Full Press Release Details
Myomo Reports First Quarter 2022 Financial Results
Revenue of $3.9 million up 66% over prior year, product revenue of $2.9 million up 23%
Pipeline of 924 MyoPro candidates up 14% over fourth quarter of 2021
Conference call begins at 4:30 p.m. Eastern time today
BOSTON (May 11, 2022) 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 financial results for the three months ended March 31, 2022.
Financial and operational highlights for the first quarter of 2022 include the following (all comparisons are with the first quarter of 2021, unless otherwise
Management Commentary
First quarter product revenue was in line with our expectations, with growth reflecting a higher number of MyoPro units sold, strong results in
international markets and a leveling off in ASP-related growth as the percentage of product revenue from the direct-billing channel matures, stated Paul R. Gudonis, Myomo s chairman and chief
executive officer. Pipeline additions grew during the quarter due to a combination of new leads from our marketing efforts and from previously interested patients who are now moving ahead to obtain a MyoPro. We continue to adapt and expand the
breadth of our marketing and patient education strategies in the dynamic online environment to cost-effectively introduce the MyoPro to more candidates.
Our joint venture in China is nearing the start-up of operations, with receipt of the initial $1.0 million
license payment during the first quarter. We expect operations to launch in the second half of this year after payment of the remainder of the license fee, which is expected before the end of the second quarter. In Europe, our sales organization has
been very effective in raising awareness of the MyoPro, particularly in Germany where we have been reimbursed by statutory health insurance plans that cover 52% of the population, he added. In support of our goal to better control our
supply chain, in-house manufacturing of the MyoPro2+ began during the quarter and is proceeding well. In addition, there have been no major changes with respect to reimbursement from our largest payer, where
we continue to receive new authorizations and payment after filing post-delivery appeals. We further diversified our payer base with first-time authorizations during the quarter from several Medicare Advantage programs and state Blue Cross Blue
| For the Three Months Ended March 31, | Period-to-Period Change | |||||||||||||||
| 2022 | 2021 | $ | % | |||||||||||||
| Product revenue | $ | 2,867,926 | $ | 2,336,489 | $ | 531,437 | 23 | % | ||||||||
| License revenue | 1,000,000 | 1,000,000 | NM | |||||||||||||
| Total revenue | 3,867,926 | 2,336,489 | 1,531,437 | 66 | % | |||||||||||
| Cost of revenue | 1,289,862 | 623,152 | 666,710 | 107 | % | |||||||||||
| Gross profit | $ | 2,578,064 | $ | 1,713,337 | $ | 864,727 | 50 | % | ||||||||
| Gross margin | 66.7 | % | 73.3 | % | -6.7 | % |
Revenue for the first quarter of 2022 was $3.9 million, an increase of 66% compared with the first quarter of 2021. First
quarter revenue included $1.0 million of license revenue from the Company s joint venture partner in China. Product revenue for the first quarter of 2022 was $2.9 million, an increase of 23% compared with the first quarter of 2021.
Growth in product revenue was driven by a higher number of revenue units and a higher average selling price. Myomo recognized revenue on 71 units in the first quarter of 2022, an increase of 9% compared with the fourth quarter of 2021.
Gross margin for the first quarter of 2022 was 66.7%. Gross margin on product revenue was 55.0%, compared with 73.3% for the first quarter of 2021. The
decrease reflected a larger number of deliveries, which is when the Company records cost of goods sold, compared with the number of revenue units. Deliveries increased during the quarter as the Company successfully completed its transition to
in-house fabrication of the MyoPro2+. In addition, gross margin was affected by one-time costs associated with the termination of the contract with the Company s third-party fabrication partner and higher
Operating expenses for the first quarter of 2022 were $5.3 million, an increase of 14% compared with the first quarter of 2021. The
increase was driven primarily by higher payroll and advertising costs.
Operating loss for the first quarter of 2022 decreased to $2.7 million from
$2.9 million for the first quarter of 2021. Net loss for the first quarter of 2022 was $2.8 million, or $0.41 per share, compared with net loss of $3.0 million, or $0.57 per share, for the first quarter of 2021.
Adjusted EBITDA1 for the first quarter of 2022 was negative $2.4 million, compared with negative $2.7 million for the first quarter of 2021. A reconciliation of GAAP net loss to this non-GAAP financial measure appears below.
Cash and cash equivalents as of March 31, 2022 were $12.9 million. Cash used in operating activities was $2.3 million for the first quarter of
2022. The Company continues to believe its existing cash is sufficient to fund operations for at least the next 12 months.
As the growing pipeline of MyoPro candidates converts into orders, we continue to expect year-over-year product revenue growth in 2022. Assuming receipt
of the final payment of the license fee from our joint venture partner in China, $1.7 million of license revenue is expected to be recorded in the second quarter. Second quarter product revenues will reflect how much of the roughly
$6.0 million of potential revenue in backlog we are able to recognize, along with our ability to generate new fill orders from the O&P, VA and international channels. We are diligently working to grow the pipeline while deploying creative
ways to adapt to a changing marketing environment, said Gudonis.
Conference Call and Webcast Information
Myomo will hold a conference call today at 4:30 p.m. Eastern time to discuss these results and answer questions. Participants are encouraged to pre-register for the call here. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live
operator. Participants may pre-register at any time including up to and after the start of the call. Those unable to pre-register may participate by dialing 844-707-6932 (U.S.) or 412-317-9250 (International). A webcast of the call will also be
available at Myomo s Investor Relations page at http://ir.myomo.com/.
A replay of the webcast will be available beginning approximately one
hour after the completion of the live conference call at http://ir.myomo.com/. A dial-in replay of the call will be available until May 25, 2022; please dial 877-344-7529 (U.S.) or 412-317-0088 (International) and provide the passcode 6293427.
Non-GAAP Financial Measures
Myomo is providing 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 the use of this non-GAAP financial measure provides supplementary information for investors to use in
evaluating operating performance and in comparing Myomo s financial measures with other companies in its industry, many of which present similar non-GAAP financial measures. Adjusted EBITDA is EBITDA
adjusted for stock-based compensation expense. This non-GAAP financial measure 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.
Myomo, Inc. is a wearable medical robotics company that offers improved arm and hand function 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 certain 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 Boston, Massachusetts, with sales and clinical professionals across the U.S. and representatives internationally. For more information, please visit
Forward-Looking Statements
press release contains forward-looking statements regarding the Company s future business expectations, including expectations for product revenues in the second quarter, its current authorization backlog and pipeline, its cash runway, and
expected revenue to be recorded from payment of a technology license fee, 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.
LHA Investor Relations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenue: | ||||||||
| Product Revenue | $ | 2,867,926 | $ | 2,336,489 | ||||
| License Revenue | 1,000,000 | |||||||
| 3,867,926 | 2,336,489 | |||||||
| Cost of revenue | 1,289,862 | 623,152 | ||||||
| Gross profit | 2,578,064 | 1,713,337 | ||||||
| Operating expenses: | ||||||||
| Research and development | 659,536 | 525,967 | ||||||
| Selling, general and administrative | 4,656,417 | 4,119,802 | ||||||
| 5,315,953 | 4,645,769 | |||||||
| Loss from operations | (2,737,889 | ) | (2,932,432 | ) | ||||
| Other expense | ||||||||
| Interest (income) expense and other expense, net | 790 | 119 | ||||||
| 790 | 119 | |||||||
| Loss before income taxes | (2,738,679 | ) | (2,932,551 | ) | ||||
| Income tax expense (benefit) | 76,255 | 28,243 | ||||||
| Net loss | $ | (2,814,934 | ) | $ | (2,960,794 | ) | ||
| Weighted average number of common shares outstanding: | ||||||||
| Basic and diluted | 6,885,924 | 5,191,417 | ||||||
| Net loss per share attributable to common stockholders | ||||||||
| Basic and diluted | $ | (0.41 | ) | $ | (0.57 | ) |
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 12,942,507 | $ | 15,524,378 | ||||
| Accounts receivable, net | 1,692,573 | 1,960,037 | ||||||
| Inventories, net | 1,028,767 | 808,308 | ||||||
| Prepaid expenses and other current assets | 940,929 | 799,164 | ||||||
| Total Current Assets | 16,604,776 | 19,091,887 | ||||||
| Equipment, net | 279,538 | 275,289 | ||||||
| Operating lease assets with right of use | 781,917 | 632,906 | ||||||
| Investment in Jiangxi Myomo Medical Assistive Appliance Co. Ltd. | 199,000 | |||||||
| Other assets | 111,409 | 95,330 | ||||||
| Total Assets | $ | 17,976,640 | $ | 20,095,412 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | 4,240,213 | 3,949,784 | ||||||
| Current operating lease liability | 410,497 | 333,380 | ||||||
| Deferred revenue | 1,899 | 249 | ||||||
| Total Current Liabilities | 4,652,609 | 4,283,413 | ||||||
| Deferred revenue | 1,246 | 1,246 | ||||||
| Non-current operating lease liability | 453,073 | 401,622 | ||||||
| Total Liabilities | 5,106,928 | 4,686,281 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders Equity: | ||||||||
| Preferred stock | ||||||||
| Common stock | 688 | 687 | ||||||
| Additional paid-in capital | 93,804,076 | 93,537,807 | ||||||
| Accumulated other comprehensive loss | (51,432 | ) | (60,677 | ) | ||||
| Accumulated deficit | (80,877,156 | ) | (78,062,222 | ) | ||||
| Treasury stock, at cost | (6,464 | ) | (6,464 | ) | ||||
| Total Stockholders Equity | 12,869,712 | 15,409,131 | ||||||
| Total Liabilities and Stockholders Equity | $ | 17,976,640 | $ | 20,095,412 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Three Months Ended March 31, | 2022 | 2021 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (2,814,934 | ) | $ | (2,960,794 | ) | ||
| Adjustments to reconcile net loss to net cash used in operations: | ||||||||
| Depreciation | 45,630 | 23,313 | ||||||
| Stock-based compensation | 266,270 | 165,971 | ||||||
| Bad debt expense | 26,075 | |||||||
| Amortization of right-of-use assets | 76,654 | 39,059 | ||||||
| Loss on disposal of asset | 202 | |||||||
| Other non-cash charges | (6,364 | ) | (3,139 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 272,748 | 169,642 | ||||||
| Inventories | (229,740 | ) | (86,677 | ) | ||||
| Prepaid expenses and other current assets | (142,240 | ) | (426,515 | ) | ||||
| Other assets | (16,079 | ) | ||||||
| Accounts payable and accrued expenses | 294,828 | 952,339 | ||||||
| Operating lease liabilities | (97,098 | ) | 21,040 | |||||
| Deferred revenue | 1,650 | (2,512 | ) | |||||
| Other liabilities | (4,637 | ) | ||||||
| Net cash used in operating activities | (2,322,600 | ) | (2,112,708 | ) | ||||
| CASH USED IN INVESTING ACTIVITIES | (248,879 | ) | (44,489 | ) | ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | 7,288,275 | |||||||
| Effect of foreign exchange rate changes on cash | (10,392 | ) | (1,122 | ) | ||||
| Net increase in cash and cash equivalents | (2,581,871 | ) | 5,129,956 | |||||
| Cash and cash equivalents beginning of period | 15,524,378 | 12,241,261 | ||||||
| Cash and cash equivalents end of period | $ | 12,942,507 | $ | 17,371,217 |
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
| For the Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| GAAP net loss | $ | (2,814,934 | ) | $ | (2,960,794 | ) | ||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||
| Interest (income) expense and other expense, net | 790 | 119 | ||||||
| Depreciation expense | 45,630 | 23,313 | ||||||
| Stock-based compensation | 266,270 | 165,971 | ||||||
| Income tax expense (benefit) | 76,255 | 28,243 | ||||||
| Adjusted EBITDA | $ | (2,425,989 | ) | $ | (2,743,148 | ) |