CEDAR KNOLLS, N.J.,
Nov. 7, 2019 /PRNewswire/ -- MYOS
RENS Technology Inc. ("MYOS" or "the Company") (NASDAQ: MYOS), an
advanced nutrition company and the owner of
Fortetropin®, an innovative proprietary
bioactive composition made from fertilized egg yolks that helps
build lean muscle, today announced its financial results for the
three and nine months ended September 30,
2019.
Financial Highlights: (Amounts in thousands except
where noted)
Third Quarter - Three Months Ended September 30, 2019:
- Net revenues increased $284, or
430%, to $350 compared to net
revenues of $66 for the three months
ended September 30, 2018.
- Gross profit for the three months ended September 30, 2019 increased $169 or 2,414% to $176, compared to $7 for the three months ended September 30, 2018.
- Operating expenses for the three months ended September 30, 2019 increased $171 or 18% to $1,087 compared to $916 for the three months ended September 30, 2018.
- Net loss increased $10 or 1% to
$921 for the three months ended
September 30, 2019 compared to
$911 for the three months ended
September 30, 2018.
Nine Months Ended September 30,
2019:
- Net revenues for the nine months ended September 30, 2019 increased $442 or 209% to $653 compared to net revenues of $211 for the nine months ended September 30, 2018.
- Gross profit for the nine months ended September 30, 2019 increased $276 or 452% to $337, compared to $61 for the nine months ended September 30, 2018.
- Operating expenses for the nine months ended September 30, 2019 increased $161 or 5% to $3,377, compared to $3,216 for the nine months ended September 30, 2018.
- Net loss decreased 3% to $3,071
for the nine months ended September 30,
2019 compared to $3,158 for
the nine months ended September 30,
2018.
Liquidity:
As of September 30,
2019, the Company had cash of $396 and total current assets of $2,163 less current liabilities of $1,048. Working capital increased $154 to $1,115 at
September 30, 2019 compared to
$1,269 at December 31, 2018.
During the third quarter, cash increased $381 primarily due to net proceeds provided by
financing activities of $2,285 offset
by net cash used in operating activities of $1,904.
Business & Operational Highlights:
- Announced the expansion of its animal health business with the
launch of Veterinarian Strength Myos Canine Muscle
Formula®. Sold exclusively through leading
veterinary practices, Veterinarian Strength Myos Canine Muscle
Formula combines Fortetropin, with the branched-chain amino acids
(BCAA) leucine, isoleucine and valine, further boosting the
beneficial effects of muscle protein synthesis.
- Entered into a research agreement with the Department of
Kinesiology at McMaster University in
Hamilton, Canada, which will conduct a study to
examine the impact of Fortetropin on reducing muscle disuse atrophy
in young men. Muscle atrophy due to disuse commonly occurs in
response to immobilization such as the atrophy of the thigh muscles
following a period of casting for fracture or following surgery
such as knee replacement.
- Announced a marketing partnership with the Texas Golf
Association (TGA), the largest statewide amateur golf
association in the United States,
with over 147,000 active members. As part of this marketing
partnership, MYOS will present a 4-part instructional video series
available exclusively to TGA members during the fall and winter
months. The series is aimed at introducing members to
Yolked®, our NSF Certified for Sports®-branded sports
nutrition product.
- Announced positive top-line results from its randomized,
double-blind, placebo-controlled study that was conducted at the
University of California, Berkeley
and the University of Arkansas for
Medical Sciences, evaluating the impact of Fortetropin on the
rate of muscle protein synthesis in older men and women (60-75
years of age). The study showed that Fortetropin significantly
increased the fractional synthetic rate of muscle proteins relative
to placebo.
- Completed a randomized, double blind, placebo-controlled
veterinary clinical trial at Kansas State University to evaluate the impact
of Fortetropin on 100 dogs recovering from tibial plateau leveling
osteotomy (TPLO) surgery. The trial demonstrated that dogs that
received Fortetropin had reduced muscle atrophy and could exert
more force with their operated limb relative to dogs that received
a placebo. Further, dogs in the Fortetropin group maintained stable
levels of myostatin following surgery while an increase in
myostatin levels of ~10% was noted in dogs that received the
placebo.
- Announced that its Chief Executive Officer, Joseph Mannello, will deliver remarks on Myos
Canine Muscle Formula®, the Company's fast-growing
Fortetropin-based veterinary product, at the New York Vet Show
on Friday, November 8th at
12:30pm, at Innovation Showcase 1 in
the Javits Center. Over the last 2 years, the New York Vet Show
has provided veterinary healthcare professionals with practical and
relevant educational, training and networking opportunities,
hosting over 200 exhibitors and over 2,000 delegates each
year.
Management Commentary:
Joseph
Mannello, Chief Executive Officer of MYOS, commented, "We
are very pleased with our strong financial results for the third
quarter 2019, with revenues during this quarter exceeding our
revenues during the first half of 2019. As stated in previous
communications, we are extremely focused on growing sales for our
two key products, Myos Canine Muscle Formula® and
Yolked®. Our various commercial initiatives are
focused on increasing Fortetropin's reach and presence, and growing
our revenues substantially.
"We are extremely encouraged by the promising results from
multiple human and canine clinical studies to date and are
delighted to work with the respected research group of Professor
Phillips at McMaster University.
Completing this study is an important part of our commercial
strategy to increase our business in this growing market of
tremendous opportunity.
"Moving forward, we expect continued growth in our veterinary
segment as the positive results from our clinical study at
Kansas State University become more
widely known, which will be supported by an aggressive marketing
campaign.
"We are truly excited about the course ahead for the remainder
of 2019 and beyond. We firmly believe that this quarter has been a
major turning point for our company and that the future looks
exceedingly positive. We believe that we are well positioned to
drive future growth in multiple market segments, which will enable
us to build upon our business and deliver value for our
shareholders," concluded Mr. Mannello.
Conference Call
The Company will hold a conference
call on Friday, November 8, 2019 at
10am (ET), at which time Mr. Mannello
will provide commentary on the Company's financial results and
provide an update on the Company's ongoing clinical studies and
commercial efforts.
Call Date/Time: Friday, November 8, 2019 at
10 AM (ET)
Dial In: 877-407-4019 from the U.S.; international
callers may telephone 201-689-8337 approximately 15 minutes before
the call.
A digital replay will be available by telephone approximately
two hours after the completion of the call until February 7, 2020 and may be accessed by dialing
877-660-6853 from the U.S. or 201-612-7415 for international
callers, using the Conference ID# 13696237.
This call will be simultaneously webcast. The webcast will be
available on the MYOS website, www.myosrens.com, in the "Investor
Relations" section. The webcast will be archived and available at
the same web address for two weeks following the call.
About MYOS RENS Technology Inc.
MYOS RENS Technology
Inc. (MYOS), "The Muscle Company®", is a Cedar Knolls, NJ-based advanced nutrition
company that develops and markets products that improve muscle
health and performance. MYOS is the owner of
Fortetropin®, a fertilized egg yolk-based product
manufactured via a proprietary process to retain and optimize its
biological activity. Fortetropin has been clinically shown to
increase muscle size and lean body mass in conjunction with
resistance training. MYOS believes Fortetropin has the potential to
redefine existing standards of physical health and wellness. For
more information, please visit www.myosrens.com.
About Myos Canine Muscle Formula®
Myos
Canine Muscle Formula is an advanced veterinary health supplement
to support muscle health in dogs, featuring Fortetropin as the
active ingredient. Fortetropin is made through a patented process
that maintains the vital nutrients of fertilized egg yolks to help
build more lean muscle and decrease muscle loss. For more
information, please visit www.myospet.com.
About Yolked®
Yolked is an NSF
Certified for Sport® all-natural sports nutrition
product designed to work in conjunction with your protein of choice
to help your body utilize that protein more efficiently. Its key
ingredient, Fortetropin, is made through a patented process that
maintains the vital nutrients of fertilized egg yolks to help build
more lean muscle and decrease muscle loss. For more
information, please visit www.yolked.com.
Forward-Looking Statements
Any statements in
this release that are not historical facts are forward-looking
statements. Actual results may differ materially from those
projected or implied in any forward-looking statements. Such
statements involve risks and uncertainties, including but not
limited to those relating to product and customer demand, market
acceptance of our products, the ability to create new products
through research and development, the successful results of
strategic initiatives, the success of our products,
including Qurr®,
Yolked®, MYOS Canine Muscle
Formula®, and MYOS Enteral
Nutrition Formula™, the success of our research and
development, the results of the clinical evaluation
of Fortetropin® and its
effects, the ability to enter into new partnership opportunities
and the success of our existing partnerships, the ability to
generate revenue and cash flow from sales of our products, the
ability to increase our revenue and gross profit margins, the
ability to achieve a sustainable, profitable business, the effect
of economic conditions, the ability to protect our intellectual
property rights, competition from other providers and products, the
continued listing of our securities on the Nasdaq Stock Market,
risks in product development, our ability to raise capital to fund
continuing operations, and other factors discussed from time to
time in our filings with the Securities and Exchange
Commission. We undertake no obligation to update or revise any
forward-looking statement for events or circumstances after the
date on which such statement is made except as required by
law.
The following tables should be read in conjunction with the
footnotes accompanying the condensed consolidated financial
statements contained in the Quarterly Report on Form 10-Q
previously filed by the Company with the Securities and Exchange
Commission.
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONDENSED
Consolidated Balance Sheets
|
(in thousands,
except share and per share amounts)
|
|
|
|
September 30,
2019
|
|
|
December 31,
2018
|
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
396
|
|
|
$
|
15
|
|
Accounts receivable, net
|
|
|
44
|
|
|
|
78
|
|
Other current asset
|
|
|
-
|
|
|
|
1,124
|
|
Inventories, net
|
|
|
1,625
|
|
|
|
1,676
|
|
Prepaid expenses
|
|
|
98
|
|
|
|
10
|
|
Total current
assets
|
|
|
2,163
|
|
|
|
2,903
|
|
|
|
|
|
|
|
|
|
|
Operating lease right
of use asset
|
|
|
203
|
|
|
|
-
|
|
Deferred offering
costs
|
|
|
95
|
|
|
|
108
|
|
Other
asset
|
|
|
-
|
|
|
|
50
|
|
Fixed assets,
net
|
|
|
129
|
|
|
|
149
|
|
Intangible assets,
net
|
|
|
983
|
|
|
|
1,245
|
|
Total assets
|
|
$
|
3,573
|
|
|
$
|
4,455
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
145
|
|
|
$
|
236
|
|
Accrued expenses and
other current liabilities
|
|
|
43
|
|
|
|
383
|
|
Deferred
revenue
|
|
|
20
|
|
|
|
-
|
|
Operating lease
liabilities – current portion
|
|
|
46
|
|
|
|
-
|
|
Related party
promissory note payable and accrued interest
|
|
|
794
|
|
|
|
1,015
|
|
Total current liabilities
|
|
|
1,048
|
|
|
|
1,634
|
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Operating lease liabilities – net of current portion
|
|
|
160
|
|
|
|
-
|
|
Total liabilities
|
|
|
1,208
|
|
|
|
1,634
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Preferred stock, $.001 par value; 500,000 shares authorized; no
shares issued and
outstanding
|
|
|
-
|
|
|
|
-
|
|
Common stock, $.001 par value; 12,000,000 shares authorized at
September 30,
2019 and December 31, 2018; 9,176,908 and
7,481,723 shares issued and
outstanding at September 30, 2019
and December 31, 2018, respectively
|
|
|
9
|
|
|
|
8
|
|
Additional paid-in
capital
|
|
|
40,494
|
|
|
|
37,880
|
|
Accumulated
deficit
|
|
|
(38,138)
|
|
|
|
(35,067)
|
|
Total stockholders'
equity
|
|
|
2,365
|
|
|
|
2,821
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,573
|
|
|
$
|
4,455
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited; in
thousands, except share and per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
350
|
|
|
$
|
66
|
|
|
$
|
653
|
|
|
$
|
211
|
|
Cost of
sales
|
|
|
174
|
|
|
|
59
|
|
|
|
316
|
|
|
|
150
|
|
Gross profit
|
|
|
176
|
|
|
|
7
|
|
|
|
337
|
|
|
|
61
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, marketing and research
|
|
|
339
|
|
|
|
128
|
|
|
|
951
|
|
|
|
756
|
|
Personnel and benefits
|
|
|
406
|
|
|
|
396
|
|
|
|
1,226
|
|
|
|
1,162
|
|
General and administrative
|
|
|
342
|
|
|
|
392
|
|
|
|
1,200
|
|
|
|
1,298
|
|
Total operating expenses
|
|
|
1,087
|
|
|
|
916
|
|
|
|
3,377
|
|
|
|
3,216
|
|
Operating
loss
|
|
|
(911)
|
|
|
|
(909)
|
|
|
|
(3,040)
|
|
|
|
(3,155)
|
|
Interest expense
|
|
|
(10)
|
|
|
|
(2)
|
|
|
|
(31)
|
|
|
|
(3)
|
|
Loss before income
taxes
|
|
|
(921)
|
|
|
|
(911)
|
|
|
|
(3,071)
|
|
|
|
(3,158)
|
|
Net loss
|
|
$
|
(921)
|
|
|
$
|
(911)
|
|
|
$
|
(3,071)
|
|
|
$
|
(3,158)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
$
|
(0.10)
|
|
|
$
|
(0.12)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
9,173,851
|
|
|
|
7,473,723
|
|
|
|
8,675,666
|
|
|
|
7,077,499
|
|
MYOS RENS
TECHNOLOGY INC. AND SUBSIDIARY
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited; in
thousands)
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
|
2019
|
|
|
2018
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,071)
|
|
|
$
|
(3,158)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
20
|
|
|
|
27
|
|
Amortization
|
|
|
262
|
|
|
|
215
|
|
Stock-based
compensation
|
|
|
93
|
|
|
|
195
|
|
Deferred offering
costs
|
|
|
-
|
|
|
|
96
|
|
Inventory
reserve
|
|
|
-
|
|
|
|
25
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Decrease (increase)
in accounts receivable
|
|
|
34
|
|
|
|
(1)
|
|
Decrease in other
current asset
|
|
|
1,124
|
|
|
|
-
|
|
Decrease in
inventories
|
|
|
51
|
|
|
|
13
|
|
(Increase) decrease
in prepaid expenses
|
|
|
(88)
|
|
|
|
55
|
|
Decrease in other
asset bond deposit
|
|
|
50
|
|
|
|
-
|
|
Increase in deferred
revenue
|
|
|
20
|
|
|
|
-
|
|
Increase in accrued
interest on promissory note payable
|
|
|
29
|
|
|
|
-
|
|
Decrease in accounts
payable and accrued expenses
|
|
|
(428)
|
|
|
|
(17)
|
|
Net cash used in
operating activities
|
|
|
(1,904)
|
|
|
|
(2,550)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
Proceeds from
registered direct offering of common stock, net
|
|
|
438
|
|
|
|
-
|
|
Proceeds from related
promissory note payable
|
|
|
|
|
|
|
750
|
|
Deferred offering
costs from at-the-market transaction
|
|
|
(3)
|
|
|
|
(108)
|
|
Deferred offering
costs from private placement
|
|
|
-
|
|
|
|
(45)
|
|
Net proceeds from
issuance of common stock in private placement
|
|
|
1,850
|
|
|
|
1,489
|
|
Net cash provided by
financing activities
|
|
|
2,285
|
|
|
|
2,086
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
381
|
|
|
|
(464)
|
|
Cash at beginning of
period
|
|
|
15
|
|
|
|
923
|
|
Cash at end of
period
|
|
$
|
396
|
|
|
$
|
459
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Cash paid during the
year for:
Interest
|
|
$
|
|
-
|
|
$
|
-
|
|
Income
taxes
|
|
$
|
|
-
|
|
$
|
-
|
|
Operating
leases
|
|
$
|
57
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Supplemental
schedule of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
Conversion of related
party promissory note into shares of common stock
|
|
$
|
250
|
|
|
$
|
-
|
|
Reclassification of
deferred offering costs to additional paid in capital
|
|
$
|
16
|
|
|
$
|
6
|
|
Investor Relations:
Porter LeVay & Rose
Matthew Abenante, IRC, SVP
Phone: 212-564-4700
Email: MYOS@plrinvest.com
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