Full Press Release Details
NeuroMetrix Reports Q4 2015 Financial
Results and Highlights
WALTHAM, Mass.,--(BUSINESS WIRE)-- NeuroMetrix, Inc. (Nasdaq:
NURO), today reported financial and business highlights for the full year and quarter ended December 31, 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.
NeuroMetrix' primary initiative for 2016 is the launch
of Quell into retail distribution. Negotiations with potential retailers are at an advanced stage and may result in shipments
starting in Q2 2016. 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. To support this initiative, the Company is planning an expanded
media campaign, including television promotion, to begin in Q2 2016. The campaign's goal is to broaden awareness of Quell.
The Company recently secured regulatory approval for DPNCheck
in Mexico and China. Mexico sales have commenced with an initial shipment to a governmental healthcare organization. China will
require more time to address marketing and logistical issues. The Company believes the developments in Mexico and China are positive
and will be beneficial over time as the local business develops; however, they will likely not have a significant impact on revenue
"Virtually all our attention and available resources are
directed at expanding Quell distribution," said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix.
"In 2015 we successfully demonstrated consumer demand and rapid growth with Quell. This progress has positioned us to take
the next major step into retail merchandising. We have a clearly-charted pathway, strong advisors, and are determined to successfully
penetrate retail with the support of television promotion. Fiscal 2016 will be a very important year for NeuroMetrix."
The Company reported its financial results for Q4 2015. Total
revenues were $2.74 million versus $1.41 million for Q4 2014, an increase of 94%. Gross margin was 41.6% of total revenues, reduced
from 53.2% in Q4 2014, reflecting a higher weighting of lower margin Quell devices as the Company builds its installed base. Operating
expenses increased to $4.46 million compared to $3.16 million in Q4 2014, reflecting Quell marketing and promotion. The Company
recorded a non-cash credit of $0.61 million at December 31, 2015 for the revaluation at fair value of outstanding common stock
warrants compared to a $0.50 million revaluation charge at December 31, 2014. Net loss was $2.71 million. This compared to a net
loss of $2.91 million for Q4 2014. NeuroMetrix reported Q4 2015 net cash usage of $3.48 million and ended the period with cash
and cash equivalents of $12.46 million.
For the year ended December 31, 2015, the Company reported revenues
of $7.30 million and a net loss of $9.19 million. In the year ended December 31, 2014, the Company recorded revenues of $5.51 million
and a net loss of $7.77 million.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, January
28, 2016 at 8:00 a.m., Eastern Time. To access the call in the United States, dial 877-703-6109 and use the confirmation code
39553957. Internationally, the conference call may be accessed by dialing 857-244-7308 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 43271874. 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 December 31, | Year Ended December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenues | $ | 2,737,451 | $ | 1,409,629 | $ | 7,299,830 | $ | 5,512,764 | ||||||||
| Cost of revenues | 1,599,267 | 659,159 | 3,950,746 | 2,568,602 | ||||||||||||
| Gross profit | 1,138,184 | 750,470 | 3,349,084 | 2,944,162 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,069,197 | 802,076 | 3,894,786 | 4,075,976 | ||||||||||||
| Sales and marketing | 2,049,376 | 1,234,447 | 7,232,971 | 2,913,112 | ||||||||||||
| General and administrative | 1,340,431 | 1,120,076 | 5,497,513 | 4,725,123 | ||||||||||||
| Total operating expenses | 4,459,004 | 3,156,599 | 16,625,270 | 11,714,211 | ||||||||||||
| Loss from operations | (3,320,820 | ) | (2,406,129 | ) | (13,276,186 | ) | (8,770,049 | ) | ||||||||
| Interest income | 1,882 | 1,245 | 5,232 | 4,606 | ||||||||||||
| Warrants offering costs | - | - | - | (50,874 | ) | |||||||||||
| Change in fair value of warrant liability | 609,802 | (504,316 | ) | 4,083,606 | 1,050,095 | |||||||||||
| Net loss | $ | (2,709,136 | ) | $ | (2,909,200 | ) | $ | (9,187,348 | ) | $ | (7,766,222 | ) |
Condensed Balance Sheets
| December 31, 2015 | December 31, 2014 | |||||||
| Cash and cash equivalents | $ | 12,462,872 | $ | 9,221,985 | ||||
| Other current assets | 2,684,398 | 1,868,140 | ||||||
| Noncurrent assets | 887,220 | 312,105 | ||||||
| Total assets | $ | 16,034,490 | $ | 11,402,230 | ||||
| Current liabilities | $ | 3,191,479 | $ | 2,698,148 | ||||
| Noncurrent liabilities: | ||||||||
| Common stock warrants | 280,303 | 5,307,332 | ||||||
| Other | - | 9,635 | ||||||
| Stockholders' equity | 12,562,708 | 3,387,115 | ||||||
| Total liabilities and stockholders' equity | $ | 16,034,490 | $ | 11,402,230 |