Myomo, Inc. (MYO): history, ownership, mission, how it works & makes money

A Brief History of Myomo, Inc.

Company Overview

Myomo, Inc. is a medical device company specializing in the development of powered orthoses for individuals with neuromuscular disorders. The company primarily focuses on its flagship product, the MyoPro, which is designed to improve the lives of patients with upper limb paralysis or weakness.

Financial Performance

As of September 30, 2024, Myomo reported total revenues of $9,207,586 for the three months ended September 30, 2024, representing an increase of 81% compared to $5,079,523 for the same period in 2023. For the nine months ended September 30, 2024, total revenues reached $20,482,742, up from $14,484,775 in 2023, marking a 41% increase.

Operating Expenses

Operating expenses for the three months ended September 30, 2024, were $7,903,108, a 43% increase from $5,513,217 in the same period of 2023. For the nine months ended September 30, 2024, operating expenses totaled $20,531,494, compared to $15,875,876 in 2023, reflecting a 29% increase.

Net Losses

Myomo has consistently incurred net losses. For the three months ended September 30, 2024, the company reported a net loss of $966,409, compared to a net loss of $2,029,016 in the same quarter of the previous year. For the nine months ended September 30, 2024, the net loss was $5,923,648, up from $5,687,461 in 2023.

Revenue Sources

The majority of Myomo's revenue is derived from direct sales to patients and billing insurance companies. For the three months ended September 30, 2024, 88% of total revenue was generated in the United States and 12% in Germany. For the nine months ended September 30, 2024, 85% of revenues were from the U.S. market.

Future Outlook

Looking forward, Myomo aims to enhance its product offerings and expand its market reach, particularly focusing on increasing its capacity to serve Medicare Part B beneficiaries. The company anticipates continued revenue growth while managing its operating expenses to move towards breakeven cash flow.

Major Developments

In January 2024, Myomo completed a registered direct equity offering, generating net proceeds of approximately $5.4 million to support its operational expansion. The company also received favorable reimbursement rates from CMS, effective April 1, 2024, which are expected to significantly impact revenue growth.

A Who Owns Myomo, Inc. (MYO)

Ownership Structure

As of September 30, 2024, Myomo, Inc. has approximately 30,244,182 shares of common stock outstanding.

Major Shareholders

Recent Equity Offerings

In January 2024, Myomo completed a registered direct equity offering selling 1,354,218 shares at approximately $3.80 per share, generating net proceeds of about $5.4 million.

In August 2023, the company sold 5,413,334 shares at $0.60 per share, resulting in net proceeds of about $3.9 million.

In January 2023, Myomo raised approximately $5.7 million by selling 13,169,074 shares at $0.325 per share.

Stock Performance

As of September 30, 2024, Myomo's stock price was approximately $3.80 per share.

Financial Overview

For the nine months ended September 30, 2024, Myomo reported total revenues of approximately $20.5 million, a significant increase from $14.5 million in the same period in 2023.

The company incurred a net loss of $5.9 million for the nine months ended September 30, 2024.

Capital Structure

Debt and Financing

As of September 30, 2024, Myomo had access to a line of credit of up to $4 million from Silicon Valley Bank, with approximately $0.9 million available.

Future Outlook

The company anticipates achieving operating cash flow breakeven on a quarterly basis by the fourth quarter of 2024, contingent upon revenue growth and effective management of costs.

Myomo, Inc. (MYO) Mission Statement

Mission Statement

Myomo, Inc. aims to empower individuals with neurological and orthopedic conditions by providing innovative and effective solutions for rehabilitation and mobility through their MyoPro devices. Their commitment lies in enhancing the quality of life for patients while ensuring accessibility and affordability through insurance reimbursements.

Financial Overview as of 2024

As of September 30, 2024, Myomo reported significant financial growth, reflecting its mission to expand accessibility to its products:

Revenue Breakdown

The company generates revenue primarily from direct sales to patients and insurance reimbursements:

Market and Operational Insights

As of September 30, 2024, Myomo's revenue distribution indicated a strong reliance on U.S. markets, with 88% of total revenue derived from the United States and 12% from Germany. The company has seen substantial growth in its patient base, particularly with Medicare Part B beneficiaries, which accounted for 55% of product revenues during this period.

Operating Expenses

Myomo's operating expenses reflect its commitment to growth and development:

Future Outlook

Myomo is actively investing in its growth strategy, focusing on expanding its clinical capacity to serve a growing number of Medicare Part B beneficiaries and enhancing its marketing efforts in both domestic and international markets. Their product innovations include developing a pediatric version of the MyoPro, referred to as MyoPal, to broaden their market reach.

How Myomo, Inc. (MYO) Works

Company Overview

Myomo, Inc. is a wearable medical robotics company that develops, designs, and produces myoelectric orthotics for individuals with neuromuscular disorders. The MyoPro® upper limb orthosis is classified as a Class II medical device by the U.S. Food and Drug Administration (FDA).

Revenue Model

Myomo primarily generates revenue through:

• Direct sales of devices to patients
• Billing insurance companies and Medicare directly
• Sales to Orthotics and Prosthetics (O&P) providers in the U.S., Europe, and Australia
• Sales to the Veterans Health Administration and rehabilitation hospitals

Financial Performance

For the three months ended September 30, 2024, Myomo reported:

For the nine months ended September 30, 2024, Myomo reported:

Cost of Revenue and Operating Expenses

The cost of revenue for the three months ended September 30, 2024, was $2,262,031, compared to $1,590,675 in Q3 2023, representing a 42% increase. For the nine months, the cost was $5,912,632 compared to $4,407,270 in the prior year, a 34% rise.

Operating expenses for Q3 2024 were as follows:

Market and Geographic Distribution

For the three months ended September 30, 2024, Myomo generated 88% of its total revenue from the United States and 12% from Germany. For the nine months, the distribution was 85% from the U.S., 14% from Germany, and 1% from other international locations.

Liquidity and Capital Resources

As of September 30, 2024, Myomo had:

• Cash and cash equivalents: $6,622,675
• Working capital: $7,712,772
• Accumulated deficit: $(102,854,457)
• Total stockholders’ equity: $9,292,334

The company reported cash used in operating activities of approximately $6.7 million during the nine months ended September 30, 2024.

Recent Developments

On January 19, 2024, Myomo completed a registered direct offering generating net proceeds of approximately $5.4 million. Additionally, on November 1, 2023, CMS issued a final rule that permits reimbursement for MyoPro sales on a lump sum basis effective January 1, 2024.

Conclusion

Myomo continues to focus on expanding its sales and marketing efforts, particularly in the Medicare Part B market, while managing its operational costs amid ongoing net losses.

How Myomo, Inc. (MYO) Makes Money

Revenue Sources

Myomo derives its revenue primarily from the sale of its MyoPro devices, which are prosthetic devices designed for patients with upper extremity paralysis. The company sells these devices directly to patients and also works with orthotics and prosthetics (O&P) providers. Myomo's revenue model includes billing insurance companies, Medicare, and Medicaid directly. Additionally, it has recently expanded its direct sales to Medicare Part B patients.

Financial Performance

For the three months ended September 30, 2024, Myomo reported total revenue of approximately $9,207,586, representing an increase of 81% from $5,079,523 in the same period of 2023. Product revenue accounted for $9,207,586, up from $5,029,523, showing an increase of 83%.

For the nine months ended September 30, 2024, total revenue was $20,482,742, a 41% increase compared to $14,484,775 for the same period in 2023. Product revenue for this period was $20,482,742, which also reflects a significant increase of 61% from $12,719,855.

Cost of Revenue and Gross Margin

For the three months ended September 30, 2024, Myomo's cost of revenue was $2,262,031, leading to a gross profit of $6,945,555 and a gross margin of 75.4%. In comparison, for the same period in 2023, the cost of revenue was $1,590,675, yielding a gross profit of $3,488,848 and a gross margin of 68.7%.

Operating Expenses

Operating expenses for the three months ended September 30, 2024, totaled $7,903,108, compared to $5,513,217 for the same period in 2023, marking an increase of 43%. The breakdown of operating expenses includes:

• Research and Development: $1,248,870 (2024), $717,256 (2023)
• Selling, Clinical, and Marketing: $3,401,182 (2024), $2,387,090 (2023)
• General and Administrative: $3,253,056 (2024), $2,408,871 (2023)

Net Loss

Myomo reported a net loss of $966,409 for the three months ended September 30, 2024, compared to a net loss of $2,029,016 in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $5,923,648, compared to $5,687,461 for the same period in 2023.

Market Segmentation

As of September 30, 2024, Myomo generated approximately 88% of its total revenue from the United States and 12% from Germany. Notably, revenues from Medicare Part B patients represented 55% and 44% of total revenue for the three and nine months ended September 30, 2024, respectively. Furthermore, approximately 24% and 27% of product revenues were derived from patients with Medicare Advantage insurance plans during the same periods.

Updated on 16 Nov 2024

Resources:

1. Myomo, Inc. (MYO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Myomo, Inc. (MYO)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Myomo, Inc. (MYO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.