Full Press Release Details
NeuroMetrix Reports Third Quarter 2014
Financial Results and Business Highlights
WALTHAM, Mass., October 28, 2014 (BUSINESS WIRE) -- NeuroMetrix,
Inc. (the "Company") (Nasdaq: NURO), today reported business highlights for the quarter ended September 30, 2014.
The Company operates in two primary markets - wearable medical
technology and point-of-care tests. The Company's SENSUS device is
a wearable transcutaneous electrical nerve stimulator indicated for management of chronic pain, and is the only such device cleared
by the FDA for use during sleep. It is lightweight and can be worn during the day while remaining active, and at night while sleeping.
SENSUS is beneficial in treating various forms of chronic pain, particularly neuropathic pain such as painful diabetic neuropathy,
which affects about one quarter of people with diabetes. The Company's point-of-care neuropathy test, DPNCheck, addresses an unmet
medical need for accurate and cost-effective screening, diagnosing and monitoring of peripheral neuropathies such as diabetic peripheral
The Company reported increased adoption of SENSUS and DPNCheck,
as well as overall revenue growth.
"We experienced a solid quarter in our professional commercial
products as well as development of our wearable pain relief device for the consumer market," said Shai N. Gozani, M.D., Ph.D.,
President and Chief Executive Officer of NeuroMetrix. "SENSUS and DPNCheck sales were nearly $0.8M which is a record high
for our diabetes focused products. We did experience seasonality and uneven sales with SENSUS, which is expected given that all
sales are through distribution. We have shipped over 5,000 SENSUS devices since product launch and learned a great deal about best
practices for the technology. On the consumer side of our business, we are making rapid progress on our over-the-counter pain relief
product and gearing up for an exciting commercial launch in 2015.
The Company reported its financial results for Q3 2014. Total
revenues were $1.43 million, up 8.6% from $1.31 million for Q3 2013. Gross profit was 55.2 percent of total revenues compared to
56.0 percent in Q3 2013. Operating expenses were $2.8 million compared to $2.3 million in Q3 2013. The Company recorded a non-cash
credit of $0.6 million at September 30, 2014 for the revaluation at fair value of outstanding common stock warrants compared to
$0.9 million revaluation credit at September 30, 2013. Net loss was $1.46 million, or $0.19 per share. This compared to a net loss
of $0.7 million for Q3 2013, or $0.26 per share. NeuroMetrix reported net cash usage of $2.0 million and ended the period with
cash resources of $11.7 million.
For the nine month period ended September 30, 2014, the Company
reported revenues of $4.1 million and a net loss of $4.9 million, or $1.18 per share. In the comparable nine month period ended
September 30, 2013, the Company recorded revenues of $3.9 million and a net loss of $4.3 million, or $2.13 per share.
Company to Host Live Conference Call and Webcast
NeuroMetrix management will host a conference call today, October
28, 2014 at 8:00 a.m., Eastern. To access the call in the United States, dial 800-299-8538 and use the confirmation code 96119195.
Internationally, the conference call may be accessed by dialing 617-786-2902 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 97270364. 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 has a major focus on diabetic neuropathies, which affect over 50% of people with diabetes. If
left untreated, diabetic neuropathies trigger foot ulcers that may require amputation and cause disabling chronic pain. The annual
cost of diabetic neuropathies has been estimated at $14 billion in the United States. The Company markets the SENSUS device for
treating chronic pain, focusing on physicians managing patients with neuropathic pain such as painful diabetic neuropathy. The
Company also markets DPNCheck, which is a rapid, accurate, and quantitative point-of-care test for peripheral neuropathies such
as diabetic neuropathy. This product is used to detect neuropathies at an early stage and to guide treatment. 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
relating to the adoption of SENSUS and DPNCheck, and ability to build a successful business focused on diabetic neuropathy. 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 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, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenues | $ | 1,427,828 | $ | 1,314,728 | $ | 4,103,135 | $ | 3,876,654 | ||||||||
| Cost of revenues | 639,025 | 578,484 | 1,909,443 | 1,649,429 | ||||||||||||
| Gross profit | 788,803 | 736,244 | 2,193,692 | 2,227,225 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 945,349 | 740,324 | 3,273,900 | 2,727,590 | ||||||||||||
| Sales and marketing | 537,785 | 581,079 | 1,678,665 | 2,241,138 | ||||||||||||
| General and administrative | 1,310,012 | 1,014,295 | 3,605,047 | 3,240,049 | ||||||||||||
| Total operating expenses | 2,793,146 | 2,335,698 | 8,557,612 | 8,208,777 | ||||||||||||
| Loss from operations | (2,004,343 | ) | (1,599,454 | ) | (6,363,920 | ) | (5,981,552 | ) | ||||||||
| Interest income | 1,336 | 1,407 | 3,362 | 4,570 | ||||||||||||
| Other expense | (23,256 | ) | - | (50,874 | ) | (376,306 | ) | |||||||||
| Warrants fair value adjustment | 564,550 | 881,783 | 1,554,411 | 2,037,779 | ||||||||||||
| Net loss | $ | (1,461,713 | ) | $ | (716,264 | ) | $ | (4,857,021 | ) | $ | (4,315,509 | ) | ||||
| Net loss per share applicable to common stock, basic and diluted | $ | (0.19 | ) | $ | (0.26 | ) | $ | (1.18 | ) | $ | (2.13 | ) |
Condensed Balance Sheets
| September 30, 2014 | December 31, 2013 | |||||||
| Cash and cash equivalents | $ | 11,687,021 | $ | 9,195,753 | ||||
| Other current assets | 1,682,932 | 1,370,774 | ||||||
| Noncurrent assets | 198,600 | 230,236 | ||||||
| Total assets | $ | 13,568,553 | $ | 10,796,763 | ||||
| Current liabilities | $ | 2,554,541 | $ | 1,647,908 | ||||
| Noncurrent liabilities | 4,813,065 | 1,953,879 | ||||||
| Stockholders' equity | 6,200,947 | 7,194,976 | ||||||
| Total liabilities and stockholders' equity | $ | 13,568,553 | $ | 10,796,763 |