Neuronetics, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance in revenue and profitability compared to the previous fiscal period. For the third quarter of 2024, the company generated revenues of $18.5 million, a 4% increase from $17.9 million in Q3 2023. For the nine months ended September 30, 2024, total revenues reached $52.4 million, up 3% from $51.0 million in the same period last year.

The gross profit for Q3 2024 was $14.0 million, reflecting a significant increase of 19% from $11.8 million in Q3 2023, resulting in a gross margin improvement from 65.8% to 75.6%. However, the company reported a net loss of $13.3 million for Q3 2024, which is a 42% increase in loss compared to $9.4 million in Q3 2023. For the nine-month period, the net loss was $31.0 million, up from $24.8 million in the prior year.

Neuronetics' total current assets decreased to $53.5 million as of September 30, 2024, down from $93.8 million at the end of 2023. Total assets also fell to $74.1 million from $115.8 million. Conversely, total liabilities decreased to $64.7 million from $81.6 million, leading to a significant drop in stockholders' equity from $34.2 million to $9.4 million.

The company’s operational expenses reflected strategic adjustments, including a 17% increase in general and administrative expenses due to higher legal costs associated with the proposed acquisition of Greenbrook TMS Inc. Additionally, Neuronetics implemented a strategic reorganization on November 8, 2024, resulting in a workforce reduction of approximately 10%, expected to yield annualized cash savings of over $3.5 million.

In terms of financing, Neuronetics entered into a new credit facility, the Perceptive Credit Facility, allowing for borrowing up to $90 million. The company borrowed $50 million under the first tranche on July 25, 2024. This move followed the prepayment of all obligations under the SLR Facility, which totaled $64.6 million.

As of September 30, 2024, Neuronetics had cash and cash equivalents of $20.9 million, a decrease from $59.7 million at the end of 2023. The accumulated deficit increased to $407.1 million, compared to $376.1 million at the end of the previous fiscal year. The company believes its current cash and anticipated revenues are sufficient to fund operations for at least the next 12 months.