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 first quarter ended March 31,
2019.
Recent Highlights and Accomplishments:
-
Revenues for the first quarter 2019 of $830,000 increased by 165%
versus the comparable period of 2018. Gross profit for the quarter
increased by 219% compared to the first quarter of 2018 and gross
margin expanded to 79% from 65%. -
The Company’s reimbursement pipeline contained 354 MyoPro units as of
March 31, 2019, up 16% from 306 units at the end of the fourth quarter
2018. In the first quarter 2019, the Company sold 35 units. -
The Company expanded its US distribution from 42 to all 50 of the top
metro areas through the addition of O&P partners and entered into new
agreements with O&P providers with multiple locations in Italy, Chile,
and Australia.
“The strong growth in first quarter revenues in 2019 is the result of
our national rollout launched in 2018, which consisted of online
marketing and broader metro area coverage with O&P clinical partners,”
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
| Three months ended | Period-to-period | |||||||||||||||
| March 31, | change | |||||||||||||||
| 2019 | 2018 | $ | % | |||||||||||||
| Revenue | $ | 830,066 | $ | 313,179 | $ | 516,887 | 165% | |||||||||
| Cost of revenue | 176,187 | 108,080 | 68,107 | 63% | ||||||||||||
| Gross profit | $ | 653,879 | $ | 205,099 | $ | 448,780 | 219% | |||||||||
| Gross margin% |
79 |
% | 65 | % | 14% | |||||||||||
Higher revenue for the three months ended March 31, 2019 reflects both
higher volume and a higher average unit selling price compared to the
three months ended March 31, 2018.
Gross margin was 79% for the three months ended March 31, 2019. Gross
margin increased compared to the 65% for the three months ended March
31, 2018, respectively due to higher average selling price on devices
directly sold to patients.
Operating expenses were $3,337,000, an increase of $729,000, or 28%,
during the three months ended March 31, 2019, versus the comparable
period of 2018. The increase in operating expenses primarily reflects
the addition of personnel in the second half of 2018 in support of the
Company’s expansion of its sales, marketing and reimbursement functions.
The Company’s net loss for the quarter ended March 31, 2019 was
$2,598,000, or ($0.17) per share, compared with a net loss of
$2,345,000, or ($0.20) per share for the corresponding period of 2018.
Adjusted EBITDA1 for the quarter ended March 31, 2019 was a
loss of $2,454,000, compared with a loss of $2,052,000 for the
corresponding period in 2018. 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 March 31, 2019 was $9,234,000, compared to $6,541,000 at
December 31, 2018. 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 the Company continues to
expect will provide sufficient liquidity to fund its operations through
2019.
Conference Call and Webcast Information
Myomo will hold a conference call today, Monday, May 13, 2019 at 8:30
a.m. EDT. To access the conference call, please dial 1-877-270-2148 from
the U.S. or 1-412-902-6510 internationally. Our webcast 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 May 27, 2019;
please dial 1-877-344-7529 from the U.S. or 1-412-317-0088
internationally and provide the passcode of 10130705.
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. |
|||||||
| Three months ended | |||||||
| March 31, | |||||||
| 2019 | 2018 | ||||||
| Revenue | $ | 830,066 | $ | 313,179 | |||
| Cost of revenue | 176,187 | 108,080 | |||||
| Gross margin | 653,879 | 205,099 | |||||
| Operating expenses: | |||||||
| Research and development | 535,254 | 372,359 | |||||
| Selling, general and administrative | 2,801,420 | 2,235,637 | |||||
| Total operating expenses | 3,336,674 | 2,607,996 | |||||
| Loss from operations | (2,682,795) | (2,402,897) | |||||
| Other expense (income) | |||||||
| Change in fair value of derivative liabilities | (41,970) | (15,307) | |||||
| Interest income and other expense, net | (42,765) | (42,188) | |||||
| Total other expense (income) | (84,735) | (57,495) | |||||
| Net loss | $ | (2,598,060) | $ | (2,345,402) | |||
| Weighted average number of common shares outstanding: | |||||||
| Basic and diluted | 14,941,518 | 11,899,456 | |||||
| Net loss per share | |||||||
| Basic and diluted | $ | (0.17) | $ | (0.20) | |||
|
MYOMO, INC. |
|||||||
|
March 31, |
December 31, |
||||||
| ASSETS | (Unaudited) | ||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 9,233,559 | $ | 6,540,794 | |||
| Accounts receivable, net | 399,895 | 382,258 | |||||
| Inventories, net | 301,277 | 256,149 | |||||
| Prepaid expenses and other | 784,720 | 695,276 | |||||
| Total Current Assets | 10,719,451 | 7,874,477 | |||||
| Restricted cash | 75,000 | 75,000 | |||||
| Deferred offering costs | 131,976 | 144,582 | |||||
| Equipment, net | 173,078 | 187,513 | |||||
| Total Assets | $ | 11,099,505 | $ | 8,281,572 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable and other accrued expenses | $ | 1,310,429 | $ | 1,743,427 | |||
| Derivative liabilities | 157,927 | 3,661 | |||||
| Deferred revenue | 25,840 | 1,990 | |||||
| Customer advance payments | 84,117 | 106,609 | |||||
| Total Current Liabilities | 1,578,313 | 1,855,687 | |||||
| Total Liabilities | 1,578,313 | 1,855,687 | |||||
| Commitments and Contingencies | |||||||
| Stockholders’ Equity | |||||||
| Common stock | 1,710 | 1,245 | |||||
| Additional paid-in capital | 57,536,979 | 51,720,630 | |||||
| Accumulated deficit | (48,011,033) | (45,289,526) | |||||
| Treasury stock | (6,464) | (6,464) | |||||
| Total Stockholders’ Equity | 9,521,192 | 6,425,885 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 11,099,505 | $ | 8,281,572 | |||
|
MYOMO, INC. |
||||||||
| For the three months ended March 31, | 2019 | 2018 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (2,598,060) | $ | (2,345,402) | ||||
| Adjustments to reconcile net loss to net cash used in operations: | ||||||||
| Depreciation | 21,627 | 14,599 | ||||||
| Stock-based compensation | 207,605 | 336,355 | ||||||
| Bad debt expense | 16,275 | — | ||||||
| Excess and obsolete inventory reserve | — | (645) | ||||||
| Change in fair value of derivative liabilities | (41,970) | (15,307) | ||||||
| Loss on disposal of asset | 320 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (33,912) | 145,594 | ||||||
| Inventories | (131,871) | (63,923) | ||||||
| Prepaid expenses and other | (128,256) | 15,182 | ||||||
| Accounts payable and other accrued expenses | (432,998) | (327,390) | ||||||
| Deferred revenue | 23,850 | (24,423) | ||||||
| Other current liabilities | (22,492) | — | ||||||
| NET CASH USED IN OPERATING ACTIVITIES | (3,119,882) | (2,265,360) | ||||||
| NET CASH USED IN INVESTING ACTIVITIES | (5,404) | (64,924) | ||||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 5,818,051 | 3,487,341 | ||||||
| Net increase in cash, cash equivalents, and restricted cash | 2,692,765 | 1,157,057 | ||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 6,615,794 | 13,011,373 | ||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 9,308,559 | $ | 14,168,430 | ||||
|
MYOMO, INC. |
||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | |||||||
| GAAP net loss | $ | (2,598,060) | $ | (2,345,402) | ||||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||
| Interest (income) expense | (42,765) | (42,188) | ||||||
| Depreciation expense | 21,627 | 14,599 | ||||||
| Stock-based compensation | 207,605 | 36,355 | ||||||
| Change in fair value of derivative liabilities | (41,970) | (15,307) | ||||||
| Adjusted EBITDA | $ | (2,453,563) | $ | (2,051,943) | ||||
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