Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MYO | |
Entity Registrant Name | MYOMO, INC. | |
Entity Central Index Key | 0001369290 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 6,881,032 | |
Entity File Number | 001-38109 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Tax Identification Number | 47-0944526 | |
Entity Address, Address Line One | 137 Portland St. | |
Entity Address, Address Line Two | 4th Floor | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02114 | |
City Area Code | 617 | |
Local Phone Number | 996-9058 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Security Exchange Name | NYSEAMER | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 12,942,507 | $ 15,524,378 |
Accounts receivable, net | 1,692,573 | 1,960,037 |
Inventories, net | 1,028,767 | 808,308 |
Prepaid expenses and other current assets | 940,929 | 799,164 |
Total Current Assets | 16,604,776 | 19,091,887 |
Operating lease assets with right of use | 781,917 | 632,906 |
Equipment, net | 279,538 | 275,289 |
Investment in Jiangxi Myomo Medical Assistive Appliance Co. Ltd. | 199,000 | |
Other assets | 111,409 | 95,330 |
Total Assets | 17,976,640 | 20,095,412 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 4,240,213 | 3,949,784 |
Current operating lease liability | 410,497 | 333,380 |
Deferred revenue | 1,899 | 249 |
Total Current Liabilities | 4,652,609 | 4,283,413 |
Deferred revenue | 1,246 | 1,246 |
Non-current operating lease liability | 453,073 | 401,622 |
Total Liabilities | 5,106,928 | 4,686,281 |
Commitments and Contingencies | ||
Stockholders’ Equity: | ||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; no shares issued or outstanding | ||
Common stock par value $0.0001 per share, 65,000,000 shares authorized; 6,879,904 and 6,869,753 shares issued as of March 31, 2022 and December 31, 2021, respectively; and 6,879,877 and 6,869,726 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 688 | 687 |
Additional paid-in capital | 93,804,076 | 93,537,807 |
Accumulated other comprehensive loss | (51,432) | (60,677) |
Accumulated deficit | (80,877,156) | (78,062,222) |
Treasury stock, 27 shares at cost | (6,464) | (6,464) |
Total Stockholders’ Equity | 12,869,712 | 15,409,131 |
Total Liabilities and Stockholders’ Equity | $ 17,976,640 | $ 20,095,412 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 65,000,000 | 65,000,000 |
Common stock, shares issued | 6,879,904 | 6,869,753 |
Common stock, shares outstanding | 6,879,877 | 6,869,726 |
Treasury shares at cost | 27 | 27 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | $ 3,867,926 | $ 2,336,489 |
Cost of revenue | 1,289,862 | 623,152 |
Gross profit | 2,578,064 | 1,713,337 |
Operating expenses: | ||
Research and development | 659,536 | 525,967 |
Selling, general and administrative | 4,656,417 | 4,119,802 |
Total operating expenses | 5,315,953 | 4,645,769 |
Loss from operations | (2,737,889) | (2,932,432) |
Other expense | ||
Other expense, including interest income, net | 790 | 119 |
Total other expense (income) | 790 | 119 |
Loss before income taxes | (2,738,679) | (2,932,551) |
Income tax expense | 76,255 | 28,243 |
Net loss | $ (2,814,934) | $ (2,960,794) |
Weighted average number of common shares outstanding: | ||
Basic and diluted | 6,885,924 | 5,191,417 |
Net loss per share attributable to common stockholders | ||
Basic and diluted | $ (0.41) | $ (0.57) |
Product Revenue | ||
Revenue | $ 2,867,926 | $ 2,336,489 |
License Revenue | ||
Revenue | $ 1,000,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (2,814,934) | $ (2,960,794) |
Other comprehensive income, net of tax: | ||
Foreign currency translation gain | 9,245 | 8,323 |
Other comprehensive income | 9,245 | 8,323 |
Comprehensive loss | $ (2,805,689) | $ (2,952,471) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-in Capital [Member] | Comprehensive Loss [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning balance at Dec. 31, 2020 | $ 11,565,374 | $ 457 | $ 79,273,964 | $ (12,690) | $ (67,689,893) | $ (6,464) |
Beginning balance, shares at Dec. 31, 2020 | 4,593,184 | 27 | ||||
Exercise of warrants | 7,288,275 | $ 102 | 7,288,173 | |||
Exercise of warrants, shares | 999,445 | |||||
Common stock issued upon vesting of restricted stock units | $ 1 | (1) | ||||
Common stock issued upon vesting of restricted stock units, Shares | 11,397 | |||||
Restricted stock vested, shares | 10 | |||||
Stock-based compensation | 165,971 | 165,971 | ||||
Unrealized gain on foreign currency | 8,323 | 8,323 | ||||
Net loss | (2,960,794) | (2,960,794) | ||||
Ending balance at Mar. 31, 2021 | 16,067,149 | $ 560 | 86,728,107 | (4,367) | (70,650,687) | $ (6,464) |
Ending balance, shares at Mar. 31, 2021 | 5,604,036 | 27 | ||||
Beginning balance at Dec. 31, 2021 | 15,409,131 | $ 687 | 93,537,807 | (60,677) | (78,062,222) | $ (6,464) |
Beginning balance, shares at Dec. 31, 2021 | 6,869,753 | 27 | ||||
Common stock issued upon vesting of restricted stock units | $ 1 | (1) | ||||
Common stock issued upon vesting of restricted stock units, Shares | 10,151 | |||||
Stock-based compensation | 266,270 | 266,270 | ||||
Unrealized gain on foreign currency | 9,245 | 9,245 | ||||
Net loss | (2,814,934) | (2,814,934) | ||||
Ending balance at Mar. 31, 2022 | $ 12,869,712 | $ 688 | $ 93,804,076 | $ (51,432) | $ (80,877,156) | $ (6,464) |
Ending balance, shares at Mar. 31, 2022 | 6,879,904 | 27 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (2,814,934) | $ (2,960,794) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation | 45,630 | 23,313 |
Stock-based compensation | 266,270 | 165,971 |
Bad debt expense | 26,075 | |
Loss on disposal of asset | 202 | |
Amortization of right-of-use assets | 76,654 | 39,059 |
Other non-cash charges | (6,364) | (3,139) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 272,748 | 169,642 |
Inventories | (229,740) | (86,677) |
Prepaid expenses and other current assets | (142,240) | (426,515) |
Other assets | (16,079) | |
Accounts payable and accrued expenses | 294,828 | 952,339 |
Operating Lease Liabilities | (97,098) | 21,040 |
Deferred revenue | 1,650 | (2,512) |
Other liabilities | (4,637) | |
Net cash used in operating activities | (2,322,600) | (2,112,708) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investment in Jiangxi Myomo Medical Assistive Appliance Co. Ltd. | (199,000) | |
Purchases of equipment | (49,879) | (44,489) |
Net cash used in investing activities | (248,879) | (44,489) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from exercise of warrants | 7,288,275 | |
Net cash provided by financing activities | 7,288,275 | |
Effect of foreign exchange rate changes on cash | (10,392) | (1,122) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (2,581,871) | 5,129,956 |
Cash, cash equivalents and restricted cash, beginning of period | 15,524,378 | 12,241,261 |
Cash, cash equivalents and restricted cash, end of period | 12,942,507 | 17,371,217 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Right of use assets obtained in exchange for lease liabilities | $ 225,665 | 654,091 |
Property and equipment included in accounts payable and in accrued expenses and other liabilities | $ 94,298 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | Note 1 — Description of Business Myomo Inc. (“Myomo” or the Company”) is a wearable medical robotics company that develops, designs, and produces myoelectric orthotics for people with neuromuscular disorders. The MyoPro ® myoelectric upper limb orthosis product is registered with the U.S. Food and Drug Administration as a Class II medical device. The Company sells its products directly to patients, to orthotics and prosthetics (O&P) providers around the world, the Veterans Health Administration, and distributors in Europe and Australia. Liquidity The Company incurred net losses of approximately $2.8 million and $3.0 million during the three months ended March 31, 2022 and 2021, respectively, and has an accumulated deficit of approximately $80.9 million and $78.1 million at March 31, 2022 and December 31, 2021, respectively. Cash used in operating activities was approximately $2.3 million and $2.1 million for the three months ended March 31, 2022 and 2021, respectively. The Company has historically funded its operations through financing activities, including raising equity and debt capital. The Company’s operating plans are primarily focused on scaling up its operations, increasing the proportion of patients carrying commercial insurance with payers that have historically reimbursed for the Company’s products and continued work with the Centers for Medicare and Medicaid Services, or CMS, and their administrative contractors regarding reimbursement of its products. In addition, the Company believes that it has access to capital resources through payment of the remaining license fee associated with the Company’s entry into a joint venture and technology license agreement with Beijing Ryzur Medical Investment Co., Ltd, possible public or private equity offerings, including sales of common stock through its ATM, exercises of outstanding warrants, debt financings, or other means. Debt financing may require the Company to pledge assets and enter into covenants that could restrict certain business activities or its ability to incur further indebtedness; and may contain other terms that are not favorable to the Company or its stockholders. Based on the Company’s cash balance of approximately $12.9 million as of March 31, 2022 and its expected cash flows, the Company believes that its available cash will fund its operations for at least the next 12 months from issuance date of these financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Interim Financial Statements The accompanying unaudited condensed consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These statements have been prepared in accordance with GAAP for interim financial information pursuant to Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) that are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of March 31, 2022 and for the three months ended March 31, 2022. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the operating results for the fiscal year ending December 31, 2022, or any other period. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and related disclosures of the Company as of December 31, 2021 and 2020 and for the years then ended, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Myomo Europe GmbH. All significant intercompany balances and transactions are eliminated. Reclassifications Certain prior year amounts in prepaid expenses and other current assets have been reclassified to other assets to conform with the current year presentation. Comprehensive Loss Comprehensive loss inclu des all changes in equity during a period, except those resulting from investments by stockholders and distributions to stockholders. The Company's comprehensive loss includes changes in foreign currency translation adjustments. There were no reclassifications out of accumulated other comprehensive loss in the three months ended and 2021, respectively. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates and assumptions are reviewed on an on-going basis and updated as appropriate. Actual results could differ from these estimates. The Company’s significant estimates include the allowance for doubtful accounts, deferred tax valuation allowances, valuation of stock-based compensation, warranty obligations and reserves for slow-moving inventory. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from purchase date to be cash equivalents. Cash and cash equivalents consist principally of deposit accounts and money market accounts at March 31, 2022 and December 31, 2021. Accounts Receivable and Allowance for Doubtful Accounts The Company reports accounts receivable at invoiced amounts less an allowance for doubtful accounts. The Company evaluates its accounts receivable on a continuous basis, and if necessary, establishes an allowance for Joint Venture On March 28, 2022, the Company invested cash consideration of $199,000 for a 19.9% ownership stake in Jiangxi Myomo Medical Assistive Appliance Co., Ltd. (the “JV”), a company headquartered in China that is majority-owned by Beijing Ryzur Medical Investment Co., Ltd. (“Ryzur Medical”). The JV will manufacture and sell the Company’s current and future products in greater China, including Hong Kong, Macau and Taiwan. The Company accounts for its investment in the JV under the equity method because the Company exerts significant influence over its management. The investment is included in total assets on the condensed consolidated balance sheet. There was no impairment charge for the three months ended March 31, 2022, associated with this equity investment. The Company records its share of the JV’s earnings in its condensed consolidated statement of operations in other expense (income). Such minority interest was immaterial as of March 31, 2022. Revenue Recognition Revenues under ASC 606 and related amendments (Topic 606) are required to be recognized either at a “point in time” or “over time,” depending on the facts and circumstances of the arrangement, and are evaluated using a five-step model. The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer, 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied Revenue is recognized when control of these services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Product Revenue Increasingly, the Company derives its revenue from direct billing. The Company also derives revenue from the sale of its products to O&P providers in the United States and internationally, the Veterans Administration (“VA”) and distributors in Europe and Australia. Under direct billing, the Company recognizes revenue when all of the following criteria are met: (i) The product has been delivered to the patient, including completion of initial instruction on its use. (ii) Collection is deemed probable and it has been determined that a significant reversal of the revenue to be recognized is not deemed probable when the uncertainty associated with the variable consideration is resolved. As an example, the Company will record revenue if it is notified that insurance intends to pay and a payment amount is provided. (iii) The amount to be collected is estimable using the “expected value” estimation techniques, or the “most likely amount” as defined in ASC 606. For revenue derived from certain insurance companies where the Company has demonstrated sufficient payment history, the Company recognizes revenue when it receives a pre-authorization from the insurance company and control passes to the patient upon delivery of the device in an amount the reflects the consideration the Company expects to receive in exchange for the device. During the fourth quarter of 2020, the Company made such a determination for certain insurers. These insurers represented 53% and 36% of direct billing channel revenue during the three months ended March 31, 2022 and March 31, 2021, respectively. Depending on the timing of product deliveries to customers, which is when cost of revenue must be recorded, and when the Company meets the criteria to record revenue, there may be fluctuations in gross margin. During the three months ended March 31, 2022 and 2021, the Company recognized revenue of approximately $623,500 and $1,131,400 For revenues derived from O&P providers, the VA and rehabilitation hospitals, the Company recognizes revenue when control passes to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those services. Revenues may be recognized upon shipment or upon delivery, depending on the terms of the arrangement, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance and collectability is deemed probable. In certain cases, the Company ships its products to O&P providers pending reimbursement from non-government, third party payers. As a result of this arrangement, elements of the revenue recognition criteria have not been met upon shipment. In this instance, the Company recognizes revenue when the amount is estimable and the Company determines it is probable that payment will be received. In many cases, the Company is not able to recognize revenue in these situations until payment is received, as then all of the revenue recognition criteria have been met. The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or cost of revenue. License Revenue If a license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue allocated to the license when the license is transferred to the customer, the customer is able to use and benefit from the license, and collectability is deemed probable. On January 21, 2021, we entered into a definitive agreement with Beijing Ryzur Medical Investment Co., Ltd. (“Ryzur Medical”), a medical device manufacturer based in Beijing, to form a joint venture (the “JV”) to manufacture and sell our current and future products in greater China, including Hong Kong, Macau and Taiwan (the “JV Agreement”). Under the Agreements, we are entitled to receive an upfront license fee of $2.7 million, of which $1.0 million has been paid and recognized as revenue as of March 31, 2022. The company will recognize revenue on the remaining amount due upon payment as the fee has not been paid according the to the contractual terms. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had approximately $3,100 and $1,500 of deferred revenue as of March 31, 2022 and December 31, 2021, respectively. Disaggregated Revenue from Contracts with Customers The following table presents revenue by major source: For the Three Months Ended March 31, 2022 2021 Direct to patient $ 1,852,144 $ 1,701,930 Clinical/Medical providers 1,015,782 634,559 License revenue 1,000,000 - Total revenue from contracts with customer $ 3,867,926 $ 2,336,489 Geographic Data The Company generated 57% of its total revenue from the United States, 26% from China, 15% from Germany, and 2% from other international locations for the three months ended March 31, 2022. The Company generated 77% of its product revenue from the United States, 20% from Germany, and 3% from other international locations for the three months ended March 31, 2022. The Company generated 87% of its product and total revenue from the United States and 13% from international locations for the three months ended March 31, 2021. Cost of Revenue In conjunction with the adoption of ASC 606, there are certain cases in which the Company will expense costs when incurred as required by ASC 340-40-25. In certain cases, the Company ships the MyoPro device to O&P providers, or provides the device directly to patients, pending reimbursement from third-party payers, after which revenue is recognized. For the three months ended March 31, 2022 and 2021, the Company recorded cost of goods sold of approximately $304,200 and $50,800, respectively without corresponding revenue. Under direct billing, fees paid to O&P providers for services they provide in conjunction with patient evaluations are expensed as incurred as required by ASC 340-40-25, as a cost of obtaining a contract. These costs are recorded as sales and marketing expense. Internal costs incurred and fees paid to O&P providers to measure, fit and deliver the device to patients are expensed to cost of revenue. Advertising The Company charges the costs of advertising to operating expenses as incurred. Advertising expense amounted to approximately $953,400 and $842,600 during the three months ended March 31, 2022 and 2021. Foreign Currency Translation The functional currency of the Company’s foreign subsidiary, Myomo Europe GmbH, is the Euro. Net foreign currency gains and losses during the three months ended March 31, 2022 were immaterial and included in accumulated other comprehensive loss in the condensed consolidated balance sheet. Transaction foreign exchange gains and losses are included in net loss. Foreign exchange translation gains and losses from the functional currency of Myomo Europe GmbH, which is the Euro, to U.S. dollars are captured in other comprehensive loss. The balance sheet is translated using the spot rate on the day of reporting and the income statement is translated monthly using the average rate for the month. Net Loss per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, plus potentially dilutive common shares. Preferred stock, restricted stock, restricted stock units, stock options and warrants are excluded from the diluted net loss per share calculation when their impact is antidilutive. The Company reported a net loss for the three months ended March 31, 2022 and 2021, and as a result, all potentially dilutive common shares are considered antidilutive for these periods. Potential common shares issuable consist of the following at: March 31, 2022 2021 Stock options 32,381 24,137 Restricted stock units 279,847 273,321 Restricted stock - 30 Stock warrants 693,643 1,709,714 Total 1,005,871 2,007,202 Recent Accounting Standards In May 2021, the FASB issued ASU 2021-04 Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force). The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early application is permitted, including in an interim period as of the beginning of the fiscal year that includes that interim period. We adopted the provisions of ASU 2021-04 in the fourth quarter of 2021. The implementation resulted in a deemed dividend of approximately $640,000 on the discounting and repricing of certain warrants. Subsequent Events The Company evaluates whether there have been subsequent events through the date the financial statements were issued and determines whether subsequent events exist that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 — Inventories Inventories consist of the following at: March 31, 2022 December 31, 2021 Finished goods $ 429,506 $ 176,082 Work in process 20,500 23,161 Rental units 62,531 62,531 Parts and subassemblies 559,921 584,996 1,072,458 846,770 Less: reserve for rental units (43,691 ) (38,462 ) Inventories, net $ 1,028,767 $ 808,308 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 4 — Fair Value of Financial Instruments The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”), which defines fair value, establishes a framework for measuring fair value, and establishes disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices available in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quotable prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar valuation techniques that use significant unobservable inputs. The carrying amounts of the Company’s financial instruments such as cash and cash equivalents, restricted cash, accounts receivable and accounts payable, approximate fair value due to the short-term nature of these instruments. Cash equivalents are a money market fund that limits its investments to only short-term U.S. Treasury securities and repurchase agreements related to these securities. Cash equivalents measured at fair value on a recurring basis at March 31, 2022 were as follows: In Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 11,878,886 $ — $ — $ 11,878,886 Cash equivalents measured at fair value on a recurring basis at December 31, 2021 were as follows: In Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 14,803,456 $ — $ — $ 14,803,456 |
Accounts Payable and other Accr
Accounts Payable and other Accrued Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Payables And Accruals [Abstract] | |
Accounts Payable and other Accrued Expenses | Note - Accounts Payable and Other Accrued Expenses consists of the following at: March 31, 2022 December 31, 2021 Trade payables $ 1,014,323 $ 723,352 Accrued compensation and benefits 2,180,116 2,188,869 Accrued professional services 64,476 108,417 Deferred payroll taxes under CARES Act 113,423 113,423 Warranty reserve 190,934 176,281 Customer Deposits 260,169 192,501 Other 416,772 446,941 $ 4,240,213 $ 3,949,784 |
Common Stock and Warrants
Common Stock and Warrants | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Common Stock and Warrants | Note 6 — Common Stock and Warrants On February 13, 2020, the Company completed an underwritten public offering (the “ February 2020 Offering”). As part of the February 2020 offering, investors received 2,143,000 warrants (“Investor Warrants”), each entitling the holder to purchase one share of the Company’s common stock at an exercise price of $7.50 per share. The Investor Warrants expire on February 13, 2025. In addition, the Company issued to the underwriters, warrants (the “Underwriter Warrants”) to purchase 230,373 shares of common stock. The Underwriter Warrants have an exercise price $7.00 per share. The Underwriter Warrants expire on February 13, 2025. The Investor Warrants and Underwriter Warrants (collectively, the “Warrants”) are being accounted for as equity. On June 25, 2021, the Company terminated its ATM facility with B. Riley FBR and entered into a new facility with Alliance Global Partners (“AGP”). The Company may offer and sell from time to time up to $15 million in shares of the Company’s common stock. The ATM facility with AGP has substantially the same terms as its prior facility with B. Riley FBR, including a commission payable in the amount of 3.0% of the gross proceeds from the sales of common stock. There were no sales under the ATM facility during the three months ended March 31, 2022. No shares of restricted stock vested during the three months ended March 31, 2022. During the three months ended March 31, 2021, 10 shares of restricted stock vested. During the three months ended March 31, 2022 and 2021, 10,151 and 11,397 restricted stock units vested, respectively. |
Stock Award Plans and Stock-bas
Stock Award Plans and Stock-based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Award Plans and Stock-based Compensation | Note 7 — Stock Award Plans and Stock-based Compensation Stock Option Awards The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options. There was no income tax benefit recognized in the financial statements for share-based compensation arrangements for the three months ended March 31, 2022 and 2021. There were 1,700 For the Three Months Ended March 31, 2022 Number of options granted 1,700 Weighted-average expected volatility 117.18 % Weighted-average risk-free interest rate 1.68 % Weighted-average expected option term (in years) 6.25 Weighted-average dividend yield — % Weighted-average fair value per share of grants $ 6.92 The stock price volatility for the Company’s options was determined using the Company’s historical volatility. The risk-free interest rate was derived from U.S. Treasury rates existing on the date of grant for the applicable expected option term. The expected term represents the period of time that options are expected to be outstanding. Because the Company has only very limited historical exercise behavior, it determines the expected life assumption using the simplified method, which is an average of the contractual term of the option and its ordinary vesting period. The expected dividend yield assumption is based on the fact that the Company has never paid, nor has any intention to pay, cash dividends. As of March 31, 2022, there were 374,432 Awards of restricted stock units may be net share settled upon vesting to cover the required employee statutory withholding taxes and the remaining amount is converted into shares based upon their share-value on the date the award vests. These payments of employee withholding taxes are presented in the statements of cash flows as a financing activity. Share-Based Compensation Expense The Company accounts for stock awards to employees and non-employees based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. The Company attributes the value of stock-based compensation to operations on the straight-line method such that the expense associated with awards is evenly recognized over the vesting period. The Company recognized stock-based compensation expense related to the issuance of stock option awards, restricted stock awards and restricted stock units to employees, non-employees and directors in the statements of operations as follows: Three Months Ended March 31, 2022 2021 Cost of goods sold $ 14,755 $ 9,033 Research and development 29,612 47,403 Selling, general and administrative 221,903 109,535 Total $ 266,270 $ 165,971 As of March 31, 2022, there was approximately $114,600 of unrecognized compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of 2.66 years. As of March 31, 2022, there was approximately $1,723,700 of unrecognized compensation expense related to unvested restricted stock units that is expected to be recognized over a weighted-average period of 2.08 years. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8 — Related Party Transactions The Company sold its products to an orthotics and prosthetics practice whose ownership includes an individual who is both a shareholder and executive officer of the Company. The executive resigned his position with the Company effective March 31, 2021. As a result, the orthotics and prosthetics practice is no longer a related party effective April 1, 2021. Sales to this related party were sold at standard list prices. During the three months ended March 31, 2021, approximately $25,900 of revenues were recognized from this previously related party. The Company also obtained consulting and fabrication services, reported in cost of goods sold, from the same previously related party. Charges for these services amounted to approximately $112,900 during the three months ended March 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 — Commitments and Contingencies Litigation We are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened litigation against us that could have a material adverse effect on our business, operating results or financial condition. Operating Leases The Company has a non-cancelable sublease agreement for its corporate headquarters in Boston, MA expiring in 2023, and it has a non-cancelable lease agreement for its manufacturing space in Boston and office space in Fort Worth, TX both expiring in 2025 with early termination available at the company’s discretion in 2023. Termination options were not included in the lease term for the Company’s existing operating leases. Certain arrangements have discounted rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term. As of March 31, 2022, operating lease assets were $781,917. The amount and the maturity of the Company’s operating lease liabilities as of March 31, 2022, are as follows: March 31, 2022 2022 (March 31 - December 31) $ 413,437 2023 411,142 2034 159,872 2025 67,981 2026 — Thereafter — Total future minimum lease payments 1,052,432 Less imputed interest 188,862 Total operating lease liabilities $ 863,570 Included in the condensed consolidated balance sheet: Current operating lease liabilities $ 410,497 Non-current operating lease liabilities 453,073 Total operating lease liabilities $ 863,570 For the three months ended March 31, 2022 and 2021, the total lease cost is comprised of the following amounts: For the Three Months Ended March 31, 2022 2021 Operating lease expense 116,611 67,509 Short-term lease expense 1,950 23,409 Total lease expense $ 118,561 $ 90,918 The following summarizes additional information related to operating leases: March 31, 2022 Weighted-average remaining lease term (in years) 2.7 Weighted-average discount rate 20 % Major Customers For the three months ended March 31, 2022 and 2021, there were no customers which accounted for more than 10% of product revenues. For the three months ended March 31, 2022 and 2021, a U.S. insurance payer represented 34% and 26% of product revenues, respectively. At March 31, 2022, one For the three months ended March 31, 2022 and 2021, approximately 52% and 56% of the Company’s product revenues were derived from patients with Medicare Advantage insurance plans, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10 — Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued, and determined that, except as disclosed herein, there have been no other subsequent events that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The accompanying unaudited condensed consolidated financial statements and notes are representations of the Company’s management, who are responsible for their integrity and objectivity. These statements have been prepared in accordance with GAAP for interim financial information pursuant to Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) that are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of March 31, 2022 and for the three months ended March 31, 2022. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the operating results for the fiscal year ending December 31, 2022, or any other period. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and related disclosures of the Company as of December 31, 2021 and 2020 and for the years then ended, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Myomo Europe GmbH. All significant intercompany balances and transactions are eliminated. |
Reclassifications | Reclassifications Certain prior year amounts in prepaid expenses and other current assets have been reclassified to other assets to conform with the current year presentation. |
Comprehensive Loss | Comprehensive Loss |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates and assumptions are reviewed on an on-going basis and updated as appropriate. Actual results could differ from these estimates. The Company’s significant estimates include the allowance for doubtful accounts, deferred tax valuation allowances, valuation of stock-based compensation, warranty obligations and reserves for slow-moving inventory. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less from purchase date to be cash equivalents. Cash and cash equivalents consist principally of deposit accounts and money market accounts at March 31, 2022 and December 31, 2021. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company reports accounts receivable at invoiced amounts less an allowance for doubtful accounts. The Company evaluates its accounts receivable on a continuous basis, and if necessary, establishes an allowance for |
Joint Venture | Joint Venture On March 28, 2022, the Company invested cash consideration of $199,000 for a 19.9% ownership stake in Jiangxi Myomo Medical Assistive Appliance Co., Ltd. (the “JV”), a company headquartered in China that is majority-owned by Beijing Ryzur Medical Investment Co., Ltd. (“Ryzur Medical”). The JV will manufacture and sell the Company’s current and future products in greater China, including Hong Kong, Macau and Taiwan. The Company accounts for its investment in the JV under the equity method because the Company exerts significant influence over its management. The investment is included in total assets on the condensed consolidated balance sheet. There was no impairment charge for the three months ended March 31, 2022, associated with this equity investment. The Company records its share of the JV’s earnings in its condensed consolidated statement of operations in other expense (income). Such minority interest was immaterial as of March 31, 2022. |
Revenue Recognition | Revenue Recognition Revenues under ASC 606 and related amendments (Topic 606) are required to be recognized either at a “point in time” or “over time,” depending on the facts and circumstances of the arrangement, and are evaluated using a five-step model. The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer, 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied Revenue is recognized when control of these services is transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Product Revenue Increasingly, the Company derives its revenue from direct billing. The Company also derives revenue from the sale of its products to O&P providers in the United States and internationally, the Veterans Administration (“VA”) and distributors in Europe and Australia. Under direct billing, the Company recognizes revenue when all of the following criteria are met: (i) The product has been delivered to the patient, including completion of initial instruction on its use. (ii) Collection is deemed probable and it has been determined that a significant reversal of the revenue to be recognized is not deemed probable when the uncertainty associated with the variable consideration is resolved. As an example, the Company will record revenue if it is notified that insurance intends to pay and a payment amount is provided. (iii) The amount to be collected is estimable using the “expected value” estimation techniques, or the “most likely amount” as defined in ASC 606. For revenue derived from certain insurance companies where the Company has demonstrated sufficient payment history, the Company recognizes revenue when it receives a pre-authorization from the insurance company and control passes to the patient upon delivery of the device in an amount the reflects the consideration the Company expects to receive in exchange for the device. During the fourth quarter of 2020, the Company made such a determination for certain insurers. These insurers represented 53% and 36% of direct billing channel revenue during the three months ended March 31, 2022 and March 31, 2021, respectively. Depending on the timing of product deliveries to customers, which is when cost of revenue must be recorded, and when the Company meets the criteria to record revenue, there may be fluctuations in gross margin. During the three months ended March 31, 2022 and 2021, the Company recognized revenue of approximately $623,500 and $1,131,400 For revenues derived from O&P providers, the VA and rehabilitation hospitals, the Company recognizes revenue when control passes to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those services. Revenues may be recognized upon shipment or upon delivery, depending on the terms of the arrangement, provided that persuasive evidence of an arrangement exists, there are no uncertainties regarding customer acceptance and collectability is deemed probable. In certain cases, the Company ships its products to O&P providers pending reimbursement from non-government, third party payers. As a result of this arrangement, elements of the revenue recognition criteria have not been met upon shipment. In this instance, the Company recognizes revenue when the amount is estimable and the Company determines it is probable that payment will be received. In many cases, the Company is not able to recognize revenue in these situations until payment is received, as then all of the revenue recognition criteria have been met. The Company has elected to record taxes collected from customers on a net basis and does not include tax amounts in revenue or cost of revenue. License Revenue If a license to the Company’s intellectual property is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenue allocated to the license when the license is transferred to the customer, the customer is able to use and benefit from the license, and collectability is deemed probable. On January 21, 2021, we entered into a definitive agreement with Beijing Ryzur Medical Investment Co., Ltd. (“Ryzur Medical”), a medical device manufacturer based in Beijing, to form a joint venture (the “JV”) to manufacture and sell our current and future products in greater China, including Hong Kong, Macau and Taiwan (the “JV Agreement”). Under the Agreements, we are entitled to receive an upfront license fee of $2.7 million, of which $1.0 million has been paid and recognized as revenue as of March 31, 2022. The company will recognize revenue on the remaining amount due upon payment as the fee has not been paid according the to the contractual terms. Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. The Company records a receivable when revenue is recognized prior to payment and there is an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The Company had approximately $3,100 and $1,500 of deferred revenue as of March 31, 2022 and December 31, 2021, respectively. Disaggregated Revenue from Contracts with Customers The following table presents revenue by major source: For the Three Months Ended March 31, 2022 2021 Direct to patient $ 1,852,144 $ 1,701,930 Clinical/Medical providers 1,015,782 634,559 License revenue 1,000,000 - Total revenue from contracts with customer $ 3,867,926 $ 2,336,489 Geographic Data The Company generated 57% of its total revenue from the United States, 26% from China, 15% from Germany, and 2% from other international locations for the three months ended March 31, 2022. The Company generated 77% of its product revenue from the United States, 20% from Germany, and 3% from other international locations for the three months ended March 31, 2022. The Company generated 87% of its product and total revenue from the United States and 13% from international locations for the three months ended March 31, 2021. Cost of Revenue In conjunction with the adoption of ASC 606, there are certain cases in which the Company will expense costs when incurred as required by ASC 340-40-25. In certain cases, the Company ships the MyoPro device to O&P providers, or provides the device directly to patients, pending reimbursement from third-party payers, after which revenue is recognized. For the three months ended March 31, 2022 and 2021, the Company recorded cost of goods sold of approximately $304,200 and $50,800, respectively without corresponding revenue. Under direct billing, fees paid to O&P providers for services they provide in conjunction with patient evaluations are expensed as incurred as required by ASC 340-40-25, as a cost of obtaining a contract. These costs are recorded as sales and marketing expense. Internal costs incurred and fees paid to O&P providers to measure, fit and deliver the device to patients are expensed to cost of revenue. |
Advertising | Advertising The Company charges the costs of advertising to operating expenses as incurred. Advertising expense amounted to approximately $953,400 and $842,600 during the three months ended March 31, 2022 and 2021. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of the Company’s foreign subsidiary, Myomo Europe GmbH, is the Euro. Net foreign currency gains and losses during the three months ended March 31, 2022 were immaterial and included in accumulated other comprehensive loss in the condensed consolidated balance sheet. Transaction foreign exchange gains and losses are included in net loss. Foreign exchange translation gains and losses from the functional currency of Myomo Europe GmbH, which is the Euro, to U.S. dollars are captured in other comprehensive loss. The balance sheet is translated using the spot rate on the day of reporting and the income statement is translated monthly using the average rate for the month. |
Net Loss per Share | Net Loss per Share Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding, plus potentially dilutive common shares. Preferred stock, restricted stock, restricted stock units, stock options and warrants are excluded from the diluted net loss per share calculation when their impact is antidilutive. The Company reported a net loss for the three months ended March 31, 2022 and 2021, and as a result, all potentially dilutive common shares are considered antidilutive for these periods. Potential common shares issuable consist of the following at: March 31, 2022 2021 Stock options 32,381 24,137 Restricted stock units 279,847 273,321 Restricted stock - 30 Stock warrants 693,643 1,709,714 Total 1,005,871 2,007,202 |
Recent Accounting Standards | Recent Accounting Standards In May 2021, the FASB issued ASU 2021-04 Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force). The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early application is permitted, including in an interim period as of the beginning of the fiscal year that includes that interim period. We adopted the provisions of ASU 2021-04 in the fourth quarter of 2021. The implementation resulted in a deemed dividend of approximately $640,000 on the discounting and repricing of certain warrants. |
Subsequent Events | Subsequent Events The Company evaluates whether there have been subsequent events through the date the financial statements were issued and determines whether subsequent events exist that would require recognition in the financial statements or disclosure in the notes to the financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Revenue by Major Source | The following table presents revenue by major source: For the Three Months Ended March 31, 2022 2021 Direct to patient $ 1,852,144 $ 1,701,930 Clinical/Medical providers 1,015,782 634,559 License revenue 1,000,000 - Total revenue from contracts with customer $ 3,867,926 $ 2,336,489 |
Summary of Potential Common Shares Issuable | Potential common shares issuable consist of the following at: March 31, 2022 2021 Stock options 32,381 24,137 Restricted stock units 279,847 273,321 Restricted stock - 30 Stock warrants 693,643 1,709,714 Total 1,005,871 2,007,202 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following at: March 31, 2022 December 31, 2021 Finished goods $ 429,506 $ 176,082 Work in process 20,500 23,161 Rental units 62,531 62,531 Parts and subassemblies 559,921 584,996 1,072,458 846,770 Less: reserve for rental units (43,691 ) (38,462 ) Inventories, net $ 1,028,767 $ 808,308 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash Equivalents Measured at Fair Value on Recurring Basis | Cash equivalents measured at fair value on a recurring basis at March 31, 2022 were as follows: In Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 11,878,886 $ — $ — $ 11,878,886 Cash equivalents measured at fair value on a recurring basis at December 31, 2021 were as follows: In Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 14,803,456 $ — $ — $ 14,803,456 |
Accounts Payable and other Ac_2
Accounts Payable and other Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables And Accruals [Abstract] | |
Summary of Accounts Payable and Other Accrued Expenses | Accounts Payable and Other Accrued Expenses consists of the following at: March 31, 2022 December 31, 2021 Trade payables $ 1,014,323 $ 723,352 Accrued compensation and benefits 2,180,116 2,188,869 Accrued professional services 64,476 108,417 Deferred payroll taxes under CARES Act 113,423 113,423 Warranty reserve 190,934 176,281 Customer Deposits 260,169 192,501 Other 416,772 446,941 $ 4,240,213 $ 3,949,784 |
Stock Award Plans and Stock-b_2
Stock Award Plans and Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Grant Date Fair Value | There were 1,700 For the Three Months Ended March 31, 2022 Number of options granted 1,700 Weighted-average expected volatility 117.18 % Weighted-average risk-free interest rate 1.68 % Weighted-average expected option term (in years) 6.25 Weighted-average dividend yield — % Weighted-average fair value per share of grants $ 6.92 |
Schedule of Stock-based Compensation Expense | The Company recognized stock-based compensation expense related to the issuance of stock option awards, restricted stock awards and restricted stock units to employees, non-employees and directors in the statements of operations as follows: Three Months Ended March 31, 2022 2021 Cost of goods sold $ 14,755 $ 9,033 Research and development 29,612 47,403 Selling, general and administrative 221,903 109,535 Total $ 266,270 $ 165,971 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Maturity of Operating Lease Liabilities | The amount and the maturity of the Company’s operating lease liabilities as of March 31, 2022, are as follows: March 31, 2022 2022 (March 31 - December 31) $ 413,437 2023 411,142 2034 159,872 2025 67,981 2026 — Thereafter — Total future minimum lease payments 1,052,432 Less imputed interest 188,862 Total operating lease liabilities $ 863,570 Included in the condensed consolidated balance sheet: Current operating lease liabilities $ 410,497 Non-current operating lease liabilities 453,073 Total operating lease liabilities $ 863,570 |
Summary of Operating Lease Cost | For the three months ended March 31, 2022 and 2021, the total lease cost is comprised of the following amounts: For the Three Months Ended March 31, 2022 2021 Operating lease expense 116,611 67,509 Short-term lease expense 1,950 23,409 Total lease expense $ 118,561 $ 90,918 |
Summary of Additional Information Related to Operating Leases | The following summarizes additional information related to operating leases: March 31, 2022 Weighted-average remaining lease term (in years) 2.7 Weighted-average discount rate 20 % |
Description of Business - Addit
Description of Business - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Net loss | $ 2,814,934 | $ 2,960,794 | |
Accumulated deficit | 80,877,156 | $ 78,062,222 | |
Cash used in operating activities | 2,322,600 | $ 2,112,708 | |
Cash balance | $ 12,900,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | Mar. 28, 2022 | Jan. 21, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Summary Of Significant Accounting Policies [Line Items] | |||||
Reclassifications out of accumulated other comprehensive loss | $ 0 | $ 0 | |||
Allowance for doubtful accounts | 26,000 | $ 0 | |||
Cash consideration paid | 199,000 | ||||
Impairment charge | $ 0 | ||||
Percentage of direct billing channel revenue insures represent | 53.00% | 36.00% | |||
Revenue | $ 3,867,926 | $ 2,336,489 | |||
Deferred revenue | 3,100 | $ 1,500 | |||
Cost of goods sold | 112,900 | ||||
Advertising expense | 953,400 | 842,600 | |||
Deemed dividend on discounting of warrants | 640,000 | ||||
Accounting Standards Update 2014-09 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cost of goods sold | $ 304,200 | $ 50,800 | |||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | United States [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of revenue | 57.00% | ||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | China [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of revenue | 26.00% | ||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Germany [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of revenue | 15.00% | ||||
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Other International Locations [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of revenue | 2.00% | ||||
Product Revenue [Member] | Geographic Concentration Risk [Member] | United States [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of revenue | 77.00% | 87.00% | |||
Product Revenue [Member] | Geographic Concentration Risk [Member] | Germany [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of revenue | 20.00% | ||||
Product Revenue [Member] | Geographic Concentration Risk [Member] | Other International Locations [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of revenue | 3.00% | 13.00% | |||
Beijing Ryzur Medical Investment Co., Ltd | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Upfront license fee | $ 2,700,000 | ||||
License Revenue | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue | $ 1,000,000 | ||||
License Revenue | Beijing Ryzur Medical Investment Co., Ltd | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue | 1,000,000 | ||||
O&P Providers or Third Party Payors [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Revenue recognized | $ 623,500 | $ 1,131,400 | |||
Jiangxi Myomo Medical Assistive Appliance Co. Ltd | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Ownership percentage | 19.90% | ||||
Cash consideration paid | $ 199,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Revenue by Major Source (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue from contracts with customer | $ 3,867,926 | $ 2,336,489 |
Direct to Patient [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue from contracts with customer | 1,852,144 | 1,701,930 |
Clinical/Medical Providers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue from contracts with customer | 1,015,782 | $ 634,559 |
License Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue from contracts with customer | $ 1,000,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Potential Common Shares Issuable (Detail) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 1,005,871 | 2,007,202 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 32,381 | 24,137 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 279,847 | 273,321 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 30 | |
Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 693,643 | 1,709,714 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 429,506 | $ 176,082 |
Work in process | 20,500 | 23,161 |
Rental units | 62,531 | 62,531 |
Parts and subassemblies | 559,921 | 584,996 |
Total cost | 1,072,458 | 846,770 |
Less: reserve for rental units | (43,691) | (38,462) |
Inventories, net | $ 1,028,767 | $ 808,308 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Cash Equivalents Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 11,878,886 | $ 14,803,456 |
In Active Markets for Identical Assets or Liabilities (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 11,878,886 | $ 14,803,456 |
Accounts Payable and Other Ac_3
Accounts Payable and Other Accrued expenses - Summary of Accounts Payable and Other Accrued Expenses (Detail) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Payables And Accruals [Abstract] | ||
Trade payables | $ 1,014,323 | $ 723,352 |
Accrued compensation and benefits | 2,180,116 | 2,188,869 |
Accrued professional services | 64,476 | 108,417 |
Deferred payroll taxes under CARES Act | 113,423 | 113,423 |
Warranty reserve | 190,934 | 176,281 |
Customer Deposits | 260,169 | 192,501 |
Other | 416,772 | 446,941 |
Total | $ 4,240,213 | $ 3,949,784 |
Common Stock and Warrants - Add
Common Stock and Warrants - Additional Information (Detail) | Jun. 25, 2021USD ($) | Feb. 13, 2020shares$ / shares | Mar. 31, 2022shares | Mar. 31, 2021USD ($)shares |
Class of Stock [Line Items] | ||||
Proceeds from exercise of warrants | $ | $ 7,288,275 | |||
Restricted Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, Vested | 0 | 10 | ||
Restricted Stock Units [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares, Vested | 10,151 | 11,397 | ||
ATM Facility [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares offer and sell | $ | $ 15,000,000 | |||
Percentage of gross proceeds from sales of common stock | 3 | |||
Stock issued during period | 0 | |||
Investor Warrants [Member] | ||||
Class of Stock [Line Items] | ||||
Warrants exercised | 0 | 826,700 | ||
Proceeds from exercise of warrants | $ | $ 7,288,300 | |||
Underwriter Warrants [Member] | ||||
Class of Stock [Line Items] | ||||
Warrants to purchase common stock | 230,373 | |||
Common stock warrants, exercise price per share | $ / shares | $ 7 | |||
Warrants maturity date | Feb. 13, 2025 | |||
Warrants exercised | 0 | 162,575 | ||
February 2020 Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares entitled to warrant holder | 1 | |||
February 2020 Offering [Member] | Investor Warrants [Member] | ||||
Class of Stock [Line Items] | ||||
Warrants to purchase common stock | 2,143,000 | |||
Common stock warrants, exercise price per share | $ / shares | $ 7.50 | |||
Warrants maturity date | Feb. 13, 2025 |
Stock Award Plans and Stock-b_3
Stock Award Plans and Stock-based Compensation - Additional Information (Detail) - USD ($) | Jan. 01, 2020 | Mar. 31, 2022 | Mar. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit recognized | $ 0 | $ 0 | |
Number of stock options granted | 1,700 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 114,600 | ||
Weighted-average remaining contractual term | 2 years 7 months 28 days | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 1,723,700 | ||
Weighted-average remaining contractual term | 2 years 29 days | ||
2018 Stock Option and Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for future grant | 374,432 | ||
Number of common shares reserved for issuance | 274,789 | ||
Percentage increase in number of shares of common stock reserved and available for issuance | 4.00% |
Stock Award Plans and Stock-b_4
Stock Award Plans and Stock-based Compensation - Schedule of Grant Date Fair Value (Detail) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of options granted | shares | 1,700 |
Weighted-average expected volatility | 117.18% |
Weighted-average risk-free interest rate | 1.68% |
Weighted-average expected option term (in years) | 6 years 3 months |
Weighted-average fair value per share of grants | $ / shares | $ 6.92 |
Stock Award Plans and Stock-b_5
Stock Award Plans and Stock-based Compensation - Schedule of Stock-based Compensation Expense (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | $ 266,270 | $ 165,971 |
Cost of Goods Sold [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | 14,755 | 9,033 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | 29,612 | 47,403 |
Selling, General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total share based compensation expense | $ 221,903 | $ 109,535 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Revenue recognized from related party | $ 25,900 | |
Cost of goods sold | $ 112,900 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2022USD ($)Customer | Mar. 31, 2021Customer | Dec. 31, 2021USD ($) | |
Commitments And Contingencies [Line Items] | |||
Description of operating lease agreement for office space | The Company has a non-cancelable sublease agreement for its corporate headquarters in Boston, MA expiring in 2023, and it has a non-cancelable lease agreement for its manufacturing space in Boston and office space in Fort Worth, TX both expiring in 2025 with early termination available at the company’s discretion in 2023. Termination options were not included in the lease term for the Company’s existing operating leases. Certain arrangements have discounted rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term. | ||
Operating lease assets with right of use | $ | $ 781,917 | $ 632,906 | |
Sales Revenue, Net [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of customers | 0 | 0 | |
Accounts Receivable [Member] | |||
Commitments And Contingencies [Line Items] | |||
Number of customers | 1 | 1 | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | One U.S. Insurance Payer [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percentage of revenue | 34.00% | 26.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Patients with Medicare Advantage Insurance Plans [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percentage of revenue | 52.00% | 56.00% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | One Insurer [Member] | |||
Commitments And Contingencies [Line Items] | |||
Percentage of revenue | 28.00% | 45.00% |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Maturity of Operating Lease Liabilities (Detail) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Lease Liabilities Payments Due [Abstract] | ||
2022 (March 31 - December 31) | $ 413,437 | |
2023 | 411,142 | |
2034 | 159,872 | |
2025 | 67,981 | |
Total future minimum lease payments | 1,052,432 | |
Less imputed interest | 188,862 | |
Total operating lease liabilities | 863,570 | |
Included in the condensed consolidated balance sheet: | ||
Current operating lease liability | 410,497 | $ 333,380 |
Non-current operating lease liability | 453,073 | $ 401,622 |
Total operating lease liabilities | $ 863,570 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Operating Lease Cost (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease Cost [Abstract] | ||
Operating lease expense | $ 116,611 | $ 67,509 |
Short-term lease expense | 1,950 | 23,409 |
Total lease expense | $ 118,561 | $ 90,918 |
Commitments and Contingencies_4
Commitments and Contingencies - Summary of Additional Information Related to Operating Leases (Detail) | Mar. 31, 2022 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 2 years 8 months 12 days |
Weighted-average discount rate | 20.00% |