NeuroMetrix, Inc. reported significant declines in revenue and profitability for the quarter and nine months ended September 30, 2024, compared to the same periods in 2023. Revenues for the third quarter of 2024 were $587,314, a decrease of 51.2% from $1,203,164 in the prior year. For the nine months, revenues fell to $2,450,018, down 46.5% from $4,583,679. Correspondingly, gross profit for the third quarter was $311,957, a 60.1% decline from $781,782, while gross profit for the nine months decreased by 57.4% to $1,320,893.
The company reported a net loss of $(1,508,226) for the third quarter, an improvement from $(1,768,737) in the same quarter of 2023. However, the net loss for the nine months increased to $(6,025,732) from $(4,879,940) year-over-year. The net loss per common share for the third quarter was $(0.75), compared to $(1.66) in the prior year, while for the nine months, it was $(3.10) versus $(4.86).
NeuroMetrix's total assets decreased to $17,189,020 as of September 30, 2024, from $21,424,441 at the end of 2023. Current assets also fell to $16,795,690 from $20,854,442. Total stockholders’ equity declined to $15,979,149 from $20,091,317, reflecting a decrease in accumulated other comprehensive income and an increase in accumulated deficit.
The company has undertaken strategic initiatives, including a review of options to maximize shareholder value, which may involve marketing changes, asset acquisitions, and potential mergers. In February 2024, NeuroMetrix announced a strategic review, and in July 2024, it discontinued production and marketing of its ADVANCE neurodiagnostic technology.
Operationally, the company incurred severance costs of approximately $580,000 due to a reduction of 10 full-time employees in early 2024. The cash position as of September 30, 2024, was $921,520, down from $1,460,553 a year earlier. The company held cash, cash equivalents, and marketable securities totaling $14.8 million, a decrease from $17.6 million in the prior year.
NeuroMetrix's principal products, Quell and DPNCheck, have faced challenges, particularly DPNCheck, which has seen declining sales due to changes in reimbursement policies. The company plans to reactivate promotion of Quell for chronic pain in late 2024 or early 2025, while also pursuing regulatory approvals for new indications.
About NeuroMetrix, Inc.
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