Full Press Release Details
Myomo Third Quarter 2021 Financial
Results Feature Record Revenue
Revenue of $4.4 million up 128% over prior year, up 159% year-to-date
Gross margin of 75% up 1,900 basis points over prior year
Backlog increased to 177 units
Conference call begins at 4:30 p.m. Eastern time today
BOSTON, Mass. (November 10, 2021) 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 and nine months ended September 30, 2021.
Financial and operational highlights for the third quarter of 2021 include the following (all comparisons are with the third quarter of 2020, unless otherwise
Management Commentary
We are proud to be reporting both the highest quarterly revenue and the highest direct billing channel revenue in the Company s history. These
achievements demonstrate the continued success of our transition to being a direct provider of the MyoPro to our patients, stated Paul R. Gudonis, Myomo s chairman and chief executive officer. Our focus is on growing the pipeline
and backlog to position the Company for a strong start to 2022, while remaining ever mindful of our mission to improve the lives of people with upper-limb paralysis.
| For the Three Months Ended September 30, | Period-to-Period Change | For the Nine Months Ended September 30, | Period-to-Period Change | |||||||||||||||||||||||||||||
| 2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
| Revenue | $ | 4,383,957 | $ | 1,926,660 | $ | 2,457,297 | 128 | % | $ | 9,824,740 | $ | 3,793,395 | $ | 6,031,345 | 159 | % | ||||||||||||||||
| Cost of revenue | 1,110,204 | 855,338 | 254,866 | 30 | % | 2,634,922 | 1,592,851 | 1,042,071 | 65 | % | ||||||||||||||||||||||
| Gross profit | $ | 3,273,753 | $ | 1,071,322 | $ | 2,202,431 | 206 | % | $ | 7,189,818 | $ | 2,200,544 | $ | 4,989,274 | 227 | % | ||||||||||||||||
| Gross margin | 75 | % | 56 | % | 19 | % | 73 | % | 58 | % | 16 | % |
Revenue for the third quarter of 2021 was $4.4 million, an increase of 128% compared with the third
quarter of 2020. Growth was driven by an increase in the number of revenue units and a higher average selling price. Myomo recognized revenue on 102 units in the third quarter of 2021, an increase of 100% compared with the third quarter of 2020. Year-to-date revenue of $9.8 million was up 159% compared with the same period a year ago.
Gross margin for the third quarter of 2021 was 75%, compared with 56% for the third quarter of 2020. Margin expansion primarily reflects a higher average
selling price and improved fixed cost coverage resulting from higher unit volume. The Company delivered 108 units to patients in the third quarter. Year-to-date gross
margin was 73%, compared with 58% in the year-ago period.
Operating expenses for the third quarter of 2021 were
$5.3 million, an increase of 47% compared with the third quarter of 2020. This increase was driven by higher clinical and reimbursement headcount and higher advertising costs to generate more leads and additions to the pipeline. Operating
expenses for the first nine months of 2021 were $14.8 million, an increase of 34% compared with the same period a year ago.
Operating loss for the
third quarter of 2021 decreased to $2.0 million from $2.5 million for the third quarter of 2020. Net loss for the third quarter of 2021 was $2.1 million, or $0.36 per share, compared with a net loss of $2.8 million, or $0.70 per
share, for the third quarter of 2020. Net loss available to common stockholders for the first nine months of 2021 was $7.6 million, or $1.38 per share, compared with $10.5 million, or $3.63 per share, for the comparable period in 2020. Net
loss available to common stockholders for the first nine months of 2020 included a deemed dividend of $0.7 million related to the repricing of certain warrants.
Adjusted EBITDA1 for the third quarter of 2021 was negative $1.7 million, compared with negative
$2.3 million for the third quarter of 2020. Adjusted EBITDA for the first nine months of 2021 was negative $6.7 million, compared with negative $8.3 million for the same period a year ago. A reconciliation of GAAP net loss to this non-GAAP financial measure appears below.
Cash and cash equivalents as of September 30, 2021 were $12.6 million. Cash used in operating activities was $2.2 million in the third quarter
of 2021. The Company continues to believe its existing cash is sufficient to fund operations for at least the next 12 months.
While we expect to report strong year-over-year revenue growth for 2021, we face some short-term challenges in the fourth quarter. Although
there are a record number of units in backlog, a temporary labor shortage at one of our subcontractors constrained capacity and deliveries in the early part of the quarter, said Mr. Gudonis. Capacity at that subcontractor has
returned to nearly normal, but it will be difficult to make up all the delayed shipments by the end of the year. Therefore, those deliveries and associated revenue may be realized in early 2022. In addition, we are appealing a number of recent claim
denials after receipt of a pre-authorization and delivery to the patient. As a result of these factors, it is difficult to forecast revenue for the fourth quarter.
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 without internet access or 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 November 24, 2021; please dial 877-344-7529 (U.S.) or 412-317-0088 (International) and provide the passcode 1016253.
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, the impact of the fair value revaluation of derivative liabilities and loss of extinguishment of debt. 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.
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 www.myomo.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company s future business expectations, including expectations for revenues in the
first quarter, its current authorization backlog and its cash runway and capital requirements, 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 September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue | $ | 4,383,957 | $ | 1,926,660 | $ | 9,824,740 | $ | 3,793,395 | ||||||||
| Cost of revenue | 1,110,204 | 855,338 | 2,634,922 | 1,592,851 | ||||||||||||
| Gross profit | 3,273,753 | 1,071,322 | 7,189,818 | 2,200,544 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 641,228 | 345,666 | 1,769,739 | 1,250,430 | ||||||||||||
| Selling, general and administrative | 4,662,796 | 3,270,757 | 12,982,413 | 9,766,189 | ||||||||||||
| 5,304,024 | 3,616,423 | 14,752,152 | 11,016,619 | |||||||||||||
| Loss from operations | (2,030,271 | ) | (2,545,101 | ) | (7,562,334 | ) | (8,816,075 | ) | ||||||||
| Other expense (income) | ||||||||||||||||
| Change in fair value of derivative liabilities | (888 | ) | (122,706 | ) | ||||||||||||
| Interest (income) expense and other expense, net | 4,055 | 29,915 | 10,193 | 254,039 | ||||||||||||
| Non-cash interest expense, debt discount | 12,135 | 218,803 | ||||||||||||||
| Loss on extinguishment of debt | 189,155 | 696,436 | ||||||||||||||
| 4,055 | 230,317 | 10,193 | 1,046,572 | |||||||||||||
| Loss before income taxes | (2,034,326 | ) | (2,775,418 | ) | (7,572,527 | ) | (9,862,647 | ) | ||||||||
| Income tax expense | 22,696 | 1,153 | 66,604 | 2,851 | ||||||||||||
| Net loss | $ | (2,057,022 | ) | $ | (2,776,571 | ) | $ | (7,639,131 | ) | $ | (9,865,498 | ) | ||||
| Deemed dividend on repricing of warrants (2019 revised) | (670,632 | ) | ||||||||||||||
| Net loss attributable to common stockholders | $ | (2,057,022 | ) | $ | (2,776,571 | ) | $ | (7,639,131 | ) | $ | (10,536,130 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic and diluted | 5,681,121 | 3,940,113 | 5,530,259 | 2,901,398 | ||||||||||||
| Net loss per share attributable to common stockholders | ||||||||||||||||
| Basic and diluted | $ | (0.36 | ) | $ | (0.70 | ) | $ | (1.38 | ) | $ | (3.63 | ) |
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 12,606,758 | $ | 12,241,261 | ||||
| Accounts receivable, net | 2,215,696 | 924,916 | ||||||
| Inventories, net | 644,138 | 707,114 | ||||||
| Prepaid expenses and other current assets | 994,137 | 572,684 | ||||||
| Total Current Assets | 16,460,729 | 14,445,975 | ||||||
| Equipment, net | 302,110 | 95,023 | ||||||
| Operating lease assets with right of use | 696,345 | 168,784 | ||||||
| Total Assets | $ | 17,459,184 | $ | 14,709,782 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable and accrued expenses | 3,420,654 | 2,848,904 | ||||||
| Current operating lease liability | 301,878 | 18,289 | ||||||
| Deferred revenue | 2,512 | |||||||
| Total Current Liabilities | 3,722,532 | 2,869,705 | ||||||
| Deferred revenue | 1,495 | 1,495 | ||||||
| Non-current operating lease liability | 474,188 | 155,148 | ||||||
| Other long-term liabilities | 113,423 | 118,060 | ||||||
| Total Liabilities | 4,311,638 | 3,144,408 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders Equity: | ||||||||
| Preferred stock | ||||||||
| Common stock | 584 | 457 | ||||||
| Additional paid-in capital | 88,492,959 | 79,273,964 | ||||||
| Accumulated other comprehensive loss | (10,509 | ) | (12,690 | ) | ||||
| Accumulated deficit | (75,329,024 | ) | (67,689,893 | ) | ||||
| Treasury stock, at cost | (6,464 | ) | (6,464 | ) | ||||
| Total Stockholders Equity | 13,147,546 | 11,565,374 | ||||||
| Total Liabilities and Stockholders Equity | $ | 17,459,184 | $ | 14,709,782 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| For the Nine Months Ended September 30, | 2021 | 2020 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (7,639,131 | ) | $ | (9,865,498 | ) | ||
| Adjustments to reconcile net loss to net cash used in operations: | ||||||||
| Depreciation | 95,238 | 79,729 | ||||||
| Stock-based compensation | 831,046 | 411,192 | ||||||
| Bad debt expense | 29,839 | |||||||
| Non-cash interest expense, debt discount | 218,803 | |||||||
| Amortization of original issue discount and debt restructuring fee | 161,869 | |||||||
| Amortization of right-of-use assets | 126,529 | |||||||
| Loss on extinguishment of debt | 696,436 | |||||||
| Change in fair value of derivative liabilities | (122,706 | ) | ||||||
| Loss on disposal of asset | 202 | 177 | ||||||
| Other non-cash charges | 463 | (2,326 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,281,989 | ) | 85,925 | |||||
| Inventories | 52,734 | (324,234 | ) | |||||
| Prepaid expenses and other current assets | (422,881 | ) | 30,020 | |||||
| Other assets | 57,987 | |||||||
| Accounts payable and accrued expenses | 577,238 | 494,311 | ||||||
| Operating lease liabilities | (51,462 | ) | ||||||
| Deferred revenue | (2,512 | ) | 3,771 | |||||
| Other liabilities | (4,637 | ) | 165,889 | |||||
| Net cash used in operating activities | (7,719,162 | ) | (7,878,816 | ) | ||||
| CASH USED IN INVESTING ACTIVITIES | (302,527 | ) | (30,294 | ) | ||||
| CASH PROVIDED BY FINANCING ACTIVITIES | 8,388,076 | 16,761,653 | ||||||
| Effect of foreign exchange rate changes on cash | (890 | ) | (417 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 365,497 | 8,852,126 | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 12,241,261 | 4,540,455 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 12,606,758 | $ | 13,392,581 |
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| GAAP net loss | $ | (2,057,022 | ) | $ | (2,776,571 | ) | $ | (7,639,131 | ) | $ | (9,865,498 | ) | ||||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||||||
| Interest (income) expense and other expense, net | 4,055 | 29,915 | 10,193 | 254,039 | ||||||||||||
| Non-cash interest expense, debt discount | 12,135 | 218,803 | ||||||||||||||
| Loss on extinguishment of debt | 189,155 | 696,436 | ||||||||||||||
| Depreciation expense | 36,910 | 26,707 | 95,238 | 79,729 | ||||||||||||
| Stock-based compensation | 301,763 | 181,702 | 831,046 | 411,192 | ||||||||||||
| Change in fair value of derivative liabilities | (888 | ) | (122,706 | ) | ||||||||||||
| Income tax expense | 22,696 | 1,153 | 66,604 | 2,851 | ||||||||||||
| Adjusted EBITDA | $ | (1,691,598 | ) | $ | (2,336,692 | ) | $ | (6,636,050 | ) | $ | (8,325,154 | ) |