Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the NeuroOne Medical Technologies Corporation Second Quarter Fiscal Year 2023 Financial Results Conference Call. Today's call will be conducted by the company's Chief Executive Officer, Dave Rosa; and Chief Financial Officer, Ron McClurg.

Before I turn the call over to Mr. Rosa, I'd like to remind you that this conference call will include forward-looking statements within the meaning of US Federal Securities Laws with respect to future operations, financial results, events, trends, and performance, which are based on management's beliefs and assumptions as of today's call or other specified date.

such known cause risks, materially actual expressed implied involve factors, and from may or may which results by statements and uncertainties, unknown other those Forward-looking statements. to differ release See NeuroOne's specific and differ. that uncertainties SEC to for cause results information risks actual and could corporate regarding filings press update we by Except obligation update as law, required such to no undertakes forward-looking statements.

the turn Dave Rosa, NeuroOne. Dave, With to CEO over that floor the said, yours? call I'll is of

Dave Rosa

operator. Thanks,

make commercial to towards and product and through the training today, launch personnel Biomet initial During the the product with of our fiscal of sales continue commercial for second quarter line. we We release line progress Evo limited sEEG a Zimmer completion announced the the of launch.

orders launch. the Biomet five to In Zimmer addition, initial also for we fulfilled

procedure This surgeons clinical electrode at a in to ROSA system. yet robotic stereotactic assists that facility. Dr. performed with utilize platform Mayo at The was using robotic procedures. One and frame Brain, sEEG medical performed performing Biomet, in neurosurgical successfully neurosurgery using electrode sEEG was minimally the a the Jamie Gamble planning complex first Clinic Zimmer case Evo different Evo Van procedure a An additional Neuron's first invasive by was the

updates excited EVO the of line in are we'll Association To physician Finally, Meeting we presented feedback the complete our Surgeons with future Neurological booth. provide we product on date, Annual at American the Biomet and progress. Zimmer

pleased leaders. that as testing we were planning verification validation final these XX and completing Regarding complete I OneRF the our we device well to neurosurgeon internal with as we OneRF to protocols complete quarter announce system, thought usability to last am were ablation able tasks mentioned for that system.

second suppliers, to be the We are other XXX(k) quarter key documentation track along completed, from of remain for submission on for in few FDA calendar XXXX. a additional an but with waiting testing

our in strategic a quarter, interest regarding During organizations, discussions their technology. continued we with also few the

Next system, activities. a transfer XXX(k) for submitting OneRF to quarter, production in the to expect project we addition to the

to neurosurgeons. in We animal have an study plans vivo also complete with key

scheduled preclinical Neurological are to June. Disorder we Finally, results at of study Summit the present in a

Next, want chronic paddle recording a animal chronic to means. back to implanted electrode multiple model and development an regarding of lead back to percutaneously testing through also was a our completed I update surgeries. a provide We progress stimulation surgical pain the in on treat to pat in due you delivering needle. via bench top failed successfully electrode successfully

complete as model percutaneous a our electrodes by complete physician assess cord the study an of designed quarter, we in placement expect to spinal biocompatibility. to one advisers Next well as animal

pleased initial and completed to planning top impact the fiscal the drug's we as regarding testing that Physician for as system. or are record the high our we animal report to the quarter, patient. feasibility deliver enthusiasm prototype to I on successfully bench am therapy technology the testing ability in In the electrode well remains second model. of additional small potential discussed the our conducting drugs offer gene to

strengthened President Minnetronix also development. electrode device medical large with with of as such company Anthony he Millar our Anthony technology of Boston organization the the quarter, fiscal in Scientific, as Vice with involved Greatbatch well-respected that management similar second held the During roles level has Medtronic, was where team senior Operations. hire and was

We regarding and probes neural patent methods titled also a and SEEG related electrode technology. depth new improved our US patent thin systems film with expanded our portfolio

activity. electrodes North stimulation at the American presentation Finally, Meeting, of and for FDA-cleared the known NANS, Annual delivered an Neuromodulation oral as brain also first Society of film titled electrochemical also we characterization thin recording

financial results. review attention. I McClurg in-depth for of call second the over a to turn now for you Ron? would time quarter to more Thank your Ron and our like fiscal

Ron McClurg

first Product you, just of second of fiscal $XXX,XXX $XX,XXX In $XXX,XXX was last revenue in the the XXXX, was revenue quarter fiscal period year's XXXX months fiscal Thank XXXX quarter. to of Dave. revenue and in product months first six second in months fiscal the was compared of million Collaboration $XX,XXX revenue XXXX. collaboration the to first of six in the $X.XX compared fiscal six XXXX. compared Product for revenue in same of to $X,XXX

represents respective that development derived agreement revenue from were fee recognition and payments eligible Collaboration portion the of was for the a milestone periods. Zimmer and exclusivity the revenue it during

in with Our million were quarter of $X.X year. million prior second in $X.X fiscal fiscal expenses same of XXXX the total compared the operating period

XXXX, of fiscal quarter and million year the with or $X.X the was expenses compared selling, to expense XXXX of SG&A in $X.X R&D of compared $X.X the second administrative fiscal million million in in second the in expense prior XXXX. and million period. $X.X were quarter period same fiscal same the general

the compared of total which expenses with For same of the XXXX, million the first operating to $X.X XXXX $X.X for six to prior be attributed fiscal increase fiscal This of XXXX. R&D the $X.X the the million in of year. months months six can period period were million million in expense, fiscal was $X.X compared first same

the $X.X of expenses compared in six million first fiscal months XXXX to million in SG&A prior year the $X.X were period.

compared period for with the Net XXXX loss was same of first second prior the XXXX. loss for million the net million $X.X million $X.X the was of loss $X.X in a fiscal months six quarter of XXXX in fiscal to net million $X.X period. year Our of compared

capital company XX, company short-term XX, XXXX, of to million had million September had XXXX. XX, no of capital September XXXX. XX, compared $X.X to and XXXX, as cash million $X.X the cash, As compared $XX.X of working March working of XXXX. $X.X of debt equivalents, of company of The million March as of investments had as outstanding as March XX, The

back to Dave. With that, I turn will it

Dave Rosa

Operator, time, can Ron. questions. at think we Thanks, for this open I

Operator

ahead, Ben. floor question Go Thank Partners. is comes [Operator question. Instructions] from our Alliance you. for from And Haynor open Global The Ben now first

Ben Haynor

questions. Thanks gentlemen. taking for afternoon, Good the

additional is -- a Evo you you Zimmer. characterize to pretty quarter, talk First shipments first you I being? shipments for the current the expect moment? are congrats done at the Zimmer? part on for during situation situation the stocking would the the me, bit given good How about and they mean case little time Can sEEG the or do at

Dave Rosa

Yes.

thanks joining. By thanks, the So for way, Ben.

earlier, as so So said orders. we far X we fulfilled

aren't want everything seen sure make cadaver to sure surprises. I benchtop, always think we have have, animal, the times through cases we think that there and that to that enough initially. that have much probably even ideally, that been in you've I would clinical of we testing all a liked handful broader But us know want of this done preclinical, to you to make have any maybe launch both that

the So launch. with that adequate now, we Zimmer the feel inventory that we have it's at now least that for and initial has

six we say, what of as a last there's that over clearly, to the confident, the we've expand inventory. our and to But Now, demand very the be for need launch, is ability witnessed, going we'll suppliers the have. especially the months greater company increased meet

feel So, that in as be good, pretty there do expect the will to but so additional we expand launch. we far, we begin orders coming

Ben Haynor

gone? kind can of there's share you been how cases helpful. have And Any now. cases handful then feedback you of Okay. mentioned that a those That's

Dave Rosa

Yes.

the much the what's ROSA done one and the and which been handling need of robot. feedback amount so using in feedback had the this in a electrode. stereotactic using prior expected, But given case the that of we the then has one far, some the done with pretty that of of specifics using majority the we will frame, Zimmer cases robot, I So what done being we see X just had think to maybe particular,

One that the we're one sure just see placing meaning much a regarding but you're don't that, much forms. of, weren't hear it. necessarily CT an been the it, on comments comments, is tactile wave of the comments the positive other some clarity today. positive scan which with of feel taken resolution, had to happy there's we challenges artifact there's that The We've distortion, when devices is on image about the of when thing you

physician too get going brain. for difficult artifact on much the you really assess So it's in what's a to

this Comments on case in hasn't on the positive been that accessories, are So particular, with far, that, anchorable. device. comments

that to One likely anchorable of spot get probably electrode the to in is you're very cases that today firmly want the in if in. it get more the you your seeded not that challenges isn't

stability were tested good that to most the one the very in with again, respect And So anchorable. was devices the cases, XX. one cases the of of

early, So still -- and expected issues. we of and haven't had we any but out it's device really device. the what it's performance It's encouraging,

Ben Haynor

the basically then robots the sEEG broad force. mentioned And mean the is beyond you press milestones does release, that on upcoming just line go good for That's folks the saw sales expanded How that that? I I in sales that Zimmer training of color. the the in so go? product doesn’t that Okay. the

Dave Rosa

Yes.

the Zimmer at is existing they're but assistance cortical sale They devices that used Zimmer So robotics of the the the the also the groups participation in receiving two in But there's selling obviously, conjunction with really not devices, as force electrodes was group involved group aren't contact selling these cortical primary sales well. cortical robot with electrodes for robot. involved. remains and involved the from and the were

Ben Haynor

training or groups that's going place And of the take sort both that to for is

Dave Rosa

we to the expand really be will targeted force. the initial do will that Yes. for the initially on And sales Sure. full launch the sales we sites of focusing training product. full broader Obviously, it have as -- the were the launch

Ben Haynor

queue. mean, kind neurosurgeons you I some the then resurgent And have that between Got think – that -- jump was one the one what at then going or I do it. testing RF the And XX were know looking talk lastly with or there and comments more do for neurosurgeons testing something. you're to testing to for and I'll gotten you fairly back there? there. left there's feedback we're similar But Okay. you've the to the me, or more in maybe Can that? I do out? of

Dave Rosa

Sure.

I room to that surgeon proper into handed the is, put included So front the FDA. referring assistance, usability, probably testing, just it's manual was is to the a to able when to it ability submission system And which any use testing, to system construction of your terminology in said manual a with summative be is instruction has demonstrate your and them. is for he basically, I without with his to the with called the use is a what

XX ease The system, is And all the is the got, its that. one so the along feedback feedback we surgeons to advantages of gotten were use. that the able we've of that that way do

will expect we goes advantage feedback that that, So still time as that by. and we'll receive an be

are the creating we from of performance everything going testing to lesions just Yes, the size to that system. we're of do regarding additional the

like things work lot -- used but done. of is work of clinical many -- now system, written the the needed this, reports What's in for that's that being work. that the stages We're software is of of test left a final pay the it's the So really now done be preclinical to up. but -- validation at

So we need to key the this documentation we can submitted. XXX(k) just this and from that additional get into put it so get vendors our

Ben Haynor

all it. moment. have much Okay. for I questions the That's guys. Got the you thank for taking And very

Dave Rosa

Thanks, Ben.

Operator

That back the floor I you. Rosa Thank the appears question closing like any this would last time. at turn for be to now Dave remarks. to to

Dave Rosa

you the Yes. want the of a progress Have for time thank I that on the made. that call, listening joining rest the I Thanks, to has spent appreciate operator. day. everyone just us good to the company and

Operator

participation. your Thank We for does you today's you. This conclude conference. thank

and You may your a great disconnect time, this at day. lines have

NeuroOne Medical Technologies (NMTC) 11 May 232023 Q2 Earnings call transcript