Myomo Reports Fourth Quarter and Full Year 2023 Financial Results
Q4 total revenue of
Addition of Medicare Part B patients to backlog results in record 183 MyoPro orders and insurance authorizations received in Q4, up 87% over the prior year
Record backlog of 230 patients as of
Introduces 2024 first quarter and full year guidance
Conference call begins at
Financial and operational highlights for the fourth quarter of 2023 include the following (all comparisons are with the fourth quarter of 2022):
-
Total and product revenue was
$4.8 million , up 18%; - Revenue units were 107, up 6%;
- MyoPro® orders and insurance authorizations were received for 183 units, up 87%;
- Backlog, which represents insurance authorizations and orders received but not yet converted to revenue, was 230 units, up 40%, and includes 44 Medicare Part B patients for whom either rental payments have been received, or have been qualified for delivery;
- 381 new candidates were added to the patient pipeline, up 17%;
-
There were 1,042 MyoPro candidates in the patient pipeline as of
December 31, 2023 , up 18%; - Gross margin was 65.3%, up 30 basis points; and,
-
Cost per pipeline add, which reflects only payers that have previously reimbursed for the MyoPro, was
$2,246 , a reduction of 16%.
Management Commentary
“Fourth quarter and full year 2023 revenues were in line with our expectations as we continued to post solid gains in all key performance metrics," said
Financial Results
|
For the Three Months Ended
|
|
Period-
|
|
For the Year Ended
|
|
Period-
|
|
|||||||||||||||||
|
2023 |
|
2022 |
|
$ |
|
% |
|
2023 |
|
2022 |
|
$ |
|
% |
|
|||||||||
Product revenue |
$ |
4,756,383 |
|
$ |
4,041,526 |
|
$ |
714,857 |
|
|
18 |
% |
$ |
17,476,238 |
|
$ |
14,555,229 |
|
$ |
2,921,009 |
|
|
20 |
% |
|
License revenue |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
1,764,920 |
|
|
1,000,000 |
|
|
764,920 |
|
|
76 |
|
||
Total revenue |
|
4,756,383 |
|
|
4,041,526 |
|
|
714,857 |
|
|
18 |
|
|
19,241,158 |
|
|
15,555,229 |
|
|
3,685,929 |
|
|
24 |
|
|
Cost of revenue |
|
1,651,505 |
|
|
1,413,916 |
|
|
237,589 |
|
|
17 |
|
|
6,058,775 |
|
|
5,302,133 |
|
|
756,642 |
|
|
14 |
|
|
Gross profit |
$ |
3,104,878 |
|
$ |
2,627,610 |
|
$ |
477,268 |
|
|
18 |
% |
$ |
13,182,383 |
|
$ |
10,253,096 |
|
$ |
2,929,287 |
|
|
29 |
% |
|
Gross margin |
|
65.3 |
% |
|
65.0 |
% |
|
|
|
0.3 |
% |
|
68.5 |
% |
|
65.9 |
% |
|
|
|
2.6 |
% |
Total and product revenue for the fourth quarter of 2023 was
Gross margin for the fourth quarter of 2023 was 65.3%, compared with 65.0% for the fourth quarter of 2022. The increase was driven primarily by a higher ASP, offset by some material and other cost increases. Full year 2023 gross margin was 68.5%, compared with 65.9% in 2022. The increase was due to higher license revenue from the Company's joint venture in
Operating expenses for the fourth quarter of 2023 were
Operating loss for the fourth quarter of 2023 was
Adjusted EBITDA for the fourth quarter of 2023 was
Operations Update
The pipeline was 1,042 patients as of
Backlog was a record 230 units as of
On
To date, the Company has filed claims with
Cash Position
Cash, cash equivalents and short-term investments as of
In
Business Outlook
"Revenue for the first quarter 2024 is expected to be in the range of
Conference Call and Webcast
A replay of the webcast will be available beginning approximately one hour after the completion of the live conference call at http://ir.myomo.com/. A dial-in replay of the call will be available until
Non-GAAP Financial Measures
About
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s future business expectations, including expectations for first quarter and full year 2024 revenue, expectations regarding materiality of revenues from Medicare Part B patients and expectations for achieving operating cash flow breakeven on a quarterly basis, 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 ability to obtain sufficient reimbursement from third-party payers for our products;
- our ability to navigate factors both within and outside our control to grow revenues sufficiently to achieve operating cash flow breakeven on a quarterly basis;
- our revenue concentration with a particular insurance payer as a result of focusing our efforts on patients with insurers who have previously reimbursed for the MyoPro;
- our ability to continue normal operations and patient interactions without supply chain disruption in order to deliver and fit our custom-fabricated devices;
- our marketing and commercialization efforts;
- our dependence upon external sources for the financing of our operations, to the extent that we do not achieve or maintain cash flow breakeven;
- our ability to obtain and maintain our strategic collaborations and to realize the intended results of such collaborations;
- our ability to effectively execute our business plan and scale up our operations;
- our expectations as to our product development programs, including improving our existing products and developing new products;
- our ability to maintain and grow our reputation and to achieve and maintain the market acceptance of our products;
- our expectations as to our clinical research program and clinical results;
- our ability to maintain adequate protection of our intellectual property and to avoid violation of the intellectual property rights of others;
- our ability to gain and maintain regulatory approvals;
- our ability to compete and succeed in a highly competitive and evolving industry; and
- general market, economic, environmental and social factors that may affect the evaluation, fitting, delivery and sale of our products to patients.
More information about these and other factors that potentially could affect our financial results is included in Myomo’s filings with the
(Tables to follow)
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
(unaudited) |
|
|
|
|
|
|
|
|||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Product revenue |
|
$ |
4,756,383 |
|
|
$ |
4,041,526 |
|
|
$ |
17,476,238 |
|
|
$ |
14,555,229 |
|
License revenue |
|
|
— |
|
|
|
— |
|
|
|
1,764,920 |
|
|
|
1,000,000 |
|
|
|
|
4,756,383 |
|
|
|
4,041,526 |
|
|
|
19,241,158 |
|
|
|
15,555,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue |
|
|
1,651,505 |
|
|
|
1,413,916 |
|
|
|
6,058,775 |
|
|
|
5,302,133 |
|
Gross profit |
|
|
3,104,878 |
|
|
|
2,627,610 |
|
|
|
13,182,383 |
|
|
|
10,253,096 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
|
878,006 |
|
|
|
499,674 |
|
|
|
2,636,487 |
|
|
|
2,482,489 |
|
Selling, general and administrative |
|
|
4,660,049 |
|
|
|
4,357,287 |
|
|
|
18,777,445 |
|
|
|
18,442,811 |
|
|
|
|
5,538,055 |
|
|
|
4,856,961 |
|
|
|
21,413,932 |
|
|
|
20,925,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss from operations |
|
|
(2,433,177 |
) |
|
|
(2,229,351 |
) |
|
|
(8,231,549 |
) |
|
|
(10,672,204 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income, net |
|
|
(113,533 |
) |
|
|
(40,748 |
) |
|
|
(410,274 |
) |
|
|
(88,731 |
) |
Other (income) expense, net |
|
|
- |
|
|
|
(14,540 |
) |
|
|
785 |
|
|
|
1,101 |
|
Loss on equity investment |
|
|
69,662 |
|
|
|
16,652 |
|
|
|
169,503 |
|
|
|
66,511 |
|
|
|
|
(43,871 |
) |
|
|
(38,636 |
) |
|
|
(239,986 |
) |
|
|
(21,119 |
) |
Loss before income taxes |
|
|
(2,389,306 |
) |
|
|
(2,190,715 |
) |
|
|
(7,991,563 |
) |
|
|
(10,651,085 |
) |
Income tax expense (benefit) |
|
|
70,798 |
|
|
|
(23,265 |
) |
|
|
156,002 |
|
|
|
69,937 |
|
Net loss |
|
$ |
(2,460,104 |
) |
|
$ |
(2,167,450 |
) |
|
$ |
(8,147,565 |
) |
|
$ |
(10,721,022 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
|
35,182,105 |
|
|
|
7,349,122 |
|
|
|
29,499,340 |
|
|
|
7,051,447 |
|
Net loss per share attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.52 |
) |
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
|
|
|||||
|
|
2023 |
|
|
2022 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
6,871,306 |
|
|
$ |
5,345,967 |
|
Short-term investments |
|
|
1,994,662 |
|
|
|
— |
|
Accounts receivable, net |
|
|
2,382,658 |
|
|
|
1,896,163 |
|
Inventories, net |
|
|
1,803,507 |
|
|
|
1,399,865 |
|
Prepaid expenses and other current assets |
|
|
598,850 |
|
|
|
573,462 |
|
Total Current Assets |
|
|
13,650,983 |
|
|
|
9,215,457 |
|
Operating lease assets with right of use |
|
|
663,554 |
|
|
|
508,743 |
|
Equipment, net |
|
|
175,794 |
|
|
|
194,283 |
|
Investment in |
|
|
— |
|
|
|
132,489 |
|
Other assets |
|
|
91,237 |
|
|
|
111,034 |
|
Total Assets |
|
$ |
14,581,568 |
|
|
$ |
10,162,006 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
|
4,885,944 |
|
|
|
3,179,362 |
|
Current operating lease liability |
|
|
486,143 |
|
|
|
353,701 |
|
Income taxes payable |
|
|
96,461 |
|
|
|
48,220 |
|
Deferred revenue |
|
|
8,510 |
|
|
|
20,653 |
|
Total Current Liabilities |
|
|
5,477,058 |
|
|
|
3,601,936 |
|
Deferred revenue, net of current portion |
|
|
— |
|
|
|
498 |
|
Non-current operating lease liability |
|
|
115,160 |
|
|
|
200,207 |
|
Total Liabilities |
|
|
5,592,218 |
|
|
|
3,802,641 |
|
Commitments and Contingencies |
|
|
— |
|
|
|
— |
|
Stockholders’ Equity: |
|
|
|
|
|
|
||
Preferred stock |
|
|
— |
|
|
|
— |
|
Common stock |
|
|
2,715 |
|
|
|
775 |
|
Additional paid-in capital |
|
|
105,840,239 |
|
|
|
95,105,071 |
|
Accumulated other comprehensive income |
|
|
83,669 |
|
|
|
43,227 |
|
Accumulated deficit |
|
|
(96,930,809 |
) |
|
|
(88,783,244 |
) |
|
|
|
(6,464 |
) |
|
|
(6,464 |
) |
Total Stockholders’ Equity |
|
|
8,989,350 |
|
|
|
6,359,365 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
14,581,568 |
|
|
$ |
10,162,006 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
For the Year Ended |
|
2023 |
|
|
2022 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net loss |
|
$ |
(8,147,565 |
) |
|
$ |
(10,721,022 |
) |
Adjustments to reconcile net loss to net cash used in operations: |
|
|
|
|
|
|
||
Depreciation |
|
|
164,306 |
|
|
|
192,799 |
|
Stock-based compensation |
|
|
1,115,602 |
|
|
|
1,190,494 |
|
Accretion of discount on short-term investments |
|
|
(110,788 |
) |
|
|
— |
|
Bad debt expense |
|
|
28,401 |
|
|
|
26,075 |
|
Amortization of right-of-use assets |
|
|
353,375 |
|
|
|
349,828 |
|
Loss on equity investment |
|
|
169,503 |
|
|
|
66,511 |
|
Other non-cash charges |
|
|
(38,809 |
) |
|
|
111,755 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(495,599 |
) |
|
|
47,445 |
|
Inventories |
|
|
(384,781 |
) |
|
|
(607,400 |
) |
Prepaid expenses and other current assets |
|
|
(115,523 |
) |
|
|
224,677 |
|
Other assets |
|
|
19,797 |
|
|
|
(15,704 |
) |
Accounts payable and accrued expenses |
|
|
1,790,133 |
|
|
|
(711,898 |
) |
Operating Lease Liabilities |
|
|
(460,790 |
) |
|
|
(406,759 |
) |
Deferred revenue |
|
|
(12,642 |
) |
|
|
19,657 |
|
Other liabilities |
|
|
(47,384 |
) |
|
|
— |
|
Net cash used in operating activities |
|
|
(6,172,764 |
) |
|
|
(10,233,542 |
) |
CASH USED IN INVESTING ACTIVITIES |
|
|
(2,029,565 |
) |
|
|
(310,793 |
) |
CASH PROVIDED BY FINANCING ACTIVITIES |
|
|
9,713,457 |
|
|
|
376,858 |
|
Effect of foreign exchange rate changes on cash |
|
|
14,211 |
|
|
|
(10,934 |
) |
|
|
|
|
|
|
|
||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
1,525,339 |
|
|
|
(10,178,411 |
) |
|
|
|
|
|
|
|
||
Cash, cash equivalents and restricted cash, beginning of period |
|
|
5,345,967 |
|
|
|
15,524,378 |
|
|
|
|
|
|
|
|
||
Cash, cash equivalents and restricted cash, end of period |
|
$ |
6,871,306 |
|
|
$ |
5,345,967 |
|
|
||||||||||||||||
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
|
For the Three Months Ended
|
|
|
For the Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
GAAP net loss |
|
$ |
(2,460,104 |
) |
|
$ |
(2,167,450 |
) |
|
$ |
(8,147,565 |
) |
|
$ |
(10,721,022 |
) |
Adjustments to reconcile to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income, net |
|
|
(113,533 |
) |
|
|
(40,748 |
) |
|
|
(410,274 |
) |
|
|
(88,731 |
) |
Depreciation expense |
|
|
27,890 |
|
|
|
49,057 |
|
|
|
164,306 |
|
|
|
192,799 |
|
Stock-based compensation |
|
|
334,120 |
|
|
|
273,369 |
|
|
|
1,115,602 |
|
|
|
1,190,494 |
|
Loss on investment in minority interest |
|
|
69,662 |
|
|
|
16,652 |
|
|
|
169,503 |
|
|
|
66,511 |
|
Income tax expense (benefit) |
|
|
70,798 |
|
|
|
(23,265 |
) |
|
|
156,002 |
|
|
|
69,937 |
|
Adjusted EBITDA |
|
$ |
(2,071,167 |
) |
|
$ |
(1,892,385 |
) |
|
$ |
(6,952,426 |
) |
|
$ |
(9,290,012 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240307625542/en/
For
ir@myomo.com
Investor Relations:
LHA Investor Relations
kgolodetz@lhai.com
212-838-3777
Source: