Myomo, Inc. (NYSE American: MYO) (“Myomo” or the “Company”), a
wearable medical robotics company that offers increased
functionality for those suffering from neurological disorders and
upper limb paralysis, today reports its financial results for the
first quarter ended March 31, 2018.
Recent Highlights and Accomplishments:
- Total revenue in the first quarter 2018
was $313,000, an increase of 45%, versus the comparable period of
2017. Product revenue of $309,000, increased 56% versus the
comparable period of 2017.
- Increased field sales team by over
100%, and also increased marketing efforts, resulting in a growing
number of patient cases in reimbursement claims processing.
- Continued to expand the number of
MyoPro Centers of Excellence at Orthotics & Prosthetics
(O&P) organizations. Myomo currently has 46 U.S. locations
offering the MyoPro line of powered orthosis following 13 new
locations added during the first quarter of 2018.
- Working with Ottobock, we have now fit
the first patients in Germany and Canada.
- Received $3.6 million from the exercise
of approximately 1.2 million warrants at an exercise price of $2.95
per share.
- Cash on hand increased during the
quarter to $14.1 million.
Paul R. Gudonis, Chairman & CEO of Myomo, stated: “Early in
the year, with the growth capital raised in December 2017, we added
resources to scale up operations, including new hires, establishing
additional O&P partnerships and launching new marketing
campaigns. With a growing number of patients and O&P providers
interested in the product, we project to deliver MyoPro to an
increasing number of users and continue to expect 2018 revenue
growth to exceed reported year ago levels.”
Financial Highlights for the First
Quarter Ended March 31, 2018
Three months ended
Period-to-period March 31, change 2018
2017 $ %
Revenue $ 313,179 $ 216,231 $ 96,948 45 % Cost of revenue
108,080 78,569 29,511 38 % Gross margin
$ 205,099 $ 137,662 $ 67,437 49 % Gross margin% 65 %
64 % 1 %
First Quarter 2018 Results
Total revenue was $313,000 for the three months ended March 31,
2018; an increase of $97,000, or 45%, as compared to the three
months ended March 31, 2017. During the three months ended March
31, 2018, product revenue increased $111,000, or 56%, versus the
comparable period of 2017.
Gross margin was 65% for the quarter ended March 31, 2018, as
compared to 64% for the three months ended March 31, 2017.
Research and development expenses were $372,000, an increase of
$15,000, or 4%, during the three months ended March 31, 2018, as
compared to the three months ended March 31, 2017. The increase was
primarily due to increased personnel costs.
Selling, general and administrative costs of $2,236,000
increased $1,091,000, or 95%, during the three months ended March
31, 2018, as compared to the same period on 2017. The increase was
primarily due to increases in personnel costs of $595,000, which
includes $310,000 for additional sales and administrative staff;
and $285,000 in share-based compensation expense. Other
administrative cost increases include professional fees, rent,
insurance, and office expenses of $268,000.
During the three months ended March 31, 2018, the Company
generated interest income of $42,000, as compared to interest
expense of $141,000 in the same period of 2017. We did not incur
interest expense during the three months ended March 31, 2018 due
the payoff of our outstanding debt and our convertible promissory
notes being converted into common stock upon the closing of our IPO
on June 9, 2017.
The Company’s net loss for the quarter ended March 31, 2018
amounted to $2,345,000, compared with a net loss of $1,556,000 for
the corresponding 2017 period due to the factors described above.
Net loss available to common stockholders for the quarter ended
March 31, 2018 was $2,345,000 or ($0.20) per share, compared with a
net loss available to common stockholders of $1,745,000, or ($1.55)
per share, for the corresponding year ago period.
Adjusted EBITDA1 for the quarter ended March 31, 2018 was a loss
of $2,052,000, compared with a loss of $1,341,000 for the
corresponding 2017 period. A reconciliation of GAAP to this
non-GAAP financial measure has been provided in the financial
statement tables included in this press release. An explanation of
this measure is also included below under the heading “Non-GAAP
Financial Measures.”
Cash on hand at March 31, 2018 was $14,116,000, compared to
$12,959,000 at December 31, 2017. The increase in cash was
primarily due to $3,550,000 of proceeds received for the exercise
of warrants during the quarter. This was partially offset by cash
used in operating and investing activities of $2,265,000 and
$65,000, respectively.
Conference Call and Webcast InformationMyomo will hold a
conference call today, May 9, 2018 at 4:30 p.m. EDT. To access the
conference call, please dial 1-877-270-2148 from the U.S. or
1-412-902-6510 internationally. Please instruct to be joined into
Myomo’s earnings conference call.
A replay of the conference call will be available approximately
one hour after completion of the live conference call at the
Investor Relations page. A dial-in
replay of the call will be available until May 23, 2018; please
dial 1-877-344-7529 from the U.S. or 1-412-317-0088 internationally
and provide the passcode of 10119821.
(Tables follow)About MyomoMyomo, Inc. is a
wearable medical robotics company that offers expanded mobility for
those suffering from neurological disorders and upper limb
paralysis. Myomo develops and markets the MyoPro product line.
MyoPro is a powered upper limb orthosis designed to support the arm
and restore function to the weakened or paralyzed arms of patients
suffering from CVA stroke, brachial plexus injury, traumatic brain
or spinal cord injury, ALS or other neuromuscular disease or
injury. It is currently the only marketed device that, sensing a
patient’s own EMG signals through non-invasive sensors on the arm,
can restore an individual’s ability to perform activities of daily
living, including feeding themselves, carrying objects and doing
household tasks. Many are able to return to work, live
independently and reduce their cost of care. Myomo is headquartered
in Cambridge, Massachusetts, with sales and clinical professionals
across the U.S. For more information, please visit
www.myomo.com.
Forward Looking StatementsThis press release contains
forward-looking statements regarding the Company's future business
expectations, including the scale-up of commercial operations,
projected users of MyoPro, the expansion of our MyoPro line to
Canada, and the therapeutic potential of our products, which are
subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
only predictions and may differ materially from actual results due
to a variety of factors.
These factors include, among other things:
- our sales and commercialization
efforts;
- our ability to achieve reimbursement
from third-party payers for our products;
- our dependence upon external sources
for the financing of our operations;
- our ability to effectively execute our
business plan; and
- our expectations as to our clinical
research program and clinical results.
More information about these and other factors that potentially
could affect our financial results is included in Myomo's filings
with the Securities and Exchange Commission, including those
contained in the risk factors section of the Company’s annual
report on Form 10-K, subsequent quarterly reports on Form 10-Q and
other filings with the Commission. The Company cautions readers not
to place undue reliance on any such forward-looking statements,
which speak only as of the date made. Although the forward-looking
statements in this release of financial information are based on
our beliefs, assumptions and expectations, taking into account all
information currently available to us, we cannot guarantee future
transactions, results, performance, achievements or outcomes. No
assurance can be made to any investor by anyone that the
expectations reflected in our forward-looking statements will be
attained, or that deviations from them will not be material and
adverse. The Company disclaims any obligation subsequently to
revise any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.
Non-GAAP Financial MeasuresMyomo has provided in this
release of financial information that has not been prepared in
accordance with generally accepted accounting principles in the
United States, or GAAP. This information includes Adjusted EBITDA.
This non-GAAP financial measure is not in accordance with, or an
alternative for, GAAP and may be different from similar non-GAAP
financial measures used by other companies. Myomo believes that the
use of this non-GAAP financial measures provides supplementary
information for investors to use in evaluating operating
performance and in comparing its financial measures with other
companies in Myomo’s industry, many of which present similar
non-GAAP financial measures. Adjusted EBITDA is EBITDA adjusted for
the impact of the write off of unamortized debt discount associated
with conversion of convertible notes into common stock and
warrants, stock based-compensation, the impact of the fair value
revaluation of our derivative liabilities and the loss on early
extinguishment of debt. Non-GAAP financial measures that Myomo uses
may differ from measures that other companies may use. This
non-GAAP financial measure disclosed by Myomo is not meant to be
considered superior to or a substitute for results of operations
prepared in accordance with GAAP, and should be viewed in
conjunction with, GAAP financial measures. Investors are encouraged
to review the reconciliation of this non-GAAP measure to its most
directly comparable GAAP financial measure. A reconciliation of
GAAP to the non-GAAP financial measures has been provided in the
tables included as part of this press release.
MYOMO, INC. CONDENSED
STATEMENTS OF OPERATIONS (unaudited) Three
months ended March 31, 2018
2017 Revenue $ 313,179 $ 216,231
Cost of revenue 108,080 78,569
Gross
margin 205,099 137,662
Operating
expenses: Research and development 372,359 356,885 Selling,
general and administrative 2,235,637 1,144,466
Total operating expenses 2,607,996 1,501,351
Loss from operations (2,402,897) (1,363,689)
Other expense (income) Change in fair value of derivative
liabilities (15,307) 24,846 Interest and other expense, net
(42,188) 167,865
Total other expense (income)
(57,495) 192,711
Net loss (2,345,402)
(1,556,400) Deemed discount – accreted preferred stock discount -
(27,184) Cumulative dividend to Series B-1 preferred stockholders -
(161,875)
Net loss available to common stockholders
$ (2,345,402) $ (1,745,459)
Weighted average
number of common shares outstanding: Basic and diluted
11,899,456 1,125,127
Net loss per share available
to common stockholders: Basic and diluted
$ (0.20) $
(1.55)
MYOMO, INC. CONDENSED
BALANCE SHEETS March 31, 2018 December 31,
2017 ASSETS (Unaudited) Current Assets:
Cash and cash equivalents
$ 14,116,430
$ 12,959,373
Accounts receivable 151,445 297,039 Inventories, net 237,879
201,155 Prepaid expenses and other 373,093 388,275
Total
Current Assets 14,878,847 13,845,842 Restricted cash 52,000
52,000 Equipment, net 155,319 77,150
Total Assets $
15,086,166 $ 13,974,992
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIENCY) Current liabilities: Accounts
payable and other accrued expenses $ 949,846 $ 1,277,236 Derivative
liabilities 24,623 39,930 Deferred revenue 142,129 168,006
Total
Current Liabilities 1,116,598 1,485,172 Deferred revenue, net
of current portion 45,496 44,042
Total Liabilities 1,162,094
1,529,214
Commitments and Contingencies
Stockholders' Equity (Deficiency) Common stock 1,240 1,114
Undesignated preferred stock - - Additional paid-in capital
51,247,485 47,423,915 Accumulated deficit (37,318,189) (34,972,787)
Treasury stock (6,464) (6,464)
Total Stockholders' Equity
(Deficiency) 13,924,072 12,445,778
Total Liabilities
and Stockholders’ Equity (Deficiency) $ 15,086,166 $
13,974,992
MYOMO, INC.
CONDENSED STATEMENTS OF CASH FLOWS (unaudited)
For the three months ended March 31, 2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES Net loss $
(2,345,402) $ (1,556,400) Adjustments to reconcile net loss
to net cash used in operations: Depreciation 14,599 2,169
Stock-based compensation 336,355 20,139 Amortization of debt
discount - 2,213 Inventory reserve (645) 28,519 Change in fair
value of derivative liabilities (15,307) 24,846 Changes in
operating assets and liabilities: Accounts receivable 145,594
66,168 Inventories (63,923) (43,319) Prepaid expenses and other
15,182 (20,634) Other assets - (97,625) Accounts payable and other
accrued expenses (327,390) 367,101 Accrued interest - 79,123
Deferred revenue (24,423) (34,058) Net cash
used in operating activities (2,265,360) (1,161,758)
CASH FLOWS FROM INVESTING ACTIVITIES Purchases of
equipment (64,924) (4,252) Net cash used in
investing activities (64,924) (4,252)
CASH
FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of
convertible promissory notes, net - 1,770,000 Net settlement of
vested restricted stock units to fund related employee statutory
tax withholding (63,149) - Proceeds from exercise of stock options
- 2,736 Proceeds from exercise of warrants 3,550,490 -
Net cash provided by financing
activities 3,487,341 1,772,736 Net increase
(decrease) in cash 1,157,057 606,726 Cash, beginning of
period 13,011,373 849,174 Cash, end of period
$ 14,168,430 $ 1,455,900
MYOMO,
INC. RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(unaudited) Three months ended March
31, 2018 2017 GAAP net loss $ (2,345,402) $
(1,556,400) Adjustments to reconcile to Adjusted EBITDA:
Interest (income) expense (42,188) 140,871 Other expense - 26,994
Depreciation expense 14,599 2,169 Stock-based compensation 336,355
20,139 Change in fair value of derivative liabilities
(15,307) 24,846 Adjusted EBITDA $ (2,051,943) $ (1,341,381)
1 Adjusted EBITDA is earnings before interest, taxes,
depreciation and amortization adjusted the impact of the write-off
of unamortized debt discount associated with conversion of
convertible notes into common stock and warrants, stock
based-compensation, the impact of the fair value revaluation of our
derivative liabilities and the loss on early extinguishment of
debt.
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For Myomo:ir@myomo.comorInvestor Relations:PCG
AdvisoryVivian Cervantes,
646-863-6274vivian@pcgadvisory.comorPublic
Relations:GreenoughRachel Robbins,
617-275-6521rrobbins@greenough.biz
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