Full Press Release Details
Myomo Reports First Quarter 2019 Results
Reports 165% Year-over-Year Revenue Growth and Continued Expansion of Reimbursement Pipeline
CAMBRIDGE, Mass., May 13, 2019 Myomo, Inc. (NYSE American: MYO) ( Myomo or the Company ), a wearable medical robotics
company that offers increased functionality for those suffering from neurological disorders and upper limb paralysis, today announced its financial results for the first quarter ended March 31, 2019.
Recent Highlights and Accomplishments:
strong growth in first quarter revenues in 2019 is the result of our national rollout launched in 2018, which consisted of online marketing and broader metro area coverage with O&P clinical partners, said Paul R. Gudonis, Chairman and CEO
of Myomo. Our reimbursement pipeline continues to grow, which is expected to result in significant revenue growth in 2019.
| Three months ended | Period-to-period | |||||||||||||||
| March 31, | change | |||||||||||||||
| 2019 | 2018 | $ | % | |||||||||||||
| Revenue | $ | 830,066 | $ | 313,179 | $ | 516,887 | 165 | % | ||||||||
| Cost of revenue | 176,187 | 108,080 | 68,107 | 63 | % | |||||||||||
| Gross profit | $ | 653,879 | $ | 205,099 | $ | 448,780 | 219 | % | ||||||||
| Gross margin% | 79 | % | 65 | % | 14 | % |
Higher revenue for the three months ended March 31, 2019 reflects both higher volume and a higher average unit selling
price compared to the three months ended March 31, 2018.
Gross margin was 79% for the three months ended March 31, 2019. Gross margin increased
compared to the 65% for the three months ended March 31, 2018, respectively due to higher average selling price on devices directly sold to patients.
Operating expenses were $3,337,000, an increase of $729,000, or 28%, during the three months ended March 31, 2019, versus the comparable period of 2018.
The increase in operating expenses primarily reflects the addition of personnel in the second half of 2018 in support of the Company s expansion of its sales, marketing and reimbursement functions.
The Company s net loss for the quarter ended March 31, 2019 was $2,598,000, or ($0.17) per share, compared with a net loss of $2,345,000, or ($0.20)
per share for the corresponding period of 2018.
Adjusted EBITDA1 for the quarter ended
March 31, 2019 was a loss of $2,454,000, compared with a loss of $2,052,000 for the corresponding period in 2018. A reconciliation of GAAP net loss to this non-GAAP financial measure has been provided in
the financial statement tables included in this press release. An explanation of this measure is also included below under the heading Non-GAAP Financial Measures.
Cash on hand at March 31, 2019 was $9,234,000, compared to $6,541,000 at December 31, 2018. On February 12, 2019, the Company successfully
completed a follow-on public offering of its common stock, generating net proceeds of approximately $5,600,000, which the Company continues to expect will provide sufficient liquidity to fund its operations
Conference Call and Webcast Information
Myomo will hold a conference call today, Monday, May 13, 2019 at 8:30 a.m. EDT. To access the conference call, please dial
1-877-270-2148 from the U.S. or
1-412-902-6510 internationally. Our webcast can also be accessed through Myomo s Investor Relations page. Please
allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.
A replay of the conference call
will be available approximately one hour after completion of the live conference call at the Investor Relations page. A dial-in replay of the call will be available until May 27, 2019; please dial 1-877-344-7529 from the U.S. or
1-412-317-0088 internationally and provide the passcode of 10130705.
Myomo, Inc. is a wearable medical robotics
company that offers expanded mobility for those suffering from neurological disorders and upper limb paralysis. Myomo develops and markets the MyoPro product line. MyoPro is a powered upper limb orthosis designed to support the arm and restore
function to the weakened or paralyzed arms of patients suffering from CVA stroke, brachial plexus injury, traumatic brain or spinal cord injury, ALS or other neuromuscular disease or injury. It is currently the only marketed device that, sensing a
patient s own EMG signals through non-invasive sensors on the arm, can restore an individual s ability to perform activities of daily living, including feeding themselves, carrying objects and doing
household tasks. Many are able to return to work, live independently and reduce their cost of care. Myomo is headquartered in Cambridge, Massachusetts, with sales and clinical professionals across the U.S. For more information, please visit
is earnings before interest, taxes, depreciation and amortization adjusted for stock based-compensation and the impact of the fair value revaluation of our derivative liabilities.
Forward Looking Statements
This press release contains
forward-looking statements regarding the Company s future business expectations, including the receipt of revenues from units being processed for insurance reimbursement, the scale-up and expansion of
commercial operations, our expectations for revenues and our results of operations, and the potential benefits to users of our products, our financial position and cash runway, which are subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors.
These factors include, among other things:
More information about these and other factors that potentially could affect our financial results is included in Myomo s filings with the Securities and
Exchange Commission, including those contained in the risk factors section of the Company s annual report on Form 10-K, quarterly reports on Form 10-Q and other
filings with the Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Although the forward-looking statements in this release of financial information are
based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by
anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. The Company disclaims any obligation subsequently to revise any forward-looking statements to
reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Non-GAAP Financial Measures
Myomo has provided in this release of financial information that has not been prepared
in accordance with generally accepted accounting principles in the United States, or GAAP. This information includes Adjusted EBITDA. This non-GAAP financial measure is not in accordance with, or an
alternative for, GAAP and may be different from similar non-GAAP financial measures used by other companies. Myomo believes that the use of this non-GAAP financial
measures provides supplementary information for investors to use in evaluating operating performance
and in comparing its financial measures with other companies in Myomo s industry, many of which present similar non-GAAP financial measures. Adjusted
EBITDA is EBITDA adjusted for stock based-compensation and the impact of the fair value revaluation of our derivative liabilities. Non-GAAP financial measures that Myomo uses may differ from measures that
other companies may use. This non-GAAP financial measure disclosed by Myomo is not meant to be considered superior to or a substitute for results of operations prepared in accordance with GAAP, and should be
viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of this non-GAAP measure to its most directly comparable GAAP financial measure. A reconciliation of
GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.
Matter Communications
CONDENSED STATEMENTS OF OPERATIONS
| Three months ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| Revenue | $ | 830,066 | $ | 313,179 | ||||
| Cost of revenue | 176,187 | 108,080 | ||||||
| Gross margin | 653,879 | 205,099 | ||||||
| Operating expenses: | ||||||||
| Research and development | 535,254 | 372,359 | ||||||
| Selling, general and administrative | 2,801,420 | 2,235,637 | ||||||
| Total operating expenses | 3,336,674 | 2,607,996 | ||||||
| Loss from operations | (2,682,795 | ) | (2,402,897 | ) | ||||
| Other expense (income) | ||||||||
| Change in fair value of derivative liabilities | (41,970 | ) | (15,307 | ) | ||||
| Interest income and other expense, net | (42,765 | ) | (42,188 | ) | ||||
| Total other expense (income) | (84,735 | ) | (57,495 | ) | ||||
| Net loss | $ | (2,598,060 | ) | $ | (2,345,402 | ) | ||
| Weighted average number of common shares outstanding: | ||||||||
| Basic and diluted | 14,941,518 | 11,899,456 | ||||||
| Net loss per share | ||||||||
| Basic and diluted | $ | (0.17 | ) | $ | (0.20 | ) |
CONDENSED BALANCE SHEETS
| March 31, 2019 | December 31, 2018 | |||||||
| ASSETS | (Unaudited) | |||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 9,233,559 | $ | 6,540,794 | ||||
| Accounts receivable, net | 399,895 | 382,258 | ||||||
| Inventories, net | 301,277 | 256,149 | ||||||
| Prepaid expenses and other | 784,720 | 695,276 | ||||||
| Total Current Assets | 10,719,451 | 7,874,477 | ||||||
| Restricted cash | 75,000 | 75,000 | ||||||
| Deferred offering costs | 131,976 | 144,582 | ||||||
| Equipment, net | 173,078 | 187,513 | ||||||
| Total Assets | $ | 11,099,505 | $ | 8,281,572 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued expenses | $ | 1,310,429 | $ | 1,743,427 | ||||
| Derivative liabilities | 157,927 | 3,661 | ||||||
| Deferred revenue | 25,840 | 1,990 | ||||||
| Customer advance payments | 84,117 | 106,609 | ||||||
| Total Current Liabilities | 1,578,313 | 1,855,687 | ||||||
| Total Liabilities | 1,578,313 | 1,855,687 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders Equity | ||||||||
| Common stock | 1,710 | 1,245 | ||||||
| Additional paid-in capital | 57,536,979 | 51,720,630 | ||||||
| Accumulated deficit | (48,011,033 | ) | (45,289,526 | ) | ||||
| Treasury stock | (6,464 | ) | (6,464 | ) | ||||
| Total Stockholders Equity | 9,521,192 | 6,425,885 | ||||||
| Total Liabilities and Stockholders Equity | $ | 11,099,505 | $ | 8,281,572 |
CONDENSED STATEMENTS OF CASH FLOWS
| For the three months ended March 31, | 2019 | 2018 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (2,598,060 | ) | $ | (2,345,402 | ) | ||
| Adjustments to reconcile net loss to net cash used in operations: | ||||||||
| Depreciation | 21,627 | 14,599 | ||||||
| Stock-based compensation | 207,605 | 336,355 | ||||||
| Bad debt expense | 16,275 | |||||||
| Excess and obsolete inventory reserve | (645 | ) | ||||||
| Change in fair value of derivative liabilities | (41,970 | ) | (15,307 | ) | ||||
| Loss on disposal of asset | 320 | |||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (33,912 | ) | 145,594 | |||||
| Inventories | (131,871 | ) | (63,923 | ) | ||||
| Prepaid expenses and other | (128,256 | ) | 15,182 | |||||
| Accounts payable and other accrued expenses | (432,998 | ) | (327,390 | ) | ||||
| Deferred revenue | 23,850 | (24,423 | ) | |||||
| Other current liabilities | (22,492 | ) | ||||||
| NET CASH USED IN OPERATING ACTIVITIES | (3,119,882 | ) | (2,265,360 | ) | ||||
| NET CASH USED IN INVESTING ACTIVITIES | (5,404 | ) | (64,924 | ) | ||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 5,818,051 | 3,487,341 | ||||||
| Net increase in cash, cash equivalents, and restricted cash | 2,692,765 | 1,157,057 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 6,615,794 | 13,011,373 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 9,308,559 | $ | 14,168,430 |
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
| Three months ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| GAAP net loss | $ | (2,598,060 | ) | $ | (2,345,402 | ) | ||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||
| Interest (income) expense | (42,765 | ) | (42,188 | ) | ||||
| Depreciation expense | 21,627 | 14,599 | ||||||
| Stock-based compensation | 207,605 | 36,355 | ||||||
| Change in fair value of derivative liabilities | (41,970 | ) | (15,307 | ) | ||||
| Adjusted EBITDA | $ | (2,453,563 | ) | $ | (2,051,943 | ) |