- Q1 2023 revenue was
$1.7 million, a decrease of 25.1% from $2.3Min the first quarter of 2022. The primary reason was that DPNCheck® sales declined due to a suspension of screening programs, including DPNCheck, by the Company’s largest Medicare Advantage customer. This drop was partially offset by increased sales to other Medicare Advantage accounts and acquisition of new customers. Sales of Quell® over the counter and ADVANCE® consumables also decreased as these product lines are being phased out.
- Gross profit in Q1 2023 was $1.2 million, a decrease of
$0.6 millionfrom the first quarter of 2022. The Q1 2023 gross margin rate contracted to 69.5% from 77.9% in the prior year primarily due to increased parts costs and inventory charges for valuation reserves.
- Q1 2023 operating expenses of $2.9 million increased from $2.8 million in Q1 2022. The increase was due to higher general and administrative spending for personnel and professional services.
- Net loss for the quarter increased to $1.6 million or (
$0.20) per share in comparison with a net loss of $1.0 million or ( $0.14) per share in the prior year. The Company ended the quarter with cash and securities of $20.3 million.
- Q1 2023 was the first full quarter of the commercial launch of Quell Fibromyalgia, the Company’s prescription treatment for fibromyalgia. This initial launch phase is strategic and intended to optimize prescription processing and to validate the business model. To date, 234 prescriptions have been written by 92 prescribers.
- A multi-center randomized sham-controlled trial of Quell in chemotherapy induced peripheral neuropathy completed and the data is being analyzed by the study group with an initial readout expected in Q3 2023.
- Enrollment continued in clinical trials of Quell in long COVID, chronic overlapping pain conditions and peripheral edema. These indications represent new or expanded labels for the Quell platform.
"We were disappointed by the suspension of DPNCheck and other screening tests by our largest Medicare Advantage customer. At this time, we do not know if this is a temporary or permanent decision. More broadly, the entire Medicare Advantage sector is going through a period of substantial uncertainty due to policy changes recently announced by the
Q1 2023 revenue of
Company to Host Live Conference Call and Webcast
NeuroMetrix is an innovation-driven company with a mission to improve individual and population health through innovative medical devices and technology solutions for neurological disorders and pain syndromes. The Company has three commercial products. DPNCheck® is a diagnostic device that provides rapid, point-of-care detection of peripheral neuropathies. ADVANCE® is a diagnostic device that provides automated, in-office nerve conduction studies for the evaluation of focal neuropathies. Quell® Fibromyalgia is a wearable neuromodulator that is the first FDA-authorized medical device to help reduce the symptoms of fibromyalgia. 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|
|Cost of revenues||526,372||508,874|
|Research and development||699,425||710,577|
|Sales and marketing||815,872||858,839|
|General and administrative||1,393,171||1,186,091|
|Total operating expenses||2,908,468||2,755,507|
|Loss from operations||(1,710,069||)||(961,990||)|
|Condensed Balance Sheets|
|Cash, cash equivalents and securities||$||20,253,382||$||21,199,727|
|Other current assets||2,832,787||2,907,260|
|Lease obligation, net of current portion||180,345||207,516|
|Total liabilities and stockholders’ equity||$||23,610,048||$||24,669,615|
Source: NeuroMetrix, Inc.