NeuroMetrix Reports Q1 2016 Financial Results and Highlights

Guía de Regalos

  • Year-over-Year Revenue Up 77% to $2.3 Million
  • 8,138 Quell® Devices Shipped
  • Quell Retail Launch Initiated with First Shipment to Target stores

WALTHAM, Mass.–(BUSINESS WIRE)–$NURO #NeuroMetrix–NeuroMetrix, Inc. (Nasdaq: NURO), today reported financial and business
highlights for the quarter ended March 31, 2016.

The Company operates in two markets – wearable therapeutic technology
and point-of-care diagnostic tests. Quell is an over-the-counter
wearable therapeutic device for chronic pain that was launched during
the second quarter of 2015. DPNCheck® provides accurate and
cost-effective screening, diagnosis and monitoring of peripheral
neuropathies including diabetic peripheral neuropathy.

Recent Highlights:

  • Quell shipments totaled 8,138 devices and 7,902 electrode reorder
    packages with a total invoiced value of $1.70 million. This was an
    increase from 6,675 devices and 6,760 electrode reorder packages with
    a total invoiced value of $1.48 million in Q4 2015.
  • Quell retail launch began with shipments to Target in late March.
    Quell will be available in late April in over 500 Target stores as a
    part of their Smart Health Solutions program featuring smartphone
    enabled health products.
  • A new version of Quell began shipping during Q1. This device provides
    the option of therapy control directly from a smartphone app, extended
    battery life and advanced sleep tracking. Its release follows 510(k)
    clearance by the FDA in January. Current Quell users have access to an
    upgrade program.
  • Quell was named “Best Wearable Technology” at the SXSW Interactive
    Innovation Awards in March.

Business Outlook:

NeuroMetrix’ primary initiative for 2016 is to make Quell available at
leading retailers. This effort started with the March announcement that
Quell will be part of a digital health initiative at Target. The Company
expects the retail expansion to continue during Q2 as discussions with
other retailers mature into distribution arrangements. Promotion will
support the retail launch. Television advertising was developed and
tested during Q1 and will be part of an expanded media campaign. The
Company believes that broad retail availability of Quell in locations
where consumers shop for chronic pain solutions will positively impact
Quell sales during 2016.

“We are on schedule with our plans for retail distribution,” said Shai
N. Gozani, M.D., Ph.D., President and Chief Executive Officer of
NeuroMetrix. “In addition to developing television content, during Q1 we
implemented EDI capability, retail packaging, and built Quell inventory
in preparation for retail shipments. In the upcoming months, I expect
that we will be reporting new retail distribution agreements.”

Financial Results:

The Company reported its financial results for Q1 2016. Total revenues
were $2.28 million versus $1.28 million for Q1 2015, an increase of 77%.
Gross margin was 34.8% of total revenues, reduced from 50.3% in Q1 2015,
reflecting a higher weighting of lower margin Quell devices as the
Company builds its installed base. Operating expenses increased to $4.99
million compared to $3.90 million in Q1 2015, reflecting Quell marketing
and promotion. The Company recorded a non-cash credit of $0.09 million
at March 31, 2016 for the revaluation at fair value of outstanding
common stock warrants compared to a $1.19 million revaluation credit at
March 31, 2015. Net loss was $4.10 million. This compared to a net loss
of $2.07 million for Q1 2015. NeuroMetrix reported Q1 2016 net cash
usage of $3.72 million and ended the period with cash and cash
equivalents of $8.74 million.

Company to Host Live Conference Call and Webcast

NeuroMetrix management will host a conference call today, April 21, 2016
at 8:00 a.m., Eastern Time. To access the call in the United States,
dial 800-706-7745 and use the confirmation code 84967792.
Internationally, the conference call may be accessed by dialing
617-614-3472 and using the same confirmation code. The call will also be
webcast and will be accessible from the Company’s website at http://www.NeuroMetrix.com
under the “Investor Relations” tab. A replay of the conference call will
be available starting two hours after the call by dialing 888-286-8010,
domestically and 617-801-6888, internationally. The confirmation code to
access the replay is 61049204. The replay will be available for one week
after the conference call.

About NeuroMetrix

NeuroMetrix is an innovative health-care company that develops wearable
medical technology and point-of-care tests that help patients and
physicians better manage chronic pain, nerve diseases, and sleep
disorders. The company is located in Waltham, Massachusetts and was
founded as a spinoff from the Harvard-MIT Division of Health Sciences
and Technology in 1996. For more information, please visit http://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. 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, 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.

         

 

NeuroMetrix, Inc.

Statements of Operations

(Unaudited)

 
Quarters Ended
March 31,
2016 2015
 
Revenues $ 2,275,247 $ 1,282,960
Cost of revenues   1,482,513   637,261
Gross profit 792,734 645,699
Operating expenses:
Research and development 1,156,790 902,542
Sales and marketing 2,407,879 1,455,686
General and administrative   1,424,341   1,546,090
Total operating expenses   4,989,010   3,904,318
Loss from operations (4,196,276 ) (3,258,619 )
Interest income 6,705 1,089
Change in fair value of warrant liability   94,316   1,186,302
Net loss $ (4,095,255 ) $ (2,071,228 )
Net loss per common share, basic and diluted $ (1.00 ) $ (1.00 )
           

NeuroMetrix, Inc.

Balance Sheets

(Unaudited)

 
March 31,
2016
December 31,
2015
 
Cash and cash equivalents $ 8,739,651 $ 12,462,872
Other current assets 2,724,150 2,684,398
Noncurrent assets   844,369   887,220
Total assets $ 12,308,170 $ 16,034,490
 
Current liabilities $ 3,269,957 $ 3,191,479
Common stock warrants 185,987 280,303
Stockholders’ equity   8,852,226   12,562,708
Total liabilities and stockholders’ equity $ 12,308,170 $ 16,034,490

Contacts

NeuroMetrix, Inc.
Thomas T. Higgins, 781-314-2761
SVP and
Chief Financial Officer
neurometrix.ir@neurometrix.com