:
|
Thursday, May 9,
2019 at 11 AM ET
|
|
|
Call
Title:
|
MYOS RENS
Technology First Quarter 2019 Results Conference
Call
|
|
|
Dial In:
|
877-407-4019
from the U.S.; international callers may telephone 201-689-8337
approximately 15 minutes before the call.
|
A digital replay will be available by telephone approximately
two hours after the completion of the call until August 30, 2019 and may be accessed by dialing
877-660-6853 from the U.S., or 201-612-7415 for international
callers, using the Conference ID# 13690404.
This call will be simultaneously webcast on the MYOS website,
www.myosrens.com, in the "Investor Relations" section. An archive
of the webcast will be 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 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 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 success of our products, including
Qurr®, Yolked®, MYOS Enteral
Nutrition Formula™ and MYOS Canine Muscle
Formula® 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 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, 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.
The following tables should be read in conjunction with the
notes accompanying the condensed consolidated financial statements
contained within the Form 10-Q filed by the Company on May 8, 2019.
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except share and per amounts)
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2019
(Unaudited)
|
|
|
2018
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
2,197
|
|
|
$
|
15
|
|
Accounts receivable,
net
|
|
|
19
|
|
|
|
78
|
|
Other current
asset
|
|
|
-
|
|
|
|
1,124
|
|
Inventories,
net
|
|
|
1,686
|
|
|
|
1,676
|
|
Prepaid
expenses
|
|
|
153
|
|
|
|
10
|
|
Total current
assets
|
|
|
4,055
|
|
|
|
2,903
|
|
|
|
|
|
|
|
|
|
|
Other
asset
|
|
|
50
|
|
|
|
50
|
|
Deferred offering
costs
|
|
|
92
|
|
|
|
108
|
|
Operating lease right
of use asset
|
|
|
224
|
|
|
|
-
|
|
Fixed assets,
net
|
|
|
142
|
|
|
|
149
|
|
Intangible assets,
net
|
|
|
1,173
|
|
|
|
1,245
|
|
Total
assets
|
|
$
|
5,736
|
|
|
$
|
4,455
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
211
|
|
|
$
|
236
|
|
Accrued expenses and
other current liabilities
|
|
|
118
|
|
|
|
383
|
|
Operating lease
liabilities – current portion
|
|
|
46
|
|
|
|
-
|
|
Related party
promissory note payable and accrued interest
|
|
|
775
|
|
|
|
1,015
|
|
Total current
liabilities
|
|
|
1,150
|
|
|
|
1,634
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Operating lease liabilities –
net of current portion
|
|
|
185
|
|
|
|
-
|
|
Total
liabilities
|
|
|
1,335
|
|
|
|
1,634
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock,
$.001 par value; 500,000 shares authorized; no shares issued and
outstanding
|
|
|
-
|
|
|
|
-
|
|
Common stock, $.001
par value; 12,000,000 shares authorized at March 31, 2019 and
December 31, 2018; 9,170,658 and 7,481,723 shares issued and
outstanding at March 31, 2019 and December 31, 2018,
respectively
|
|
|
9
|
|
|
|
8
|
|
Additional paid-in
capital
|
|
|
40,434
|
|
|
|
37,880
|
|
Accumulated
deficit
|
|
|
(36,042)
|
|
|
|
(35,067)
|
|
Total stockholders'
equity
|
|
|
4,401
|
|
|
|
2,821
|
|
Total liabilities and
stockholders' equity
|
|
$
|
5,736
|
|
|
$
|
4,455
|
|
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,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
149
|
|
|
$
|
57
|
|
Cost of
sales
|
|
|
61
|
|
|
|
31
|
|
Gross
profit
|
|
|
88
|
|
|
|
26
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, marketing
and research
|
|
|
275
|
|
|
|
394
|
|
Personnel and
benefits
|
|
|
420
|
|
|
|
417
|
|
General and
administrative
|
|
|
356
|
|
|
|
427
|
|
Total operating
expenses
|
|
|
1,051
|
|
|
|
1,238
|
|
Operating
loss
|
|
|
(963)
|
|
|
|
(1,212)
|
|
Other (expense)
income, net
|
|
|
(12)
|
|
|
|
(1)
|
|
Net loss
|
|
$
|
(975)
|
|
|
$
|
(1,213)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.13)
|
|
|
$
|
(0.19)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
7,669,181
|
|
|
|
6,504,590
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited; in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2019
|
|
|
2018
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(975)
|
|
|
$
|
(1,213)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
7
|
|
|
|
11
|
|
Amortization
|
|
|
72
|
|
|
|
72
|
|
Stock-based
compensation
|
|
|
243
|
|
|
|
123
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Decrease in accounts
receivable
|
|
|
59
|
|
|
|
3
|
|
Increase in
inventories
|
|
|
(10)
|
|
|
|
(3)
|
|
Increase in right of
use asset
|
|
|
224
|
|
|
|
-
|
|
Decrease (increase)
in prepaid expenses and other assets
|
|
|
995
|
|
|
|
2
|
|
Increase in operating
lease liabilities
|
|
|
(231)
|
|
|
|
-
|
|
Increase (decrease)
in accounts payable and accrued expenses
|
|
|
(280)
|
|
|
|
16
|
|
Net cash provided by
(used in) operating activities
|
|
|
104
|
|
|
|
(989)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
registered direct offering of common stock,
net
|
|
|
228
|
|
|
|
296
|
|
Net proceeds from
issuance of common stock in private
placement
|
|
|
1,850
|
|
|
|
-
|
|
Net cash provided by
financing activities
|
|
|
2,078
|
|
|
|
296
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
2,182
|
|
|
|
(693)
|
|
Cash at beginning of
period
|
|
|
15
|
|
|
|
923
|
|
Cash at end of
period
|
|
$
|
2,197
|
|
|
$
|
230
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash investing and financing activities:
Conversion of
related party promissory note payable into shares of common
stock
|
|
250
|
|
|
-
|
|
Reclassification of
deferred offering costs to additional paid in capital
|
|
|
16
|
|
|
|
6
|
|
Investor Relations:
Porter LeVay & Rose
Matthew Abenante, IRC, SVP
Phone: 212-564-4700
Email: MYOS@plrinvest.com
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