Reports 165% Year-over-Year Revenue Growth
and Continued Expansion of Reimbursement Pipeline
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.CONDENSED STATEMENTS
OF OPERATIONS(unaudited)
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.CONDENSED BALANCE
SHEETS
March 31,2019
December 31,2018
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.CONDENSED STATEMENTS
OF CASH FLOWS(unaudited)
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.RECONCILIATION OF
GAAP NET LOSS TO ADJUSTED EBITDA(unaudited)
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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version on businesswire.com: https://www.businesswire.com/news/home/20190513005020/en/
For Myomo:ir@myomo.comInvestor Relations:Vivian
CervantesPCG Advisory646-863-6274vivian@pcgadvisory.comPublic
Relations:Sarah KarrMatter
Communications978-518-4817myomo@matternow.com
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