CEDAR KNOLLS, N.J.,
Nov. 14, 2017 /PRNewswire/ -- MYOS
RENS Technology Inc. ("MYOS" or "the Company") (NASDAQ: MYOS), a
bionutrition company and owner of Fortetropin®, the natural food
product that helps build lean muscle in conjunction with resistance
training, announced today its financial results for the three and
nine months ended September 30,
2017. (Amounts in thousands except where noted.)
FINANCIAL HIGHLIGHTS:
Third Quarter 2017:
- Gross profit margin was 59% for the third quarter of 2017.
- Net revenues increased 312% to $160, compared to $39 for the third quarter of 2016.
- Gross profit increased 955% to $95, compared to $9
for the third quarter of 2016.
- Operating expenses decreased 1% to $852, compared to $864 for the third quarter of 2016.
- Net loss decreased 13% to $753,
compared to $866 for the third
quarter of 2016.
Nine months ended September 30,
2017
- Gross profit margin was 34% for the nine months ended
September 30, 2017.
- Net revenues increased 23% to $369, compared to $300 for the nine months ended September 30, 2016.
- Gross profit increased 1,461% to $125, compared to $8 for the nine months ended September 30, 2016.
- Operating expenses decreased 13% to $3,113, compared to $3,563 for the nine months ended September 30, 2016.
- Net loss decreased 17% to $2,976,
compared to $3,589 for the nine
months ended September 30, 2016.
Liquidity
Quarterly cash flow from net cash used in operating activities
decreased each quarter in 2017. As of September 30, 2017, the Company had no debt and
had $2.3 million in working capital.
Subsequent to the third quarter, the Company raised approximately
$1.1 million from the sale of 500,000
shares of common stock at $2.14 per
share through its at-the-market program with H.C. Wainwright & Co., LLC.
MANAGEMENT COMMENTARY:
Joseph Mannello, Chief Executive Officer of
MYOS, commented, "We are pleased with the progress of our
performance in the third quarter. It reflects many of the
operational efficiencies that we have committed to throughout the
year to sustainably growing the company.
"In addition, we have strengthened our product marketing efforts
and continued to build awareness of our all-natural nutrition
products in the fitness and wellness, college athletics, and active
senior markets. In July, we participated at the IDEA World
Convention, and educated its 250,000-member database of
credentialed trainers, program/fitness directors, business owners,
and nutrition professionals about our Qurr® products. Also, we
announced last month our partnership with Pro Football Legends, the
commercial marketing arm of the NFL Alumni, in its Optimal Bowl and
Wellness Challenge.
"In early November, we announced the launch of our Collegiate
Sports Marketing Platform through a sponsorship with IMG College, a
division of IMG. IMG College represents more than 200 colleges
across multimedia rights, licensing and sponsorships and will
provide us with multi-channel platforms to connect with college
athletes as well as sports fans at the national, regional, and
local levels.
"We are optimistic about the outlook for our business, based on
the encouraging feedback and repeat business generated by our
customers and partners. We believe that the market recognizes that
our all-natural nutrition products can deliver lean muscle-building
and healthy muscles when combined with resistance training. The
effectiveness of Fortetropin® in muscle health is not only being
pursued in academic circles, but consumers are quickly becoming
aware of its benefits as well. Combined with the marketing and
awareness initiatives we've undertaken thus far, and the
opportunities that lie ahead, we believe our actions have
strengthened the business, which will enable growth and
profitability in the future," concluded Mr. Mannello.
About MYOS RENS Technology Inc.
MYOS RENS Technology (MYOS), "The Muscle Company™", is a
Cedar Knolls, NJ-based
bionutrition company that develops and markets products that
improve muscle health and performance. MYOS is the owner of
Fortetropin®, the world's first clinically-demonstrated myostatin
reducer. Myostatin is a natural regulatory protein, which inhibits
muscle growth. Fortetropin® is a fertilized egg yolk based product
manufactured via a proprietary process to retain and optimize its
biological activity. Fortetropin® has been clinically shown to
increase muscle size and lean body mass in conjunction with
resistance training. MYOS believes Fortetropin® has the potential
to redefine existing standards of physical health and wellness. For
more information, please visit www.MYOSRENS.com
Forward-Looking Statements
Any statements in this
release that are not historical facts are forward-looking
statements. Actual results may differ materially from those
projected or implied in any forward-looking statements. Such
statements involve risks and uncertainties, including but not
limited to those relating to product and customer demand, market
acceptance of our products, the ability to create new products
through research and development, the successful results of
strategic initiatives, the successful launch of our products,
including Qurr® products, the success of our research and
development, the results of the clinical evaluation of Fortetropin®
and its effects, the ability to enter into new partnership
opportunities and the success of our existing partnerships, the
ability to generate the forecasted revenue stream and cash flow
from sales of our products, the ability to continue increasing our
revenue and gross profit margins, the ability to achieve a
sustainable, profitable business, the effect of economic
conditions, the ability to protect our intellectual property
rights, competition from other providers and products, the
continued listing of our securities on the Nasdaq Stock Market,
risks in product development, our ability to raise capital to fund
continuing operations, and other factors discussed from time to
time in the Company's Securities and Exchange Commission filings.
The Company undertakes no obligation to update or revise any
forward-looking statement for events or circumstances after the
date on which such statement is made except as required by law.
These statements have not been evaluated by the Food and Drug
Administration. Our products are not intended to diagnose, treat,
cure or prevent any disease.
The following tables should be read in conjunction with the
footnotes accompanying the consolidated financial statements
contained within the Form 10Q issued on November 9, 2017.
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands,
except share and per share amounts)
|
|
|
|
September
30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
(Unaudited)
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
468
|
|
|
$
|
1,866
|
|
|
Accounts receivable,
net
|
|
|
56
|
|
|
|
8
|
|
|
Inventories,
net
|
|
|
1,821
|
|
|
|
1,862
|
|
|
Prepaid expenses and
other current assets
|
|
|
500
|
|
|
|
85
|
|
|
Total current
assets
|
|
|
2,845
|
|
|
|
3,821
|
|
|
|
|
|
|
|
|
|
|
|
Deferred offering
costs
|
|
|
125
|
|
|
|
-
|
|
|
Fixed assets,
net
|
|
|
194
|
|
|
|
233
|
|
|
Intangible assets,
net
|
|
|
1,711
|
|
|
|
1,907
|
|
|
Total
assets
|
|
$
|
4,875
|
|
|
$
|
5,961
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
107
|
|
|
$
|
226
|
|
|
Accrued expenses and
other current liabilities
|
|
|
368
|
|
|
|
361
|
|
|
Deferred
revenue
|
|
|
10
|
|
|
|
56
|
|
|
Total current
liabilities
|
|
|
485
|
|
|
|
643
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
485
|
|
|
|
643
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
Preferred stock,
$.001 par value; 500,000 shares authorized; no shares issued
and
outstanding
|
|
|
-
|
|
|
|
-
|
|
|
Common stock, $.001
par value; 12,000,000 shares authorized at September 30,
2017 and December 31, 2016; 5,844,372 and
5,344,372 shares issued and
outstanding at September 30, 2017 and
December 31, 2016, respectively
|
|
|
6
|
|
|
|
5
|
|
|
Additional paid-in
capital
|
|
|
35,146
|
|
|
|
33,099
|
|
|
Accumulated
deficit
|
|
|
(30,762)
|
|
|
|
(27,786)
|
|
|
Total stockholders'
equity
|
|
|
4,390
|
|
|
|
5,318
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
4,875
|
|
|
$
|
5,961
|
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in
thousands, except share and per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
160
|
|
|
$
|
39
|
|
|
$
|
369
|
|
|
$
|
300
|
|
|
Cost of
sales
|
|
|
65
|
|
|
|
30
|
|
|
|
244
|
|
|
|
292
|
|
|
Gross
profit
|
|
|
95
|
|
|
|
9
|
|
|
|
125
|
|
|
|
8
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, marketing
and advertising
|
|
|
90
|
|
|
|
97
|
|
|
|
557
|
|
|
|
778
|
|
|
Research &
development
|
|
|
1
|
|
|
|
4
|
|
|
|
42
|
|
|
|
16
|
|
|
Personnel and
benefits
|
|
|
269
|
|
|
|
281
|
|
|
|
932
|
|
|
|
1,071
|
|
|
Share-based
compensation
|
|
|
39
|
|
|
|
38
|
|
|
|
121
|
|
|
|
264
|
|
|
General and
administrative
|
|
|
382
|
|
|
|
391
|
|
|
|
1,206
|
|
|
|
1,233
|
|
|
Amortization of
acquired intangibles
|
|
|
71
|
|
|
|
53
|
|
|
|
196
|
|
|
|
157
|
|
|
Bad debt
|
|
|
-
|
|
|
|
-
|
|
|
|
59
|
|
|
|
-
|
|
|
Loss on asset
impairment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
44
|
|
|
Total operating
expenses
|
|
|
852
|
|
|
|
864
|
|
|
|
3,113
|
|
|
|
3,563
|
|
|
Operating
loss
|
|
|
(757)
|
|
|
|
(855)
|
|
|
|
(2,988)
|
|
|
|
(3,555)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
5
|
|
|
|
-
|
|
|
|
13
|
|
|
|
-
|
|
|
Interest
(expense)
|
|
|
(1)
|
|
|
|
(11)
|
|
|
|
(1)
|
|
|
|
(34)
|
|
|
Total other income
(expense, net)
|
|
|
4
|
|
|
|
(11)
|
|
|
|
12
|
|
|
|
(34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(753)
|
|
|
$
|
(866)
|
|
|
$
|
(2,976)
|
|
|
$
|
(3,589)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.13)
|
|
|
$
|
(0.17)
|
|
|
$
|
(0.52)
|
|
|
$
|
(0.76)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
5,844
|
|
|
|
5,064
|
|
|
|
5,773
|
|
|
|
4,708
|
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in
thousands)
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,976)
|
|
|
$
|
(3,589)
|
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
39
|
|
|
|
41
|
|
|
Amortization
|
|
|
196
|
|
|
|
157
|
|
|
Provision for
inventory reserve
|
|
|
(2)
|
|
|
|
94
|
|
|
Accretion of contract
liability
|
|
|
-
|
|
|
|
8
|
|
|
Share-based
compensation
|
|
|
121
|
|
|
|
264
|
|
|
Bad debt
|
|
|
(59)
|
|
|
|
-
|
|
|
Impairment
charge
|
|
|
-
|
|
|
|
44
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Decrease in accounts
receivable
|
|
|
11
|
|
|
|
405
|
|
|
Decrease (increase)
in inventories
|
|
|
43
|
|
|
|
(480)
|
|
|
(Increase) decrease
in prepaid expenses and other current assets
|
|
|
(415)
|
|
|
|
461
|
|
|
Decrease in deferred
revenue
|
|
|
(46)
|
|
|
|
-
|
|
|
Decrease in accounts
payable and accrued expenses
|
|
|
(112)
|
|
|
|
(436)
|
|
|
Net cash used in
operating activities
|
|
|
(3,200)
|
|
|
|
(3,031)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
|
Repayment of term
note
|
|
|
-
|
|
|
|
(100)
|
|
|
Deferred offering
costs
|
|
|
(125)
|
|
|
|
(109)
|
|
|
Proceeds from
registered direct offering of common stock, net of offering
costs
|
|
|
1,927
|
|
|
|
5,250
|
|
|
Net cash provided by
financing activities
|
|
|
1,802
|
|
|
|
5,041
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash
|
|
|
(1,398)
|
|
|
|
2,010
|
|
|
Cash at beginning of
period
|
|
|
1,866
|
|
|
|
879
|
|
|
Cash at end of
period
|
|
$
|
468
|
|
|
$
|
2,889
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Schedule of Cash Flow Information:
|
|
|
|
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
-
|
|
|
|
2
|
|
Investor Relations:
Porter LeVay & Rose
Michael Porter, President
Phone: 212-564-4700
Email: MYOS@plrinvest.com
View original content with
multimedia:http://www.prnewswire.com/news-releases/myos-rens-technology-reports-third-quarter-2017-financial-results-300555178.html
SOURCE MYOS RENS Technology