NeuroMetrix, Inc.
Jan 26, 2017
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NeuroMetrix Reports Q4 and Full Year 2016 Financial Results

WALTHAM, Mass.--(BUSINESS WIRE)-- NeuroMetrix, Inc. (Nasdaq: NURO, NUROW), today reported financial and business highlights for the quarter and year ended December 31, 2016.

The Company develops and markets novel therapies, based on bioelectrical and digital medicine, for chronic conditions. The Company's primary product is Quell®, which is an over-the-counter wearable neurostimulation device for treating chronic pain that was launched in Q2 2015. The Company also has a diagnostic business based on its DPNCheck® product, which is a point-of-care test that provides accurate and cost-effective screening, diagnosis and monitoring of peripheral neuropathies including diabetic peripheral neuropathy (DPN).

Recent Highlights:

"We are pleased with the progress we made in 2016. Both the Quell and DPNCheck businesses are growing and are well positioned to build on the momentum we established in Q4 2016," said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "Our three core objectives for 2017 are to grow top line revenue while demonstrating operational leverage and reduced cash consumption, to continue our strong record of product and clinical innovation, and to develop new strategic partnerships that accelerate Quell market adoption. Most importantly, we will remain true to our focus on combining bioelectrical and digital medicine to help patients and physicians better treat conditions such as chronic pain and diabetes."

Financial Highlights:

The Company reported its financial highlights results for Q4 2016. Total revenues were $3.7 million versus $2.7 million for Q4 2015, an increase of 36%. Gross margin was 45.5% of total revenues, up from 41.6% in Q4 2015, primarily reflecting manufacturing efficiencies. Operating expenses increased to $4.6 million compared to $4.5 million in Q4 2015. Loss from operations was $2.9 million in Q4 2016 versus $3.3 million Q4 2015. After interest income and changes in fair value of warrant liabilities, net loss per common share was $0.52 in Q4 2016 and $3.19 in Q4 2015 which included $2.41 effects of deemed dividend related to an equity offering in the year earlier quarter. Net cash usage in Q4 2016 was $3.6 million, down from $3.7 million in Q3 2016. The Company ended Q4 2016 with cash and cash equivalents of $3.9 million. Reflecting the effects of the private placement which closed on January 5, 2017, the Company's cash and cash equivalents on that date were $7.7 million.

For the years ended December 31, total revenues were $12.0 million in 2016 compared to $7.3 million in 2015. Loss from operations was $15.2 million for the year ended December 31, 2016 versus $13.3 million for the year ended December 31, 2015. After interest income, changes in fair value of warrant liabilities and deemed dividend earnings per share charges related to equity offerings, net loss per common share was $7.28 in the year ended December 31, 2016 and $7.75 in the year December 31, 2015.

Company to Host Live Conference Call and Webcast

NeuroMetrix management will host a conference call today, January 26, 2017 at 8:00 a.m., Eastern Time. To access the call in the United States, dial (844) 787-0799 and use the confirmation code 49304382. Internationally, the conference call may be accessed by dialing (661) 378-9630 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 855-859-2056, domestically and 404-537-3406, internationally. The confirmation code to access the replay is 49304382. The replay will be available for one week after the conference call.

About NeuroMetrix

NeuroMetrix is a commercial stage, innovation driven healthcare company combining bioelectrical and digital medicine to address chronic health conditions including chronic pain, sleep disorders, and diabetes. The company's lead product is Quell, an over-the-counter wearable therapeutic device for chronic pain. Quell is integrated into a digital health platform that helps patients optimize their therapy and decrease the impact of chronic pain on their quality of life. The company also markets DPNCheck, a rapid point-of-care test for diabetic neuropathy, which is the most common long-term complication of Type 2 diabetes. The company maintains an active research effort and has several pipeline programs, including a therapeutic device for restless leg syndrome. The company is located in Waltham, Massachusetts and was founded as a spinoff from the Harvard-MIT Division of Health Sciences and Technology in 1996. For more information, please 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. 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, Quarterly Reports on Form 10-Q, 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.
Statements of Operations
(Unaudited)
 
      Quarters Ended     Year Ended
December 31, December 31,
2016     2015 2016     2015
 
Revenues $ 3,715,432 $ 2,737,451 $ 12,027,528 $ 7,299,830
 
Cost of revenues   2,026,299   1,599,267   7,113,005   3,950,746
 
Gross profit 1,689,133 1,138,184 4,914,523 3,349,084
 
Operating expenses:
Research and development 907,062 1,069,197 4,394,353 3,894,786
Sales and marketing 2,655,976 2,049,376 10,855,445 7,232,971
General and administrative   990,209   1,340,431   4,872,670   5,497,513
 
Total operating expenses   4,553,247   4,459,004   20,122,468   16,625,270
 
Loss from operations (2,864,114 ) (3,320,820 ) (15,207,945 ) (13,276,186 )
 
Interest income 2,102 1,882 19,132 5,232
Change in fair value of warrant liability   47,789   609,802   275,662   4,083,606
 
Net loss $ (2,814,223 ) $ (2,709,136 ) $ (14,913,151 ) $ (9,187,348 )
 
Net loss per common share applicable to
common stockholders, basic and diluted $ (0.52 ) $ (3.19 ) $ (7.28 ) $ (7.75 )
 
NeuroMetrix, Inc.
Condensed Balance Sheets
(Unaudited)
 
      December 31,       December 31,
2016 2015
 
Cash and cash equivalents $ 3,949,135 $ 12,462,872
Other current assets 3,637,788 2,749,509
Noncurrent assets   696,968   887,220
Total assets $ 8,283,891 $ 16,099,601
 
Current liabilities $ 3,318,486 $ 3,256,590
Common stock warrants 4,641 280,303
Stockholders' equity   4,960,764   12,562,708
Total liabilities and stockholders' equity $ 8,283,891 $ 16,099,601

NeuroMetrix, Inc.
Thomas T. Higgins, 781-314-2761
SVP and Chief Financial Officer
neurometrix.ir@neurometrix.com

Source: NeuroMetrix, Inc.

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