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Neurometrix (NURO)

Participants
Thomas Higgins Senior Vice President & Chief Financial Officer
Dr. Shai Gozani President & Chief Executive Officer
Call transcript
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Operator

Good morning and welcome to the NeuroMetrix Third Quarter 2021 Earnings Call. My name is Catherine and I will be your moderator on the call. On this call, the Company may make statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature that depend upon or refer to future events, or conditions are forward-looking statements. Any forward-looking statements reflect current views of NeuroMetrix about future results of operations and other forward-looking information.

in on a because of result including set rely differ results important not issued those as release materially of forth should forward-looking actual statements may factors, earlier You today. earnings the a number and including at the the heading under website Company's in Company's Investor uncertainties, Factors sec.gov. the with neurometrix.com factors periodic described Relations Please refer filings and on SEC the website to the risks the the SEC's Risk available at on undertakes no on and to update NeuroMetrix disclosed intend does duty the information this not call. conference introduce now like NeuroMetrix' I'd and President Chief Officer, to the Senior Vice Mr. Financial Thomas Higgins. Mr. Higgins.

Thomas Higgins

way you, call. background Boston-based a device to Dr. Thank of NeuroMetrix those company earnings President medical proprietary intellectual with Gozani, attending By and CEO today's in thanks property. of and Shai participating NeuroMetrix is of Catherine is extensive you call. this

focused driven medical of development We disorders. devices and the global non-invasive pain diagnosis for are on and treatment commercialization neurological of the innovation and and

based from model business our recurring base. is Our customer installed on revenue

year declined consumables spending. tunnel prior Asia, primarily from Advantage. revenue syndrome, the the the was electrodes, for Japan QX ADVANCE year-on-year is the which on or growth grew our versus revenue, of in such total, China, in reduced This are concentrated as XX% a last our of and focal Medicare DPNCheck, and year-on-year. percentage X% million. revenue year-on-year used DPNCheck posted contributed sales neuropathies After as year. was carpal X.X quarter, US from QX Its in biosensors. in slightly US, of X% XX% up in peripheral promotional that and was neuropathy the XXXX. which posted diagnostic During third majority market sales growth Outside are Quell slight evaluating

rising gross situation parts rate the shortage. due variances unfavorable This resolution last times global sourcing next Our was industry margin gross The XX% rapidly. X.X wide being electronic in margin and We normalcy return in or XX.X% components costs with of the to expected stretched within components. X.X% on critical revenue to see parts purchase profit is increasing was challenges quarters. several price Lead year. versus QX are to million. are and The no contraction on was profit due

in We higher term expect increase further margin we maintain near balances, levels as production. and contraction to the inventory stocking

spending Our QX of year, an operating Quell to commercial and Sales X.X awards personnel $XXX,XXX. team in DPNCheck initiative. in marketing regulatory expansion spending our fibromyalgia of included $XXX,XXX for related of compensation and expenses increase included new OpEx totaled $XXX,XXX G&A million X.X $XXX,XXX of and of for the spending million versus equity costs R&D new included accruals. of activities incentive last XXXX

the equity raise with on versus loss $XXX,XXX loss share last and of of business With cash equity million raise under the the was the quarter contraction completed quarter third basis, registration per the was new described by $XX.X XXXX significantly stockholders' have losses, our been outstanding shares share net quarter capitalization, margin increased sheet and QX for QX ATM previously our up $X.XX $X.XX time, Our June third The of gross reduced re-capitalization cash and position shortly. reduce and cash with losses to structure. opportunities increased million we $XXX,XXX per regard We $XXX,XXX net simplify in balance our to in capital remaining X.X of began to quarter will ended net to the hand, the are spending. under restructuring year. versus discuss the and OpEx product million. used which XXXX. $XX.X reflecting shelf a loss On company, our capacity in This which in new XXXX Since growth development, that clean I profitable million and funding. effectively XX.X the

capital in free. and debt to new We today have now drive only opportunities adequate is invest capital and equity these Our structure profitable common clean, growth.

tool We capital will strategy. ATM. cost, shortly that file Gozani overall at a toolkit address important immediate is not any in an prudent have ATM to This be deploy low the will extent. accessing plans for We CFO the registration shelf new should in statement necessary to feature or now do Dr. the our future. great

Dr. Shai Gozani

to and note. you, several Thank updates provide shareholders may lines I that to updates. our product we catalysts have DPNCheck identify two With Tom. on will regard growth want

planning generation first quarter First, to device the United in launch the second we are States XXXX. of DPNCheck in the

into going combination production a be multi-year will R&D This quarter. a of is this We effort.

technological We device's at will the benefits customer provide the launch. details and of features on time

support broad terms, our will and it further we solidify in with Advantage Medicare believe first adoption mover a advantage. However,

production the component phase Now due over by the constraints to second worldwide device into market we shortage to course generation need created electronic the of XXXX. will the

Care. management Based that Second, Value has and years markets. value-based team experience as SVP Advantage sales can Health Su's yesterday Medicare we & believe our announced business we Population leadership We grow other of strategy substantially Medicare to Advantage. and Su in under of addition XX Su the development Bell in DPNCheck

been we affiliated provided those use with within terminology, large provision of Medicare has care value-based have Advantage to networks, rather number Medicare adopted is than insurers quality tied when For reimbursement start. largest the provider of by their so unfamiliar more of this good is is services. simply care value-based a DPNCheck some a of Advantage closely model. the care for for

Moving are specific over-the-counter beyond pain to chronic the lower treatments for syndromes. for expanding we platform, prescription extremity Quell use neuromodulation pain to

FDA of treatment in a indication. request population use affects inadequate in program In next are Quell indicated for filed clinical Subject should prescription to of fibromyalgia. next novo of treat had this up that our for medical de the this timelines, we de indication announced regulatory we Quell fourth FDA the with novo month, the earlier development symptoms fibromyalgia X% to year. fibromyalgia, chronic this for designation for quarter adults focused If US. go-to-market the of the granted complex lead believe we are we in and authorization we this of the July, we we breakthrough of the time, received the to that adult and initial options review is condition pain second Our the process indication from in the to then record revenue launch fibromyalgia will treatment be the expect strategy. ongoing year first device Quell for on half At and

neuropathy, our of and on information our further prescription last is another get to provide we is peripheral will launch. update approach strategies as induced closer commercial on which one the programs. My We

second of timelines for date the next look are this be target file National multicenter, of If novo trial and quarter first There end to a we patients Quell a in side and CIPN is serious that effects. to results triple-blinded XXXX. randomized, limited expect treatment This Cancer XXXX. a options we for positive, patients hold, condition of may over enrollment the Based requests on As chemotherapy. if are complication cause with the a in in the effectiveness is half funding we may de and half enrollment, by reminder, indication out watch receiving sham-controlled will that of of the trial have read year this for occurs and in indication those are in those the the CIPN. to to few Institute used disabling position the

efficient markets. and to is diagnostic unmet at novel So point. the for neurology questions this We'll pain a in therapeutic committed needs happy summary, with are prepared products NeuroMetrix operationally take comments. organization in and and Those be

Operator

Gozani showing questions I'm Instructions] to Dr. I'd no [Operator the you. Thank turn the in like closing for remarks. to call back queue.

Dr. Shai Gozani

much. you. this we Thank after the appreciate morning very you to joining Thank your you We us updating look year. of end the and forward

Operator

Thank today's now you participating, disconnect. for you conference call. may concludes This