Q2 2020 Highlights:
- Total revenue of
$1.4 millionprovided a gross margin of $0.9 million, at a gross margin rate of 63.6%. The COVID-19 effects on the economy and health care delivery adversely affected customer orders in all product lines.
- DPNCheck® contributed
$0.8 millionrevenue with about 46% coming from Asian markets. Quell® contributed $0.4 millionrevenue and ADVANCE $0.1 millionrevenue.
- Operating expenses were reduced to
$1.7 millionwith lower variable spending in S& M and G&A. The R&D program maintained its primary focus on the DPNCheck technology upgrade. The Company is also making focused investments in Quell R&D, including development of Quell Flex to support the previously announced large fibromyalgia study by the University of Iowaand Vanderbilt University.
- Expanded DPNCheck distribution was announced, both in the
U.S.Medicare Advantage market involving Biomedix, a data-oriented provider of diagnostics for value-based care, and in the Chinamarket involving Yabao Pharmaceutical Co., Ltd.Yabao, based in north China, is focused on chronic diseases affecting the elderly, women, and children, including those with diabetes. Yabao will work with the Company’s exclusive distributor for China, Omron Healthcare.
- The Company announced a Quell marketing initiative focusing on chronic knee pain. The effort includes direct-to-consumer digital marketing as well as informing physicians and other health care providers about the use of Quell for patients with knee pain.
- The Company utilized its at-the-market (ATM) facility to raise
$3.7 millionin net proceeds from sale of common stock.
"Early signs of commercial recovery became evident during June in the Medicare Advantage sector of our DPNCheck business,” said
In the second quarter of 2020, total revenues were
Company to Host Live Conference Call and Webcast
NeuroMetrix is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices that are used throughout the world. The Company has three FDA cleared commercial products. DPNCheck® is a point-of-care test that is used to evaluate peripheral neuropathies. ADVANCE™ is a point-of-care device that provides nerve conduction studies as an aid in diagnosing and evaluating patients suspected of having focal or systemic neuropathies. Quell® 2.0 is a wearable, mobile app enabled, neurostimulation device indicated for symptomatic relief and management of chronic pain and is available over-the-counter. The Company maintains an active, industry-leading R&D program. 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
SVP and Chief Financial Officer
Statements of Operations
||Six Months Ended
|Cost of revenues||495,086||3,143,787||1,115,276||5,468,018|
|Gross profit (loss)||864,893,||(789,104||)||2,416,739||9,600|
|Research and development||660,278||1,034,921||1,193,898||1,890,002|
|Sales and marketing||379,113||1,373,949||803,462||3,399,237|
|General and administrative||678,497||1,564,555||1,930,243||3,184,045|
|Total operating expenses||1,717,888||3,973,425||3,927,603||8,473,284|
|Loss from operations||(852,995||)||(4,762,529||)||(1,510,864||)||(8,463,684||)|
|Total other income||1,051||1,400,338||1,549||7,152,000|
Condensed Balance Sheets
|Cash and cash equivalents||$||5,434,983||$||3,126,206|
|Other current assets||1,968,699||2,304,608|
|Lease Obligation, net of current portion||698,128||916,674|
|Total liabilities and stockholders’ equity||$||8,605,528||$||6,893,686|
Source: NeuroMetrix, Inc.