Q3 2020 Highlights:
- Revenue of
$2.0 millionwas about level with $2.1 millionin Q3 2019 reflecting an improving economic environment and broadening delivery of health care services. Gross margin on revenue was $1.5 millionor 73.6%, up 17.4 percentage points from Q3 2019 gross margin of 56.2%.
- DPNCheck® posted record quarterly sales in Q3 2020. The Medicare Advantage sector continued to be the main sales driver. The recently announced collaboration with
Biomedix, Inc.contributed to DPNCheck sales. The Journal of Diabetes Investigationpublished the results of a large study led by Dr. Hideki Kamiyo at the Aichi Medical University Hospital(Nagakute, Japan). The study demonstrated that DPNCheck® effectively determines the severity of diabetic peripheral neuropathy (DPN).
- The Quell® Apple Watch® app was launched in September. This is the first smartwatch app for an over-the-counter pain relief device. It gives users the ability to control their Quell device and monitor pain relief from the wrist.
- The first patients in an
NIH-funded multi-site, randomized sham-controlled trial evaluating the efficacy of Quell in chemotherapy-induced peripheral neuropathy (CIPN) were enrolled. The study was designed and is being run by the University of Rochester School of Medicine and Dentistry.
U.S.utility patent was issued covering Quell core technology that regulates electrical stimulation based on the user's body position.
- A PAINWeek 2020 scientific presentation described a study of over 1,000 Quell users with chronic knee pain. The study demonstrated a clinically meaningful improvement in pain severity and functional impairment.
“We are encouraged by the recovery of commercial activity in the third quarter, particularly regarding DPNCheck,” said
In the third quarter of 2020, total revenues were
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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
||Nine Months Ended
|Cost of revenues||537,614||914,322||1,652,890||6,382,340|
|Research and development||652,671||475,137||1,846,569||2,365,139|
|Sales and marketing||340,927||647,719||1,144,389||4,046,956|
|General and administrative||762,903||1,462,887||2,693,146||4,646,932|
|Total operating expenses||1,756,501||2,585,743||5,684,104||11,059,027|
|Loss from operations||(257,887||)||(1,412,064||)||(1,768,751||)||(9,875,748||)|
|Total other income||774||7,464||2,323||7,159,464|
Condensed Balance Sheets
|Cash and cash equivalents||$||4,929,175||$||3,126,206|
|Other current assets||2,360,965||2,304,608|
|Lease Obligation, net of current portion||581,903||916,674|
|Total liabilities and stockholders’ equity||$||8,340,038||$||6,893,686|
Source: NeuroMetrix, Inc.