NeuroMetrix, Inc. (the “Company”) (Nasdaq: NURO), today reported
business highlights for the quarter ended September 30, 2014.
The Company operates in two primary markets - wearable medical
technology and point-of-care tests. The Company's SENSUS®
device is a wearable transcutaneous electrical nerve stimulator
indicated for management of chronic pain, and is the only such device
cleared by the FDA for use during sleep. It is lightweight and can be
worn during the day while remaining active, and at night while sleeping.
SENSUS is beneficial in treating various forms of chronic pain,
particularly neuropathic pain such as painful diabetic neuropathy, which
affects about one quarter of people with diabetes. The Company's
point-of-care neuropathy test, DPNCheck, addresses an unmet medical need
for accurate and cost-effective screening, diagnosing and monitoring of
peripheral neuropathies such as diabetic peripheral neuropathy.
The Company reported increased adoption of SENSUS and DPNCheck, as well
as overall revenue growth.
-
Cumulative SENSUS shipments crossed the milestone of 5,000 devices. In
Q3 2014, 951 devices were shipped versus 557 devices in Q3 2013.
Shipments were lighter than the two prior quarters due to several
distributors normalizing their stocking inventory, slower summer
sales, and termination of several distributors for strategic reasons.
Despite the decrease in device sales, electrode sales grew 13.3% from
the preceding quarter.
-
The Company’s program to develop an over-the-counter, wearable pain
relief device continued to be a major focus of activity and resources.
New business leadership was announced, product development progressed,
and marketing staff was expanded. Product launch is planned for 2015.
-
DPNCheck was launched in the Japan market. Omron Healthcare, the
Company’s Asia partner, reported encouraging early interest. Dr. Shai
N. Gozani, NeuroMetrix CEO, participated in the Japanese Diabetes
Complications Society meeting where he delivered a research paper and
joined key Japanese opinion leaders in a roundtable discussion of
diabetic neuropathy.
-
DPNCheck sales increased to 35,800 tests in Q3 2014 from 21,550 tests
in Q3 2013 and 24,325 tests in Q2 2014.
-
Diabetes product revenue (SENSUS and DPNCheck) increased to $0.78
million from $0.39 million in Q3 2013 and $0.62 million in Q2 2014, a
two-fold year-over-year increase.
-
The ADVANCE business which is managed for cash flow generated an
estimated $0.33 million in gross profit in Q3 2014.
“We experienced a solid quarter in our professional commercial products
as well as development of our wearable pain relief device for the
consumer market,” said Shai N. Gozani, M.D., Ph.D., President and Chief
Executive Officer of NeuroMetrix. “SENSUS and DPNCheck sales were nearly
$0.8M which is a record high for our diabetes focused products. We did
experience seasonality and uneven sales with SENSUS, which is expected
given that all sales are through distribution. We have shipped over
5,000 SENSUS devices since product launch and learned a great deal about
best practices for the technology. On the consumer side of our business,
we are making rapid progress on our over-the-counter pain relief product
and gearing up for an exciting commercial launch in 2015.”
The Company reported its financial results for Q3 2014. Total revenues
were $1.43 million, up 8.6% from $1.31 million for Q3 2013. Gross profit
was 55.2 percent of total revenues compared to 56.0 percent in Q3 2013.
Operating expenses were $2.8 million compared to $2.3 million in Q3
2013. The Company recorded a non-cash credit of $0.6 million at
September 30, 2014 for the revaluation at fair value of outstanding
common stock warrants compared to $0.9 million revaluation credit at
September 30, 2013. Net loss was $1.46 million, or $0.19 per share. This
compared to a net loss of $0.7 million for Q3 2013, or $0.26 per share.
NeuroMetrix reported net cash usage of $2.0 million and ended the period
with cash resources of $11.7 million.
For the nine month period ended September 30, 2014, the Company reported
revenues of $4.1 million and a net loss of $4.9 million, or $1.18 per
share. In the comparable nine month period ended September 30, 2013, the
Company recorded revenues of $3.9 million and a net loss of $4.3
million, or $2.13 per share.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, October 28,
2014 at 8:00 a.m., Eastern. To access the call in the United States,
dial 800-299-8538 and use the confirmation code 96119195.
Internationally, the conference call may be accessed by dialing
617-786-2902 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 888-286-8010,
domestically and 617-801-6888, internationally. The confirmation code to
access the replay is 97270364. The replay will be available for two
weeks after the conference call.
About NeuroMetrix
NeuroMetrix is an innovative health-care company that develops wearable
medical technology and point-of-care tests that help patients and
physicians better manage chronic pain, nerve diseases, and sleep
disorders. The Company has a major focus on diabetic neuropathies, which
affect over 50% of people with diabetes. If left untreated, diabetic
neuropathies trigger foot ulcers that may require amputation and cause
disabling chronic pain. The annual cost of diabetic neuropathies has
been estimated at $14 billion in the United States. The Company markets
the SENSUS device for treating chronic pain, focusing on physicians
managing patients with neuropathic pain such as painful diabetic
neuropathy. The Company also markets DPNCheck, which is a rapid,
accurate, and quantitative point-of-care test for peripheral
neuropathies such as diabetic neuropathy. This product is used to detect
neuropathies at an early stage and to guide treatment. 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 relating to the adoption of
SENSUS and DPNCheck, and ability to build a successful business focused
on diabetic neuropathy. 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 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.
NeuroMetrix, Inc.
Condensed Statements of Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
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Quarters Ended September 30,
|
|
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Nine Months Ended September 30,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,427,828
|
|
|
$
|
1,314,728
|
|
|
$
|
4,103,135
|
|
|
$
|
3,876,654
|
|
Cost of revenues
|
|
639,025
|
|
|
578,484
|
|
|
1,909,443
|
|
|
1,649,429
|
|
Gross profit
|
|
788,803
|
|
|
736,244
|
|
|
2,193,692
|
|
|
2,227,225
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
945,349
|
|
|
740,324
|
|
|
3,273,900
|
|
|
2,727,590
|
|
Sales and marketing
|
|
537,785
|
|
|
581,079
|
|
|
1,678,665
|
|
|
2,241,138
|
|
General and administrative
|
|
1,310,012
|
|
|
1,014,295
|
|
|
3,605,047
|
|
|
3,240,049
|
|
Total operating expenses
|
|
2,793,146
|
|
|
2,335,698
|
|
|
8,557,612
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|
|
8,208,777
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
|
(2,004,343
|
)
|
|
(1,599,454
|
)
|
|
(6,363,920
|
)
|
|
(5,981,552
|
)
|
Interest income
|
|
1,336
|
|
|
1,407
|
|
|
3,362
|
|
|
4,570
|
|
Other expense
|
|
(23,256
|
)
|
|
—
|
|
|
(50,874
|
)
|
|
(376,306
|
)
|
Warrants fair value adjustment
|
|
564,550
|
|
|
881,783
|
|
|
1,554,411
|
|
|
2,037,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(1,461,713
|
)
|
|
$
|
(716,264
|
)
|
|
$
|
(4,857,021
|
)
|
|
$
|
(4,315,509
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share applicable to common stock, basic and diluted
|
|
$
|
(0.19
|
)
|
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$
|
(0.26
|
)
|
|
$
|
(1.18
|
)
|
|
$
|
(2.13
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Condensed Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
September 30,
2014
|
|
December 31,
2013
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
11,687,021
|
|
$
|
9,195,753
|
Other current assets
|
|
1,682,932
|
|
1,370,774
|
Noncurrent assets
|
|
198,600
|
|
230,236
|
Total assets
|
|
$
|
13,568,553
|
|
$
|
10,796,763
|
|
|
|
|
|
Current liabilities
|
|
$
|
2,554,541
|
|
$
|
1,647,908
|
Noncurrent liabilities
|
|
4,813,065
|
|
1,953,879
|
Stockholders’ equity
|
|
6,200,947
|
|
7,194,976
|
Total liabilities and stockholders’ equity
|
|
$
|
13,568,553
|
|
$
|
10,796,763
|
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