CEDAR KNOLLS, N.J.,
Aug. 6, 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
derived from fertilized egg yolk that helps build lean muscle,
announced today its financial results for the three months and six
months ended June 30, 2019.
FINANCIAL HIGHLIGHTS: (Amounts in thousands except where
noted)
Second Quarter - Three Months Ended June 30, 2019:
- Net revenues increased $66, or
75%, to $154 compared to net revenues
of $88 for the three months ended
June 30, 2018. The increase was
primarily due to an increase in net revenues of $124 for two new products launched in 2018,
$38 for Yolked® and $86 for Myos Canine Muscle Formula®, offset by a
decrease of $58 from our old product
lines.
- Gross profit for the three months ended June 30, 2019 increased $47 or 181% to $73,
compared to $26 for the three months
ended June 30, 2018.
- Gross profit margin was 47% for the three months ended
June 30, 2019 compared to 30% for the
three months ended June 30,
2018.
- Operating expenses for the three months ended June 30, 2019, increased $179 or 17% to $1,239 compared to $1,060 for the three months ended June 30, 2018. The increase was primarily due to
the marketing of the Company's new products and the hiring of an
in-house sales team that began in July
2018.
- Net loss increased $141 or 14% to
$1,175 for the three months ended
June 30, 2019 compared to
$1,034 for the three months ended
June 30, 2018.
First Half - Six Months Ended June 30,
2019:
- Net revenues for the six months ended June 30, 2019 increased $158 or 109% to $303 compared to net revenues of $145 for the six months ended June 30, 2018. The increase was primarily due to
an increase in net revenues of $253
for two new products launched in 2018, $106 for Yolked and $147 for Myos Canine Muscle Formula, offset by a
decrease of $95 from the Company's
old product lines.
- Gross profit for the six months ended June 30, 2019 increased $109 or 210% to $161, compared to $52 for the six months ended June 30, 2018.
- Gross profit margin was 53% for the six months ended
June 30, 2019 compared to 36% for the
six months ended June 30, 2018.
- Operating expenses for the six months ended June 30, 2019 were $2,290, compared to $2,298 for the six months ended June 30, 2018.
- Net loss decreased 4% to $2,150
for the six months ended June 30,
2019 compared to $2,247 for
the three months ended June 30,
2018.
Liquidity:
As of June 30,
2019, the Company had cash of $1,158 and total assets of $4,519. Working capital increased $636 to $1,905 on
June 30, 2019 compared to
$1,269 at December 31, 2018.
Business & Operational Highlights:
- Announced positive top-line results from its randomized,
double-blind, placebo-controlled study that was conducted at the
University of California, Berkeley and
the University of Arkansas for Medical
Sciences, evaluating the impact of Fortetropin on the rate of
muscle protein synthesis in older men and women (60-75 years of
age). The study showed that Fortetropin significantly increased the
fractional synthetic rate of muscle proteins relative to
placebo.
- Completed a randomized, double blind, placebo-controlled
veterinary clinical trial at Kansas State
University to evaluate the impact of Fortetropin on 100 dogs
recovering from tibial plateau leveling osteotomy (TPLO) surgery.
Dogs that received Fortetropin had reduced muscle atrophy and could
exert more force with their operated limb relative to dogs that
received a placebo. Further, dogs in the Fortetropin group
maintained stable levels of myostatin following surgery while an
increase in myostatin levels of ~10% was noted in dogs that
received the placebo.
- Our sponsored study at Kansas State
University College of Veterinary Medicine evaluating the
impact of Fortetropin on quality of life and activity in geriatric
dogs was initiated and has recruited 17 of the 40 dogs as of
June 30, 2019.
- Signed an endorsement partnership with Women's World Cup
Champion soccer player Carli Lloyd
and NBA superstar, Aaron Gordon, who
are both serving as endorsers of Yolked and will appear in multiple
marketing campaigns.
- Received US Patent # 10,165,785 titled, "Process
for Producing a Composition for Increasing Muscle Mass"
providing broad protection for the manufacturing process of
Fortetropin.
- Filed an international utility patent application
(PCT/US2019/041279) titled, "Methods and Compositions for
Improving Skeletal Muscle Protein Fractional Synthetic
Rate".
- Filed an international utility patent application
(PCT/US2019/040103) titled, "Methods for Alleviating, Inhibiting
or Reversing Muscle Disuse Atrophy in Mammals".
Management Commentary:
Joseph
Mannello, Chief Executive Officer of MYOS, commented, "We
are pleased with our strong financial results for the second
quarter and first half of 2019, and the accelerating upward
trajectory in sales. The constant drive in our various commercial
initiatives increased our brand's reach and presence, growing our
top line by 75% in the second quarter and 109% in the first half of
2019, respectively.
"Myos Canine Muscle Formula sales of $89 in the second quarter of 2019 were up 46%
from $61 in the first quarter of
2019, showing continued growth. Myos Canine Muscle Formula sales in
the first quarter of 2019 grew 85% from $33 in the fourth quarter of 2018. Moving
forward, we expect continued growth in our veterinary segment as
the positive results from our clinical study at Kansas State University become more widely
known, which will be supported by an aggressive marketing
campaign.
"In addition, the results of our recent UC Berkeley clinical
study show that Fortetropin has remarkable potential for managing
age-related muscle loss in older adults. Our portfolio continues to
strengthen as our scientific and clinical research demonstrates the
efficacy and safety of consuming Fortetropin to improve muscle
health.
"We're excited about the course ahead for the second half of
2019 and beyond, and believe that the future looks exceedingly
positive. We're confident we are well positioned to drive future
growth in multiple market segments which will enable us to build a
diversified business and deliver value for our shareholders,"
concluded Mr. Mannello.
Conference Call
The Company will host a conference
call tomorrow, Wednesday, August 7,
2019 at 11:00 am ET, at which
time MYOS Chief Executive Officer Joseph
Mannello will provide commentary on the Company's earnings
results and provide updates on its ongoing clinical studies and
commercial efforts.
Call Date/Time: Wednesday, August 7,
2019 at 11:00 am ET
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
November 9, 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# 13693294.
This call will be simultaneously webcast 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 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® , 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
footnotes accompanying the condensed consolidated financial
statements contained in the Quarterly Report on Form 10-Q filed
today with the Securities and Exchange Commission.
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY CONDENSED CONSOLIDATED
BALANCE SHEETS (in thousands, except share and per share
amounts)
|
|
|
|
June 30,
2019
|
|
|
December
31,
2018
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
1,158
|
|
|
$
|
15
|
|
Accounts receivable,
net
|
|
|
16
|
|
|
|
78
|
|
Other current
asset
|
|
|
-
|
|
|
|
1,124
|
|
Inventories,
net
|
|
|
1,677
|
|
|
|
1,676
|
|
Prepaid
expenses
|
|
|
147
|
|
|
|
10
|
|
Total current
assets
|
|
|
2,998
|
|
|
|
2,903
|
|
|
|
|
|
|
|
|
|
|
Operating lease right
of use asset
|
|
|
213
|
|
|
|
-
|
|
Deferred offering
costs
|
|
|
92
|
|
|
|
108
|
|
Other
asset
|
|
|
-
|
|
|
|
50
|
|
Fixed assets,
net
|
|
|
136
|
|
|
|
149
|
|
Intangible assets,
net
|
|
|
1,080
|
|
|
|
1,245
|
|
Total
assets
|
|
$
|
4,519
|
|
|
$
|
4,455
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
126
|
|
|
$
|
236
|
|
Accrued expenses and
other current liabilities
|
|
|
136
|
|
|
|
383
|
|
Operating lease
liabilities – current portion
|
|
|
46
|
|
|
|
-
|
|
Related party
promissory note payable and accrued interest
|
|
|
785
|
|
|
|
1,015
|
|
Total current
liabilities
|
|
|
1,093
|
|
|
|
1,634
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Operating lease
liabilities – net of current portion
|
|
|
172
|
|
|
|
-
|
|
Total
liabilities
|
|
|
1,265
|
|
|
|
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 June 30, 2019 and
December 31, 2018; 9,170,658 and 7,481,723 shares
issued and outstanding at
June 30, 2019 and December 31, 2018,
respectively
|
|
|
9
|
|
|
|
8
|
|
Additional paid-in
capital
|
|
|
40,462
|
|
|
|
37,880
|
|
Accumulated
deficit
|
|
|
(37,217)
|
|
|
|
(35,067)
|
|
Total stockholders'
equity
|
|
|
3,254
|
|
|
|
2,821
|
|
Total liabilities and
stockholders' equity
|
|
$
|
4,519
|
|
|
$
|
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
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
154
|
|
|
$
|
88
|
|
|
$
|
303
|
|
|
|
145
|
|
Cost of
sales
|
|
|
81
|
|
|
|
62
|
|
|
|
142
|
|
|
|
93
|
|
Gross
profit
|
|
|
73
|
|
|
|
26
|
|
|
|
161
|
|
|
|
52
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, marketing
and research
|
|
|
337
|
|
|
|
235
|
|
|
|
612
|
|
|
|
629
|
|
Personnel and
benefits
|
|
|
470
|
|
|
|
348
|
|
|
|
890
|
|
|
|
765
|
|
General and
administrative
|
|
|
432
|
|
|
|
477
|
|
|
|
788
|
|
|
|
904
|
|
Total operating
expenses
|
|
|
1,239
|
|
|
|
1,060
|
|
|
|
2,290
|
|
|
|
2,298
|
|
Operating
loss
|
|
|
(1,166)
|
|
|
|
(1,034)
|
|
|
|
(2,129)
|
|
|
|
(2,246)
|
|
Other
expense
|
|
|
(9)
|
|
|
|
-
|
|
|
|
(21)
|
|
|
|
(1)
|
|
Loss before income
taxes
|
|
|
(1,175)
|
|
|
|
(1,034)
|
|
|
|
(2,150)
|
|
|
|
(2,247)
|
|
Net loss
|
|
$
|
(1,175)
|
|
|
$
|
(1,034)
|
|
|
$
|
(2,150)
|
|
|
$
|
(2,247)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.13)
|
|
|
$
|
(0.14)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.33)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
9,170,658
|
|
|
|
7,249,782
|
|
|
|
9,170,658
|
|
|
|
6,877,186
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited; in
thousands)
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
2019
|
|
|
2018
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,150)
|
|
|
$
|
(2,247)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
13
|
|
|
|
20
|
|
Amortization
|
|
|
165
|
|
|
|
144
|
|
Stock-based
compensation
|
|
|
71
|
|
|
|
165
|
|
Deferred offering
costs
|
|
|
-
|
|
|
|
96
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Decrease in accounts
receivable
|
|
|
62
|
|
|
|
2
|
|
Decrease in other
current asset
|
|
|
1,124
|
|
|
|
-
|
|
(Increase) decrease
in inventories
|
|
|
(1)
|
|
|
|
12
|
|
(Increase) decrease
in prepaid expenses
|
|
|
(137)
|
|
|
|
51
|
|
Increase in other
assets
|
|
|
50
|
|
|
|
-
|
|
Increase in accrued
interest on promissory note payable
|
|
|
20
|
|
|
|
-
|
|
Decrease in accounts
payable and accrued expenses
|
|
|
(352)
|
|
|
|
(13)
|
|
Net cash used in
operating activities
|
|
|
(1,135)
|
|
|
|
(1,770)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
registered direct offering of common stock, net
|
|
|
428
|
|
|
|
-
|
|
Deferred offering
costs from at-the-market transaction
|
|
|
-
|
|
|
|
(49)
|
|
Deferred offering
costs from private placement
|
|
|
-
|
|
|
|
(45)
|
|
Net proceeds from
issuance of common stock in private placement
|
|
|
1,850
|
|
|
|
1,449
|
|
Net cash provided by
financing activities
|
|
|
2,278
|
|
|
|
1,355
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
1,143
|
|
|
|
(415)
|
|
Cash at beginning of
period
|
|
|
15
|
|
|
|
923
|
|
Cash at end of
period
|
|
$
|
1,158
|
|
|
$
|
508
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information related to leases:
|
|
|
|
|
|
|
|
|
Cash paid on
operating leases
|
|
|
38
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
Conversion of related
party promissory note 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
View original content to download
multimedia:http://www.prnewswire.com/news-releases/myos-rens-technology-reports-75-net-revenue-growth-in-second-quarter-109-net-revenue-growth-in-first-half-of-2019-300897635.html
SOURCE MYOS RENS Technology Inc.