NeuroMetrix Reports Q4 and Full Year 2020 Financial Results
January 28 2021 - 7:00AM
NeuroMetrix, Inc. (Nasdaq: NURO) today reported financial and
business highlights for the quarter and year ended December 31,
2020. The Company is focused on the development and global
commercialization of non-invasive medical devices for the diagnosis
and treatment of disorders involving the nervous system.
Q4 2020 Highlights:
- Revenue of $1.8 million was up 6% from $1.7 million in Q4 2019.
The business continued to experience headwinds from the COVID-19
pandemic and the effects of positioning Quell for profitability.
Gross margin on revenue was $1.3 million or 73.7%, up from 62.2% in
Q4 2019.
- DPNCheck® Medicare Advantage sales continued to grow and
partially offset slow international sales. Substantial
progress was made towards a major upgrade to the product platform
that is expected to launch in H2 2021.
- Quell® made a positive operating contribution reflecting more
efficient and focused advertising. Important progress was made on
developing new clinical indications for the Quell therapeutic
platform.
- Net loss for the quarter was $0.3 million in comparison with a
net loss of $1.1 million in the Q4 2019.
"We are pleased that our prioritization of operating
profitability has been effective in reducing our quarterly loss and
cash consumption. We are now positioned to resume a focus on
growth, while continuing to improve the bottom line,” said Shai N.
Gozani, M.D., Ph.D., President and Chief Executive Officer of
NeuroMetrix. “To this end, we have a number of impactful product
development efforts for both DPNCheck and Quell which we expect to
launch this year.”
Financials:
Q4 2020 revenues of $1.8 million grew 6% from Q4 2019. The gross
margin rate expanded to 73.7%, a gain of 11.5 percentage points
over the prior year quarter. Operating expenses of $1.7 million
represented a drop of 39%, from $2.7 million in Q4 2019. The net
loss of $0.3 million in Q4 2020 was an improvement of $700k from a
loss of $1.1 million in the Q4 2019.
For the year ended December 31, 2020, total revenues of $7.4
million declined from $9.3 million in 2019. However, gross margin
improved to $5.2 million at a margin rate of 71.2% versus $2.2
million and a rate of 24.2% in the prior year. The margin
improvement partially reflected the 2019 business restructuring
which included inventory charges contributing to the lower margins
in that year. The restructuring positioned the Company with lower
operating expenses in 2020 where costs dropped by 47% to $7.3
million versus $13.8 million in the prior year. Net loss in 2020
improved to $2.1 million compared a net loss of $3.8 million in
2019.
Company to Host Live Conference Call and
Webcast
NeuroMetrix will host a conference call at 8:00 a.m. Eastern
today, January 28, 2021. The call may be accessed in the United
States at 844-787-0799, international at 661-378-9630 using
confirmation code 8694435. A replay will be available starting two
hours after the call at 855-859-2056 United States and 404-537-3406
international using confirmation code 8694435. It will remain
available for one week. The call will also be webcast and
accessible at www.NeuroMetrix.com under "Investor Relations".
About NeuroMetrix
NeuroMetrix is an innovation-driven company focused on the
development and global commercialization of non-invasive medical
devices for the diagnosis and treatment of disorders involving the
nervous system. The Company has three commercial
products. DPNCheck® is a diagnostic device that provides
rapid, point-of-care detection of peripheral neuropathies. ADVANCE®
is a diagnostic device that provides automated, in-office nerve
conduction studies for the evaluation of focal
neuropathies. Quell® is a wearable neurostimulation device
indicated for symptomatic relief of chronic pain that is available
over-the-counter. For more information, visit
www.NeuroMetrix.com
Safe Harbor Statement
The statements contained in this press release include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including, without
limitation, statements regarding the company’s or management’s
expectations regarding the business, as well as events that could
have a meaningful impact on the company’s revenues and cash
resources. While the company believes the forward-looking
statements contained in this press release are accurate, there are
a number of factors that could cause actual events or results to
differ materially from those indicated by such forward-looking
statements, including, without limitation, the effects of the
COVID-19 pandemic on all aspects of the Company’s business,
estimates of future performance, and the ability to successfully
develop, receive regulatory clearance, commercialize and achieve
market acceptance for any products. There can be no assurance that
future developments will be those that the company has anticipated.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors including those risks,
uncertainties and factors referred to in the company’s most recent
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, as well
as other documents that may be filed from time to time with the
Securities and Exchange Commission or otherwise made public. The
company is providing the information in this press release only as
of the date hereof, and expressly disclaims any intent or
obligation to update the information included in this press release
or revise any forward-looking statements.
Source: NeuroMetrix, Inc.
Thomas T. HigginsSVP and Chief Financial
Officer781-314-2761neurometrix.ir@neurometrix.com
NeuroMetrix,
Inc.Statements of
Operations(Unaudited)
|
Quarters Ended December 31, |
|
Year Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Revenues |
$ |
1,809,732 |
|
|
$ |
1,706,903 |
|
|
$ |
7,377,975 |
|
|
$ |
9,272,522 |
|
|
|
|
|
|
|
|
|
Cost of revenues |
475,527 |
|
|
644,560 |
|
|
2,128,417 |
|
|
7,026,899 |
|
|
|
|
|
|
|
|
|
Gross profit |
1,334,205 |
|
|
1,062,343 |
|
|
5,249,558 |
|
|
2,245,623 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
544,747 |
|
|
736,836 |
|
|
2,391,316 |
|
|
3,101,976 |
|
Sales and marketing |
292,417 |
|
|
708,212 |
|
|
1,436,806 |
|
|
4,755,168 |
|
General and administrative |
823,194 |
|
|
1,276,258 |
|
|
3,516,340 |
|
|
5,923,190 |
|
|
|
|
|
|
|
|
|
Total operating expenses |
1,660,358 |
|
|
2,721,306 |
|
|
7,344,462 |
|
|
13,780,334 |
|
|
|
|
|
|
|
|
|
Loss from operations |
(326,153 |
) |
|
(1,658,963 |
) |
|
(2,094,904 |
) |
|
(11,534,711 |
) |
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
Collaboration income |
— |
|
|
600,000 |
|
|
— |
|
|
7,116,667 |
|
Other income |
386 |
|
|
2,233 |
|
|
2,709 |
|
|
45,030 |
|
|
|
|
|
|
|
|
|
Total other income |
386 |
|
|
602,233 |
|
|
2,709 |
|
|
7,761,697 |
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(325,767 |
) |
|
$ |
(1,056,730 |
) |
|
$ |
(2,092,195 |
) |
|
$ |
(3,773,014 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NeuroMetrix, Inc.Condensed Balance
Sheets(Unaudited)
|
December
31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
5,226,213 |
|
|
$ |
3,126,206 |
|
Other current assets |
|
1,863,653 |
|
|
|
2,304,608 |
|
Noncurrent assets |
|
904,709 |
|
|
|
1,462,872 |
|
Total assets |
$ |
7,994,575 |
|
|
$ |
6,893,686 |
|
|
|
|
|
|
|
|
|
Current liabilities |
$ |
2,285,390 |
|
|
$ |
3,446,778 |
|
Lease Obligation, net of
current portion |
|
461,410 |
|
|
|
916,674 |
|
Stockholders’ equity |
|
5,247,775 |
|
|
|
2,530,234 |
|
Total liabilities and stockholders’ equity |
$ |
7,994,575 |
|
|
$ |
6,893,686 |
|
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