Full Press Release Details
NeuroMetrix Reports Q4 and Full Year
2016 Financial Results
WALTHAM, Mass.,--(BUSINESS WIRE) -- NeuroMetrix, Inc. (Nasdaq:
NURO, NUROW), today reported financial and business highlights for the quarter and year ended December 31, 2016.
The Company develops and markets novel therapies, based on
bioelectrical and digital medicine, for chronic conditions. The Company's primary product is Quell , which
is an over-the-counter wearable neurostimulation device for treating chronic pain that was launched in Q2 2015. The Company also
has a diagnostic business based on its DPNCheck product, which is a point-of-care test that provides accurate
and cost-effective screening, diagnosis and monitoring of peripheral neuropathies including diabetic peripheral neuropathy (DPN).
"We are pleased with the progress we made in 2016. Both
the Quell and DPNCheck businesses are growing and are well positioned to build on the momentum we established in Q4 2016,"
said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. "Our three core objectives
for 2017 are to grow top line revenue while demonstrating operational leverage and reduced cash consumption, to continue our strong
record of product and clinical innovation, and to develop new strategic partnerships that accelerate Quell market adoption. Most
importantly, we will remain true to our focus on combining bioelectrical and digital medicine to help patients and physicians
better treat conditions such as chronic pain and diabetes."
Financial Highlights:
The Company reported its financial highlights results for Q4
2016. Total revenues were $3.7 million versus $2.7 million for Q4 2015, an increase of 36%. Gross margin was 45.5% of total revenues,
up from 41.6% in Q4 2015, primarily reflecting manufacturing efficiencies. Operating expenses increased to $4.6 million compared
to $4.5 million in Q4 2015. Loss from operations was $2.9 million in Q4 2016 versus $3.3 million Q4 2015. After interest income
and changes in fair value of warrant liabilities, net loss per common share was $0.52 in Q4 2016 and $3.19 in Q4 2015 which included
$2.41 effects of deemed dividend related to an equity offering in the year earlier quarter. Net cash usage in Q4 2016 was $3.6
million, down from $3.7 million in Q3 2016. The Company ended Q4 2016 with cash and cash equivalents of $3.9 million. Reflecting
the effects of the private placement which closed on January 5, 2017, the Company's cash and cash equivalents on that date
For the years ended December 31, total revenues were $12.0
million in 2016 compared to $7.3 million in 2015. Loss from operations was $15.2 million for the year ended December 31, 2016
versus $13.3 million for the year ended December 31, 2015. After interest income, changes in fair value of warrant liabilities
and deemed dividend earnings per share charges related to equity offerings, net loss per common share was $7.28 in the year ended
December 31, 2016 and $7.75 in the year December 31, 2015.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, January
26, 2017 at 8:00 a.m., Eastern Time. To access the call in the United States, dial (844) 787-0799 and use the confirmation code
49304382. Internationally, the conference call may be accessed by dialing (661) 378-9630 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 49304382. The replay will be available
for one week after the conference call.
NeuroMetrix is a commercial stage, innovation driven healthcare
company combining bioelectrical and digital medicine to address chronic health conditions including chronic pain, sleep disorders,
and diabetes. The company's lead product is Quell, an over-the-counter wearable therapeutic device for chronic pain. Quell is
integrated into a digital health platform that helps patients optimize their therapy and decrease the impact of chronic pain on
their quality of life. The company also markets DPNCheck, a rapid point-of-care test for diabetic neuropathy, which is the most
common long-term complication of Type 2 diabetes. The company maintains an active research effort and has several pipeline programs,
including a therapeutic device for restless leg syndrome. 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 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 December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues | $ | 3,715,432 | $ | 2,737,451 | $ | 12,027,528 | $ | 7,299,830 | ||||||||
| Cost of revenues | 2,026,299 | 1,599,267 | 7,113,005 | 3,950,746 | ||||||||||||
| Gross profit | 1,689,133 | 1,138,184 | 4,914,523 | 3,349,084 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 907,062 | 1,069,197 | 4,394,353 | 3,894,786 | ||||||||||||
| Sales and marketing | 2,655,976 | 2,049,376 | 10,855,445 | 7,232,971 | ||||||||||||
| General and administrative | 990,209 | 1,340,431 | 4,872,670 | 5,497,513 | ||||||||||||
| Total operating expenses | 4,553,247 | 4,459,004 | 20,122,468 | 16,625,270 | ||||||||||||
| Loss from operations | (2,864,114 | ) | (3,320,820 | ) | (15,207,945 | ) | (13,276,186 | ) | ||||||||
| Interest income | 2,102 | 1,882 | 19,132 | 5,232 | ||||||||||||
| Change in fair value of warrant liability | 47,789 | 609,802 | 275,662 | 4,083,606 | ||||||||||||
| Net loss | $ | (2,814,223 | ) | $ | (2,709,136 | ) | $ | (14,913,151 | ) | $ | (9,187,348 | ) | ||||
| Net loss per common share applicable to common stockholders, basic and diluted | $ | (0.52 | ) | $ | (3.19 | ) | $ | (7.28 | ) | $ | (7.75 | ) |
Condensed Balance Sheets
| December 31, 2016 | December 31, 2015 | |||||||
| Cash and cash equivalents | $ | 3,949,135 | $ | 12,462,872 | ||||
| Other current assets | 3,637,788 | 2,749,509 | ||||||
| Noncurrent assets | 696,968 | 887,220 | ||||||
| Total assets | $ | 8,283,891 | $ | 16,099,601 | ||||
| Current liabilities | $ | 3,318,486 | $ | 3,256,590 | ||||
| Common stock warrants | 4,641 | 280,303 | ||||||
| Stockholders' equity | 4,960,764 | 12,562,708 | ||||||
| Total liabilities and stockholders' equity | $ | 8,283,891 | $ | 16,099,601 |