CEDAR KNOLLS, N.J.,
Aug. 8, 2018 /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 months and six months
ended June 30, 2018.
FINANCIAL HIGHLIGHTS: (Amounts in thousands
except where noted.)
Second Quarter 2018:
- Net revenues increased 49% to $88
for the three months ended June 30,
2018, compared to $59 for the
three months ended June 30, 2017,
primarily due to increased sales from two new products launched in
the second quarter of 2018, Yolked™ and MYOS Canine
Muscle Formula™.
- Gross profit for the three months ended June 30, 2018 increased 73% to $26, compared to $15 for the three months ended June 30, 2017.
- Gross profit margin for the three months ended June 30, 2018 was 30% compared to 25% for the
three months ended June 30,
2017.
- Operating expenses for the three months ended June 30, 2018, decreased 6% to $1,060 compared to $1,124 for the three months ended June 30, 2017.
- Net loss decreased 7% to $1,034
for the three months ended June 30,
2018.
First Half 2018:
- Net revenues decreased 31% to $145 for the six months ended June 30, 2018, compared to $209 for the six months ended June 30, 2017. The decrease of $64 in net revenues was primarily due to a
non-recurring sale to a related party of $116 in the six months ended June 30, 2017 offset by an increase of
$52 in sales of all our other product
lines in the six months ended June 30,
2018.
- Gross profit for the six months ended June 30, 2018 increased 73% to $52, compared to $30 for the six months ended June 30, of 2017.
- Gross profit margin for the six months ended June 30, 2018 was 36% compared to 14% for the six
months ended June 30, 2017.
- Operating expenses for the six months ended June 30, 2018 increased 2% to $2,298, compared to $2,261 for the six months ended June 30, 2017.
- Net loss increased 1% to $2,247
for the six months ended June 30,
2018.
Liquidity
As of June 30, 2018, the Company had
cash of $508 and total assets of
$4,143, with no debt and $1,972 in working capital. In April 2018, the Company consummated a private
placement of 806,452 shares of common stock at a purchase price of
$1.24 per share to a group of
accredited investors, including MYOS CEO Joseph Mannello and a member of the Company's
board of directors, for aggregate gross proceeds of $1.0 million.
MANAGEMENT COMMENTARY:
Joseph
Mannello, Chief Executive Officer of MYOS, commented,
"Overall, we are pleased with the continued improvement in our
business during the second quarter. We are happy to see early
momentum for our two new products, which contributed to our
top-line growth in the second quarter of 2018. These two products
were only launched in the second half of the second quarter of
2018, so while we are optimistic about these initial orders, we
look forward to seeing greater results as our dedicated marketing
initiatives take shape over time.
In April 2018, we launched our new
sports nutrition product line
Yolked™ that has received the
prestigious Certified for Sport® certification from NSF
International. Yolked is an all-natural nutrition product based on
Fortetropin® that is marketed specifically to
competitive athletes. As part of our marketing agreement with IMG,
we have introduced Yolked at Princeton
University and six additional Division I universities.
Athletes in the university athletic programs are taking Yolked in
conjunction with their summer training routines. Thus far, we have
been pleased with the feedback we received, and we anticipate our
marketing partnership with IMG to lead to more introductions to
universities, particularly with the fall semester approaching.
In June 2018, we launched our
Fortetropin-based pet product, MYOS Canine Muscle
Formula™. We launched our new website, www.myospet.com, and
have begun targeting veterinary hospitals and veterinary practices.
In fact, two veterinarian hospitals performed some informal
observational studies with older dogs experiencing frailty and
observed that the dogs consuming Fortetropin appeared more mobile
after taking our pet product– a very positive result. We believe
that the feedback we received from these two hospitals, together
with the potential results from our Kansas
State University study, will enable us to grow our pet
business product line.
Also, we recently made some key additions to our sales team by
hiring a brand manager, a marketing specialist, and two
salespeople. Growing our sales team is crucial to our near- and
long-term strategy to expand our customer base across our fitness,
sports nutrition, and veterinary verticals. We have strategically
deployed capital into strengthening the scale and scope of our
sales efforts and believe that this, combined with our partnership
with IMG, will drive top-line growth going forward.
At the heart of MYOS is our commitment towards uncovering the
science behind Fortetropin. We have made investments in
research and development through academic collaborations aimed at
enhancing our products and broadening the product portfolio. We
currently have the following four research studies underway:
- Kansas State University College of
Veterinary Medicine, to study the impact of Fortetropin on
reducing muscle atrophy in dogs after tibial-plateau-leveling
osteotomy (TPLO) surgery (similar to ACL surgery in humans). The
recruitment is complete and the study results are expected in the
fourth quarter of this year.
- University of California,
Berkeley's Department of Nutritional Sciences &
Toxicology, to study the effects of Fortetropin on increasing the
fractional rate of skeletal muscle protein synthesis in men and
women between 60 and 75 years of age. Patient enrollment has been
initiated with complete enrollment expected by mid-fourth quarter
of 2018. Proteomics and data analysis are expected to be completed
by the second quarter of 2019.
- Rutgers University, The State
University of New Jersey, to work
with Rutgers researchers in a program
focused on discovering compounds and products for improving muscle
health and performance. They have initiated assay optimization and
will shortly begin compound screening. We anticipate announcing
developments on this research as they become available.
- Weill Cornell Medical College, to study the efficacy of
Fortetropin in preventing weight and muscle loss associated with
cancer in a mouse model of lung cancer. They have initiated tumor
inductions in mice and expect to begin dosing in about two months.
After two months of dosing, the team will begin histological
evaluations. The Company anticipates that the study will be
completed and the results announced around the end of the first
quarter of 2019.
We are committed to continuing our focus on various clinical
trials in support of enhancing our commercial strategy as well as
enhancing our intellectual property assets, to develop product
improvements and new products. We anticipate launching several
additional clinical studies.
As I approach the end of my first year as permanent CEO, I
believe that we are in a much better position today than a year
ago. We've managed to control expenses, have no debt on the balance
sheet, and have successfully raised capital through our ATM program
and private placement. We launched four clinical studies (with more
to come), two new product lines, and partnered with the leading
global sports marketing agency to help market our products. We
still have room to improve our positioning, which I am committed
towards accomplishing.
I remain optimistic in our ability to grow the business as
Fortetropin is a remarkable, disruptive ingredient, one that has
demonstrated tremendous clinical and anecdotal evidence and
versatility. I agreed to forego an annual salary in lieu of stock
options, while purchasing MYOS stock on the open market and making
direct investments in the Company because I believe this is truly
an undervalued company. We have a strong balance sheet, maintain
conservative cash management, an improved scientific profile and
brand development, all of which we expect will yield long-term
success," concluded Mr. Mannello.
CONFERENCE CALL
MYOS will host a conference call
tomorrow, Thursday, August 9, 2018 at
11:00 am ET, at which time MYOS Chief
Executive Officer Joseph Mannello
will provide highlights and commentary on earnings results and
developments on clinical studies for the second quarter ended
June 30, 2018.
Call Date/Time: Thursday, August 9, 2018 at 11:00 am ET
Call Title: MYOS RENS Technology
Second Quarter & First Half 2018 Results Conference Call
Dial In: 877-407-4019 from the
U.S.; international callers may telephone 201-689-8337,
approximately 15 minutes before the call.
A digital replay will be available by telephone approximately
two hours after the completion of the call until November 9, 2018 and may be accessed by dialing
877-660-6853 from the U.S. or 201-612-7415 for international
callers, using the Conference ID# 13682085.
This call will be simultaneously webcast. The webcast will be
available on the MYOS website, www.myosrens.com, in the "Investor
Relations" section. The webcast will be archived and available at
the same web address for two weeks following the call.
About MYOS RENS Technology Inc.
MYOS RENS Technology
Inc. (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®, 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 our Yolked™ and MYOS Canine Muscle Formula™. 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 in the Quarterly Report on Form 10-Q filed today with the
Securities and Exchange Commission.
PART I. FINANCIAL
INFORMATION
|
|
ITEM 1. FINANCIAL
STATEMENTS
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands,
except share and per share amounts)
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
508
|
|
|
$
|
923
|
|
Accounts receivable,
net
|
|
|
2
|
|
|
|
4
|
|
Inventories,
net
|
|
|
1,767
|
|
|
|
1,779
|
|
Prepaid expenses and
other current assets
|
|
|
112
|
|
|
|
163
|
|
Total current
assets
|
|
|
2,389
|
|
|
|
2,869
|
|
Deferred offering
costs
|
|
|
94
|
|
|
|
102
|
|
Fixed assets,
net
|
|
|
164
|
|
|
|
184
|
|
Intangible assets,
net
|
|
|
1,496
|
|
|
|
1,640
|
|
Total
assets
|
|
$
|
4,143
|
|
|
$
|
4,795
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
249
|
|
|
$
|
176
|
|
Accrued expenses and
other current liabilities
|
|
|
168
|
|
|
|
255
|
|
Total current
liabilities
|
|
|
417
|
|
|
|
431
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
417
|
|
|
|
431
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2018
and
at December 31, 2017;
7,473,723 and 6,340,604 shares issued and outstanding at
June 30, 2018 and
December 31, 2017, respectively
|
|
|
7
|
|
|
|
6
|
|
Additional paid-in
capital
|
|
|
37,810
|
|
|
|
36,202
|
|
Accumulated
deficit
|
|
|
(34,091)
|
|
|
|
(31,844)
|
|
Total stockholders'
equity
|
|
|
3,726
|
|
|
|
4,364
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
4,143
|
|
|
$
|
4,795
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in
thousands, except share and per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
88
|
|
|
$
|
59
|
|
|
$
|
145
|
|
|
|
209
|
|
Cost of
sales
|
|
|
62
|
|
|
|
44
|
|
|
|
93
|
|
|
|
179
|
|
Gross
profit
|
|
|
26
|
|
|
|
15
|
|
|
|
52
|
|
|
|
30
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, marketing
and research
|
|
|
235
|
|
|
|
208
|
|
|
|
629
|
|
|
|
508
|
|
Personnel and
benefits
|
|
|
348
|
|
|
|
411
|
|
|
|
765
|
|
|
|
744
|
|
General and
administrative
|
|
|
477
|
|
|
|
505
|
|
|
|
904
|
|
|
|
1,009
|
|
Total operating
expenses
|
|
|
1,060
|
|
|
|
1,124
|
|
|
|
2,298
|
|
|
|
2,261
|
|
Operating
loss
|
|
|
(1,034)
|
|
|
|
(1,109)
|
|
|
|
(2,246)
|
|
|
|
(2,231)
|
|
Other income
(expense), net
|
|
|
-
|
|
|
|
3
|
|
|
|
(1)
|
|
|
|
8
|
|
Loss before income
taxes
|
|
|
(1,034)
|
|
|
|
(1,106)
|
|
|
|
(2,247)
|
|
|
|
(2,223)
|
|
Net loss
|
|
$
|
(1,034)
|
|
|
$
|
(1,106)
|
|
|
$
|
(2,247)
|
|
|
$
|
(2,223)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.14)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.39)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
7,249,782
|
|
|
|
5,844,372
|
|
|
|
6,877,186
|
|
|
|
5,736,637
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in
thousands)
|
|
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
2018
|
|
|
2017
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,247)
|
|
|
$
|
(2,223)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
20
|
|
|
|
26
|
|
Amortization
|
|
|
144
|
|
|
|
124
|
|
Stock-based
compensation
|
|
|
165
|
|
|
|
82
|
|
Deferred offering
costs
|
|
|
96
|
|
|
|
-
|
|
Bad debt
recovery
|
|
|
-
|
|
|
|
(59)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Decrease in accounts
receivable
|
|
|
2
|
|
|
|
59
|
|
Decrease in
inventories, net
|
|
|
12
|
|
|
|
7
|
|
Decrease (increase)
in prepaid expenses
|
|
|
51
|
|
|
|
(230)
|
|
Decrease in deferred
revenue
|
|
|
-
|
|
|
|
(36)
|
|
Decrease in accounts
payable and accrued expenses
|
|
|
(13)
|
|
|
|
(273)
|
|
Net cash used in
operating activities
|
|
|
(1,770)
|
|
|
|
(2,523)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Deferred offering
costs from at-the-market transaction
|
|
|
(49)
|
|
|
|
(125)
|
|
Deferred offering
costs from private placement
|
|
|
(45)
|
|
|
|
-
|
|
Proceeds from
registered direct offering of common stock, net of costs
|
|
|
1,449
|
|
|
|
1,926
|
|
Net cash provided by
financing activities
|
|
|
1,355
|
|
|
|
1,801
|
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash
|
|
|
(415)
|
|
|
|
(722)
|
|
Cash at beginning of
period
|
|
|
923
|
|
|
|
1,866
|
|
Cash at end of
period
|
|
$
|
508
|
|
|
$
|
1,144
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
Recognition of
deferred offering costs as a reduction of equity in connection with
the
at-the-market offering
|
|
|
6
|
|
|
|
-
|
|
Investor Relations:
Porter LeVay & Rose
Michael Porter, President
Phone: 212-564-4700
Email: MYOS@plrinvest.com
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SOURCE MYOS RENS Technology Inc.