Full Press Release Details
NeuroMetrix Reports Q2 2016 Financial
Results and Highlights
WALTHAM, Mass.--(BUSINESS WIRE) -- NeuroMetrix, Inc. (Nasdaq:
NURO), today reported financial and business highlights for the quarter and six month periods ended June 30, 2016.
The Company operates in two markets - wearable therapeutic technology
and point-of-care diagnostic tests. The Company's two primary products are Quell and DPNCheck .
Quell is an over-the-counter wearable neurostimulation device for treating chronic pain that was launched in Q2 2015. DPNCheck
is a point-of-care diagnostic device that provides accurate and cost-effective screening, diagnosis and monitoring of peripheral
neuropathies including diabetic peripheral neuropathy (DPN).
"We are pleased with our progress
in Q2 2016. Our plans for penetration of the retail sector are on schedule and, largely due to increasing Quell shipments, total
company revenue growth during the past four quarters has averaged 83% year-on-year. Our current marketing focus for Quell is on
building widespread brand awareness through our TV and on-line promotion efforts, as well as developing retail channel experience,"
said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "The next potential phase of retail
expansion will occur in 2017 following several quarters of experience within the retail stores currently stocking Quell. Our DPNCheck
efforts remain centered on building our Medicare Advantage business along with international expansion in partnership with local
The Company reported its financial results for Q2 2016. Total
revenues were $2.65 million versus $1.22 million for Q2 2015, an increase of 116%. Gross margin was 40.6% of total revenues, reduced
from 51.4% in Q2 2015, reflecting a higher weighting of lower margin Quell devices as the Company builds its installed base. Operating
expenses increased to $5.25 million compared to $3.97 million in Q2 2015, reflecting Quell marketing and promotion. The Company
recorded a non-cash credit of $0.08 million at June 30, 2016 for the revaluation at fair value of outstanding common stock warrants
compared to a $2.14 million revaluation credit at June 30, 2015. Net loss was $4.10 million or $5.37 per common share in Q2 2016,
including a deemed dividend charge to earnings per share of $4.45 resulting from the June equity offering. This compared to a net
loss of $1.20 million or $2.07 per common share for Q2 2015, also including a deemed dividend charge to earnings per share of $1.55
related to a May 2015 equity offering. NeuroMetrix reported Q2 2016 net cash usage of $4.20 million and ended the period with cash
and cash equivalents of $11.3 million.
For the six months ended June 30, total revenues were $4.92
million in 2016 compared to $2.51 million in 2015. Net loss was $8.19 million or $6.56 per common share in 2016, including a $4.64
deemed dividend earnings per share charge related to an equity offering, compared to $3.27 million or $3.13 per common share in
2015, also including a deemed dividend charge to earnings per share of $1.63 related to an equity offering.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, July
21, 2016 at 8:00 a.m., Eastern Time. To access the call in the United States, dial 844-647-5493 and use the confirmation code
46091425. Internationally, the conference call may be accessed by dialing 661-378-9452 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 855-859-2056, domestically and 404-537-3406, internationally. The confirmation code to access the replay
is 46091425. The replay will be available for one week after the conference call.
NeuroMetrix is an innovative
health-care company that develops wearable digital health technology for consumers 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.
Thomas T. Higgins, 781-314-2761
SVP and Chief Financial Officer
Statements of Operations
| Quarters Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 2,647,422 | $ | 1,224,987 | $ | 4,922,669 | $ | 2,507,947 | ||||||||
| Cost of revenues | 1,572,370 | 595,032 | 3,054,883 | 1,232,293 | ||||||||||||
| Gross profit | 1,075,052 | 629,955 | 1,867,786 | 1,275,654 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,127,850 | 982,253 | 2,284,640 | 1,884,795 | ||||||||||||
| Sales and marketing | 2,832,279 | 1,762,282 | 5,240,158 | 3,217,968 | ||||||||||||
| General and administrative | 1,292,305 | 1,224,822 | 2,716,646 | 2,770,912 | ||||||||||||
| Total operating expenses | 5,252,434 | 3,969,357 | 10,241,444 | 7,873,675 | ||||||||||||
| Loss from operations | (4,177,382 | ) | (3,339,402 | ) | (8,373,658 | ) | (6,598,021 | ) | ||||||||
| Interest income | 4,553 | 500 | 11,258 | 1,589 | ||||||||||||
| Change in fair value of warrant liability | 77,309 | 2,135,696 | 171,625 | 3,321,998 | ||||||||||||
| Net loss | $ | (4,095,520 | ) | $ | (1,203,206 | ) | $ | (8,190,775 | ) | $ | (3,274,434 | ) | ||||
| Net loss per common share applicable to common stockholders, basic and diluted | $ | (5.37 | ) | $ | (2.07 | ) | $ | (6.56 | ) | $ | (3.13 | ) |
Condensed Balance Sheets
| June 30, 2016 | December 31, 2015 | |||||||
| Cash and cash equivalents | $ | 11,330,857 | $ | 12,462,872 | ||||
| Other current assets | 2,447,889 | 2,684,398 | ||||||
| Noncurrent assets | 798,935 | 887,220 | ||||||
| Total assets | $ | 14,577,681 | $ | 16,034,490 | ||||
| Current liabilities | $ | 2,906,005 | $ | 3,191,479 | ||||
| Common stock warrants | 108,678 | 280,303 | ||||||
| Stockholders' equity | 11,562,998 | 12,562,708 | ||||||
| Total liabilities and stockholders' equity | $ | 14,577,681 | $ | 16,034,490 |