[July 21, 2016] |
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NeuroMetrix Reports Q2 2016 Financial Results and Highlights
NeuroMetrix, Inc. (Nasdaq: NURO), today reported financial and business
highlights for the quarter and six month periods ended June 30, 2016.
The Company operates in two markets - wearable therapeutic technology
and point-of-care diagnostic tests. The Company's two primary products
are Quell® and DPNCheck®. Quell is an
over-the-counter wearable neurostimulation device for treating chronic
pain that was launched in Q2 2015. DPNCheck is a point-of-care
diagnostic device that provides accurate and cost-effective screening,
diagnosis and monitoring of peripheral neuropathies including diabetic
peripheral neuropathy (DPN).
Recent Highlights:
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Quell shipments totaled 11,201 devices and 9,676 electrode reorder
packages with a total invoiced value of $2.53 million. This was an
increase from 8,138 devices and 7,902 electrode reorder packages with
a total invoiced value of $1.70 million in Q1 2016.
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Quell distribution expanded with initial orders for pilot programs at
two major drug store chains. Quell is now available in over 1,500
retail locations.
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Online and retail sales have been supported by a national TV promotion
campaign primarily utilizing high-impact cable channels.
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Quell technology advanced with the launch of an updated Android (News - Alert) app
providing support for the Quell Health Cloud and release of a Sport
Electrode for situations of high humidity and perspiration.
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The Company announced that a clinical study by the Scripps
Translational Science Institute will assess the impact of Quell
technology on opioid use and pain in cancer patients.
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A CE Marking application for Quell was submitted to allow marketing
directly to consumers within the European Union.
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An at-the-money private placement of equity securities raised new
funding of $7.5 million, before costs.
"We are pleased with our progress in Q2 2016. Our plans for penetration
of the retail sector are on schedule and, largely due to increasing
Quell shipments, total company revenue growth during the past four
quarters has averaged 83% year-on-year. Our current marketing focus for
Quell is on building widespread brand awareness through our TV and
on-line promotion efforts, as well as developing retail channel
experience," said Shai N. Gozani, M.D., Ph.D., President and Chief
Executive Officer of NeuroMetrix. "The next potential phase of retail
expansion will occur in 2017 following several quarters of experience
within the retail stores currently stocking Quell. Our DPNCheck efforts
remain centered on building our Medicare Advantage business along with
international expansion in partnership with local distributors."
Financial Results:
The Company reported its financial results for Q2 2016. Total revenues
were $2.65 million versus $1.22 million for Q2 2015, an increase of
116%. Gross margin was 40.6% of total revenues, reduced from 51.4% in Q2
2015, reflecting a higher weighting of lower margin Quell devices as the
Company builds its installed base. Operating expenses increased to $5.25
million compared to $3.97 million in Q2 2015, reflecting Quell marketing
and promotion. The Company recorded a non-cash credit of $0.08 million
at June 30, 2016 for the revaluation at fair value of outstanding common
stock warrants compared to a $2.14 million revaluation credit at June
30, 2015. Net loss was $4.10 million or $5.37 per common share in Q2
2016, including a deemed dividend charge to earnings per share of $4.45
resulting from the June equity offering. This compared to a net loss of
$1.20 million or $2.07 per common share for Q2 2015, also including a
deemed dividend charge to earnings per share of $1.55 related to a May
2015 equity offering. NeuroMetrix reported Q2 2016 net cash usage of
$4.20 million and ended the period with cash and cash equivalents of
$11.3 million.
For the six months ended June 30, total revenues were $4.92 million in
2016 compared to $2.51 million in 2015. Net loss was $8.19 million or
$6.56 per common share in 2016, including a $4.64 deemed dividend
earnings per share charge related to an equity offering, compared to
$3.27 million or $3.13 per common share in 2015, also including a deemed
dividend charge to earnings per share of $1.63 related to an equity
offering.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, July 21, 2016
at 8:00 a.m., Eastern Time. To access the call in the United States,
dial 844-647-5493 and use the confirmation code 46091425.
Internationally, the conference call may be accessed by dialing
661-378-9452 and using the same confirmation code. The call will also be
webcast and will be accessible from the Company's website at http://www.NeuroMetrix.com
under the "Investor Relations" tab. A replay of the conference call will
be available starting two hours after the call by dialing 855-859-2056,
domestically and 404-537-3406, internationally. The confirmation code to
access the replay is 46091425. The replay will be available for one week
after the conference call.
About NeuroMetrix
NeuroMetrix is an innovative health-care company that develops wearable
digital health technology for consumers and point-of-care tests that
help patients and physicians better manage chronic pain, nerve diseases,
and sleep disorders. The company is located in Waltham, Massachusetts
and was founded as a spinoff from the Harvard-MIT (News - Alert) Division of Health
Sciences and Technology in 1996. For more information, please visit http://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. 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, 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.
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NeuroMetrix, Inc.
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Statements of Operations
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(Unaudited)
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Quarters Ended
June 30,
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Six Months Ended
June 30,
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2016
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2015
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2016
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2015
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Revenues
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$
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2,647,422
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$
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1,224,987
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$
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4,922,669
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$
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2,507,947
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Cost of revenues
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1,572,370
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595,032
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3,054,883
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1,232,293
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Gross profit
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1,075,052
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629,955
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1,867,786
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1,275,654
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Operating expenses:
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Research and development
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1,127,850
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982,253
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2,284,640
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1,884,795
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Sales and marketing
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2,832,279
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1,762,282
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5,240,158
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3,217,968
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General and administrative
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1,292,305
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1,224,822
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2,716,646
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2,770,912
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Total operating expenses
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5,252,434
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3,969,357
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10,241,444
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7,873,675
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Loss from operations
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(4,177,382
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)
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(3,339,402
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)
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(8,373,658
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)
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(6,598,021
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)
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Interest income
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4,553
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500
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11,258
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1,589
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Change in fair value of warrant liability
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77,309
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2,135,696
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171,625
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3,321,998
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Net loss
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$
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(4,095,520
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)
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$
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(1,203,206
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)
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$
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(8,190,775
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)
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$
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(3,274,434
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)
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Net loss per common share applicable to common stockholders, basic
and diluted
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$
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(5.37
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)
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$
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(2.07
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)
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$
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(6.56
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)
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$
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(3.13
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)
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NeuroMetrix, Inc.
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Condensed Balance Sheets
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(Unaudited)
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June 30, 2016
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December 31, 2015
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Cash and cash equivalents
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$
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11,330,857
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$
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12,462,872
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Other current assets
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2,447,889
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2,684,398
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Noncurrent assets
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798,935
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887,220
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Total assets
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$
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14,577,681
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$
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16,034,490
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Current liabilities
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$
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2,906,005
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$
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3,191,479
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Common stock warrants
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108,678
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280,303
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Stockholders' equity
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11,562,998
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12,562,708
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Total liabilities and stockholders' equity
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$
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14,577,681
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$
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16,034,490
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View source version on businesswire.com: http://www.businesswire.com/news/home/20160721005154/en/
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