The Company develops and commercializes products for the chronic pain and diabetes markets that utilize neurostimulation and digital medicine. The Company has two primary commercial products. Quell® is an over-the-counter wearable neurostimulation device for symptomatic relief of chronic pain. DPNCheck® is a point-of-care test that provides accurate and cost-effective detection of diabetic peripheral neuropathy (DPN).
- The Company recently announced streamlined Quell distribution under an exclusively direct-to-consumer model via the QuellRelief.com platform. The model features accessible pricing to reach a broader market. The Company believes these changes could lead to improved economics via reduced customer acquisition costs, distribution channel savings, and better retention rates.
- The Q2 2019 business restructuring, combined with Quell migration from TV to digital marketing, contributed to a
$1.9 millionreduction in operating spending from the prior year quarter.
- DPNCheck revenues in Q3 2019 were approximately
$1.0 millionin comparison with $1.1 millionin Q3 2018. Domestic revenue, primarily from the Medicare Advantagemarket, increased by 31% from the year earlier quarter. International revenue was down by $0.3 million.
- Quell revenues in Q3 2019 were
$0.8 millionin comparison with $2.2 millionin Q3 2018. Lower advertising spending and a focus on profitable Quell sales reduced revenue in the quarter.
- Loss from operations was
$1.4 millionin Q3 2019 in comparison with a loss of $2.7 millionin Q3 2018.
- As previously disclosed, the Company continues to explore a potential divestiture of its DPNCheck business and other strategic alternatives to enhance shareholder value, including the potential sale or merger of the company.
"A new commercial model was necessary to make Quell widely accessable to people struggling with chronic pain,” said
In Q3 2019 total revenues were
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Safe Harbor Statement
The statements contained in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the company’s or management’s expectations regarding the business, as well as events that could have a meaningful impact on the company’s revenues and cash resources. While the company believes the forward-looking statements contained in this press release are accurate, there are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, including, without limitation, estimates of future performance, the ability to successfully develop, receive regulatory clearance, commercialize and achieve market acceptance for any products, and the final outcome of the ongoing
SVP and Chief Financial Officer
Statements of Operations
|Nine Months Ended
|Cost of revenues||914,322||1,821,111||6,382,340||6,726,675|
|Research and development||475,137||1,178,468||2,365,139||4,074,895|
|Sales and marketing||647,719||2,334,340||4,046,956||7,039,933|
|General and administrative||1,462,887||1,015,489||4,646,932||3,990,266|
|Total operating expenses||2,585,743||4,528,297||11,059,027||15,105,094|
|Loss from operations||(1,412,064||)||(2,682,628||)||(9,875,748||)||(9,470,431||)|
|Total other income||7,464||3,768,686||7,159,464||12,296,669|
|Net income (loss)||$(1,404,600||)||$1,086,058||$(2,716,284||)||$2,826,238|
|Condensed Balance Sheets
|Cash and cash equivalents||$3,186,636||$6,780,429|
|Other current assets||3,449,221||4,805,736|
|Lease Obligation, net of current portion||1,018,508||1,301,172|
|Total liabilities and stockholders’ equity||$8,506,777||$13,991,880|
Source: NeuroMetrix, Inc.