Full Press Release Details
NeuroMetrix Reports Q1 2016 Financial
Results and Highlights
WALTHAM, Mass.,--(BUSINESS WIRE) -- NeuroMetrix, Inc. (Nasdaq:
NURO), today reported financial and business highlights for the quarter ended March 31, 2016.
The Company operates in two markets - wearable therapeutic technology
and point-of-care diagnostic tests. Quell is an over-the-counter wearable therapeutic device for chronic pain that was launched
during the second quarter of 2015. DPNCheck provides accurate and cost-effective screening, diagnosis and monitoring of peripheral
neuropathies including diabetic peripheral neuropathy.
NeuroMetrix' primary initiative for 2016 is to make Quell
available at leading retailers. This effort started with the March announcement that Quell will be part of a digital health initiative
at Target. The Company expects the retail expansion to continue during Q2 as discussions with other retailers mature into distribution
arrangements. Promotion will support the retail launch. Television advertising was developed and tested during Q1 and will be part
of an expanded media campaign. The Company believes that broad retail availability of Quell in locations where consumers shop for
chronic pain solutions will positively impact Quell sales during 2016.
"We are on schedule with our plans for retail distribution,"
said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "In addition to developing television
content, during Q1 we implemented EDI capability, retail packaging, and built Quell inventory in preparation for retail shipments.
In the upcoming months, I expect that we will be reporting new retail distribution agreements."
The Company reported its financial results for Q1 2016. Total
revenues were $2.28 million versus $1.28 million for Q1 2015, an increase of 77%. Gross margin was 34.8% of total revenues, reduced
from 50.3% in Q1 2015, reflecting a higher weighting of lower margin Quell devices as the Company builds its installed base. Operating
expenses increased to $4.99 million compared to $3.90 million in Q1 2015, reflecting Quell marketing and promotion. The Company
recorded a non-cash credit of $0.09 million at March 31, 2016 for the revaluation at fair value of outstanding common stock warrants
compared to a $1.19 million revaluation credit at March 31, 2015. Net loss was $4.10 million. This compared to a net loss of $2.07
million for Q1 2015. NeuroMetrix reported Q1 2016 net cash usage of $3.72 million and ended the period with cash and cash equivalents
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, April
21, 2016 at 8:00 a.m., Eastern Time. To access the call in the United States, dial 800-706-7745 and use the confirmation code
84967792. Internationally, the conference call may be accessed by dialing 617-614-3472 and using the same confirmation code. The
call will also be webcast and will be accessible from the Company's website at http://www.NeuroMetrix.com
under the "Investor Relations" tab. A replay of the conference call will be available starting two hours
after the call by dialing 888-286-8010, domestically and 617-801-6888, internationally. The confirmation code to access the replay
is 61049204. The replay will be available for one week after the conference call.
NeuroMetrix is an innovative
health-care company that develops wearable medical technology and point-of-care tests that help patients and physicians better
manage chronic pain, nerve diseases, and sleep disorders. The
company is located in Waltham, Massachusetts and was founded as a spinoff from the Harvard-MIT Division of Health Sciences and
Technology in 1996. For more information, please visit http://www.NeuroMetrix.com.
Safe Harbor Statement
The statements contained in this press release 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, including, without limitation, statements regarding the company's or management's expectations
regarding the business, as well as events that could have a meaningful impact on the company's revenues. While the company
believes the forward-looking statements contained in this press release are accurate, there are a number of factors that could
cause actual events or results to differ materially from those indicated by such forward-looking statements, including, without
limitation, estimates of future performance, and the ability to successfully develop, receive regulatory clearance, commercialize
and achieve market acceptance for any products. There can be no assurance that future developments will be those that the company
has anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those
risks, uncertainties and factors referred to in the company's most recent Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q, as well as other documents that may be filed from time to time with the Securities and Exchange Commission or otherwise
made public. The company is providing the information in this press release only as of the date hereof, and expressly disclaims
any intent or obligation to update the information included in this press release or revise any forward-looking statements.
Source: NeuroMetrix, Inc.
SVP and Chief Financial Officer
Statements of Operations
| Quarters Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Revenues | $ | 2,275,247 | $ | 1,282,960 | ||||
| Cost of revenues | 1,482,513 | 637,261 | ||||||
| Gross profit | 792,734 | 645,699 | ||||||
| Operating expenses: | ||||||||
| Research and development | 1,156,790 | 902,542 | ||||||
| Sales and marketing | 2,407,879 | 1,455,686 | ||||||
| General and administrative | 1,424,341 | 1,546,090 | ||||||
| Total operating expenses | 4,989,010 | 3,904,318 | ||||||
| Loss from operations | (4,196,276 | ) | (3,258,619 | ) | ||||
| Interest income | 6,705 | 1,089 | ||||||
| Change in fair value of warrant liability | 94,316 | 1,186,302 | ||||||
| Net loss | $ | (4,095,255 | ) | $ | (2,071,228 | ) | ||
| Net loss per common share, basic and diluted | $ | (1.00 | ) | $ | (1.00 | ) |
| March 31, 2016 | December 31, 2015 | |||||||
| Cash and cash equivalents | $ | 8,739,651 | $ | 12,462,872 | ||||
| Other current assets | 2,724,150 | 2,684,398 | ||||||
| Noncurrent assets | 844,369 | 887,220 | ||||||
| Total assets | $ | 12,308,170 | $ | 16,034,490 | ||||
| Current liabilities | $ | 3,269,957 | $ | 3,191,479 | ||||
| Common stock warrants | 185,987 | 280,303 | ||||||
| Stockholders' equity | 8,852,226 | 12,562,708 | ||||||
| Total liabilities and stockholders' equity | $ | 12,308,170 | $ | 16,034,490 |