CEDAR KNOLLS, N.J.,
March 27, 2018 /PRNewswire/
-- MYOS RENS Technology Inc. ("MYOS" or "the Company")
(NASDAQ: MYOS), a bionutrition company and owner of
Fortetropin®, a proprietary ingredient that helps build
lean muscle in conjunction with resistance training, announced
today its financial results for the fourth quarter and fiscal year
ended December 31, 2017.
(Amounts in thousands except where noted.)
FINANCIAL HIGHLIGHTS:
Fourth Quarter 2017:
- Net revenues increased 480% to $157, compared to $27 for the fourth quarter of 2016.
- Gross profit was $93, compared to
$0 for the fourth quarter of
2016.
- Gross profit margin was 59% for the fourth quarter of
2017.
- Operating expenses increased 56% to $1,173, compared to $752 for the fourth quarter of 2016.
- Net loss increased 44% to $1,082,
compared to $752 for the fourth
quarter of 2016.
Year ended December 31,
2017
- Gross profit margin was 41% for the year ended December 31, 2017, compared to 2% for the year
ended December 31, 2016.
- Net revenues increased 61% to $526, compared to $327 for the year ended December 31, 2016.
- Gross profit increased 2,625% to $218, compared to $8 for year ended December
31, 2016.
- Operating expenses decreased 1% to $4,286, compared to $4,315 for the year ended December 31, 2016.
- Net loss decreased 7% to $4,058,
compared to $4,341 for the year ended
December 31, 2016.
Liquidity
As of December 31, 2017, the Company
had no debt and had $2.4 million in
working capital. During the year ended December 31, 2017, the Company raised
approximately $1.1 million from the
sale of 500,000 shares of common stock at $2.14 per share and, after year end, raised
approximately $287 from the sale of
140,295 shares of common stock for $2.11 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 accomplishments made at MYOS in 2017, as we
have laid the foundation that will allow us to leverage the market
opportunities for Fortetropin®, our proprietary
ingredient that has been clinically shown to increase lean muscle
size and mass when taken in conjunction with resistance
training.
We continue to be fully committed towards increasing shareholder
value through research. To this end, we have initiated the
following three research programs that we believe could create
significant commercial opportunities for the Company:
- The program at University of California,
Berkeley, will evaluate the impact of
Fortetropin® on the rate of muscle synthesis in 60 - 75
year old men and women; we believe positive results would lay the
foundation for products addressing age related muscle loss.
- The program at Kansas State
University is evaluating the impact of
Fortetropin® to reduce disuse muscle atrophy associated
with orthopedic surgery in dogs; we believe positive results would
lay the foundation for launching our pet product as well as
initiating human studies for recovery and rehabilitation after
orthopedic surgeries.
- The research program at Rutgers
University is focused on discovery of compounds and products
for promoting the development of muscle tissue.
We are actively engaged in discussions with principal
investigators at leading academic institutes to explore additional
research opportunities. We believe that these research
programs have the potential to create new market opportunities for
the company, thus resulting in increased shareholder value.
"I'm very excited about the potential for our
Fortetropin®-based pet product, which we expect to
launch in the near future. We have seen positive anecdotal results
with older dogs taking our product. Two veterinary hospitals
which performed some informal observational studies with older dogs
experiencing muscle atrophy, saw positive results in their patients
after administering our product to them. They both are
seeking to purchase Fortetropin® after seeing these
results. We believe that all of the positive feedback that we are
receiving along with the potential results from our Kansas State University study, will enable us to
launch and grow our pet business product line.
"We are launching our Collegiate Sports Marketing Platform with
IMG College, a division of IMG, over the next month. We will begin
to introduce Fortetropin® to certain Division I schools
and will continue to expand these introductions over the next few
months. We also will be introducing our products to professional
sports teams, as well as cross-fit and other endurance-format
athletes. Having IMG generate opportunities for MYOS to introduce
our product to major sports and nutrition institutions is a
tremendous win for the company.
"Earlier this month, we attended the Arnold Sports Festival, the
nation's largest health and fitness exhibition in Columbus, Ohio, and had a great booth at the
Expo hall. Our intent was to educate retailers, distributors,
multilevel marketers, and individual consumers about
Fortetropin®, and the response was tremendous. Most of
the feedback we received was extremely positive, with many visitors
impressed by the sizable amount of science behind
Fortetropin®, particularly when compared to the other
products at the expo. This has led to several follow up meetings
with potential customers that we believe can be a meaningful driver
for revenue over the next 6-12 months.
"Our cost structure is much better positioned today than a year
ago." We have managed to reduce our burn rate through cutting
costs and pursuing more cost-effective revenue generation
opportunities. We have no debt on the balance sheet and have
successfully raised capital through our ATM program. This has
allowed us to raise capital without having to issue warrants or
options. However, we have room to improve our positioning, which I
am committed towards over the next 12 months. I will continue to
look at our costs and make cuts where needed.
"There is much to be optimistic about for 2018 and beyond. I
truly see tremendous potential for this company - potential that
can create value for shareholders. "I am invested in
MYOS because I believe in Bob
Hariri's idea that if you could find a product to
improve muscle health, a great benefit and a great opportunity
existed. Fortetropin® is a disruptive and beneficial
product that improves muscle health. There is truly nothing like it
that I can find in the market. I believe that our
strengthened foundation, improved scientific profile, and brand
development will yield both short-term and long-term success. We
look forward to sharing more on our developing story in the weeks
to come," concluded Mr. Mannello.
CONFERENCE CALL
MYOS will host a conference call
tomorrow, Wednesday, March 28, 2018
at 11:00 am ET, at which time MYOS
Chief Executive Officer Joseph
Mannello will provide highlights and commentary on earnings
results for the fourth quarter and the year ended December 31, 2017.
Call Date/Time: Wednesday, March 28, 2018 at 11:00 am ET
Call Title: MYOS RENS
Technology 2017 Financial 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 June 30, 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# 13677747.
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
(including pet products) through research and development,
including the research described herein, the successful results of
strategic initiatives, the successful launch of our existing or new
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 and reducing
expenses, 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.
Investor Relations:
Porter
LeVay & Rose
Michael Porter, President
Phone: 212-564-4700
Email: MYOS@plrinvest.com
The following tables should be read in conjunction with the
footnotes accompanying the consolidated financial statements
contained within the Annual Report on Form 10-K filed by the
Company on March 27, 2018.
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONSOLIDATED
BALANCE SHEETS
|
(in thousands,
except share amounts)
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
923
|
|
|
$
|
1,866
|
|
Accounts receivable,
net
|
|
|
4
|
|
|
|
8
|
|
Inventories,
net
|
|
|
1,779
|
|
|
|
1,862
|
|
Prepaid expenses and
other current assets
|
|
$
|
163
|
|
|
|
85
|
|
Total current
assets
|
|
|
2,869
|
|
|
|
3,821
|
|
|
|
|
|
|
|
|
|
|
Deferred offering
costs
|
|
|
102
|
|
|
|
-
|
|
Fixed assets,
net
|
|
|
184
|
|
|
|
233
|
|
Intangible assets,
net
|
|
|
1,640
|
|
|
|
1,907
|
|
Total
assets
|
|
$
|
4,795
|
|
|
$
|
5,961
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
176
|
|
|
$
|
226
|
|
Accrued expenses and
other current liabilities
|
|
|
255
|
|
|
|
361
|
|
Deferred
revenue
|
|
|
-
|
|
|
|
56
|
|
Total current
liabilities
|
|
|
431
|
|
|
|
643
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
431
|
|
|
|
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 December 31, 2017 and
2016; 6,340,604 and 5,344,372 shares issued and outstanding at
December 31, 2017 and 2016, respectively
|
|
|
6
|
|
|
|
5
|
|
Additional paid-in
capital
|
|
|
36,202
|
|
|
|
33,099
|
|
Accumulated
deficit
|
|
|
(31,844)
|
|
|
|
(27,786)
|
|
Total stockholders'
equity
|
|
|
4,364
|
|
|
|
5,318
|
|
Total liabilities and
stockholders' equity
|
|
$
|
4,795
|
|
|
$
|
5,961
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
Years Ended
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
526
|
|
|
$
|
327
|
|
Cost of
sales
|
|
|
308
|
|
|
|
319
|
|
Gross
profit
|
|
|
218
|
|
|
|
8
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
822
|
|
|
|
846
|
|
Personnel and
benefits
|
|
|
1,450
|
|
|
|
1,853
|
|
General and
administrative
|
|
|
2,014
|
|
|
|
1,616
|
|
Total operating
expenses
|
|
|
4,286
|
|
|
|
4,315
|
|
Operating
loss
|
|
|
(4,068)
|
|
|
|
(4,307)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
12
|
|
|
|
1
|
|
Interest
expense
|
|
|
(2)
|
|
|
|
(35)
|
|
Total other income
(expense)
|
|
|
10
|
|
|
|
(34)
|
|
Loss before income
taxes
|
|
|
(4,058)
|
|
|
|
(4,341)
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
|
|
-
|
|
|
|
-
|
|
Net loss
|
|
$
|
(4,058)
|
|
|
$
|
(4,341)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.69)
|
|
|
$
|
(0.90)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
5,875
|
|
|
|
4,806
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
Years Ended
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(4,058)
|
|
|
$
|
(4,341)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
51
|
|
|
|
54
|
|
Amortization
|
|
|
267
|
|
|
|
210
|
|
Change in contract
liability
|
|
|
-
|
|
|
|
(117)
|
|
Provision for
inventory reserve
|
|
|
2
|
|
|
|
107
|
|
Bad debt
expense
|
|
|
59
|
|
|
|
-
|
|
Share-based
compensation
|
|
|
160
|
|
|
|
392
|
|
Impairment
charge
|
|
|
-
|
|
|
|
44
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
(Increase) decrease
in accounts receivable
|
|
|
(55)
|
|
|
|
398
|
|
Decrease (increase)
in inventories
|
|
|
81
|
|
|
|
(501)
|
|
(Increase) decrease
in prepaid expenses and other current assets
|
|
|
(78)
|
|
|
|
437
|
|
Decrease in deferred
revenue
|
|
|
(56)
|
|
|
|
-
|
|
Decrease in accounts
payable and accrued expenses
|
|
|
(156)
|
|
|
|
(356)
|
|
Net cash used in
operating activities
|
|
|
(3,783)
|
|
|
|
(3,673)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
Purchase of
capitalized software
|
|
|
-
|
|
|
|
(380)
|
|
Purchases of fixed
assets
|
|
|
(2)
|
|
|
|
(1)
|
|
Net cash used in
investing activities
|
|
|
(2)
|
|
|
|
(381)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of common stock, net
|
|
|
2,944
|
|
|
|
5,141
|
|
Deferred offering
costs
|
|
|
(102)
|
|
|
|
-
|
|
Repayments of term
note
|
|
|
-
|
|
|
|
(100)
|
|
Net cash provided by
financing activities
|
|
|
2,842
|
|
|
|
5,041
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash
|
|
|
(943)
|
|
|
|
987
|
|
Cash at beginning of
year
|
|
|
1,866
|
|
|
|
879
|
|
Cash at end of
year
|
|
$
|
923
|
|
|
$
|
1,866
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
year for:
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
2
|
|
|
$
|
34
|
|
Income
taxes
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
Issuance of common
stock upon conversion of convertible note
|
|
$
|
-
|
|
|
$
|
621
|
|
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SOURCE MYOS RENS Technology, Inc.