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NeuroOne Reports Second Quarter Fiscal Year 2024 Financial Results and Provides Corporate Update

Key Takeaway: NeuroOne Medical Technologies Corporation (NMTC) has reported its financial results for the second quarter of fiscal year 2024, highlighting significant revenue growth from its sEEG product line and the initiation of the OneRF Ablation System launch, which has received FDA clearance. Despite this, the company reported a net loss of $2.9 million, though this was an improvement over the previous year's loss. Cash reserves have decreased, and operating expenses remain substantial, indicating financial pressures amidst their advances in technology and market presence.

Market Sentiment Analysis

POSITIVE FACTORS

  • Strong revenue growth for the sEEG product line.
  • First company to receive FDA 510(k) clearance for the OneRF Ablation System.
  • Customer interest in the OneRF Ablation System indicates potential market success.
  • Potential for the drug delivery system to create a unique platform.

CONCERNS & RISKS

  • Net loss of $2.9 million for Q2 fiscal 2024, although improved from $3.5 million the prior year.
  • Decline in cash and cash equivalents from $5.3 million to $2.4 million since September 2023.
  • Operating expenses remain high relative to revenue.

Full Press Release Details

Reports Second Quarter Fiscal Year 2024 Financial Results and Provides Corporate Update
PRAIRIE, Minn., May 14, 2024 (GlobeNewswire) -- NeuroOne Medical Technologies Corporation (NASDAQ: NMTC) ("NeuroOne"
or the "Company"), a medical technology company focused on improving surgical care options and outcomes for patients suffering
from neurological disorders, today announces its operating results for the second quarter fiscal year 2024 ended March 31, 2024.
Quarter Fiscal Year 2024 and Recent Business Updates
Cord Stimulation Program:
Rosa, CEO of NeuroOne, commented, "We made excellent progress this quarter across multiple fronts. Revenue growth continued regarding
our sEEG product line as new customer sites were added by Zimmer Biomet. We also initiated the limited launch of the OneRF Ablation
System, an exciting accomplishment given we are the first company to receive FDA 510(k) clearance to market this novel technology in
the United States. Customer interest has been strong and we believe the OneRF Ablation System, with combination diagnostic and
therapeutic functionality, has the capability to create a paradigm shift in neurosurgical procedures. Moving forward, we will investigate
other applications to leverage our ablation system. We continue to believe strongly in the market opportunity for our drug delivery system
as we believe it has the potential to create a unique platform for both identifying the target area in the brain, delivering the pharmacologic
agent and monitoring its performance."
Cord Stimulation Program:
Quarter Fiscal Year 2024 Financial Results
revenue was $1,377,000 in the second quarter of fiscal 2024, compared to product revenue of $466,000 in the second quarter
of fiscal 2023. For the first six months of fiscal 2024, product revenue was $2,355,000, compared to $581,000 for the same period in
fiscal 2023. The Company had no collaboration revenue in the first six months of fiscal 2024, compared to collaboration revenue of $1.46
million in the first six months of fiscal 2023. Collaboration revenue in 2023 was derived from the Zimmer Development Agreement and represents
the portion of the exclusivity and milestone fee payments eligible for revenue recognition during the period.
operating expenses in the second quarter of fiscal 2024 were $3.3 million, compared with $3.5 million in the same
period of the prior fiscal year. Research and Development (R&D) expense in the second quarter of fiscal 2024 was $1.3 million compared
with $1.7 million in the second quarter of fiscal 2023. Selling, General and Administrative (SG&A) expense in the second
quarter of fiscal 2024 was $2.0 million compared with $1.8 million in the prior year period. For the first six months
of fiscal 2024, total operating expenses were $6.9 million, compared with $6.8 million in the same period of fiscal 2023.
R&D expense in the first six months of fiscal 2024 was $2.8 million compared with $3.3 million in the same period
of fiscal 2023. SG&A expense in the first six months of fiscal 2024 was $4.2 million compared with $3.5 million in
the prior year period.
loss was $2.9 million for the second quarter of fiscal 2024, compared to a net loss of $3.5 million in the second
quarter of fiscal 2023. Net loss for the first six months of fiscal 2024 was $6.2 million compared with $5.3 million in
the same period of fiscal 2023.
the second quarter of fiscal 2024, the Company sold common stock under the ATM Program at an average price of $1.43 per share, from which
the Company received net proceeds of $2.0 million.
of March 31, 2024, the Company had cash and cash equivalents of $2.4 million, compared to $5.3 million as of September
30, 2023. The Company had working capital of $3.2 million as of March 31, 2024, compared to working capital of $5.5 million as of September
Company had no debt outstanding as of March 31, 2024.
May 14, 2024 - 4:30 PM Eastern Time
through May 28, 2024
Medical Technologies Corporation is a developmental stage company committed to providing minimally invasive and hi-definition solutions
for EEG recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson's disease, dystonia, essential
tremors, chronic pain due to failed back surgeries and other related neurological disorders that may improve patient outcomes and reduce
procedural costs. The Company may also pursue applications for other areas such as depression, mood disorders, pain, incontinence, high
blood pressure, and artificial intelligence. For more information, visit nmtc1.com.
press release may 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. Except for statements of historical fact, any information contained in
this press release may be a forward-looking statement that reflects NeuroOne's current views about future events and are
subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance
or achievements to be materially different from the information expressed or implied by these forward-looking statements. In some cases,
you can identify forward-looking statements by the words or phrases "may," "might," "will," "could,"
"would," "should," "expect," "intend," "plan," "objective," "anticipate,"
"believe," "estimate," "predict," "project," "potential," "target," "seek,"
"contemplate," "continue, "focused on," "committed to" and "ongoing," or the negative of
these terms, or other comparable terminology intended to identify statements about the future. Forward-looking statements may include
statements regarding the transition of manufacturing from sEEG diagnostic electrodes to OneRF electrodes, the addition of new centers
for the Company's limited commercial launch, potential strategic partnership opportunities, continued development of the Company's
electrode technology program (including our drug delivery program and spinal cord stimulation program), business strategy, market size,
potential growth opportunities, future operations, future efficiencies, and other financial and operating information. Although NeuroOne
believes that we have a reasonable basis for each forward-looking statement, we caution you that these statements are based on a combination
of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. Our actual future results
may be materially different from what we expect due to factors largely outside our control, including risks that the partnership with
Zimmer Biomet may not facilitate the commercialization or market acceptance of our technology; whether due to supply chain disruptions,
labor shortages or otherwise; risks that our technology will not perform as expected based on results of our pre-clinical and clinical
trials; risks related to uncertainties associated with the Company's capital requirements to achieve its business objectives and ability
to raise additional funds: the risk that we may not be able to secure or retain coverage or adequate reimbursement for our technology;
uncertainties inherent in the development process of our technology; risks related to changes in regulatory requirements or decisions
of regulatory authorities; that we may not have accurately estimated the size and growth potential of the markets for our technology;
risks relate to clinical trial patient enrollment and the results of clinical trials; that we may be unable to protect our intellectual
property rights; and other risks, uncertainties and assumptions, including those described under the heading "Risk Factors"
in our filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this
press release and NeuroOne undertakes no obligation to revise or update any forward-looking statements for any reason, even if
new information becomes available in the future.
Federal law restricts this device to sale by or on the order of a physician.
Medical Technologies Corporation
As of March 31, As of September 30,
2024 2023
Assets
Current assets:
Cash and cash equivalents $ 2,434,655 $ 5,322,493
Accounts receivable 555,639 -
Inventory 1,311,673 1,726,686
Prepaid expenses 407,777 263,746
Total current assets 4,709,744 7,312,925
Intangible assets, net 78,419 89,577
Right-of-use assets 110,724 169,059
Property and equipment, net 496,015 525,753
Total assets $ 5,394,902 $ 8,097,314
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 780,839 $ 685,104
Accrued expenses and other liabilities 759,620 1,107,522
Total current liabilities 1,540,459 1,792,626
Operating lease liability, long term - 55,284
Total liabilities 1,540,459 1,847,910
Commitments and contingencies (Note 4)
Stockholders' equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized; no shares issued or outstanding. - -
Common stock, $0.001 par value; 100,000,000 shares authorized; 26,321,750 and 23,928,945 shares issued and outstanding as of March 31, 2024 and September 30, 2023, respectively. 26,322 23,929
Additional paid-in capital 72,714,414 68,911,778
Accumulated deficit (68,886,293 ) (62,686,303 )
Total stockholders' equity 3,854,443 6,249,404
Total liabilities and stockholders' equity $ 5,394,902 $ 8,097,314
Medical Technologies Corporation
Statements of Operations
For the Three Months Ended For the Six Months Ended
March 31, March 31,
2024 2023 2024 2023
Product revenue $ 1,377,294 $ 466,176 $ 2,354,943 $ 580,755
Cost of product revenue 986,875 434,673 1,698,210 561,559
Product gross profit 390,419 31,503 656,733 19,196
Collaborations revenue - - - 1,455,188
Operating expenses:
Selling, general and administrative 2,002,949 1,821,108 4,176,421 3,484,845
Research and development 1,273,568 1,706,314 2,756,885 3,269,810
Total operating expenses 3,276,517 3,527,422 6,933,306 6,754,655
Loss from operations (2,886,098 ) (3,495,919 ) (6,276,573 ) (5,280,271 )
Other income (expense), net 31,008 (26,909 ) 76,583 24,674
Loss before income taxes (2,855,090 ) (3,522,828 ) (6,199,990 ) (5,255,597 )
Provision for income taxes - - - -
Net loss $ (2,855,090 ) $ (3,522,828 ) $ (6,199,990 ) $ (5,255,597 )
Net loss per share:
Basic and diluted $ (0.11 ) $ (0.21 ) $ (0.25 ) $ (0.32 )
Number of shares used in per share calculations:
Basic and diluted 25,910,478 16,414,795 24,947,813 16,321,891

Frequently Asked Questions

What are NeuroOne's recent financial results?

NeuroOne reported $1.377 million in revenue for Q2 FY 2024, up from $466,000 in Q2 FY 2023.

What is the OneRF Ablation System?

The OneRF Ablation System, recently launched by NeuroOne, is FDA-cleared for novel neurosurgical uses.

How did operating expenses change in Q2 FY 2024?

Operating expenses decreased to $3.3 million in Q2 FY 2024 from $3.5 million in Q2 FY 2023.

What was NeuroOne's net loss for Q2 FY 2024?

NeuroOne reported a net loss of $2.9 million in Q2 FY 2024, a decrease from $3.5 million in Q2 FY 2023.

What is NeuroOne's cash position as of March 31, 2024?

As of March 31, 2024, NeuroOne had cash and cash equivalents of $2.4 million.

Last updated: May 14, 2024