NURO - Earnings call 4 2023 | NeuroMetrix, Inc.

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Operator

Good morning, and welcome to the NeuroMetrix Fourth Quarter 2023 Business and Financial Update. My name is Josh, 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.

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

Thomas Higgins

update. welcome commercial a medical device QX Thank we stage to Josh, of background, and XXXX you, business By company. way are our

overlapping wearable back along fibromyalgia for condition X multiple and a pain Our a emerging products pain, with chronic second, addressing indications, is related first are platform principal CIPN COVID, peripheral to with low chronic pain chronic Quell, including And which others. is neuromodulation related particularly and neuropathy, to diabetes. DPNCheck technology screening

$XX Our revenue current million as assets. business At aftermarket are our razor-razorblade operating objective. model with the scale, primary about adequately in is liquid financial we with funded

usage about XXXX. per quarter rate cash million averaged during $X.X Our

Our it's capital stock-based. and common structure simple, step-free is

QX by $X.X largest in today, revenue prior down was contributor, Earlier significant QX we've quarters, And discussed this about in as DPNCheck the the XX% representing XXXX reported of revenue of last XX% continues It as year. we of from quarter. million. the including to a year attributable reimbursement X-year XX%. basis, a changes business out CMS patient to Advantage which On initiated was decline a in early timetable of range by contracted for peripheral phase rule neuropathy. screening, XXXX Medicare this full

the electrode Fibromyalgia our The customers. sales to offsetting and on quarter conduction growth revenue testing Quell primarily upside, revenue revenue consisting the legacy balance by doubling shrinkage of for products, of QX QX sequential of dynamics in continuing nearly from reflects long-time nerve our

million due changes. profit profit QX the was $XXX,XXX. of revenue. $X.X year XX% with drop was million Advantage in QX $X.X in $X.X about CMS million last in gross rule of by Gross revenue XXXX, year Medicare full The of in from principally XXXX, the the $XXX,XXX correlates from XXXX reduction about to For down

volumes. absorption in reflecting year margin contraction Our of problem which resulted from slight prior production reduction QX rate gross costs, a the indirect from production the was quarter manufacturing lower lower a XX.X%, --

throughout organization $X.XX Quell Net Full XXXX. the of gross comparison million. the launch a the $X.X year $X.X from in XXXX of a XX%. Operating the under this from at expenses with or $XXX,XXX in was down costs, OpEx of prior just the and or higher by during by in $X.X under about in increased sales year loss year. were at million of totaled share increase increased profit of fourth of of engineering be prior or significantly or increased Fibromyalgia. Personnel $X share. headcount For timing margin million $XX.X from million $X.X full rate compensation, and support rate last year. X.X% XXXX, about of per plus headcount quarter will OpEx QX reflects a spending margin XX%, year $X.XX $XXX,XXX was the million The The $XXX,XXX for loss net the by QX $X.X million the just year to XX% in loss quarter R&D services a from million marketing outside net

year million cash quarter the of $X.X million in Operating $X.X usage in this about was QX year. last versus

or For mentioned $X.XX from XXXX of or previously. share. We million the increased loss a $XX with the our $X.XX share assets $X.X loss of million, liquid year, full per of I net in closed million $X.X quarter per as

in end reverse approximately order at ratio bid $X.X under shares. that, we NASDAQ totaled of requirements. is Common of the of with which ATM our after And During this date fourth comply a the split X.X% million November to And during settled approximately million. outstanding minimum $X.X about XXXX the facility X.X executed XXXX, in QX, stock X, the in implemented common stock we of sales quarter. of million

and report, financial the Shai from highlights the our the and now comments for Gozani, CEO. Dr. of are Founder those So

Shai Gozani

Thank Tom. you,

on is growth built X Our efforts. core strategy

the indication first the Fibromyalgia Quell market. U.S. grow, and to establish The in

pain market. to treatment received is adaptive revise of in indicated It platform. by help substantial recent on safe syndrome treatments. pain duloxetine prescription DPNCheck the first and account It affects fibromyalgia, XX The for Neuromodulation indication chronic third in only neuromodulation relief advance U.S. addressable on FDA a indications additional people time, need is there the pregabalin, is are milnacipran, changes and that the effects. daily based Fibromyalgia electrical can lead negative is nerve only. At technology, our focused multi-hour syndromes. Neurotherapeutics have lower the exclusively side the is chronic million proprietary of second symptoms to And the only up and FDA-approved which are unmet the the is Quell pain only a Quell The to this efforts business program, to strategy latter which to and fibromyalgia is complex is wearable our this as for authorization FDA expanded an our will critical reduce the Novo stimulation transcutaneous [indiscernible] cleared available for to it has and chronic wearable indication. device extremity De additional drugs for is Therefore, commercialization

of and intended refine the that the our this prescription messaging of optimize was deliberate a the is attractive the The marketing At solution we patient clinical fourth to of to quarter for the in Fibromyalgia. identify effectiveness cohorts the quarter solution. time, launch most and of Quell fourth are processing phase strategic XXXX commercial to

preliminary the consists Director of team and us Texas in a National markets. commercial California of X managers, business and Sales Florida, regional with provide Our which coverage

refills. At national it with time, facilities, available a cash and fulfill partnered both on prescriptions to online a the pay treatment. have Quell pharmacy this certain initial of covered basis is is VA Fibromyalgia the a with exception We where

requiring added We physician in-person telehealth visit. without also option prescriptions to patients allows foresee have a that an

most to are rheumatologists, are year. specialists, during pain unique We are compared last fourth the with Fibromyalgia common the The prescribers and in prescribers There pleased XXX medicine Quell QX in the QX. during neurologists. of growth business quarter XXX

number prescriptions month And written filled of increased XXX year to with The refills last number to quarter. patients. in increased in about of Fibromyalgia Quell of XX% XXX the from from in fourth the QX by XXX of QX, prescriptions XXX quarter third in the

price see this of experience end we the Overall, with Fibromyalgia the increased quarter, leading and commercial progress by we year. Quell the Following early to with XX%. refill material are to we pleased hope the revenue continued

The many is Now, the next the a Neurotherapeutics decision line, along a growth element on FDA a CIPN FDA study the increase to XXXX on chronic And strategy, FDA the in that people University of who commercialization based sham-controlled the terms is a of multicenter of in approximately pipeline we early completed NIH-funded of indication. program, for January end the in of in that affects before year. It this of the is could recently CIPN our and chemotherapy-induced is overall ultimate we or it enrollment million of XXX(k) furthest December. Depending designation pilot for chemotherapy fibromyalgia and third was of treating second moderate-to-severe done at is year. position cancer year beyond every submitted XXXX. effect program which chronic in X Rochester. CIPN, indication be A the or side treatment as treatments. neuropathy, randomized as review for the quarter received premarket breakthrough debilitating our initiate time XX% conducted Quell the of to Quell receive peripheral with our trial Quell that double-blinded notification, a

a is Fibromyalgia with syndrome, from COVID we We predicate Quell which study the have COVID-XX submission as in whether recent of Quell of currently About X/X clinical Long post-acute data a results is also sufficient support and pilot also patients presentation, reported fibromyalgia-like a Long are COVID. to evaluating positive called XXX(k) this with device.

to or most such a diabetic for DPNCheck DPNCheck on standard point-of-care study rapid DPNCheck. long-term moving test peripheral nerve diabetes. on the of peripheral test is DPN, neuropathy Now the complication technology. neuropathy, point-of-care which as conduction gold peripheral common only is based neuropathy is

of partners. sales of in revenue Historically, business market, Japan come U.S. into has DPNCheck DPNCheck XX% sales and Medicare our BXB domestic comprised through has Our sales. China distribution and from Advantage international been that the

that This Medicare in and DPNCheck Advantage. The have systems networks, a has assessment years. business groups, portion several of growing Medicare delivery had integrated value-based where been been covered adoption health care health focused market. medical companies the commercial We large substantial team under their a for are Advantage includes on increasing patients

programs. model for are or However, announced CMS. the essentially risk year substantial In Hierarchal Categories uncertainty the announced was alters Services, and eliminates CMS year Advantage Medicare neuropathies Condition adjustment among model sector for last risk injected codes environment Medicare into changes or DPNCheck the new detected due April, the to Medicaid by screening Centers The XXXX. peripheral calendar its changes and many the adjustment changes HCC significant HCC for policy to by

necessary We strategy are landscape be to this and at away evaluating to addressing will business evolving the broadly value-based alter Advantage X it we care. focused Medicare our to from more point, move believe

We scalable care within model. health in a an -- care reconstitute retail are alternative business attempt currently exploring alternate and various value-based markets profitable, to

We to outline are not new a yet in a commercial position strategy.

its downward therefore, we of cash revenue will the Medicare As business DPNCheck have to positive line time, attractive year. margins. revenues. we new in pressure this expect generate and the saw a caused on by we a operating do Nevertheless, see of virtue quarter, will Advantage Implementation material this strategies changes flow take reversal DPNCheck not continue

Now on to move on recent release options. executing a strategic of our to review

by are for business. about DPNCheck, and Neuromodulation company external the Board in our the of disappointed Quell also impact enthusiastic DPNCheck our we fact, While the and, the management remain business potential on forces

lines that ago, Of is few balance and to strategic the course, of review sale marketing were including of the line the new a intend of we growth announced we weeks between initiating options, options our assets and various are stock A potential we company maximize sheet. also strategic merger strong and changes other process acquisition our shareholder to mindful price product a divergence product in of to assets, potential value. of promote or transactions. our consider to We strategies,

fundamental are not company's make commercial do we these options, exploring operations. do in While the expect -- to we not any changes

be at to we'd engaged we our this have process. Thalmann Landenburg process. And in relationship actions that from And take this us emerge be represents will happy have can a to questions. There be whom or taken comments. long-standing assurances with point, any this any We prepared no specific that help

Operator

[Operator Instructions].

comes Company. from question first & Jarrod with JM Cohen Our Cohen

Jarrod Cohen

Yes.

for -- I just It for odd there answered market? I you that older a the Just -- just broader diabetes the in population. in more when -- it know the broader is know it's opportunity I DPNCheck seems

Shai Gozani

yes, I Jarrod, peripheral extensively it is diabetic used neuropathy. Well, -- that for mean is

diabetes the So yes, market.

many diabetes the medical continue to benefits as to clinical on strong of have the as groups within We and focused the using market that well were the benefits Advantage it. because use been it Medicare economic

to of sort reach sectors expanding But our Advantage our part of into consideration. Medicare diabetes strategic other is outside your point, of

Jarrod Cohen

All Okay. beyond just yes, hasn't broader guess [indiscernible] okay. in because been know It the I far, used right. doctors, just And they in whether use so I codes, but because or don't device in encodes to help have I'm do patient? if broader the it? want trying do the the else use to get diagnosis, diagnose even they they to -- to scale we're What -- a

Shai Gozani

a that's good think I Well, point.

is think I there -- there's device, consumables. a cost and So the of to a the cost the

be in in So commercial includes code fact, testing and in for Medicare clinical the for testing opposed the technology. as and not nerve that The established well is, they need Medicare CPT compensated to fashion, to most our and market. There this for some testing. is time do as typically reimburse Advantage a their well was screening conduction that insurers, as insurers, challenge materials do

reimbursed just -- it's annual most -- screening, exceptions. they typically diagnostics notable for an is not something meaning with So really some that

part So but of is screening the -- the market on the largest the side.

to established just Medicare not decided was to peripheral for many but for then changes some that. broad other tests neuropathy, as unfortunately, And that Advantage. So CMS make well. Again, for

be the well So physicians. has but cost sort of at some covers your for point the is test that of there least taken, to model economic

Operator

Our Joshua Horowitz next Master LP. Cap Fund Global from Palm question with Small comes

Joshua Horowitz

with the advising sell clandestinely every to and that institutional of as capital is to investors? it's strategy efficient a legitimate a like proper the opposed doing company's company under the I'd who to offering know use stock ATM quarter stock

Shai Gozani

I -- it describe clandestine question. but I'll let Tom that as Yes. wouldn't address I'll

Thomas Higgins

every that we since choice interesting that's words do an use That's reported use you ATM, Sure. whenever the quarter. of

So some of perhaps the... reconsider you to want

Joshua Horowitz

I'm going Well, reconsider. to not

Thomas Higgins

But let me answer.

Joshua Horowitz

right? stock. publish, there find I'm out of you don't market, sort in We about guys the clandestine. that interested the So in company it's out buying

you sort pretty and You of agree? makes it uninvestable. pressing it. guys a and structure, the are company sitting button Don't selling It's there a ridiculous

Thomas Higgins

think you've got I No, absolutely it wrong.

If consumer looking to at a that's company company, our you We're we grow. cash. a are look of also

which have as an X we you try so to do is offering can We either do to market. recommend, together to here. put choices the And

-- couple of business, this market very to may you the aware pipe you're micro-cap companies be receptive since for been the last particularly hasn't But deals, in years. you may over that

And little buying to presents a so on that the when a directly to bit makes basis we think more that sell opportunity it itself. sense shares are interested in people small

And so who advice, if discussed it's from while we investment you're this bankers us speak asking and it that gives comes internally. with

Joshua Horowitz

billion of $XX were There last issuances year.

and bringing what support know I close melt legitimate a pipe the should the setup to company. Maybe but current just you that down comes I with the would investors -- for to because cash governance what a will the value-oriented stockholders you've disaster. So the some that recipe about, thing that, And canceled talking is you're return don't offering, changes. that recommend literally the whole along absent down, long-term just institutional

to can't in used point legitimate company You ATM. one that's

Thomas Higgins

Well, thank you your very input. much for

Operator

call [Operator over this at any to I for any Dr. not turn like closing the And back Instructions] I'm would remarks. time. further questions now to Gozani showing

Shai Gozani

over this year. you on to coming for forward call, for you we this look thank us conference you course attention. your and joining of updating Thank Well, the

Operator

your Thank participation. for you

disconnect. may You now

NeuroMetrix (NURO) 22 Feb 242023 Q4 Earnings call transcript