Release Date: May 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NeuroOne Medical Technologies Corp (NMTC, Financial) reported a significant increase in product revenue, reaching $1,377,000 in Q2 FY2024 compared to $466,000 in Q2 FY2023.
- NMTC has successfully expanded its commercialization efforts with the Evo SEG electrode product line through its partnership with Zimmer Biomet, leading to increased sales and revenue.
- The company has made progress in the development of new technologies, including the one RF ablation system, which is the first FDA-cleared system for both recording electrical activity and ablating nervous tissue using the same device.
- NMTC is actively pursuing strategic partnerships and licensing opportunities to enhance distribution and commercialization of its technologies.
- The company has no outstanding debt as of March 31, 2024, providing a strong financial position to support ongoing operations and development.
Negative Points
- Despite increased product revenue, NMTC reported a net loss of $2.9 million in Q2 FY2024, although this is an improvement from a net loss of $3.5 million in Q2 FY2023.
- Total operating expenses for the first six months of FY2024 were $6.9 million, slightly higher than the $6.8 million reported in the same period of FY2023.
- The company experienced a decrease in collaboration revenue, reporting none in the first six months of FY2024 compared to $1.46 million in the same period of FY2023.
- Cash and cash equivalents decreased to $2.4 million as of March 31, 2024, from $5.3 million as of September 30, 2023, indicating a significant use of cash in operations.
- Selling, general, and administrative expenses increased in the first six months of FY2024 to $4.2 million from $3.5 million in the prior year period, contributing to the financial strain.
Q & A Highlights
Q: Can you provide an update on the commercial progress of the Evo SEG electrode product line?
A: David Rosa, CEO: Yes, our commercial partner Zimmer Biomet continues to add new accounts, which has led to an increase in sales and revenue from the Evo SEG electrode product line. We anticipate further growth as Zimmer Biomet expands into new centers.
Q: What are the expectations for the one RF ablation system's commercial launch?
A: David Rosa, CEO: We have already implanted the system in five patients and plan to add new centers this quarter for a limited launch. A broader launch is expected in the third calendar quarter as we receive additional ablation generators.
Q: What financial results did NeuroOne achieve in the second quarter of fiscal year 2024?
A: Ronald McClurg, CFO: Our product revenue was $1,377,000, a significant increase from $466,000 in the same quarter last year. However, we reported a net loss of $2.9 million for the quarter.
Q: How is the company managing its finances given the current revenue and expense levels?
A: Ronald McClurg, CFO: We are carefully managing our expenses and have seen a slight decrease in total operating expenses compared to the previous year. Additionally, we've raised capital through our ATM program to support our operations.
Q: What are the future plans for NeuroOne's technology in terms of new applications or developments?
A: David Rosa, CEO: We are targeting the submission of a new application to the FDA by the end of this year for our ablation generator and continue to develop our drug delivery program, which could significantly impact drug development and neurosurgical treatments.
Q: What closing remarks did the CEO make regarding the company's current position and future outlook?
A: David Rosa, CEO: He expressed confidence in the company's trajectory, highlighting growing revenues, expanding product lines, and strong partnerships with institutions like the Mayo Clinic and Zimmer Biomet. He believes that NeuroOne is in its best position since inception and is optimistic about achieving breakeven status faster.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
