NeuroMetrix Reports Q3 2022 Financial Results
October 20 2022 - 07:00AM
NeuroMetrix, Inc. (Nasdaq: NURO) today reported financial and
business highlights for the quarter and nine-month period ended
September 30, 2022. The Company's mission is to reduce the impact
of neurological disorders and pain syndromes on individuals and on
population health through innovative non-invasive medical devices.
Highlights:
- Total Q3 2022 revenue of $2.0 million was 4.7% lower than $2.1
million reported in Q3 2021. DPNCheck® sales, the Company’s largest
revenue contributor, declined by 6% primarily due to a drop in
international sales. DPNCheck Medicare Advantage sales were flat as
an increase in new accounts was offset by decreased orders from the
Company’s largest customer.
- Q3 2022 gross profit of $1.3 million versus $1.4 million in Q3
2021 reflected a margin rate of 64.8% versus 70.0% in the prior
year. The rate decrease was due to broker payments above standard
costs to secure critical parts for current and future production.
Excluding this variance, the Q3 2022 margin rate was 73.6%.
- Operating expenses of $3.0 million increased from $2.1 million
in Q3 2021. Higher spending primarily reflected product development
efforts for DPNCheck and Quell® Fibromyalgia and investments in
commercial resources for both product lines.
- Net loss for the quarter was $1.6 million or ($0.23) per share
and the Company ended the quarter with cash and securities of $20.8
million.
- Preparation continued for a Q4 2022 limited launch of Quell
Fibromyalgia. This device is the first and only U.S. Food and Drug
Administration (FDA) authorized medical device that helps reduce
the symptoms of fibromyalgia, a condition affecting about 10
million U.S. adults. An agreement was signed with a nationally
accredited online pharmacy to process Quell Fibromyalgia
prescriptions.
"Although revenue was slightly down this quarter compared to the
same quarter last year, we believe that our R&D, commercial and
infrastructure investments are positioning the Company for future
growth," said Shai N. Gozani, M.D., Ph.D., Chief Executive Officer
of NeuroMetrix. "Our DPNCheck pipeline continues to expand and
should start to contribute meaningful sales in 2023. We are also
gearing up for a fourth quarter limited launch of Quell
Fibromyalgia to physicians managing patients with fibromyalgia.
This launch represents the culmination of our transition of the
Quell wearable neuromodulation technology from the crowded and low
margin over-the-counter market for pain treatments to the more
attractive prescription neurotherapeutics space."
Financials:
Q3 2022 revenue of $2.0 million decreased by $96 thousand or
4.7% from the prior year. Gross margin of $1.3 million contracted
by $170 thousand or 11.8% from Q3 2021. Operating expenses of $3.0
million increased by $855 thousand from $2.1 million in Q3 2021.
R&D spending of $1.1 million included $337 thousand in outside
engineering consulting services. Sales and marketing costs of $810
thousand included $247 thousand in new personnel spending. The net
loss for Q3 2022 was $1.6 million or ($0.23) per share in
comparison with a net loss of $687 thousand or ($0.12) per share in
Q3 2021.
Revenue in the nine-month period ended September 30, 2022 of
$6.4 million was flat with the comparable 2021 period. Gross profit
of $4.5 million was lower by $159 thousand or 3.4% versus the prior
year period. Operating expenses increased by $2.4 million from the
prior year period. Net loss in the 2022 nine months period was $3.7
million or ($0.53) per share versus a net loss of $1.3 million or
($0.28) per share in 2021. Company to Host Live Conference
Call and Webcast
NeuroMetrix will host a conference call at 8:00 a.m. Eastern
today, October 20, 2022. Participants who wish to access the call
live via telephone and to ask questions must register in advance
here. Upon registering, a dial-in and unique PIN will be provided
on screen and via email to join the call. An audio-only webcast of
the call may be accessed in the “Investors Relations” section of
the Company’s website at www.NeuroMetrix.com. A replay of the call
will be available for one year on the Company's Investors Relations
section of the website.
About NeuroMetrix
NeuroMetrix is an innovation-driven company with a mission
to improve individual and population health through innovative
medical devices and technology solutions for neurological disorders
and pain syndromes. The Company has three commercial products.
DPNCheck® is a diagnostic device that provides rapid,
point-of-care detection of peripheral neuropathies.
ADVANCE® is a diagnostic device that provides automated,
in-office nerve conduction studies for the evaluation of focal
neuropathies. Quell® Fibromyalgia is a wearable neuromodulator
that is the first and only FDA-authorized medical device to help
reduce the symptoms of fibromyalgia. For more information, visit
www.NeuroMetrix.com.
Safe Harbor Statement
The statements contained in this press release include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, without
limitation, statements regarding the Company’s or management’s
expectations regarding the business, as well as events that could
have a meaningful impact on the Company’s revenues and cash
resources. While the Company believes the forward-looking
statements contained in this press release are accurate, there are
a number of factors that could cause actual events or results to
differ materially from those indicated by such forward-looking
statements, including, without limitation, the effects of the
COVID-19 pandemic on all aspects of the Company’s business,
estimates of future performance, and the ability to successfully
develop, receive regulatory clearance, commercialize and achieve
market acceptance for any products. There can be no assurance that
future developments will be those that the Company has anticipated.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors including those risks,
uncertainties and factors referred to in the Company’s most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, as well
as other documents that may be filed from time to time with the
Securities and Exchange Commission or otherwise made public. The
Company is providing the information in this press release only as
of the date hereof, and expressly disclaims any intent or
obligation to update the information included in this press release
or revise any forward-looking statements.
Source: NeuroMetrix, Inc.
Thomas T. HigginsSVP and Chief Financial
Officer781-314-2761neurometrix.ir@neurometrix.com
NeuroMetrix,
Inc.Statements of
Operations(Unaudited)
|
Quarters EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
Revenues |
$ |
1,968,003 |
|
|
$ |
2,064,359 |
|
|
$ |
6,408,695 |
|
|
$ |
6,433,330 |
|
|
|
|
|
|
|
|
|
Cost of revenues |
693,571 |
|
|
619,833 |
|
|
1,888,566 |
|
|
1,754,343 |
|
|
|
|
|
|
|
|
|
Gross profit |
1,274,432 |
|
|
1,444,526 |
|
|
4,520,129 |
|
|
4,678,987 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
1,074,954 |
|
|
724,556 |
|
|
2,701,330 |
|
|
1,599,358 |
|
Sales and marketing |
810,209 |
|
|
442,230 |
|
|
2,235,646 |
|
|
1,105,548 |
|
General and administrative |
1,102,260 |
|
|
965,711 |
|
|
3,468,452 |
|
|
3,254,210 |
|
|
|
|
|
|
|
|
|
Total operating expenses |
2,987,423 |
|
|
2,132,497 |
|
|
8,405,428 |
|
|
5,959,116 |
|
|
|
|
|
|
|
|
|
Loss from operations |
(1,712,991 |
) |
|
(687,971 |
) |
|
(3,885,299 |
) |
|
(1,280,129 |
) |
|
|
|
|
|
|
|
|
Other income |
106,737 |
|
|
882 |
|
|
160,560 |
|
|
1,673 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(1,606,254 |
) |
|
$ |
(687,089 |
) |
|
$ |
(3,724,739 |
) |
|
$ |
(1,278,456 |
) |
NeuroMetrix, Inc.Condensed Balance
Sheets(Unaudited)
|
|
September 30,2022 |
|
|
December 31,2021 |
|
|
|
|
|
|
|
|
Cash, cash equivalents and securities |
|
$ |
20,826,659 |
|
|
$ |
22,572,104 |
|
Other current assets |
|
|
2,605,347 |
|
|
|
1,615,755 |
|
Noncurrent assets |
|
|
600,384 |
|
|
|
700,333 |
|
Total assets |
|
$ |
24,032,390 |
|
|
$ |
24,888,192 |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
1,832,429 |
|
|
$ |
1,365,697 |
|
Lease Obligation, net of current portion |
|
|
233,693 |
|
|
|
306,709 |
|
Stockholders’ equity |
|
|
21,966,268 |
|
|
|
23,215,786 |
|
Total liabilities and stockholders’ equity |
|
$ |
24,032,390 |
|
|
$ |
24,888,192 |
|
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