NeuroMetrix Posts Loss in Q2 But Launches Wearable Pain Relief Device

Waltham, Mass.-based NeuroMetrix Inc. has reported results for Q2, which contained the successful launch of the company’s Quell wearable device for pain relief.

Between the launch of Quell in June 2015 and quarter-end, approximately 2,600 Quell devices and nearly 1,000 electrode reorders were shipped to customers. Second quarter shipments fulfilled order backlog from the Indiegogo pre-order campaign in March/April, orders from stocking physicians, and orders placed through the Quell website.

Cumulative device shipments of the company’s wearable technology, Quell plus Sensus, passed the 10,000 milestone during Q2. Approximately 650 Sensus devices plus 5,800 electrode packages were shipped in Q2.

An underwritten public equity offering for $14.7 million was completed during May 2015. NeuroMetrix realized net proceeds of $10.1 million after a $3.2 million repurchase of preferred stock and after deducting underwriting discounts and commissions and offering expenses.

“Quell commercial launch during Q2 marked the achievement of our second major milestone for 2015, the first being the unveiling of Quell at the Consumer Electronics Show in January,” said Shai N. Gozani, M.D., Ph.D., president/CEO of NeuroMetrix. “Now that we are in the market our focus is to optimize and expand our sales channels to make Quell available to the widest number of persons suffering with chronic pain. The Q2 equity offering provides timely resources for our near-term marketing efforts.”

Total revenues for the second quarter were $1.22 million versus $1.34 million for Q2 2014. Gross profit was 51.4 percent of total revenues, level with 51.2 percent in Q2 2014. Operating expenses were $4 million compared to $3.3 million in Q2 2014. Increased spending primarily reflects marketing costs in support of the Quell launch. The company recorded a non-cash credit of $2.14 million at June 30 for the revaluation at fair value of outstanding common stock warrants compared to a $480,000 revaluation credit at June 30, 2014. Net loss was $1.2 million, or 48 cents per share. This compared to a net loss of $2.17 million for Q2 2014, or 85 cents per share. NeuroMetrix reported Q2 2015 net cash usage of $3.87 million and ended the period with cash and cash equivalents of $12.64 million.