NeuroOne Reports Third Quarter Fiscal 2021 Financial Results and Corporate Update
NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) announced its third quarter financial results for fiscal 2021, achieving product revenue of $40,000 and collaboration revenue of $17,000, a notable increase from zero revenue in the same quarter last year. Operating expenses totaled $3.0 million, with a net loss of $3.0 million, improved from a net loss of $7.1 million in the prior year. The company completed its first human use of the Evo Cortical electrode at Mayo Clinic and closed a $12.5 million private placement. NeuroOne is on track for further product launches and has uplisted to Nasdaq.
- Product revenue increased to $40,000, showcasing initial commercial success.
- Closed a $12.5 million private placement with institutional investors.
- Uplisted to the Nasdaq Capital Market, enhancing visibility and credibility.
- First human use of Evo Cortical diagnostic electrode at Mayo Clinic.
- Strategic partnerships and new product launches expected to expand market reach.
- Total operating expenses rose to $3.0 million from $1.6 million year-over-year.
- Net loss of $3.0 million, although reduced from $7.1 million last year, indicates ongoing financial challenges.
EDEN PRAIRIE, Minn., Aug. 13, 2021 /PRNewswire/ -- NeuroOne Medical Technologies Corporation (Nasdaq: NMTC; "NeuroOne" or the "Company"), a medical technology company focused on improving surgical care options and outcomes for patients suffering from neurological disorders, announces today financial results for the quarter ended June 30, 2021.
Third Quarter and Fiscal 2021 Recent Business Updates
- Uplisted to the Nasdaq Capital Market under existing ticker symbol "NMTC"
- Launched the first product, the Evo Cortical Electrode, with Zimmer Biomet
- Submitted a 510(k) to FDA for Company's Evo sEEG Electrode
- Initiated testing for electrodes intended to provide therapeutic stimulation for back pain which represents over a
$3 billion market in the United States - Completed the initial manufacturing run for miniaturized electrodes that may be useful in more complex conditions requiring artificial intelligence
- Formed an advisory board of leading neurosurgeons to assist in accelerating its ablation electrode program
- Multifunction electrode intended to both record brain activity and ablate the problematic brain tissue
- Expected to reduce hospitalizations, eliminate the need for a separate second surgery and reduce overall time and cost
- Company intends to market the hardware and software as well
- Completed first performance milestone in Zimmer Biomet agreement
- Announced first human commercial use of its Evo Cortical diagnostic electrode at Mayo Clinic in Rochester, Minnesota
- Appointed 30-year finance executive, Ronald McClurg, as Chief Financial Officer
- Appointed 20-year Medtronic veteran, Hijaz Haris, as Vice President of Marketing
- Closed a
$12.5 million private placement with certain prominent institutional investors
Dave Rosa, CEO of NeuroOne commented, "During our fiscal third quarter and year to date, we made significant progress across our product portfolio. We began the period with the first human commercial use of our first FDA approved diagnostic product at Mayo Clinic. We submitted a 510(k) for our second diagnostic product line and remain on target to commercialize by calendar year end. We continue to make great progress on our ablation electrode, which will be our first therapeutic device, and are targeting a launch in the next eighteen months. Additionally, we expect data on our chronic use electrode technology later this year. Coupled with adding key personnel, prominent institutional investors in a
Upcoming Targeted Milestones
- Commercialize Evo sEEG Depth Diagnostic Electrode in Calendar 2021
- Uses include epilepsy surgery and awake brain mapping
- Triggers a milestone payment from Zimmer for licensing fee
- ~
$100 million addressable market - Complete the design of the Ablation Therapeutic Electrode and longer pacing item pulse generator in Calendar 2021
- Multifunction electrode intended to both record brain activity and ablate the problematic brain tissue
- Expected to reduce hospitalizations, eliminate the need for a separate second surgery and reduce overall time and cost
- Company intends to market the hardware and software as well.
- Complete animal studies for the Ablation Therapeutic Electrode in Calendar 2021
- Generate accelerated aging testing data for Chronic Use Electrode in Calendar 2021
- Uses include deep brain stimulation, spinal cord stimulation, and future artificial intelligence applications
- ~
$6 -billion addressable market - Commercialize the Ablation Therapeutic Electrode in the next eighteen months
Third Quarter 2021 Financial Results
Product revenue was
Total operating expenses in the third quarter of fiscal 2021 were
Net loss was
As of June 30, 2021, the Company had cash of
Conference Call Information
NeuroOne will host a conference call to discuss financial results for its third quarter ended June 30, 2021, on August 13, 2021, at 9:00 AM ET.
Dial-in: | (346) 248-7799 |
Meeting ID: | 95665935395 |
Passcode: | 902419 |
Webcast: https://audience.mysequire.com/webinar-view?webinar_id=ebb66f45-34a2-4d94-b4b9-f830d498fc2f
About NeuroOne Medical Technologies Corporation
NeuroOne Medical Technologies Corporation is a developmental stage company committed to providing minimally invasive and hi-definition solutions for EEG recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson's disease, dystonia, essential tremors, chronic pain due to failed back surgeries and other related neurological disorders that may improve patient outcomes and reduce procedural costs. The Company may also pursue applications for other areas such as depression, mood disorders, pain, incontinence, high blood pressure, and artificial intelligence. For more information, visit https://www.n1mtc.com .
The Company previously announced it had successfully met the first performance milestone in the distribution and development agreement signed with Zimmer Biomet on July 20, 2020 . In addition to acquiring exclusive global distribution rights to NeuroOne's Evo™ (Evo) patented electrode technology, the partnership also offered the potential for NeuroOne to earn back-end milestone payments if certain events were met within a specified time frame.
NeuroOne received FDA clearance for its Evo cortical technology in November 2019.
In partnership with Mayo Clinic, Wisconsin Alumni Research Foundation (WARF) and other prominent academic medical centers, the Company began developing its cortical electrode technology in 2015. The Company initially focused its efforts on the epilepsy and intraoperative tumor monitoring markets. NeuroOne intends to continue to develop the technology for use in therapeutic applications for Parkinson's disease, epilepsy and pain management due to failed back surgery procedures.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for statements of historical fact, any information contained in this presentation may be a forward–looking statement that reflects NeuroOne's current views about future events and are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. In some cases, you can identify forward–looking statements by the words "may," "might," "will," "could," "would," "should," "expect," "intend," "plan," "objective," "anticipate," "believe," "estimate," "predict," "project," "potential," "target," "seek," "contemplate," "continue" and "ongoing," or the negative of these terms, or other comparable terminology intended to identify statements about the future. Forward–looking statements may include statements regarding the development of the Company's ablation electrode technology program, the receipt of regulatory clearance, the timing and extent of product launch and commercialization of the technology, what the future may hold for electrical stimulation and NeuroOne's potential role, business strategy, market size, potential growth opportunities, future operations, future efficiencies, and other financial and operating information. Although NeuroOne believes that we have a reasonable basis for each forward-looking statement, we caution you that these statements are based on a combination of facts and factors currently known by us and our expectations of the future, about which we cannot be certain. Our actual future results may be materially different from what we expect due to factors largely outside our control, including risks that the partnership with Zimmer Biomet may not facilitate the commercialization or market acceptance of our technology; risks that our sEEG electrodes may not be ready for commercialization in a timely manner or at all; risks that our technology will not perform as expected based on results of our pre-clinical and clinical trials, our ability to raise additional funds, uncertainties inherent in the development process of our technology, changes in regulatory requirements or decisions of regulatory authorities, the size and growth potential of the markets for our technology, clinical trial patient enrollment, the results of clinical trials, our ability to protect our intellectual property rights and other risks, uncertainties and assumptions, including those described under the heading "Risk Factors" in our filings with the Securities and Exchange Commission. These forward–looking statements speak only as of the date of this press release and NeuroOne undertakes no obligation to revise or update any forward–looking statements for any reason, even if new information becomes available in the future.
"Caution: Federal law restricts this device to sale by or on the order of a physician"
NeuroOne Medical Technologies Corporation | ||||||||
Condensed Balance Sheets | ||||||||
As of | As of | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 8,990,741 | $ | 4,036,397 | ||||
Accounts receivable | 40,096 | — | ||||||
Inventory | 52,182 | — | ||||||
Prepaid and other assets | 188,409 | 118,611 | ||||||
Total current assets | 9,271,428 | 4,155,008 | ||||||
Intangible assets, net | 139,786 | 156,523 | ||||||
Right-of-use asset | 241,156 | 282,211 | ||||||
Property and equipment, net | 156,353 | 166,031 | ||||||
Total assets | $ | 9,808,723 | $ | 4,759,773 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 296,410 | $ | 762,538 | ||||
Accrued expenses | 436,846 | 512,762 | ||||||
Convertible promissory notes (Note 8) | — | 1,007,206 | ||||||
Deferred revenue | 13,596 | 73,434 | ||||||
Total current liabilities | 746,852 | 2,355,940 | ||||||
Operating lease liability | 206,966 | 254,328 | ||||||
Other liabilities | — | 83,333 | ||||||
Total liabilities | 953,818 | 2,693,601 | ||||||
Commitments and contingencies (Note 4) | ||||||||
Stockholders' equity: | ||||||||
Preferred stock, | — | — | ||||||
Common stock, | 35,801 | 22,181 | ||||||
Additional paid–in capital | 47,003,140 | 32,923,022 | ||||||
Accumulated deficit | (38,184,036) | (30,879,031) | ||||||
Total stockholders' equity | 8,854,905 | 2,066,172 | ||||||
Total liabilities and stockholders' equity | $ | 9,808,723 | $ | 4,759,773 | ||||
NeuroOne Medical Technologies Corporation | ||||||||||||||||
Condensed Statements of Operations | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the | For the | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Product revenue | $ | 40,096 | $ | — | $ | 129,810 | $ | — | ||||||||
Cost of product revenue | 61,935 | — | 210,429 | — | ||||||||||||
Product gross loss | (21,839) | — | (80,619) | — | ||||||||||||
Collaborations revenue | 17,451 | — | 59,838 | — | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 2,129,474 | 1,146,339 | 4,636,586 | 3,493,761 | ||||||||||||
Research and development | 901,134 | 447,154 | 2,916,721 | 1,291,075 | ||||||||||||
Total operating expenses | 3,030,608 | 1,593,493 | 7,553,307 | 4,784,836 | ||||||||||||
Loss from operations | (3,034,996) | (1,593,493) | (7,574,088) | (4,784,836) | ||||||||||||
Interest expense | — | (4,749,263) | (3,053) | (7,446,770) | ||||||||||||
Net valuation change of instruments measured at fair value | — | 1,269,543 | 1,974 | 1,175,685 | ||||||||||||
Loss on note extinguishment | — | (2,017,847) | — | (2,017,847) | ||||||||||||
Other income | 83,387 | — | 270,162 | — | ||||||||||||
Loss before income taxes | (2,951,609) | (7,091,060) | (7,305,005) | (13,073,768) | ||||||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Net loss | $ | (2,951,609) | $ | (7,091,060) | $ | (7,305,005) | $ | (13,073,768) | ||||||||
Net loss per share: | ||||||||||||||||
Basic and diluted | $ | (0.25) | $ | (1.33) | $ | (0.71) | $ | (2.70) | ||||||||
Number of shares used in per share calculations: | ||||||||||||||||
Basic and diluted | 11,959,101 | 5,346,439 | 10,269,216 | 4,843,587 | ||||||||||||
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SOURCE NeuroOne Medical Technologies Corporation
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