CEDAR KNOLLS, N.J.,
March 25, 2020 /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,
announces its results for the fiscal year ended December 31, 2019.
"During our fiscal year ended December
31, 2019, we made exceptional progress in our Animal Health,
Age Management and Sports Nutrition businesses," said MYOS CEO
Joseph Mannello.
Net revenues (in thousands)
Net revenues for the year ended December
31, 2019 increased $672 to
$1,032, or 187%, compared to net
sales of $360 for the year ended
December 31, 2018 primarily due to an
increase in net revenues of $600 for
our Yolked® and Myos Canine
Muscle Formula® ("Myos Canine") products in
2019 and an increase in our white label sales of $221 offset by a decrease in net revenue
from our old products of $149.
Cost of revenues
Cost of revenues for the year ended December 31, 2019 increased $149, or 60%, compared to cost of revenues for
the year ended December 31, 2018
primarily due to an increase of $179
in manufacturing costs associated with making new products.
Operating expenses
Sales, marketing and research expenses for the year ended
December 31, 2019 increased
$382 or 43%, compared to the year
ended December 31, 2018 primarily due
to an increase in sales and marketing costs associated with the
development and launch of our new products.
Personnel and benefits expenses for the year ended December 31, 2019 increased $179 or 10%, compared to the year ended
December 31, 2018 due to the hiring
of additional sales staff
General and administrative expenses for the year ended
December 31, 2019 decreased
$149, or 8%, compared to the year
ended December 31, 2018 due to a
decrease in professional fees.
Year Ended December 31, 2019
Compared to Year Ended December 31,
2018
(In thousand
$)
|
|
Years Ended
December 31,
|
|
|
Change
|
|
|
|
2019
|
|
|
2018
|
|
|
Dollars
|
|
|
%
|
|
Net
revenues
|
|
$
|
1,032
|
|
|
$
|
360
|
|
|
$
|
672
|
|
|
|
187
|
%
|
Cost of
revenues
|
|
|
397
|
|
|
|
248
|
|
|
|
149
|
|
|
|
60
|
%
|
Gross
profit
|
|
|
635
|
|
|
|
112
|
|
|
|
523
|
|
|
|
467
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales, marketing and
research
|
|
|
1,276
|
|
|
|
894
|
|
|
|
382
|
|
|
|
43
|
%
|
Personnel and
benefits
|
|
|
1,897
|
|
|
|
1,718
|
|
|
|
179
|
|
|
|
10
|
%
|
General and
administrative
|
|
|
1,680
|
|
|
|
1,829
|
|
|
|
(149)
|
|
|
|
(8)
|
%
|
Total operating
expenses
|
|
|
4,853
|
|
|
|
4,441
|
|
|
|
412
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(4,218)
|
|
|
|
(4,329)
|
|
|
|
111
|
|
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and
other expense
|
|
|
(40)
|
|
|
|
(18)
|
|
|
|
(22)
|
|
|
|
122
|
%
|
Loss before income
taxes
|
|
|
(4,258)
|
|
|
|
(4,347)
|
|
|
|
89
|
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
|
-
|
|
|
|
1,124
|
|
|
|
(1,124)
|
|
|
|
n/a
|
|
Net loss
|
|
$
|
(4,258)
|
|
|
$
|
(3,223)
|
|
|
$
|
(1,035)
|
|
|
|
32
|
%
|
Liquidity and Capital Resources
At December 31, 2019, we had cash
of $64 an increase of $49 compared to December
31, 2018. This was primarily due to $2,416 of net proceeds received from financing
activities, which included proceeds of $1,850 from issuance of common stock,
$211 from a registered direct
offering and $355 from drawdown on
the related party promissory note.
Summarized cash flows for the years ended December 31, 2019 and 2018 are as follows:
|
|
Years Ended
December 31,
|
|
|
|
|
(In thousand
$)
|
|
2019
|
|
|
2018
|
|
|
Change
|
|
Net cash used in
operating activities
|
|
$
|
(2,367)
|
|
|
$
|
(3,250)
|
|
|
$
|
883
|
|
Net cash provided by
financing activities
|
|
|
2,416
|
|
|
|
2,342
|
|
|
|
74
|
|
Net increase
(decrease) in cash
|
|
$
|
49
|
|
|
$
|
(908)
|
|
|
$
|
957
|
|
On March 5, 2020, the Company
closed a private placement with a group of accredited investors. In
the private placement, the Company issued 1,533,058 shares of
common stock to the investors, including four members of the
Company's board of directors, and $825 of the outstanding principal amount of a
promissory note issued to our chief executive officer was converted
into 681,818 shares of common stock. The remaining 851,240 shares
of common stock sold resulted in cash proceeds of $1,030.
"We are 100% committed to the success of the company, not just
with our time but also with our capital. We have reduced our
expenses and we are prepared to reduce our expenses further if
needed. I believe it is important to discuss how MYOS has been
impacted by the COVID-19 pandemic and how we are working to
navigate through a very challenging time. I believe MYOS has the
opportunity to position its products and our research to emerge as
an industry leader after the current pandemic comes to an end,"
stated Mr. Mannello.
"Because MYOS is deemed an essential business we can remain open
during the statewide business shutdown ordered by New Jersey Gov. Phil
Murphy on March 21. MYOS' employees have been working
remotely while taking precautions in order to manage supply
chain-related issues. We prepared for the possibility of a
business shutdown and moved a greater quantity of product to our
fulfillment warehouse to complete e-commerce orders.
"We are working actively with our retail and veterinary partners
and remain committed to helping them through these challenging
times. While many physicians, veterinarians and consumers are
forced to reduce their caseload and/or remain home, we have been
actively engaging them through online webinars to create awareness
about our products and the clinical research that backs it up. We
are committed to retaining and building our future customer base by
being sensitive to the needs of physicians, veterinarians and
consumers in light of the current situation."
"Peer reviewed clinical research has shown that improved muscle
health can lead to a healthier and more active life. Earlier this
month, Prof. William J. Evans,
University of California, Berkeley, a
key opinion leader (KOL) on age-related muscle loss, presented
clinical trial results on Fortetropin® at the
International Conference on Frailty & Sarcopenia
Research. He reported that older men and women (60-75
years of age) who took Fortetropin on a daily basis experienced
approximately a 15% increase in the rate of muscle protein
synthesis when compared with subjects who received a
macronutrient-matched placebo. We believe that an investment in
muscle health is an excellent investment in one's overall health
and we have made exciting progress in our age management business
with the relaunch of our consumer health product, MYOS
Physician Muscle Health Formula® at the American
Academy of Anti-Aging Medicine (A4M) Conference in December 2019.
During these very challenging times, our priorities are: 1)
keeping our employees safe, 2) creating greater awareness of the
power of our products in both human and animal health, 3) growing
revenue with a focus on e-commerce platforms and 4) supporting
existing and new clients with enhanced marketing, advertising and
e-learning opportunities.
Further, by fortifying our inventory levels at the fulfillment
centers and organizing essential staff around continuity-of-service
planning, we are ensuring timely product delivery through the
shutdowns and remain ready for any level of heightened activity
once business returns to normal. MYOS will continue to change and
adapt as we need to. We are committed to our shareholders to do
what is necessary to succeed," concluded Mr. Mannello.
CLINICAL RESEARCH HIGHLIGHTS:
Completed randomized, double blind, placebo-controlled
clinical study at University of California,
Berkeley demonstrating that
Fortetropin® increased the rate of muscle protein
synthesis in older adults (60-75 years of age) by approximately
15%. An abstract based on our clinical trial was accepted and
was presented at the International Conference on Frailty &
Sarcopenia Research, March 2020, in
Toulouse, France.
- Completed randomized, double blind, placebo-controlled
clinical study at Kansas
State University demonstrating that
Fortetropin prevented atrophy of disuse and improved recovery for
dogs after TPLO surgery and presented the results at the North
American Veterinary Conference/VMX in Orlando.
- Initiated a randomized, placebo-controlled crossover study
at the Animal Medical Center, New
York to study the impact of Fortetropin on serum myostatin
levels in dogs over 24 hours.
- Initiated a randomized, double blind, placebo-controlled
clinical study at Kansas State
University to study the impact of Fortetropin on
quality of life (QOL) and mobility in geriatric dogs.
BUSINESS & OPERATIONAL HIGHLIGHTS:
- Leveraging results from our human clinical trial at
University of California, Berkeley,
launched MYOS Physician Muscle Health
Formula® at the American Academy of
Anti-Aging Medicine (A4M) Conference in December 2019.
- Established a distribution partnership with
Chewy.com for MYOS' Animal Health products.
- Launched the MYOS Canine Muscle Health Formula Vet
Strength nutrition product in order to strengthen the
company's direct-to-vet distribution channel.
- Obtained U.S. Patent number 10,165,785 related to
our advanced manufacturing process for Fortetropin and filed three
additional US and PCT applications.
- Established a marketing partnership for
YOLKED® with Carli
Lloyd (USWNT) and Aaron
Gordon (Orlando
Magic).
- Recruited Dante
Carnevale (Learfield IMG College) as the Company's
Chief Strategist and expanded our inside sales force and added a
digital copywriter
- Recruited Albert Ahn,
DVM, an Animal Health Industry Senior Executive with over 25
years of industry experience to serve as a Strategic Adviser to
MYOS and lead the development of the Company's Animal Health
Business.
- Added two board members who are firmly committed to
increasing shareholder value and can help management with their
industry experience.
-
- Andrew Ponte – 20+ years
as a senior executive in the pet industry with leadership roles in
sales, marketing and finance at Spectrum Brands and Central Garden
& Pet.
- Christopher Dewey – a
seasoned executive with over thirty years of experience in finance
and investment banking who co-founded several companies and holds
an MBA from the Wharton School of the University of Pennsylvania.
The Company will host a conference call on Wednesday, March 25, 2020 at 11 AM (ET), at which time Mr. Mannello will
provide commentary on earnings results and provide updates on its
ongoing clinical studies and commercial efforts.
Conference Call Details:
Call
Date/Time:
|
Wednesday, March
25, 2020 at 11:00 AM (ET)
|
Dial
In:
|
877-407-9120 from the U.S.; international
callers may telephone 412-902-1009 approximately 15 minutes
before the call.
|
A digital replay will be available by telephone
approximately two hours after the completion of the call until
April 8, 2020 and may be
accessed by dialing 877-660-6853 from the U.S. or
201-612-7415 for international callers, using the Conference
ID# 13700696.
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 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, 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.
Investor Relations:
MYOS RENS Technology
Joanne Goodford
Phone: 973-509-0444
Email: jgoodford@myoscorp.com
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