NeuroMetrix Reports Q1 2023 Financial Results
03 Maggio 2023 - 1:00PM
NeuroMetrix, Inc. (Nasdaq: NURO) today reported financial and
business highlights for the quarter ended March 31, 2023. The
Company’s mission is to reduce the impact of neurological disorders
and pain syndromes on individuals and on population health through
innovative non-invasive medical devices.
Q1 Highlights:
- Q1 2023 revenue was $1.7 million, a decrease of 25.1% from
$2.3M in 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 million from 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 Centers for Medicare and Medicaid Services. These
changes are extensive and put downward pressure on DPNCheck
revenues, although it is too early to determine the duration and
magnitude of the impact. Despite these challenges, we believe that
the Medicare Advantage DPNCheck market is a compelling opportunity
and are working to adapt our commercial strategy to the evolving
landscape," said Shai N. Gozani, M.D., Ph.D., Chief Executive
Officer of NeuroMetrix.
Dr. Gozani continued, "We are encouraged by the feedback from
our Quell Fibromyalgia strategic launch. Fibromyalgia is a
debilitating chronic pain syndrome affecting as many as 10 million
people in the U.S. There is an unmet need for better treatments. As
emphasized by its recognition as a breakthrough device by the FDA,
Quell Fibromyalgia can help address this gap by providing a safe
and drug-free neuromodulation option. In just over 3-months and
without a field sales presence, about 90 providers, including
rheumatologists, pain medicine specialists, neurologists and
primary care physicians, have written prescriptions for Quell
Fibromyalgia. We are analyzing this early experience and will soon
finalize the next phase of our commercialization strategy."
Financials:
Q1 2023 revenue of $1.7 million was down by $0.6 million or
25.1% from Q1 2022 primarily due to lower sales in the DPNCheck
product line. The gross margin rate of 69.5% in Q1 2023 declined
from 77.9% in Q1 2022 due to unfavorable pricing for certain
electronic parts and for increases in inventory valuations
reserves. Operating expenses of $2.9 million increased by $153
thousand or 5.6% from Q1 2022. Spending declined slightly in
research and development, and sales and marketing offset by higher
general and administrative costs for personnel and professional
services. The Q1 2023 net loss was $1.6 million ($0.20 per share)
versus a net loss of $1.0 million ($0.14 per share) in Q1 2022.
Company to Host Live Conference Call and
Webcast
NeuroMetrix will host a conference call at 8:00 a.m. Eastern
today, May 3, 2023. Participants who wish to access the call live
via telephone and be able to ask questions must register in advance
here. Upon registering, a dial-in and unique PIN will be provided
on screen and via email to join the call. An audio-only webcast of
the call may be accessed in the “Investors Relations” section of
the Company’s website at www.NeuroMetrix.com. A replay of the call
will be available for one year on the Company’s website under the
“Investor Relations” tab.
About NeuroMetrix
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
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.
Source: NeuroMetrix, Inc.
Thomas T. HigginsSVP and Chief Financial
Officerneurometrix.ir@neurometrix.com
|
NeuroMetrix, Inc. |
Statements of Operations |
(Unaudited) |
|
|
|
|
|
|
Quarters EndedMarch 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
Revenues |
|
$ |
1,724,771 |
|
|
$ |
2,302,391 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
526,372 |
|
|
|
508,874 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
1,198,399 |
|
|
|
1,793,517 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
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 |
) |
|
|
|
|
|
|
|
|
|
Other income |
|
|
135,895 |
|
|
|
3,428 |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,574,174 |
) |
|
$ |
(958,562 |
) |
NeuroMetrix, Inc. |
Condensed Balance Sheets |
(Unaudited) |
|
|
|
|
|
|
|
|
March 31,2023 |
|
|
December 31,2022 |
|
|
|
|
|
|
Cash, cash equivalents and securities |
|
$ |
20,253,382 |
|
|
$ |
21,199,727 |
Other current assets |
|
|
2,832,787 |
|
|
|
2,907,260 |
Noncurrent assets |
|
|
523,879 |
|
|
|
562,628 |
Total assets |
|
$ |
23,610,048 |
|
|
$ |
24,669,615 |
|
|
|
|
|
|
|
|
Current liabilities |
|
$ |
1,416,955 |
|
|
$ |
1,106,412 |
Lease obligation, net of
current portion |
|
|
180,345 |
|
|
|
207,516 |
Stockholders’ equity |
|
|
22,012,748 |
|
|
|
23,355,687 |
Total liabilities and stockholders’ equity |
|
$ |
23,610,048 |
|
|
$ |
24,669,615 |
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