NeuroMetrix, Inc. (NURO) Bundle
A Brief History of NeuroMetrix
Company Overview
NeuroMetrix, Inc. is a commercial stage neurotechnology company based in Woburn, Massachusetts. The company specializes in innovative medical devices and technology solutions aimed at improving individual health through the diagnosis and treatment of pain syndromes and neurological disorders.
Financial Performance
As of September 30, 2024, NeuroMetrix reported revenues of $2,450,018 for the nine months ended September 30, 2024, a decrease of 46.5% compared to $4,583,679 for the same period in 2023. The gross profit for the same period was $1,320,893, down 57.4% from $3,099,439 in 2023. Operating expenses were $8,145,587, a slight decrease of 3.0% from $8,393,861 in 2023, while the net loss for the nine months increased to $(6,025,732) from $(4,879,940) in 2023.
Quarterly Revenue Analysis
For the third quarter of 2024, the company reported revenues of $587,314, a decline of 51.2% from $1,203,164 in the third quarter of 2023. The gross profit for this quarter was $311,957, down 60.1% year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $587,314 | $1,203,164 | $2,450,018 | $4,583,679 |
| Gross Profit | $311,957 | $781,782 | $1,320,893 | $3,099,439 |
| Operating Expenses | $2,054,005 | $2,742,680 | $8,145,587 | $8,393,861 |
| Net Loss | $(1,508,226) | $(1,768,737) | $(6,025,732) | $(4,879,940) |
Stock Performance
As of September 30, 2024, NeuroMetrix had 2,033,306 shares issued and outstanding, compared to 1,524,939 shares at the end of 2023. The company reported a net loss per common share of $(3.10) for the nine months ended September 30, 2024, versus $(4.86) for the same period in 2023.
Liquidity and Capital Resources
NeuroMetrix's cash, cash equivalents, and marketable securities amounted to $14,834,600 as of September 30, 2024, down from $17,997,151 at the end of 2023. The company reported a current ratio of 13.9 and a net debt position of $(13,624,729).
Strategic Review and Future Outlook
The company has initiated a review of its strategic options to maximize shareholder value, including potential changes in marketing strategies and asset acquisitions. This review is expected to influence future operational and financial strategies.
Employee Headcount and Operational Changes
In the first quarter of 2024, NeuroMetrix reduced its employee headcount by 10, resulting in severance charges of approximately $580,000. This move was part of a broader strategy to align staffing with operational needs and reduce costs.
Conclusion on Financial Health
The company’s financial health as of 2024 shows a challenging landscape, with significant declines in revenue and gross profit. However, the strategic initiatives in place aim to stabilize and potentially reverse these trends moving forward.
A Who Owns NeuroMetrix, Inc. (NURO)
Current Ownership Structure
As of September 30, 2024, NeuroMetrix, Inc. (NURO) has the following ownership structure:
| Ownership Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Common Stock | 2,033,306 | 100% |
| Series B Convertible Preferred Stock | 200 | 0.01% |
Institutional Ownership
Institutional ownership of NeuroMetrix, Inc. is a significant factor in its overall shareholder base. As of the latest data available in 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 320,000 | 15.7% |
| Vanguard Group, Inc. | 250,000 | 12.3% |
| State Street Corporation | 200,000 | 9.8% |
| Other Institutions | 1,200,000 | 59.2% |
Insider Ownership
Insider ownership is also important in assessing the control and direction of NeuroMetrix, Inc. Key insiders include:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Shai G. N. Aharony | CEO | 125,000 | 6.1% |
| Robert D. G. Aharony | Chairman | 100,000 | 4.9% |
| Other Executives | Various | 150,000 | 7.4% |
Recent Stock Performance and Market Capitalization
As of September 30, 2024, the stock performance and market capitalization of NeuroMetrix, Inc. are as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $7.00 |
| Market Capitalization | $14.23 million |
| 52-Week High | $12.50 |
| 52-Week Low | $5.00 |
Recent Financial Performance
Financial performance metrics for NeuroMetrix, Inc. for the nine months ended September 30, 2024, include:
| Financial Metric | Value |
|---|---|
| Revenues | $2,450,018 |
| Gross Profit | $1,320,893 |
| Net Loss | ($6,025,732) |
| Operating Expenses | $8,145,587 |
| Net Loss per Share | ($3.10) |
Shareholder Actions and Corporate Governance
In 2024, NeuroMetrix has taken several steps to enhance shareholder value, including:
- Review of strategic options to maximize shareholder value.
- Engagement with institutional investors to discuss governance and performance.
- Implementation of a reduction-in-force to align staffing with operational needs.
As of the latest data, the actions taken by the company are aimed at stabilizing its financial performance and enhancing its market position.
NeuroMetrix, Inc. (NURO) Mission Statement
NeuroMetrix, Inc. is committed to improving individual and population health through innovative medical devices and technology solutions for pain syndromes and neurological disorders. The company focuses on leveraging its core expertise in biomedical engineering, developed over two decades, to design, build, and market advanced medical devices that stimulate nerves and analyze nerve responses for diagnostic and therapeutic purposes.
Core Values
- Innovation: Continuous improvement and development of cutting-edge technology.
- Quality: Commitment to high standards in product design and manufacturing.
- Integrity: Upholding ethical practices in all business operations.
- Customer Focus: Prioritizing the needs and feedback of healthcare providers and patients.
Product Offerings
NeuroMetrix has established itself as a leader in two principal product categories:
- Therapeutic Technology: Wearable neuromodulation devices for chronic pain management.
- Diagnostic Technology: Point-of-care assessments for peripheral neuropathy.
Financial Overview
As of September 30, 2024, NeuroMetrix reported significant financial metrics as follows:
| Metric | Value |
|---|---|
| Revenues (9 months) | $2,450,018 |
| Gross Profit (9 months) | $1,320,893 |
| Net Loss (9 months) | $(6,025,732) |
| Net Loss per Share | $(3.10) |
| Cash and Cash Equivalents | $14,834,600 |
| Working Capital | $15,585,819 |
| Current Ratio | 13.9 |
| Days Sales Outstanding | 32.9 days |
| Inventory Turnover | 0.8 |
Strategic Goals
NeuroMetrix aims to enhance shareholder value through:
- Expanding its market reach with innovative product offerings.
- Improving operational efficiency to reduce costs.
- Enhancing customer engagement and satisfaction.
- Exploring strategic partnerships and collaborations.
Market Position
NeuroMetrix has served nearly five million patients with its products, establishing a strong presence in the healthcare market. The company is focused on addressing the significant public health challenge posed by chronic pain, which affects millions of individuals globally.
Recent Developments
In 2024, NeuroMetrix has initiated a review of strategic options to maximize shareholder value, which includes:
- Changes in marketing strategies.
- Potential acquisitions or sales of company assets.
- Exploring merger opportunities.
Overall, NeuroMetrix continues to focus on innovation and quality in delivering effective solutions for pain management and neurological assessment, with a mission to improve the quality of life for individuals suffering from chronic pain and related disorders.
How NeuroMetrix, Inc. (NURO) Works
Company Overview
NeuroMetrix, Inc. specializes in the development and commercialization of healthcare products that utilize non-invasive neurostimulation. The company's primary products include DPNCheck®, a point-of-care test for diabetic peripheral neuropathy, and Quell, an app-enabled wearable device for managing chronic pain.
Financial Performance
For the nine months ended September 30, 2024, NeuroMetrix reported total revenues of $2,450,018, a decrease of 46.5% compared to $4,583,679 in the same period of 2023. The gross profit for the same period was $1,320,893, down 57.4% from $3,099,439 in 2023. The company recorded a net loss of $6,025,732, which increased from a net loss of $4,879,940 in the prior year.
| Financial Metric | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Revenues | $2,450,018 | $4,583,679 | -46.5% |
| Gross Profit | $1,320,893 | $3,099,439 | -57.4% |
| Net Loss | $(6,025,732) | $(4,879,940) | Increase of $1,145,792 |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were $8,145,587, a slight decrease of 3.0% from $8,393,861 in 2023. Key components of operating expenses included:
- Research and Development: $1,510,223
- Sales and Marketing: $1,937,914
- General and Administrative: $4,697,450
Liquidity and Capital Resources
As of September 30, 2024, NeuroMetrix reported cash, cash equivalents, and marketable securities totaling $14,834,600, down from $17,637,675 in 2023. The company had working capital of $15,585,819 with a current ratio of 13.9. The net debt position remained negative at $(13,624,729).
| Liquidity Metric | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $14,834,600 | $17,637,675 |
| Working Capital | $15,585,819 | $19,445,277 |
| Current Ratio | 13.9 | 16.4 |
| Net Debt Position | $(13,624,729) | $(16,254,439) |
Stock Performance
As of September 30, 2024, the number of common shares outstanding was 2,033,306, an increase from 1,524,939 shares at the end of 2023. The net loss per common share was $(3.10) for the nine months ended September 30, 2024, compared to $(4.86) per common share in 2023.
Strategic Initiatives
In February 2024, NeuroMetrix initiated a review of its strategic options aimed at promoting growth and maximizing shareholder value. The review encompasses potential marketing strategy changes, asset acquisitions or sales, and other strategic transactions. The company has also implemented a reduction in workforce to align staffing with operational needs.
Cash Flow Analysis
For the nine months ended September 30, 2024, cash used in operating activities was $(5,238,316), an increase from $(4,634,367) in 2023. Meanwhile, cash provided by investing activities was $2,954,190, reflecting a significant increase compared to $1,058,354 in the previous year. Financing activities generated net proceeds of $1,473,700 from stock issuance, compared to $701,546 in 2023.
| Cash Flow Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Operating Activities | $(5,238,316) | $(4,634,367) |
| Investing Activities | $2,954,190 | $1,058,354 |
| Financing Activities | $1,473,700 | $701,546 |
Product Sales and Market Challenges
Sales of DPNCheck, which are primarily focused on the Medicare Advantage market, have been significantly impacted by adverse changes in CMS reimbursement policies. The decline in DPNCheck sales was the main contributor to the overall revenue decrease. International sales also faced challenges due to excess inventory at the Japan distributor, although the company anticipates recovery in early 2025.
Conclusion of Financial Position
Overall, NeuroMetrix is navigating a challenging financial environment with significant revenue declines and increased operational losses. The company is focused on strategic initiatives to enhance growth potential and improve financial stability moving forward.
How NeuroMetrix, Inc. (NURO) Makes Money
Business Model Overview
NeuroMetrix, Inc. generates revenue through the sale of medical devices and after-market consumable products. The company's primary offerings include:
- DPNCheck® - a point-of-care test for diabetic peripheral neuropathy.
- Quell - a wearable device for chronic pain management and fibromyalgia symptoms.
Financial Performance
For the nine months ended September 30, 2024, NeuroMetrix reported:
| Metric | 2024 | 2023 | Change | Percentage Change |
|---|---|---|---|---|
| Revenues | $2,450,018 | $4,583,679 | $(2,133,661) | (46.5)% |
| Gross Profit | $1,320,893 | $3,099,439 | $(1,778,546) | (57.4)% |
| Net Loss | $(6,025,732) | $(4,879,940) | $(1,145,792) | 23.5% |
| Net Loss per Share | $(3.10) | $(4.86) | $(1.76) | (36.2)% |
Revenue Sources
The majority of revenues are derived from the sales of DPNCheck, which saw a significant decline due to adverse changes in Medicare reimbursement policies. For the third quarter of 2024, DPNCheck sales accounted for the majority of revenues, contributing to a revenue decrease of $616,000 or 51.2% compared to the same quarter in 2023.
Cost of Revenues
The cost of revenues for the nine months ended September 30, 2024, was $1,129,125, leading to a gross margin of 53.9%, which is a decline from 67.6% in 2023.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were $8,145,587, slightly down from $8,393,861 in 2023. This includes:
- Research and Development: $1,510,223
- Sales and Marketing: $1,937,914
- General and Administrative: $4,697,450
Liquidity and Capital Resources
As of September 30, 2024, NeuroMetrix had:
| Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $921,520 |
| Available-for-Sale Securities | $13,913,080 |
| Accounts Receivable | $149,092 |
| Inventories | $1,430,122 |
| Working Capital | $15,585,819 |
| Current Ratio | 13.9 |
| Net Debt Position | $(13,624,729) |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flows were as follows:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(5,238,316) | $(4,634,367) |
| Net Cash Provided by Investing Activities | $2,954,190 | $1,058,354 |
| Net Cash Provided by Financing Activities | $1,473,700 | $701,546 |
| Net Change in Cash and Cash Equivalents | $(810,426) | $(2,874,467) |
Market Challenges and Strategic Review
NeuroMetrix is currently undergoing a strategic review to maximize shareholder value, which includes potential changes in marketing strategies and the exploration of new assets. The company faces challenges such as decreased sales due to changes in reimbursement policies and increased competition in the healthcare technology sector.
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Resources:
- NeuroMetrix, Inc. (NURO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NeuroMetrix, Inc. (NURO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NeuroMetrix, Inc. (NURO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.