Full Press Release Details
electroCore Announces Second Quarter
2021 Financial Results
Second quarter 2021 net sales of $1.3
million, increased 69% over second quarter 2020 and 5% sequentially
Company to host a conference call and
webcast today, August 5, 2021 at 4:30 pm ET
ROCKAWAY, N.J., August 05, 2021 (GLOBE NEWSWIRE) -- electroCore, Inc.
(Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, announced second quarter 2021 financial results and provided an operational
Second Quarter 2021 and Recent Highlights
Dan Goldberger, Chief Executive Officer of electroCore, commented:
"We are pleased that our second quarter results were in line with expectations, representing revenue growth of 69% year-over-year
and 5% over first quarter of 2021. We saw continued progress in operating metrics across all our revenue channels. Our cash balance of
$23.7 million at June 30, 2021, together with the approximately $18.8 million raised in our subsequent public offering and lower operating
burn, puts the company in an excellent position to execute on its plan through 2022."
Second Quarter 2021 Financial Results
For the quarter ended June 30, 2021, electroCore reported net sales
of $1,300,000 compared to $1,200,000 in the first quarter of 2021 and $753,000 during same period of 2020. This represents a quarterly
revenue increase of 5% sequentially and 69% over the same period last year.
Revenue from the Department of Veterans Affairs
("VA") and Department of Defense ("DOD") increased 15% sequentially to $779,000 in the second quarter of
2021 from $679,000 in the first quarter of 2021 and increased 88% as compared to $415,000 in the second quarter of 2020. 85 VA and
DoD military treatment facilities have purchased gammaCore products through June 30, 2021 as compared to 79 through the first
quarter of 2021 and 67 through the second quarter of 2020.
Revenue from outside the United States through direct sales channels
increased sequentially by 10% to $369,000 in the second quarter of 2021, as compared to $335,000 during the first quarter of 2021 and
increased 50% from $247,000 during the second quarter of 2020. These figures do not include new stocking distributors in other countries
which contributed $18,000 of revenue from Canada and Western Europe during the second quarter of 2021.
Gross profit for the second quarter of 2021 was $895,000 as compared
to $840,000, for the first quarter of 2021 and $480,000 for the second quarter of 2020. Gross margin for the second quarter of 2021
was 71%, compared to 70% in the first quarter of 2021 and 64% in the second quarter of 2020.
Total operating expenses in the second quarter of 2021 were approximately
$6,100,000, a reduction of approximately $100,000 from $6,200,000 in the first quarter of 2021 and a reduction of $300,000 from $6,400,000
in the second quarter of 2020.
Research and development expense in the second quarter of 2021 was $825,000, as compared to $500,000 in the first quarter of 2021, an
increase of approximately $325,000 sequentially. Research and development expense decreased by $175,000 from $1,000,000 during the second
Selling, general and administrative expense in the second quarter of
2021 were $5,300,000 as compared to $5,700,000 in the first quarter of 2021. Selling, general and administrative expense was flat as compared
to the second quarter of 2020.
GAAP net loss in the second quarter of 2021 was $2,900,000 compared
to a GAAP net loss of $5,400,000 in the first quarter of 2021. GAAP net loss decreased by 39% or $1,800,000 as compared to a GAAP net
loss of $4,700,000 in the second quarter of 2020.
Adjusted EBITDA net loss in the second quarter of 2021 was $4,100,000
as compared to $4,200,000 during the first quarter of 2021 and as compared to adjusted EBITDA net loss of $4,300,000 in the second quarter
The company defines adjusted EBITDA net loss as GAAP net loss, excluding
depreciation and amortization, stock-compensation expense, restructuring and other severance related charges, legal fees associated with
stockholders' litigation, total other income/expense, extinguishment of debt, and benefit from income taxes. A reconciliation of
GAAP net loss to Non-GAAP adjusted EBITDA net loss has been provided in the financial statement tables included in this press release.
Net cash used in the quarter ended June 30, 2021, exclusive of cash
proceeds from the sale of NJ NOL carryforwards, was approximately $3,200,000, as compared to $4,100,000 in the first quarter of 2021,
and $5,200,000 in the second quarter of 2020.
Cash, cash equivalents and marketable securities at June 30, 2021,
totaled approximately $23,700,000, as compared to approximately $25,500,000 at March 31, 2021. Subsequent to June 30, 2021, the company
raised net proceeds of approximately $18,800,000 through a public offering of 20,700,000 shares of its common stock.
Third Quarter 2021 Outlook
For the third quarter of 2021, the Company expects net revenue to be
at least $1,500,000 and net cash usage, exclusive of financing activities, to be approximately $4,500,000. The expected increase
in net cash usage is largely due to the annual renewal of our insurance policies.
Webcast and Conference Call Information
electroCore's management team will host a conference call today,
August 5, 2021, beginning at 4:30pm ET.
Investors interested in listening to the conference call, or webcast
may do so by dialing 888-506-0062 for domestic callers or 973-528-0011 for international callers, using Conference ID: 748491, or by connecting
to the Web: electroCore 2Q21 Business Update Webcast
An archived webcast of the event will be available on the "Investors"
section of the company's website at: www.electrocore.com.
About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine company
dedicated to improving patient outcomes through its non-invasive vagus nerve stimulation therapy platform, initially focused on the treatment
of multiple conditions in neurology. The company's current indications are the preventive treatment of cluster headache and migraine and
the acute treatment of migraine and episodic cluster headache.
For more information, visit www.electrocore.com.
gammaCoreTM (nVNS) is the first non-invasive, hand-held
medical therapy applied at the neck as an adjunctive therapy to treat migraine and cluster headache through the utilization of a mild
electrical stimulation to the vagus nerve that passes through the skin. Designed as a portable, easy-to-use technology, gammaCore can
be self-administered by patients, as needed, without the potential side effects associated with commonly prescribed drugs. When placed
on a patient's neck over the vagus nerve, gammaCore stimulates the nerve's afferent fibers, which may lead to a reduction
of pain in patients.
gammaCore (nVNS) is FDA cleared in the United States for adjunctive
use for the preventive treatment of cluster headache in adult patients, the acute treatment of pain associated with episodic cluster headache
in adult patients, and the acute and preventive treatment of migraine in adolescent (ages 12 and older) and adult patients. gammaCore
is CE-marked in the European Union for the acute and/or prophylactic treatment of primary headache (Migraine, Cluster Headache, Trigeminal
Autonomic Cephalalgias and Hemicrania Continua) and Medication Overuse Headache in adults.
gammaCore is contraindicated for patients if they:
Safety and efficacy of gammaCore have not been evaluated in the following
Please refer to the gammaCore Instructions for Use for all of the important
warnings and precautions before using or prescribing this product.
The U.S. FDA has cleared the gammaCore Sapphire CV (nVNS) device under
an emergency use authorization for acute use at home or in a healthcare setting to treat adult patients with known or suspected COVID-19
who are experiencing an exacerbation of asthma-related dyspnea and reduced airflow, and for whom approved pharmacologic therapies are
not tolerated or provide insufficient symptom relief as assessed by their healthcare provider, using noninvasive vagus nerve stimulation
(nVNS) on either side of the patient's neck.
gammaCore Sapphire CV has been authorized only for the duration of
the statement that circumstances exist that warrant authorization of the emergency use of medical devices under section 564(b)(1) of the
Act, 21 U.S.C. 360bbbb-3(b)(1), until the authorization is terminated or revoked.
More information can be found at:
Letter of authorization: https://www.fda.gov/media/139967/download
Fact sheet for healthcare workers: https://www.fda.gov/media/139968/download
Patient information sheet: https://www.fda.gov/media/139969/download
Instructions for use of gammaCore: https://www.fda.gov/media/139970/download
Forward-Looking Statements