Financial Data and Key Metrics Changes - Revenue for 2024 was $25.2 million, up 57% from $16 million in 2023 [35] - Fourth quarter revenue was $7 million, marking a 36% increase over the same quarter last year [9] - Full year gross margins improved to 85% from 83% in the previous year [10] - Net loss for 2024 narrowed by 37% to $11.9 million compared to $18.8 million in 2023 [38] - Cash, cash equivalents, and marketable securities totaled approximately $12.2 million at year-end 2024, up from $10.6 million in 2023 [39] Business Line Data and Key Metrics Changes - Sales in the VA channel grew 85% to $17.8 million in 2024 from $9.6 million in 2023 [14] - Truvaga net sales reached $2.8 million in 2024, a 174% increase over 2023 [16] - TAC-STIM sales were $1.2 million for the full year, down from $1.7 million in the previous year [20] - U.S. prescription gammaCore channel recorded revenue of $1.5 million, down 15% from 2023 [22] Market Data and Key Metrics Changes - Approximately 30 million covered lives in the U.S. for the prescription headache business [12] - Revenue from channels outside the U.S. was flat at $1.9 million for 2024 [24] - The VA Hospital System remains the largest customer, with 170 facilities purchasing gammaCore products [15] Company Strategy and Development Direction - The company aims to become a leader in the bioelectronic health and wellness sector through acquisitions like NeuroMetrix [25] - Plans to leverage existing sales channels for new products, including Quell for fibromyalgia and Sparrow for opioid withdrawal [28][32] - Focus on expanding Truvaga's market presence through e-commerce and partnerships [49] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about long-term prospects, citing growth in prescription products and wellness offerings [42] - The company is aware of macroeconomic disruptions affecting VA hospital customers but has not seen direct impacts on business cadence [46] - Future growth is expected from prescription gammaCore sales and direct-to-consumer initiatives [118] Other Important Information - The company plans to maintain discipline around operating expenses while investing in growth [55] - The acquisition of NeuroMetrix is expected to close in Q2 2025, enhancing the product portfolio [26] - The company is exploring international expansion for Truvaga products [125] Q&A Session Summary Question: Plans for selling the Quell product post-acquisition - The company plans to integrate Quell into existing sales channels and provide training to the sales team after the acquisition closes [62][64] Question: Update on Joerns and its growth - The company acknowledges slower traction with Joerns but is seeing early signs of growth with more prescribers [80] Question: Comparison of Kaiser channel to VA system - The Kaiser channel is more challenging to penetrate but once established, it is expected to be a sticky business [89] Question: Future growth opportunities - The company sees potential in prescription gammaCore sales, direct-to-consumer growth, and new product acquisitions [118] Question: Impact of VA personnel reductions - No material impact observed yet, but the situation is being monitored closely [126] Question: Confidence in achieving mid-80s gross margin - The company expects to maintain mid-80s gross margins in 2025, primarily from existing products [129] Question: Plans for Truvaga sales growth - The company is focusing on omnichannel distribution, including e-commerce and influencer marketing [146]

Financial Data and Key Metrics Changes - Revenue for 2024 was $25,200,000, up 57% from $16,000,000 in 2023, driven by increased sales of prescription gammaCore devices and non-prescription Truvega products [9][28] - Gross margins improved to 85% in 2024 from 83% in 2023, with total operating expenses rising to approximately $33,600,000 from $32,500,000 in the previous year [10][28] - The net loss for 2024 was $11,900,000, a significant improvement from $18,800,000 in 2023, with adjusted EBITDA net loss decreasing to $9,000,000 from $15,400,000 [30][31] Business Line Data and Key Metrics Changes - Sales in the VA channel grew 85% to $17,800,000 in 2024 from $9,600,000 in 2023, with fourth-quarter sales increasing 47% to $4,600,000 [13] - Truvega net sales reached $2,800,000 in 2024, a 174% increase over 2023, with fourth-quarter sales approximately $1,200,000, a 271% increase year-over-year [14] - TaxSim sales for human performance were $1,200,000 in 2024, down from $1,700,000 in 2023, with revenue from this product line being difficult to predict due to the DoD acquisition process [18] Market Data and Key Metrics Changes - The company has approximately 30,000,000 covered lives in the U.S. for its products, with the VA hospital system being the largest customer [11] - Revenue from channels outside the U.S. was flat at $1,900,000 for 2024, with most revenue generated from the UK through NHS-funded gammaCore sales [20] Company Strategy and Development Direction - The company aims to become a leader in the bioelectronic health and wellness sector, with plans to leverage the acquisition of NeuroMetrix to enhance its product offerings [21][23] - The strategy includes expanding the Truvega brand through e-commerce and exploring new channels, including influencers and affiliates [16][35] - The company is focused on maintaining gross margins in the mid-80s while navigating potential impacts from trade policies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term prospects, citing continued revenue growth in core business lines and the potential for new product introductions [32] - The company is aware of macroeconomic disruptions affecting VA hospital customers but has not seen direct impacts on business cadence [34] - Future growth is expected from prescription gammaCore sales, direct-to-consumer initiatives, and new product acquisitions [39] Other Important Information - The company ended 2024 with approximately $12,200,000 in cash, a significant increase from $10,600,000 in 2023, and plans to maintain discipline around operating expenses [31][38] - The acquisition of NeuroMetrix is expected to close in the second quarter of 2025, which will provide additional growth opportunities [22][39] Q&A Session Summary Question: Plans for selling the Quell product post-acquisition - Management plans to integrate Quell into existing sales channels and provide training to the sales team after the acquisition closes [45][46] Question: Update on the Jerns channel - Management acknowledged slower traction but noted an increase in prescribers and optimism for future growth [55][59] Question: Comparison of Kaiser channel to VA system - Management indicated that the Kaiser system is more challenging to penetrate but once established, it offers a sticky business opportunity [65][67] Question: Confidence in achieving mid-80s gross margin - Management expressed confidence in maintaining mid-80s gross margins in 2025, with potential impacts from new product mixes in the future [89] Question: Capital adequacy and funding needs - The company has sufficient cash to execute its plans and does not anticipate needing to raise additional capital in the near term [95]

Revenue Sources - The United States Department of Veterans Affairs accounted for 70.6% of the company's revenue for the year ended December 31, 2024[26]. - Sales under the UK MedTech Funding Mandate for cluster headache represented 6.6% of total revenue for the year ended December 31, 2024[29]. - A significant portion of sales will be made to the VA under the FSS contract, with 70.6% and 60.1% of total revenue derived from VA facilities in 2024 and 2023 respectively[155]. - In 2024, one specific VA facility accounted for approximately 11.3% of revenue from the government channel, highlighting customer concentration risk[155]. - The company expects a portion of 2025 sales to be processed through a distribution agreement with Lovell Government Services, which may increase credit risk associated with state and local government agencies[141]. Product Development and Innovation - The company launched Truvaga Plus, an app-enabled general wellness product, in April 2024, expanding its product offerings[23]. - The company is developing future iterations of nVNS technology, including smartphone-integrated therapies, to enhance product offerings[40]. - The company has received CE Certificate of Conformity for gammaCore therapy to treat primary headaches, which includes migraine and cluster headache, and has extended indications for reactive airway disease[67]. - The FDA has cleared gammaCore for multiple indications, including the acute treatment of pain associated with episodic cluster headache and migraine headache[42]. - The company is exploring potential acquisitions, including the acquisition of NURO, which may disrupt its business and financial condition[126]. Regulatory and Compliance - NICE is expected to review the Medical Technology Guidance for gammaCore in 2025, which could impact its use within the NHS[47]. - gammaCore is classified as a Class II medical device in the EU, requiring compliance with extensive regulatory obligations for clinical studies[70]. - The FDA classifies the company's medical devices as Class II, requiring pre-market review and clearance through the 510(k) process[58]. - The European Commission extended the transition period for Class IIa devices, including gammaCore products, from May 26, 2024, to December 31, 2028[71]. - The company has the necessary certificates for the Medical Devices Regulation (MDR) compliance[72]. Financial Position and Risks - The company incurred net losses of $11.9 million and $18.8 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $177.1 million as of December 31, 2024[116]. - The company faces risks related to its financial position, including the need for additional capital to support commercialization efforts and research activities[89]. - The company may need to seek additional funds in the future, with an aggregate offering price of up to $20 million under an At The Market Offering Agreement[91]. - The company’s operations have consumed substantial amounts of cash since inception, impacting its ability to fund planned activities[89]. - The company anticipates incurring substantial expenses related to the integration of NURO, which could adversely affect its financial condition[129]. Market and Competitive Landscape - The global general wellness market is estimated to exceed $1.8 trillion, with the US market valued at over $480 billion and growing at more than 5% annually[38]. - The company faces competition from larger firms that have established relationships with physicians and hospitals, which may hinder market penetration[198]. - The company has a limited history of commercializing general wellness products and faces significant competition from established companies with greater resources in the migraine treatment market[193][197]. - The company must continue to develop and retain an effective sales force to market its nVNS platform technology, as competition for qualified personnel is significant[192]. - The company may experience pricing pressure and competitive disadvantages in international markets due to established relationships of competitors[211]. Operational Challenges - The company has limited experience in direct-to-consumer marketing and may struggle to gain market acceptance for its nVNS platform technology[98]. - The company faces challenges in enrolling patients for clinical trials, which could delay the development timeline and regulatory approval processes[175]. - The company may encounter difficulties with manufacturing, quality control, and supply chain issues, potentially leading to revenue generation delays[189]. - The company relies on third-party service providers for finance and accounting functions, increasing its dependency and associated risks[187]. - Cybersecurity threats to the company's information technology infrastructure could significantly disrupt operations and adversely affect business results[161]. Marketing and Brand Awareness - Establishing and strengthening brand awareness for products like gammaCore and Truvaga is critical, requiring significant marketing efforts and expenses[214]. - The company must demonstrate the medical and economic benefits of gammaCore therapy compared to competitors to gain physician adoption, which is critical for sales growth[144]. - The commercialization strategy may involve increased billing, cash application, and credit risks due to the high cost of claims and complex reimbursement processes[137]. - The company has launched new cash pay initiatives, including gConcierge and gCDirect programs, and plans to expand its direct-to-consumer business channel in 2025[94]. - The company currently generates a small portion of revenue through the distribution of other manufacturers' products, which could negatively impact its relationship with the Veterans Administration[157]. Future Outlook - The company is facing significant risks and uncertainties in achieving profitability due to challenges in commercialization and clinical development activities[117]. - The company anticipates potential changes in government spending and healthcare funding that could adversely affect its business operations and financial condition[140]. - The company may need to expand its product offerings and distribution channels, potentially increasing research and development costs and decreasing operating margins[201]. - The company expects an increasing portion of its 2025 sales to come from the distribution agreement with Lovell, which may concentrate its customer base further[156]. - Seasonal variations in cluster and migraine headache attacks may lead to fluctuations in quarterly revenue, complicating sales forecasts[152].

Revenue - Net revenue for the fiscal quarter ended December 31, 2024, was $7.07 million[5] - Net revenue for the fiscal year ended December 31, 2024, was $25.2 million[5] Cash and Securities - As of December 31, 2024, cash, restricted cash, cash equivalents, and marketable securities totaled $12.2 million[5]

Core Insights - electroCore, Inc. reported record full year 2024 net sales of $25.2 million, a 57% increase from $16.0 million in 2023, driven by significant growth in Rx gammaCore and Truvaga sales [1][4][8] Financial Performance - The increase in net sales was primarily attributed to an 85% growth in Rx gammaCore sales within the VA/DoD channel and a 174% increase in Truvaga sales [4][5] - Gross profit for 2024 was $21.4 million, with a gross margin of 85%, compared to $13.2 million and 83% in 2023 [4][8] - Total operating expenses for 2024 were approximately $33.6 million, slightly up from $32.5 million in 2023, with R&D expenses decreasing significantly to $2.4 million from $5.3 million [6][7] - The net loss for 2024 was $11.9 million, a 37% reduction from $18.8 million in 2023, with net loss per share improving to $1.59 from $3.42 [8][9] - Adjusted EBITDA net loss for 2024 was $9.0 million, an improvement from $15.4 million in 2023, reflecting the positive impact of increased sales [10][24] Cash Position - As of December 31, 2024, the company had cash, cash equivalents, restricted cash, and marketable securities totaling approximately $12.2 million, up from $10.6 million in 2023 [12][21] Strategic Outlook - The CEO emphasized the company's strong market position and plans to expand sales channels and partnerships to drive future growth and profitability [3]

Core Insights - electroCore, Inc. will report its financial results for Q4 and the full year ended December 31, 2024, on March 12, 2025, after market close [1] - A webcast and conference call will be held at 5:30 PM EDT to discuss the financial results and address questions [2] Company Overview - electroCore, Inc. is a commercial-stage bioelectronic medicine and wellness company focused on improving health through its non-invasive vagus nerve stimulation (nVNS) technology platform [3] - The company aims to commercialize medical devices for managing specific medical conditions and consumer products that utilize nVNS to enhance general well-being and human performance in the U.S. and select international markets [3]

Group 1 - electroCore, Inc. will participate in the 37th Annual Roth Conference and the LSI USA '25, providing opportunities for investors to engage with management [1][6] - The Roth Conference is a significant event for small-cap companies, featuring presentations and one-on-one meetings with executive management from around 500 companies across various sectors [2] - LSI is focused on innovative medical technology aimed at improving lives, with a team of industry insiders and market analysts [3] Group 2 - electroCore, Inc. specializes in bioelectronic medicine, particularly through its non-invasive vagus nerve stimulation (nVNS) technology platform, targeting medical conditions and promoting general wellbeing [4] - The 37th Annual Roth Conference will take place from March 16-18, 2025, at the Laguna Cliffs Marriott Resort & Spa in Dana Point, California [6] - The LSI USA '25 conference is scheduled for March 17-21, 2025, at the Waldorf Astoria Monarch Beach Resort in Dana Point, California [6]

Company Overview - electroCore, Inc. is a commercial-stage bioelectronic medicine and wellness company focused on improving health through non-invasive vagus nerve stimulation technology [6] - Spark Biomedical, Inc. is a medical device developer specializing in wearable neurostimulation solutions for addiction treatment and other health issues [3][4] Partnership Announcement - electroCore will distribute the Sparrow Ascent™ device by Spark Biomedical within certain Department of Veterans Affairs (VA) facilities, aimed at treating opioid withdrawal symptoms [1][2] - This partnership is expected to enhance access to clinically validated, FDA-cleared, non-invasive treatment options for veterans [2] Product Details - Sparrow Ascent™ is a non-invasive transcutaneous auricular neuromodulation device designed to alleviate opioid withdrawal symptoms [1] - The device is available by prescription and represents a drug-free, wearable therapy option for patients [2] Market Strategy - electroCore is expanding its commercial sales organization and is actively seeking unique therapies to complement its existing product offerings [2] - The company believes that the Sparrow Ascent therapy will be well-received by customers familiar with neuromodulation devices like gammaCore™ [2]

Core Insights - electroCore, Inc. has launched its flagship wellness product, Truvaga Plus, on Amazon, aiming to reach a broader audience through this major e-commerce platform [1][2] - Truvaga Plus is a hand-held vagus nerve stimulator designed to provide benefits such as stress relief, improved sleep, enhanced peace of mind, and better focus [1] - The company focuses on commercializing non-invasive vagus nerve stimulation (nVNS) technology for both medical and consumer wellness applications [2] Company Overview - electroCore, Inc. is a commercial-stage bioelectronic medicine and wellness company dedicated to improving health and promoting general wellness [2] - The company is engaged in developing and marketing medical devices for managing specific medical conditions and consumer products that utilize nVNS technology [2] Market Strategy - The availability of Truvaga Plus on Amazon is expected to facilitate greater adoption of the product, leveraging the platform's extensive reach in the U.S. e-commerce market [2] - The company aims to enhance its business prospects through new e-commerce channels and expand its market presence both domestically and internationally [3]

Group 1 - electroCore, Inc. has announced that its flagship wellness product, Truvaga Plus, is now available for purchase on Amazon, expanding its market reach [1][3] - Truvaga Plus is a hand-held vagus nerve stimulator aimed at providing stress relief, improving sleep, enhancing peace of mind, and improving focus [2] - The CEO of electroCore, Dan Goldberger, expressed optimism about the product's adoption through Amazon, the largest e-commerce marketplace in the United States [3] Group 2 - electroCore is a commercial-stage bioelectronic medicine and wellness company focused on non-invasive vagus nerve stimulation (nVNS) technology to improve health and general wellness [3] - The company aims to commercialize medical devices for managing specific medical conditions and consumer products that promote general well-being and human performance in the U.S. and select international markets [3]