The Company develops and markets novel therapies for chronic health conditions employing neurostimulation and digital medicine. The Company has two primary commercial products. Quell® is an over-the-counter wearable neurostimulation device for managing chronic pain. DPNCheck® is a point-of-care test that provides accurate and cost-effective screening, diagnosis and monitoring of diabetic peripheral neuropathy (DPN).
- Quell revenues in Q2 2019 were
$0.8 million, a sequential decline from $1.6 millionin Q1 2019 and from $2.1 millionin Q2 2018. The decline in revenue reflects the effects of reduced advertising spending.
- DPNCheck revenues in Q2 2019 were
$1.2 million, up 7% sequentially from Q1 2019 and approximately flat with Q2 2018. Revenue from the Medicare Advantagemarket grew 33% from the year earlier quarter.
- Collaboration income from GlaxoSmithKline totaled
$1.4 millionin Q2 2019, reflecting the achievement of two Quell development milestones.
- The Company has initiated a process to evaluate a potential divestiture of its DPNCheck product line.
Back Bay Life Science Advisors, Inc.has been retained as its advisor to lead the process.
- Previously, the Company reported a restructuring to improve business alignment and conserve cash. The restructuring involved a reduction in force, plans to consolidate operations in a single location, and a write down of excess inventory. A charge of
$2.3 millionwas recorded to cover associated costs. Ladenburg Thalmann & Co. Inc.was retained as financial advisor to explore strategic alternatives to enhance shareholder value, including the potential sale or merger of the company.
- Cash at
June 30, 2019totaled $4.96 million.
"We have engaged outside expertise to help optimize the value of our business. The restructuring that we initiated in June was a difficult but essential step to better align our operating structure with current revenues,” said
In Q2 2019 total revenues were
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Safe Harbor Statement
The statements contained in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the company’s or management’s expectations regarding the business, as well as events that could have a meaningful impact on the company’s revenues and cash resources. While the company believes the forward-looking statements contained in this press release are accurate, there are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, including, without limitation, estimates of future performance, the ability to successfully develop, receive regulatory clearance, commercialize and achieve market acceptance for any products, and the final outcome of the ongoing
SVP and Chief Financial Officer
Statements of Operations
|Quarters Ended June 30,||Six Months Ended June 30,|
|Cost of revenues||3,143,787||1,950,304||5,468,018||4,905,564|
|Research and development||1,034,921||1,616,863||1,890,002||2,896,427|
|Sales and marketing||1,373,949||2,200,852||3,399,237||4,705,593|
|General and administrative||1,564,555||1,170,634||3,184,045||2,974,777|
|Total operating expenses||3,973,425||4,988,349||8,473,284||10,576,797|
|Loss from operations||(4,762,529||)||(3,187,085||)||(8,463,684||)||(6,787,803||)|
|Total other income||1,400,338||3,761,013||7,152,000||8,527,983|
|Net income (loss)||$||(3,362,191||)||$||573,928||$||(1,311,684||)||$||1,740,180|
Condensed Balance Sheets
|June 30,||December 31,|
|Cash and cash equivalents||$||4,958,058||$||6,780,429|
|Other current assets||3,891,255||4,805,736|
|Lease Obligation, net of current portion||1,116,734||1,301,172|
|Total liabilities and stockholders’ equity||$||10,814,277||$||13,991,880|
Source: NeuroMetrix, Inc.