CAMBRIDGE, Mass.--(BUSINESS WIRE)--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.”
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Financial Highlights for the First Quarter Ended March 31, 2018 |
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| 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 Information
Myomo 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 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.
Forward Looking Statements
This 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 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 | ||||||||
| 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.
