Full Press Release Details
NeuroMetrix Reports Q3 2015 Financial
Results and Highlights
WALTHAM, Mass., --(BUSINESS WIRE)-- NeuroMetrix, Inc. (Nasdaq:
NURO), today reported financial and business highlights for the quarter ended September 30, 2015.
The Company operates in two markets - wearable therapeutic technology
and point-of-care diagnostic tests. Its newest product is Quell, an over-the-counter wearable therapeutic device for chronic pain
that was launched during the second quarter of 2015. Its point-of-care neuropathy test, DPNCheck, provides accurate and cost-effective
screening, diagnosis and monitoring of peripheral neuropathies including diabetic peripheral neuropathy.
Third quarter highlights:
The Company has initiatives underway to expand Quell distribution
through existing and new retail channels, potentially involving mass merchandisers, chain drug stores and shopping clubs. While
all major retailers have annual product display cycles that limit their flexibility to stock new products, the Company believes
there may be opportunities to engage new Quell distribution channels in 2016.
The Company's DPNCheck marketing partner in Asia, Omron
Healthcare, launched a new pricing initiative in Japan to incentivize adoption. Omron is also managing the DPNCheck regulatory
process in China with the expectation of approval during 2016. Either or both of these initiatives could have a meaningful effect
on DPNCheck shipments and revenue in 2016.
"We followed a strong Quell launch
in the second quarter with compelling growth in the third quarter," said Shai N. Gozani, M.D., Ph.D., President and Chief
Executive Officer of NeuroMetrix. "Our objective is to expand the availability of Quell to consumers suffering from chronic
pain. Our recent success with QVC and Amazon, and the market response to Quell TV, print and online coverage, is encouraging. We
believe this product is beginning to tap a large market opportunity and has the potential for exciting growth."
The Company reported its financial results for Q3 2015. Total
revenues were $2.1 million versus $1.4 million for Q3 2014, an increase of 44%. In addition, approximately $0.7 million in deferred
revenue related to Quell shipments was recorded in the balance sheet at the end of Q3 2015. Gross margin was 45.5 percent of total
revenues, reduced from 55.2 percent in Q3 2014, reflecting a higher weighting of lower margin Quell devices as the Company builds
its installed base. Operating expenses increased to $4.3 million compared to $2.8 million in Q3 2014, reflecting Quell marketing
and promotion. The Company recorded a non-cash credit of $0.2 million at September 30, 2015 for the revaluation at fair value of
outstanding common stock warrants compared to a $0.6 million revaluation credit at September 30, 2014. Net loss was $3.2 million,
or $0.26 per share. This compared to a net loss of $1.5 million for Q3 2014, or $0.19 per share. NeuroMetrix reported Q3 2015 net
cash usage of $3.5 million and ended the period with cash and cash equivalents of $9.1 million.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, October
22, 2015 at 8:00 a.m., Eastern Time. To access the call in the United States, dial 877-280-4953 and use the confirmation code 87413752.
Internationally, the conference call may be accessed by dialing 857-244-7310 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 53455816. The replay will be available for two
weeks 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
Condensed Statements of Operations
| Quarters Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenues | $ | 2,054,432 | $ | 1,427,828 | $ | 4,562,379 | 4,103,135 | |||||||||
| Cost of revenues | 1,119,186 | 639,025 | 2,351,479 | 1,909,443 | ||||||||||||
| Gross profit | 935,246 | 788,803 | 2,210,900 | 2,193,692 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 940,794 | 945,349 | 2,825,589 | 3,273,900 | ||||||||||||
| Sales and marketing | 1,965,627 | 537,785 | 5,183,595 | 1,678,665 | ||||||||||||
| General and administrative | 1,386,170 | 1,310,012 | 4,157,082 | 3,605,047 | ||||||||||||
| Total operating expenses | 4,292,591 | 2,793,146 | 12,166,266 | 8,557,612 | ||||||||||||
| Loss from operations | (3,357,345 | ) | (2,004,343 | ) | (9,955,366 | ) | (6,363,920 | ) | ||||||||
| Interest income | 1,761 | 1,336 | 3,350 | 3,362 | ||||||||||||
| Other expense | - | (23,256 | ) | - | (50,874 | ) | ||||||||||
| Warrants fair value adjustment | 151,806 | 564,550 | 3,473,804 | 1,554,411 | ||||||||||||
| Net loss | $ | (3,203,778 | ) | $ | (1,461,713 | ) | $ | (6,478,212 | ) | $ | (4,857,021 | ) | ||||
| Net loss per share applicable to common stock, basic and diluted | $ | (0.26 | ) | $ | (0.19 | ) | $ | (1.02 | ) | $ | (1.18 | ) |
Condensed Balance Sheets
| September 30, 2015 | December 31, 2014 | |||||||
| Cash and cash equivalents | $ | 9,116,806 | $ | 9,221,985 | ||||
| Other current assets | 2,852,590 | 1,868,140 | ||||||
| Noncurrent assets | 959,408 | 312,105 | ||||||
| Total assets | $ | 12,928,804 | $ | 11,402,230 | ||||
| Deferred revenue, current | $ | 692,244 | $ | 25,048 | ||||
| Other current liabilities | 2,845,566 | 2,673,100 | ||||||
| Noncurrent liabilities: | ||||||||
| Common stock warrants | 890,105 | 5,307,332 | ||||||
| Other | 10,433 | 9,635 | ||||||
| Stockholders' equity | 8,490,456 | 3,387,115 | ||||||
| Total liabilities and stockholders' equity | $ | 12,928,804 | $ | 11,402,230 |