Reports Record Revenues and Reimbursement
Pipeline for the Fourth Quarter and Full Year
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 announced its financial results for the
fourth quarter and year ended December 31, 2018.
Recent Highlights and Accomplishments:
- Revenues for the fourth quarter 2018 of
$890,000 increased by 63% versus the comparable period of 2017. For
the full year 2018, total revenue increased 57% to $2,444,000.
Gross margins for the full year 2018 and 2017 were 70% and 68%,
respectively.
- The Company’s reimbursement pipeline
continued to grow, with 306 MyoPro units in the reimbursement
process as of December 31, 2018, after adding 139 units in the
fourth quarter. In 2018, the Company sold 92 units.
- The Company successfully completed a
follow-on public offering of its common stock in February 2019,
generating net proceeds of approximately $5,600,000.
“The record revenues for the quarter and the year are the result
of our increased investment in sales and marketing during 2018”,
said Paul R. Gudonis, Chairman and CEO of Myomo. “Our reimbursement
pipeline continues to grow, which is expected to result in
significant revenue growth in 2019.”
Financial Results
For the Three MonthsEnded
December 31,
Period-to-PeriodChange
For the Twelve MonthsEnded
December 31,
Period-to-PeriodChange
2018 2017 $ %
2018 2017 $ %
Revenue $ 889,575 $ 547,412 $ 342,163 63 % $ 2,444,104 $
1,558,866 $ 885,238 57 % Cost of revenue 226,176
203,972 22,204 11 % 728,279
505,280 222,999 44 % Gross margin $ 663,399 $ 343,440
$ 319,959 93 % $ 1,715,825 $ 1,053,586 $ 662,239 63 %
Gross margin% 75 % 63 % 12 %
70 % 68 % 2 %
Revenue in the fourth quarter 2018 was $890,000, an increase of
63%, versus the comparable period of 2017. Revenue for the twelve
months ended December 31, 2018 was $2,440,000, an increase of 57%,
versus the comparable period of 2017. Results for the three and
twelve months ended December 31, 2018, reflects a higher average
selling price due to a favorable product and sales channel mix.
Gross margin was 75% and 63% for the quarter ended December 31,
2018 and 2017, respectively. Gross margin was 70% and 68% for the
twelve months ended December 31, 2018 and 2017, respectively. The
increase in gross margins is primarily due to the aforementioned
improvement in average selling price.
Operating expenses were $3,398,000, an increase of $1,239,000,
or 57%, during the three months ended December 31, 2018, versus the
comparable period of 2017. Operating expenses were $12,244,000, an
increase of $4,643,000, or 61%, during the twelve months ended
December 31, 2018, as compared to the twelve months ended December
31, 2017. These increases in operating expenses primarily reflect
the addition of personnel in support of the Company’s expansion of
its sales, marketing and administrative functions.
The Company’s net loss for the quarter ended December 31, 2018
amounted to $2,692,000, or ($0.22) per share, compared with a net
loss of $1,900,000, or ($0.25 per share) for the corresponding
period of 2017. Net loss for the year ended December 31, 2018 was
$10,317,000, or ($0.84) per share compared with a loss of
$12,097,000, or ($2.93) per share for the year ago period. Net loss
for the twelve months ended December 31, 2017 included a $5,172,000
charge for debt discount on convertible notes. Net loss per share
in 2017 included adjustments for accreted dividends on preferred
stock to present loss per share available to common
stockholders.
Adjusted EBITDA1 for the quarter ended December 31, 2018 was a
loss of $2,542,000, compared with a loss of $1,770,000 for the
corresponding period in 2017. Adjusted EBITDA for the year ended
December 31, 2018 was a loss of $9,644,000, compared with a loss of
$6,257,000 for the year ended December 31, 2017. A reconciliation
of GAAP net loss 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.”
Liquidity
Cash on hand at December 31, 2018 was $6,541,000, compared to
$12,959,000 at December 31, 2017. On February 12, 2019, the
Company successfully completed a follow-on public offering of its
common stock, generating net proceeds of approximately $5,600,000,
which is expected to provide sufficient liquidity to fund its
operations through 2019.
Conference Call and Webcast Information
Myomo will hold a conference call today, Thursday, March 7, 2019
at 4:30 p.m. EST. To access the conference call, please dial
1-877-270-2148 from the U.S. or 1-412-902-6510 internationally. Our
webcast and accompanying slides can also be accessed through
Myomo’s Investor Relations page.
Please allow extra time prior to the call to visit the site and
download any necessary software to listen to the live
broadcast.
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 March 21, 2019; please
dial 1-877-344-7529 from the U.S. or 1-412-317-0088 internationally
and provide the passcode of 10129136.
About Myomo
Myomo, 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.
1 Adjusted EBITDA is earnings before interest, taxes,
depreciation and amortization 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.
Forward Looking Statements
This press release contains forward-looking statements regarding
the Company’s future business expectations, including the receipt
of revenues from units being processed for insurance reimbursement,
the scale-up and expansion of commercial operations, our
expectations for revenues and our results of operations, and the
potential benefits to users of our products, our financial position
and cash runway, 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, 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 Measures
Myomo 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 Twelve Months Ended December
31, December 31, 2018 2017
2018 2017 Revenue $ 889,575 $ 547,412 $
2,444,104 $ 1,558,866
Cost of revenue 226,176
203,972 728,279 505,280
Gross margin
663,399 343,440 1,715,825 1,053,586
Operating expenses: Research and development 529,619 356,867
1,838,633 1,751,731 Selling, general and administrative
2,868,807 1,802,584 10,405,609 5,849,969
3,398,426 2,159,451 12,244,242
7,601,700
Loss from operations (2,735,027 )
(1,816,011 ) (10,528,417 ) (6,548,114 )
Other expense
(income) Loss on extinguishment of debt — 135,244 — 135,244
Change in fair value of derivative liabilities (4,991 ) (52,429 )
(36,269 ) (116,795 ) Debt discount on convertible notes — — —
5,172,000 Interest (income) and other expense, net (38,082 )
1,450 (175,409 ) 358,916
(43,073 ) 84,265 (211,678 ) 5,549,365
Net loss (2,691,954 ) (1,900,276 ) (10,316,739
) (12,097,479 ) Deemed dividend – accreted preferred stock — — —
(274,011 ) Cumulative dividend to Series B-1 preferred stockholders
— — — (287,779 )
Net loss available
to common stockholders $ (2,691,954 ) $ (1,900,276 ) $
(10,316,739 ) $ (12,659,269 )
Weighted average number of common
shares outstanding: Basic and diluted 12,435,807
7,559,309 12,292,402 4,317,864
Net loss per share
available to common stockholders: Basic and diluted $ (0.22 ) $
(0.25 ) $ (0.84 ) $ (2.93 )
MYOMO, INC.
CONDENSED BALANCE SHEETS
December
31,
2018 2017
(Unaudited) ASSETS Current Assets: Cash and
cash equivalents $ 6,540,794 $ 12,959,373 Accounts receivable, net
382,258 297,039 Inventories, net 256,149 201,155 Prepaid expenses
and other 695,276 388,275
Total Current Assets
7,874,477 13,845,842
Restricted cash 75,000 52,000
Deferred offering costs 144,582 —
Equipment, net
187,513 77,150
Total Assets $ 8,281,572 $
13,974,992
LIABILITIES AND STOCKHOLDERS’ EQUITY Current
Liabilities: Accounts payable and other accrued expenses $
1,743,427 $ 1,277,236 Derivative liabilities 3,661 39,930 Deferred
revenue 1,990 61,288 Customer advance payments 106,609
106,718
Total Current Liabilities 1,855,687 1,485,172
Deferred revenue, net of current portion —
44,042
Total Liabilities 1,855,687 1,529,214
Stockholders’ Equity: Common stock 1,245 1,114
Undesignated preferred stock — — Additional paid-in capital
51,720,630 47,423,915 Accumulated deficit (45,289,526 ) (34,972,787
) Treasury stock (6,464 ) (6,464 )
Total
Stockholders’ Equity 6,425,885 12,445,778
Total Liabilities and Stockholders’ Equity $ 8,281,572 $
13,974,992
MYOMO, INC. CONDENSED STATEMENTS
OF CASH FLOWS (unaudited)
For the years
ended December 31,
2018 2017 CASH FLOWS
FROM OPERATING ACTIVITIES Net loss $ (10,316,739 ) $
(12,097,479 ) Adjustments to reconcile net loss to net cash used in
operations: Depreciation 69,682 11,415 Stock-based compensation
814,666 279,508 Bad debt expense 16,275 — Amortization of debt
discount — 17,765 Debt discount on convertible notes — 5,172,000
Inventory reserve 32,645 42,355 Common stock issued for services
and software license — 31,845 Change in fair value of derivative
liabilities (36,269 ) (116,795 ) Changes in operating assets and
liabilities: Accounts receivable (101,494 ) (182,533 ) Inventories
(140,817 ) (161,075 ) Prepaid expenses and other (307,001 )
(235,938 ) Accounts payable and other accrued expenses 466,191
563,225 Accrued interest — 377,503 Deferred revenue (103,340 )
38,067 Customer advance payments (109 ) 106,718 Net
cash used in operating activities (9,606,310 )
(6,153,419 )
NET CASH USED IN INVESTING
ACTIVITIES
(126,867 ) (67,002 )
NET CASH PROVIDED BY FINANCING
ACTIVITIES
3,337,598 18,382,620 Net increase (decrease)
in cash, cash equivalents, and restricted cash (6,395,579 )
12,162,199 Cash, cash equivalents, and restricted cash,
beginning of year 13,011,373 849,174
Cash, cash equivalents, and restricted cash, end of year $
6,615,794 $ 13,011,373
MYOMO, INC.
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(unaudited)
For the Three MonthsEnded
December 31,
For the Twelve MonthsEnded
December 31,
2018 2017 2018 2017 GAAP
net loss $ (2,691,954 ) $ (1,900,276 ) $ (10,316,739 ) $
(12,097,479 ) Adjustments to reconcile to Adjusted EBITDA: Loss on
early extinguishment of debt — 135,244 — 135,244 Interest expense —
27,037 — 357,122 Interest (income) expense and other expense, net
(38,082 ) (25,587 ) (175,409) 1,793 Depreciation expense 20,850
4,430 69,682 11,415 Stock-based compensation 171,705 41,286 814,666
279,508 Debt discount on convertible notes — — — 5,172,000 Change
in fair value of derivative liabilities (4,991 )
(52,429 ) (36,269 ) (116,795 )
Adjusted EBITDA $ (2,542,472 ) $
(1,770,295 ) $ (9,644,069 ) $ (6,257,192 )
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version on businesswire.com: https://www.businesswire.com/news/home/20190307005752/en/
For Myomo:ir@myomo.com
Investor Relations:Vivian CervantesPCG
Advisory646-863-6274vivian@pcgadvisory.com
Public Relations:Sarah KarrMatter
Communications978-518-4817myomo@matternow.com
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