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EAR Eargo

Eargo is a medical device company dedicated to improving the quality of life of people with hearing loss. The Company's innovative product and go-to-market approach address the major challenges of traditional hearing aid adoption, including social stigma, accessibility and cost. The company believes that Eargo hearing aids are the first and only virtually invisible, rechargeable, completely-in-canal, FDA registered, exempt Class I or Class 2 devices for the treatment of hearing loss. The Company's differentiated, consumer-first solution empowers consumers to take control of their hearing. Consumers can purchase online or over the phone and get personalized and convenient consultation and support from licensed hearing professionals via phone, text, email or video chat. The Eargo solution is offered to consumers at approximately half the cost of competing hearing aids purchased through traditional channels in the United States. The company’s 4th generation product, the Eargo Neo HiFi, was launched in January 2020 and features improved capabilities across audio fidelity and bandwidth.

EAR stock data

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Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

12 Aug 21
24 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from Eargo earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 179.35M 179.35M 179.35M 179.35M 179.35M 179.35M
Cash burn (monthly) 7.42M (positive/no burn) 6.44M 4.54M (positive/no burn) 463.5K
Cash used (since last report) 28.38M n/a 24.62M 17.35M n/a 1.77M
Cash remaining 150.97M n/a 154.73M 162M n/a 177.58M
Runway (months of cash) 20.3 n/a 24.0 35.7 n/a 383.1

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
14 Sep 21 Richardson Nina Common Stock Sell Dispose S No Yes 20.32 3,000 60.96K 7,386
31 Aug 21 William Brownie Common Stock Option exercise Acquire M No No 2.55 13,500 34.43K 194,458
31 Aug 21 William Brownie Common Stock Option exercise Acquire M No No 1.41 10,696 15.08K 180,958
31 Aug 21 William Brownie Stock Option Common Option exercise Dispose M No No 2.55 13,500 34.43K 32,166
31 Aug 21 William Brownie Stock Option Common Option exercise Dispose M No No 1.41 10,696 15.08K 7,637
17 Aug 21 Adam Laponis Common Stock Payment of exercise Dispose F No No 24.5373 359 8.81K 62,016
17 Aug 21 William Brownie Common Stock Payment of exercise Dispose F No No 24.6252 252 6.21K 170,262
17 Aug 21 Christian Gormsen Common Stock Payment of exercise Dispose F No No 24.6272 1,102 27.14K 132,337

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

13F holders
Current Prev Q Change
Total holders 122 88 +38.6%
Opened positions 47 19 +147.4%
Closed positions 13 17 -23.5%
Increased positions 46 29 +58.6%
Reduced positions 21 21
13F shares
Current Prev Q Change
Total value 1.76B 1.68B +5.3%
Total shares 48.06M 39.35M +22.1%
Total puts 45.3K 484.9K -90.7%
Total calls 217.4K 55.5K +291.7%
Total put/call ratio 0.2 8.7 -97.6%
Largest owners
Shares Value Change
Fred Alger Management 4.68M $186.67M +553.3%
NEA Management 4.52M $180.42M -30.7%
New Enterprise Associates 15 4.52M $150.07M -30.7%
Alger Associates 4.45M $0 NEW
Future Fund Board of Guardians 3.69M $165.41M 0.0%
Gilde Healthcare Holding B.V. 3.31M $180.06M -15.6%
BLK Blackrock 3.22M $128.36M +232.8%
Nan Fung 2.89M $115.21M 0.0%
Longitude Capital Partners IV 1.92M $64.33M -51.0%
Vanguard 1.65M $65.83M +90.8%
Largest transactions
Shares Bought/sold Change
Alger Associates 4.45M +4.45M NEW
Fred Alger Management 4.68M +3.96M +553.3%
BLK Blackrock 3.22M +2.25M +232.8%
NEA Management 4.52M -2M -30.7%
Longitude Capital Partners IV 1.92M -2M -51.0%
New Enterprise Associates 15 4.52M -2M -30.7%
Millennium Management 1.06M +937.79K +764.3%
Vanguard 1.65M +784.95K +90.8%
Gilde Healthcare Holding B.V. 3.31M -611.24K -15.6%
Victory Capital Management 938.52K +607.19K +183.3%

Financial report summary

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Risks
  • We have a limited operating history and have grown significantly in a short period of time. If we fail to manage our growth effectively, our business could be materially and adversely affected.
  • We have a history of net losses, and we may not achieve or maintain profitability in the future.
  • A significant portion of our revenue is dependent upon reimbursement from third-party payors. Any material changes to third-party coverage or reimbursement or adverse outcomes of third-party payor audits could significantly impact our business and our ability to grow and sell our products.
  • We depend on sales of our hearing aids for our revenue. Demand for our hearing aids may not increase as rapidly as we anticipate due to a variety of factors, including a weakness in general economic conditions or competitive pressures.
  • If we cannot innovate at the pace of our hearing aid manufacturing competitors, we may not be able to develop or exploit new technologies in time to remain competitive.
  • We operate in a highly competitive industry, and competitive pressures could have a material adverse effect on our business.
  • If we are unable to reduce our return rates or if our return rates increase, our net revenue may decrease or grow more slowly than we anticipate, and our business, financial condition and results of operations could be adversely affected.
  • Changes in the regulatory landscape for hearing aid devices could render our direct-to-consumer business model contrary to applicable regulatory requirements, and we may be required to seek additional clearance or approval for our products.
  • We rely on a limited number of manufacturers for the assembly of our hearing aids. If we encounter manufacturing problems or delays, we may be unable to promptly transition to alternative manufacturers and our ability to generate revenue will be limited.
  • We rely on the timely supply of components and parts and could suffer if suppliers fail to meet their delivery obligations, raise prices or cease to supply us with components or parts.
  • Certain components needed to manufacture our hearing aids are only available from a limited number of suppliers.
  • If the quality of our hearing solution does not meet consumer expectations, or if our products wear out more quickly than expected, then our brand and reputation or our business could be adversely affected.
  • Customer or third-party complaints or negative reviews or publicity about our company or our hearing aids could harm our reputation and brand.
  • We spend significant amounts on advertising and other marketing campaigns to acquire new customers, which may not be successful or cost effective.
  • We experience seasonality in our business, which may cause fluctuations in our financial results.
  • Our products are complex to design and manufacture and could contain defects. The production and sale of defective products could adversely affect our business, financial condition and results of operations. If product liability lawsuits are brought against us, we may incur substantial liabilities and may be required to limit commercialization of our products.
  • We are subject to consumer protection laws that regulate our marketing practices and prohibit unfair or deceptive acts or practices. Our actual or perceived failure to comply with such obligations could harm our business, and changes in such regulations or laws could require us to modify our products or marketing or advertising efforts.
  • There are a variety of hearing aid products and technologies, and consumer confusion about product features and technology could lead consumers to purchase competitive products instead of our products, or to conflate any adverse events or safety issues associated with third-party hearing aid products with our products, which could adversely affect our business, financial condition and results of operations.
  • Our business, financial condition, results of operations and growth may be impacted by the effects of the COVID-19 pandemic.
  • Repair or replacement costs due to guarantees we provide on our products could have a material adverse effect on our business, financial condition and results of operations.
  • Our failure to successfully anticipate product returns may have a material adverse effect on our business, financial condition and results of operations.
  • Accelerated consolidation and formation of purchasing groups increases the pricing pressure on hearing aids.
  • The size and expected growth of our addressable market has not been established with precision and may be smaller than we estimate.
  • Alternative technologies or therapies that improve or cure hearing loss could adversely affect our business, financial condition and results of operations.
  • Adapting our production capacities to evolving patterns of demand is expensive, time-consuming and subject to significant uncertainties. We may not be able to adequately predict consumer trends and may be unable to adjust our production in a timely manner.
  • International trade disputes could result in tariffs and other protectionist measures that could have a material adverse effect on our business, financial condition and results of operations.
  • We are dependent on international manufacturers and suppliers, which exposes us to foreign operational and political risks that may harm our business.
  • If manufacturers and suppliers are unable to procure raw materials, semi-finished products and finished products on terms or within timeframes acceptable to us, our business may suffer.
  • We or the third parties upon whom we depend may be adversely affected by disasters, and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster. Any interruption in the operations of our or our suppliers’ manufacturing or other facilities may have a material adverse effect on our business, financial condition and results of operations.
  • We may be deemed to manufacture or contract to manufacture products that contain “conflict minerals.”
  • Any future international expansion will subject us to additional costs and risks that may have a material adverse effect on our business, financial condition and results of operations.
  • Our Loan Agreement contains restrictions that limit our flexibility in operating our business.
  • If we fail to attract and retain senior management and key technology personnel, our business may be materially and adversely affected.
  • We rely on our own direct sales force, and if we are unable to maintain or expand our sales force, it could harm our business. Additionally, our reliance on our direct sales force may result in higher fixed costs than our competitors and may slow our ability to reduce costs in the face of a sudden decline in demand for our products.
  • We rely on our relationship with a professional employer organization for our human relations function and as a co-employer of our personnel, and if that party failed to perform its responsibilities under that relationship, our relations with our employees could be damaged and we could incur liabilities that could have a material adverse effect on our business.
  • Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.
  • Our success depends in part on our proprietary technology, and if we are unable to obtain, maintain or successfully enforce our intellectual property rights, the commercial value of our products and services will be adversely affected and our competitive position may be harmed.
  • If our trademarks and trade names are not adequately protected, we may not be able to build name recognition in our markets of interest and our competitive position may be harmed.
  • We may become involved in lawsuits to protect or enforce our intellectual property, which could be expensive, time-consuming and unsuccessful.
  • If we infringe, misappropriate or otherwise violate the intellectual property rights of third parties or are subject to an intellectual property infringement or misappropriation claim, our ability to grow our business may be severely limited and our business could be adversely affected.
  • Recent changes in U.S. patent laws may limit our ability to obtain, defend and/or enforce our patents.
  • We may be subject to claims that we or our employees have misappropriated the intellectual property of a third party, including trade secrets or know-how, or are in breach of non-competition or non-solicitation agreements with our competitors and third parties may claim an ownership interest in intellectual property we regard as our own.
  • Our hearing aids are subject to extensive government regulation at the federal and state level, and our failure to comply with applicable requirements could harm our business.
  • Disruptions at the FDA and other government agencies caused by funding shortages or global health concerns could hinder their ability to hire, retain or deploy key leadership and other personnel, or otherwise delay or prevent necessary regulatory clearances or approvals, which could negatively impact our business.
  • Legislative or regulatory healthcare reforms may make it more difficult and costly to produce, market and distribute our products or to do so profitably.
  • We may face risks related to any future international sales, including the need to obtain necessary foreign regulatory clearance or approvals.
  • Regulations in certain foreign countries may challenge our direct-to-consumer sales model.
  • Our hearing aids may cause or contribute to adverse medical events that we are required to report to the FDA, and if we fail to do so, we would be subject to sanctions that could harm our reputation, business, financial condition and results of operations. The discovery of serious safety issues with our products, or a recall of our products either voluntarily or at the direction of the FDA or another governmental authority, could have a negative impact on us.
  • We must manufacture our products in accordance with federal and state regulations, and we could be forced to recall our products or terminate production if we fail to comply with these regulations.
  • If we fail to comply with U.S. or foreign federal and state healthcare regulatory laws, we could be subject to penalties, including, but not limited to, administrative, civil and criminal penalties, damages, fines, disgorgement, exclusion from participation in governmental healthcare programs and the curtailment of our operations, any of which could adversely impact our reputation and business operations.
  • If our arrangements with audiologists and other hearing care specialists are found to violate state laws prohibiting the corporate practice of medicine or fee splitting, our business, financial condition and our ability to operate in those states could be adversely impacted.
  • If we are unable to continue to drive consumers to our website, it could cause our revenue to decrease.
  • We are an “emerging growth company,” and the reduced public company reporting requirements applicable to emerging growth companies may make our common stock less attractive to investors.
  • We incur significantly increased costs and are subject to additional regulations and requirements as a result of becoming a public company, which could lower our profits or make it more difficult to run our business.
  • If we are unable to implement and maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may decline.
  • We have identified a material weakness in our internal control over financial reporting. If our remediation of the material weakness is not effective, or if we experience additional material weaknesses in the future or otherwise fail to maintain an effective system of internal controls in the future, we may not be able to accurately or timely report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
  • We have no current plans to pay cash dividends on our common stock; as a result, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it.
  • If our operating and financial performance in any given period does not meet any guidance that we provide to the public, the market price of our common stock may decline.
  • We may be unable to raise additional capital, which could harm our ability to compete.
  • Raising additional capital may cause dilution to our stockholders, restrict our operations or require us to relinquish rights to our technologies or products.
  • Our principal stockholders and management own a significant percentage of our stock and will be able to exert significant control over matters subject to stockholder approval.
  • Sales of a substantial number of shares of our common stock in the public market could cause our stock price to fall.
  • Provisions in our charter documents and under Delaware law could discourage a takeover that stockholders may consider favorable and may lead to entrenchment of management.
  • Claims for indemnification by our directors, officers and other employees or agents may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.
  • Our amended and restated certificate of incorporation and amended and restated bylaws provide that the Court of Chancery of the State of Delaware will be the exclusive forum for certain disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
  • Engaging in acquisitions or strategic partnerships may increase our capital requirements, dilute our stockholders, cause us to incur debt or assume contingent liabilities and subject us to other risks.
  • Our effective tax rate may vary significantly from period to period.
  • If we fail to execute invention assignment agreements with our employees and contractors involved in the development of intellectual property or are unable to protect the confidentiality of our trade secrets, the value of our products and our business and competitive position could be harmed.
  • We may be unable to enforce our intellectual property rights throughout the world.
  • We are subject to risks from legal and arbitration proceedings and that may prevent us from pursuing our business activities or require us to incur additional costs in defending against claims or paying damages.
  • Actual or perceived failures to comply with applicable data privacy and security laws, regulations, policies, standards, contractual obligations and other requirements related to data privacy and security and changes to such laws, regulations, standards, policies and contractual obligations could adversely affect our business, financial condition and results of operations.
  • Failure to comply with the U.S. Foreign Corrupt Practices Act, economic and trade sanctions regulations and similar laws could subject us to penalties and other adverse consequences.
  • Our information technology systems, internal computer systems, or those used by our third-party service providers, vendors, strategic partners or other contractors or consultants, may fail or suffer security breaches and other disruptions, which could result in a material disruption of our products and services development programs, compromise sensitive information related to our business or prevent us from accessing critical information, potentially exposing us to liability or otherwise adversely affecting our business, financial condition and results of operations.
  • Disruptions in internet access could adversely affect our business, financial condition and results of operations.
  • Changes in the regulation of the internet could adversely affect our business.
  • If securities analysts publish negative evaluations of our stock or stop publishing research or reports about our business, the price of our stock could decline.
Management Discussion
  • Revenue increased by $7.0 million, or 43.7%, from $15.9 million during the three months ended June 30, 2020 to $22.9 million during the three months ended June 30, 2021, primarily due to increasing volumes of Eargo Neo HiFi hearing aid systems shipped. The increase in revenue was also attributable to a decrease in sales returns as a percentage of systems shipped, which was partially due to continued growth in sales to customers with health insurance coverage as such customers generally have lower return rates of hearing aids. Gross systems shipped during the three months ended June 30, 2021 were 12,548, a 38.8% increase compared to the 9,040 gross systems shipped during the comparable period ended June 30, 2020. The increase in volume was largely driven by a continued expansion in national marketing efforts, growth in customers with health insurance coverage for hearing aids and increasing customer adoption of our telecare model.
Content analysis
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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. junior Good

Patents

GRANT
Utility
Wax management system
5 Oct 21
A guard for a space access device is configured to output air flow through a distal end portion thereof.
GRANT
Utility
Hand removable, clip on wax guards
25 May 21
Guards for a space access device are configured to be attached to, as well as removed from the space access device by hand, without the need to resort to any tools to perform the attachment or the removal.
APP
Utility
Hearing Assistance Device with an Accelerometer
4 Feb 21
A hearing assistance device is discussed that has one or more accelerometers, a user interface, and optionally a left/right determination module is configured to receive input data from the one or more accelerometers from user actions causing control signals as sensed by the accelerometers to trigger a program change for an audio configuration for the device selected from a group consisting of a change in amplification/volume control, a change in a mute mode, a change of a hear loss profile loaded into that hearing assistance device, and a change in a play-pause mode.
APP
Utility
Hearing Assistance Device That Uses One or More Sensors to Autonomously Change a Power Mode of the Device
25 Nov 20
A device is discussed, such as the hearing assistance device itself and/or an electrical charger cooperating with the hearing assistance device.
GRANT
Utility
Device-cleaning wax guards
16 Nov 20
A guard configured to form an air flow channel with a space access device and to clear debris therefrom includes a surface configured to interface with an opposing surface of the space access device to form the air flow channel.