ROCKAWAY, N.J., March 05, 2024 (GLOBE NEWSWIRE) -- electroCore, Inc. (NASDAQ:ECOR), a commercial-stage bioelectronic medicine and wellness company, today announced that it will report financial results for the fourth quarter and year ended December 31, 2023, after the close of the market on Wednesday, March 13, 2024. Management will host a conference call and webcast at 4:30 PM EST to discuss the financial results and answer questions. Wednesday, March 13, 4:30 PM ESTDomestic: 877-407-8835International: loc ...

ROCKAWAY, N.J., Feb. 06, 2024 (GLOBE NEWSWIRE) -- electroCore, Inc. (NASDAQ:ECOR), a commercial-stage bioelectronic medicine and wellness company, today announced the United States Patent and Trademark Office has issued a patent related to systems and methods for treating disorders associated with viruses in the Coronaviridae family (COVID). U.S. Patent No. 11,894,148 entitled "Systems and Methods for Treating Patients With Diseases Associated With Viruses" generally relates to methods for treating disorder ...

electroCore, Inc. (NASDAQ:ECOR) Q3 2023 Earnings Conference Call November 8, 2023 4:30 PM ET Company Participants Dan Goldberger – Chief Executive Officer Brian Posner – Chief Financial Officer Conference Call Participants Destiny Hance – Ladenburg Thalmann Ramakanth Swayampakula – H.C. Wainwright Nick Sherwood – Maxim Group, LLC Walter Schenker – MAZ Partners Operator Greetings, and welcome to the electroCore Third Quarter 2023 Earnings Conference Call. At this time, all participants on a listen only mode. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ TO ______________ Commission File Number 001-38538 electroCore, Inc. (Exact name of Registrant as specified in its charter) Delaware 20-345497 ...

electroCore, Inc. (NASDAQ:ECOR) Q2 2023 Earnings Conference Call August 9, 2023 4:30 PM ET Company Participants Daniel Goldberger - CEO & Director Brian Posner - CFO & Corporate Secretary Conference Call Participants John Vandermosten - Zacks Swayampakula Ramakanth - H.C. Wainwright & Co. Nick Sherwood - Maxim Tyler Bussian - Brookline Capital Markets Operator Greetings, and welcome to the electroCore Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to introduce y ...

[FORM 10-Q General Information](index=1&type=section&id=FORM%2010-Q%20General%20Information) This report is a Quarterly Report (Form 10-Q) for electroCore, Inc., covering the period ended June 30, 2023 - This is a Quarterly Report (Form 10-Q) for the period ended June 30, 2023, filed by electroCore, Inc., a Delaware corporation[1](index=1&type=chunk)[2](index=2&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) Registrant Status | Status | Indication | | :------------------------ | :--------- | | Large accelerated filer | ☐ | | Accelerated filer | ☐ | | Non-accelerated filer | ☒ | | Smaller reporting company | ☒ | | Emerging growth company | ☒ | - As of August 3, 2023, the registrant had **5,985,043 shares of common stock outstanding**[6](index=6&type=chunk) [Table of Contents](index=2&type=section&id=Table%20of%20Contents) This section provides an organized listing of all major sections and subsections within the quarterly report [References to electroCore](index=3&type=section&id=REFERENCES%20TO%20ELECTROCORE) This section clarifies the terminology used throughout the report to refer to electroCore, Inc. and its subsidiaries - References to 'the Company,' 'electroCore,' 'we,' 'us' and 'our' in this report refer to electroCore, Inc. and its subsidiaries[10](index=10&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section advises that the report contains forward-looking statements subject to risks that may cause actual results to differ materially - This report contains forward-looking statements subject to risks and uncertainties, which could cause actual results to differ materially from those discussed[12](index=12&type=chunk) - The Company undertakes no obligation to update or revise any forward-looking statements, except as required by law[12](index=12&type=chunk) [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the Company's unaudited financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents electroCore's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, equity, and cash flows, with detailed notes for the periods ended June 30, 2023 and 2022 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the Company's assets, liabilities, and equity as of June 30, 2023, and December 31, 2022 Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2023 | December 31, 2022 | | :---------------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and cash equivalents | $8,442 | $17,712 | | Total current assets | $11,404 | $21,173 | | Total assets | $14,222 | $24,756 | | **Liabilities and Equity** | | | | Total current liabilities | $6,575 | $7,045 | | Total liabilities | $7,158 | $7,670 | | Total equity | $7,064 | $17,086 | | Total liabilities and equity | $14,222 | $24,756 | - Total assets decreased by approximately **$10.5 million** from December 31, 2022, to June 30, 2023, primarily driven by a significant reduction in cash and cash equivalents[16](index=16&type=chunk) - Total equity decreased by approximately **$10 million**, reflecting the net loss incurred during the period[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the Company's revenues, expenses, and net loss for the three and six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Operations (in thousands, except per share data) | (in thousands) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $3,551 | $2,157 | $6,331 | $4,056 | | Gross profit | $2,966 | $1,799 | $5,288 | $3,338 | | Total operating expenses | $7,954 | $7,619 | $16,473 | $14,739 | | Loss from operations | $(4,988) | $(5,820) | $(11,185) | $(11,401) | | Net loss | $(4,903) | $(5,337) | $(10,770) | $(10,919) | | Net loss per share - Basic and Diluted | $(1.03) | $(1.20) | $(2.27) | $(2.25) | - Net sales increased significantly by **65%** for the three months ended June 30, 2023, and **56%** for the six months ended June 30, 2023, compared to the respective prior year periods[19](index=19&type=chunk) - Despite increased sales, the Company continued to incur net losses, though the net loss decreased slightly for both the three and six-month periods year-over-year[19](index=19&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the Company's net loss and other comprehensive income/loss components for the three and six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Comprehensive Loss (in thousands) | (in thousands) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(4,903) | $(5,337) | $(10,770) | $(10,919) | | Foreign currency translation adjustment | $(63) | $(58) | $(7) | $(85) | | Comprehensive loss | $(4,966) | $(5,395) | $(10,777) | $(11,004) | - The comprehensive loss for the three months ended June 30, 2023, was **$4.966 million**, a slight improvement from **$5.395 million** in the prior year, primarily due to a reduced net loss[22](index=22&type=chunk) [Condensed Consolidated Statements of Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section outlines changes in the Company's equity, including common stock, additional paid-in capital, and accumulated deficit, for the period ended June 30, 2023 Condensed Consolidated Statements of Equity (in thousands) | (in thousands) | Balances as of January 1, 2023 | Balances as of June 30, 2023 | | :--------------- | :----------------------------- | :--------------------------- | | Common Stock | $5 | $5 | | Additional paid-in capital | $163,520 | $164,275 | | Accumulated deficit | $(146,370) | $(157,140) | | Total equity | $17,086 | $7,064 | - Total equity decreased from **$17.086 million** at January 1, 2023, to **$7.064 million** at June 30, 2023, primarily due to the net loss incurred during the period[24](index=24&type=chunk) - Share-based compensation contributed **$755,000** to additional paid-in capital for the six months ended June 30, 2023[24](index=24&type=chunk)[27](index=27&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the Company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2023 and 2022 Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(9,172) | $(8,024) | | Net cash used in investing activities | $(91) | $0 | | Net cash provided by financing activities | $0 | $0 | | Net decrease in cash and cash equivalents and restricted cash | $(9,270) | $(8,109) | | Cash and cash equivalents and restricted cash – end of period | $8,692 | $26,580 | - Net cash used in operating activities increased to **$9.172 million** for the six months ended June 30, 2023, from **$8.024 million** in the prior year[30](index=30&type=chunk) - The Company's cash and cash equivalents and restricted cash significantly decreased from **$26.580 million** at June 30, 2022, to **$8.692 million** at June 30, 2023[30](index=30&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies, risks, and specific financial accounts [Note 1. The Company](index=10&type=section&id=Note%201.%20The%20Company) This note describes electroCore, Inc. as a commercial-stage bioelectronic medicine and wellness company focused on nVNS technology - electroCore, Inc. is a commercial-stage bioelectronic medicine and wellness company focused on non-invasive vagus nerve stimulation (nVNS) technology[32](index=32&type=chunk) - The Company commercializes medical devices for specific conditions and consumer products for general wellbeing in the U.S. and select overseas markets, with operations paused in Germany[32](index=32&type=chunk)[33](index=33&type=chunk) [Note 2. Summary of Significant Accounting Policies](index=10&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and estimates used in preparing the financial statements, including the impact of a reverse stock split - The financial statements are prepared in conformity with U.S. GAAP and reflect a **1-for-15 reverse stock split** effective February 15, 2023[34](index=34&type=chunk)[35](index=35&type=chunk) - Significant estimates include allowances for doubtful accounts, inventory valuation, stock compensation, and contingencies[37](index=37&type=chunk) Cash, Cash Equivalents and Restricted Cash (in thousands) | (in thousands) | June 30, 2023 | June 30, 2022 | | :--------------- | :------------ | :------------ | | Cash and cash equivalents | $8,442 | $26,330 | | Restricted cash | $250 | $250 | | Total cash, cash equivalents and restricted cash | $8,692 | $26,580 | [Note 3. Going Concern, Significant Risks and Uncertainties](index=12&type=section&id=Note%203.%20Going%20Concern,%20Significant%20Risks%20and%20Uncertainties) This note addresses the Company's going concern status, significant operational risks, and revenue concentration, particularly with the U.S. Department of Veteran Affairs - The Company has incurred significant net losses and cash used in operations since inception, raising substantial doubt about its ability to continue as a going concern within one year[42](index=42&type=chunk)[45](index=45&type=chunk) - Sales to the U.S. Department of Veteran Affairs comprised **59.8% of revenue** for the six months ended June 30, 2023, and the Federal Supply Schedule (FSS) contract, expiring January 15, 2024, is critical for future sales[43](index=43&type=chunk)[46](index=46&type=chunk) Revenue Concentration by Channel (Percentage of Net Sales) | Revenue channel | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Rx gammaCore - VA/DoD | 58.6% | 55.1% | 59.8% | 60.4% | | National Health Service | 9.8% | 16.4% | 9.9% | 15.3% | [Note 4. Revenue](index=13&type=section&id=Note%204.%20Revenue) This note provides a detailed breakdown of the Company's net sales by product channel and geographical region for the reported periods Product Net Sales (in thousands) | Channel | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :------------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Rx gammaCore - Department of Veteran Affairs and Department of Defense | $2,081 | $1,190 | $3,786 | $2,430 | | Rx gammaCore - U.S. Commercial | $441 | $465 | $871 | $741 | | Outside the United States | $424 | $467 | $834 | $772 | | Truvaga | $290 | $0 | $437 | $0 | | TAC-STIM | $311 | $0 | $399 | $0 | | Other | $4 | $35 | $4 | $113 | | **Total Net Sales** | **$3,551** | **$2,157** | **$6,331** | **$4,056** | Geographical Net Sales (in thousands) | (in thousands) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | United States | $3,127 | $1,690 | $5,497 | $3,284 | | United Kingdom | $384 | $355 | $705 | $621 | | Other | $22 | $64 | $65 | $103 | | License revenue Japan | $18 | $48 | $64 | $48 | | **Total Net Sales** | **$3,551** | **$2,157** | **$6,331** | **$4,056** | - New product offerings, Truvaga and TAC-STIM, contributed significantly to net sales in 2023, with no sales in the prior year periods[49](index=49&type=chunk) [Note 5. Inventories](index=14&type=section&id=Note%205.%20Inventories) This note details the composition of the Company's inventories, including raw materials, work in process, and finished goods, and changes in the obsolete inventory reserve Inventories (in thousands) | (in thousands) | June 30, 2023 | December 31, 2022 | | :--------------- | :------------ | :---------------- | | Raw materials | $1,334 | $944 | | Work in process | $2,194 | $2,879 | | Finished goods | $191 | $353 | | Total inventories, net | $3,719 | $4,176 | | Less: noncurrent inventories | $1,351 | $2,194 | | Current inventories | $2,368 | $1,982 | - The reserve for obsolete inventory decreased from **$0.7 million** at December 31, 2022, to **$0.3 million** at June 30, 2023[52](index=52&type=chunk) [Note 6. Leases](index=14&type=section&id=Note%206.%20Leases) This note provides information on the Company's operating lease expenses, right-of-use assets, and lease liabilities, including weighted average terms and discount rates - Lease expense was **$38,000** for the three months and **$76,000** for the six months ended June 30, 2023[53](index=53&type=chunk) Operating Lease Liabilities (in thousands) | (in thousands) | June 30, 2023 | December 31, 2022 | | :--------------- | :------------ | :---------------- | | Operating lease right of use assets | $534 | $565 | | Total operating lease liabilities | $664 | $699 | | Weighted average remaining lease term (in years) | 5.6 | 6.1 | | Weighted average discount rate | 13.8% | 13.8% | [Note 7. Accrued Expenses and Other Current Liabilities](index=15&type=section&id=Note%207.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) This note details the components of accrued expenses and other current liabilities, including professional fees, bonuses, litigation fees, and severance charges Accrued Expenses and Other Current Liabilities (in thousands) | (in thousands) | June 30, 2023 | December 31, 2022 | | :--------------- | :------------ | :---------------- | | Accrued professional fees | $483 | $524 | | Accrued bonuses and incentive compensation | $1,436 | $2,042 | | Accrued litigation legal fees expense | $1,035 | $1,001 | | Accrued severance and other related charges | $207 | $0 | | **Total** | **$4,210** | **$4,842** | - Total accrued expenses and other current liabilities decreased from **$4.842 million** at December 31, 2022, to **$4.210 million** at June 30, 2023[55](index=55&type=chunk) - All borrowings under the 2022 Commercial Insurance Premium Finance and Security Agreement were repaid as of June 30, 2023[56](index=56&type=chunk) [Note 8. Shareholders' Equity](index=15&type=section&id=Note%208.%20Shareholders'%20Equity) This note describes changes in shareholders' equity, including a reverse stock split and the redemption of Series A Preferred Stock - A **1-for-15 reverse stock split** became effective on February 15, 2023, to meet Nasdaq listing requirements[58](index=58&type=chunk) - All Series A Preferred Stock was redeemed and eliminated, with the designation removed from the Company's Certificate of Incorporation on March 6, 2023[62](index=62&type=chunk)[63](index=63&type=chunk) [Note 9. Net Loss Per Share](index=16&type=section&id=Note%209.%20Net%20Loss%20Per%20Share) This note presents the basic and diluted net loss per share and explains the exclusion of anti-dilutive securities from the diluted EPS calculation - Basic and diluted net loss per share for the six months ended June 30, 2023, was **$(2.27)**, compared to **$(2.25)** for the same period in 2022[19](index=19&type=chunk) - Potentially dilutive securities (stock options, restricted stock, warrants) were excluded from diluted EPS calculation due to their anti-dilutive effect[64](index=64&type=chunk) Potential Common Stock Equivalents Excluded from Diluted EPS (in thousands) | (in thousands) | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--------------- | :----------------------------- | :----------------------------- | | Outstanding stock options | 335 | 418 | | Restricted stock and unit awards | 143 | 63 | | Stock purchase warrants | 1 | 11 | | **Total** | **479** | **492** | [Note 10. Income Taxes](index=16&type=section&id=Note%2010.%20Income%20Taxes) This note reports on the Company's income tax-related activities, including a payment received from the sale of state net operating losses - The Company received a net cash payment of **$211,000** on January 10, 2023, from the sale of its New Jersey state net operating losses[66](index=66&type=chunk) [Note 11. Stock Based Compensation](index=16&type=section&id=Note%2011.%20Stock%20Based%20Compensation) This note details stock option activity, stock compensation expense, and unrecognized compensation costs related to unvested awards Stock Option Activity (in thousands) | (in thousands) | Number of Options | Weighted Average Exercise Price | | :--------------- | :---------------- | :------------------------------ | | Outstanding, January 1, 2023 | 440 | $55.65 | | Cancelled | (108) | | | Outstanding, June 30, 2023 | 335 | $58.79 | | Exercisable, June 30, 2023 | 236 | $76.92 | Stock Compensation Expense (in thousands) | (in thousands) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total expense | $183 | $752 | $755 | $1,529 | - Total unrecognized compensation cost related to unvested awards was **$1.3 million** as of June 30, 2023, to be recognized over the next **1.2 years**[69](index=69&type=chunk) [Note 12. Contingencies](index=18&type=section&id=Note%2012.%20Contingencies) This note discusses the Company's involvement in stockholder class action lawsuits and derivative actions, and its defense strategy - The Company is involved in several stockholder class action lawsuits and derivative actions related to its IPO and subsequent disclosures[73](index=73&type=chunk)[76](index=76&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk) - The Superior Court of New Jersey dismissed the Kuehl and Stone actions, which was affirmed on appeal, and the federal Turnofsky case was dismissed with leave to re-plead[75](index=75&type=chunk)[78](index=78&type=chunk) - The Company intends to vigorously defend itself but cannot determine the reasonable probability or range of potential loss, thus no accrual has been established[82](index=82&type=chunk) [Note 13. Severance and other related charges](index=19&type=section&id=Note%2013.%20Severance%20and%20other%20related%20charges) This note reports on severance agreements with former employees and the associated outstanding payable as of June 30, 2023 - In Q1 2023, the Company entered into separation agreements with two former employees, totaling **$332,000** in payments, with **$207,000** remaining as an outstanding payable at June 30, 2023[84](index=84&type=chunk) [Note 14. Subsequent Events](index=19&type=section&id=Note%2014.%20Subsequent%20Events) This note discloses significant events occurring after the reporting period, including a registered direct offering and a new insurance premium finance agreement - On July 31, 2023, the Company completed a registered direct offering and concurrent private placements, raising approximately **$7.5 million** in net proceeds[85](index=85&type=chunk) - The proceeds are intended for sales and marketing, working capital, and general corporate purposes[85](index=85&type=chunk) - On July 5, 2023, the Company entered into a new Commercial Insurance Premium Finance and Security Agreement for approximately **$618,000** at a **6.03% annual interest rate**[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of electroCore's financial condition and results, covering business overview, product strategy, performance for the three and six months ended June 30, 2023, critical accounting policies, cash flows, and liquidity outlook [Overview](index=20&type=section&id=Overview) This section introduces electroCore as a bioelectronic medicine and wellness company, detailing its key products and ongoing operational challenges - electroCore is a commercial-stage bioelectronic medicine and wellness company utilizing non-invasive vagus nerve stimulation (nVNS) technology for medical devices and consumer products[90](index=90&type=chunk) - Key products include prescription gammaCore medical devices for headache conditions, Truvaga for general health, and TAC-STIM for human performance, developed with the U.S. Department of Defense[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) - The Company faces challenges in market acceptance, expanding indications, and developing its wellness business, and expects continued net losses and negative cash flows[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Critical Accounting Policies and Estimates](index=22&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights the significant accounting policies and estimates that require management judgment and can impact reported financial amounts - The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts, with actual results potentially differing significantly[107](index=107&type=chunk) - Critical accounting policies and associated judgments are detailed in Note 2 of the condensed consolidated financial statements and the 2022 Annual Report[106](index=106&type=chunk)[108](index=108&type=chunk) [Results of Operations (Three Months Ended June 30, 2023 to the three months ended June 30, 2022)](index=23&type=section&id=Results%20of%20Operations%20(Three%20Months%20Ended%20June%2030,%202023%20to%20the%20three%20months%20ended%20June%2030,%202022)) This section analyzes the Company's financial performance for the three months ended June 30, 2023, compared to the same period in the prior year [Net Sales](index=23&type=section&id=Net%20Sales_3M) This subsection details the **65% increase** in net sales for the three months ended June 30, 2023, driven by prescription and new nonprescription products - Net sales increased by **65% ($1.4 million)** for the three months ended June 30, 2023, driven by growth in prescription gammaCore devices (VA/DoD, physician dispense) and new nonprescription products (TAC-STIM, Truvaga)[110](index=110&type=chunk) Product Net Sales (Three Months Ended June 30, in thousands) | Product | 2023 | 2022 | | :------------------------------------------------ | :----- | :----- | | Rx gammaCore - Department of Veteran Affairs and Department of Defense | $2,081 | $1,190 | | Rx gammaCore - U.S. Commercial | $441 | $465 | | Outside the United States | $424 | $467 | | Truvaga | $290 | $0 | | TAC-STIM | $311 | $0 | | Other | $4 | $35 | | **Total** | **$3,551** | **$2,157** | [Gross Profit](index=23&type=section&id=Gross%20Profit_3M) This subsection analyzes the **$1.2 million increase** in gross profit and the improvement in gross margin to **84%** for Q2 2023 - Gross profit increased by **$1.2 million**, with gross margin at **84%** for Q2 2023, up from **83%** in Q2 2022[112](index=112&type=chunk) - The increase in gross margin is attributed to selling more longer-duration therapy and refill kits with lower costs, with no incremental effect from device licensing in the current quarter[112](index=112&type=chunk) [Research and Development](index=24&type=section&id=Research%20and%20Development_3M) This subsection reports a **$186,000 decrease** in research and development expense due to cost-cutting, partially offset by platform investments - Research and development expense decreased by **$186,000** to **$1.2 million**, due to compensation reductions from cost-cutting measures, partially offset by investments in future therapy delivery platforms[113](index=113&type=chunk) [Selling, General and Administrative](index=24&type=section&id=Selling,%20General%20and%20Administrative_3M) This subsection details an **8% ($521,000) increase** in selling, general and administrative expense, driven by sales and marketing investments - Selling, general and administrative expense increased by **$521,000 (8%)** to **$6.8 million**, driven by targeted sales and marketing investments, partially offset by lower insurance and stock-based compensation[114](index=114&type=chunk) [Other (Income) Expense](index=24&type=section&id=Other%20(Income)%20Expense_3M) This subsection attributes the increase in Other (Income) Expense primarily to rising interest rates on cash equivalents - The increase in Other (Income) Expense is primarily due to rising interest rates on cash equivalents[115](index=115&type=chunk) [Benefit From Income Taxes](index=24&type=section&id=Benefit%20From%20Income%20Taxes_3M) This subsection explains the **$445,000 benefit** from income taxes in Q2 2022, resulting from the sale of state net operating losses and R&D tax credits - The **$445,000 benefit** from income taxes in Q2 2022 was from the sale of state net operating losses and R&D tax credits under New Jersey's NOL Transfer Program[116](index=116&type=chunk) [Results of Operations (Six Months Ended June 30, 2023 to the six months ended June 30, 2022)](index=24&type=section&id=Results%20of%20Operations%20(Six%20Months%20Ended%20June%2030,%202023%20to%20the%20six%20months%20ended%20June%2030,%202022)) This section analyzes the Company's financial performance for the six months ended June 30, 2023, compared to the same period in the prior year [Net Sales](index=25&type=section&id=Net%20Sales_6M) This subsection details the **56% ($2.3 million) increase** in net sales for the six months ended June 30, 2023, driven by growth across all major channels - Net sales increased by **56% ($2.3 million)** for the six months ended June 30, 2023, driven by growth across all major channels, including prescription gammaCore (VA/DoD, U.S. commercial) and nonprescription TAC-STIM and Truvaga products[118](index=118&type=chunk) Channel Net Sales (Six Months Ended June 30, in thousands) | Product | 2023 | 2022 | | :------------------------------------------------ | :----- | :----- | | Rx gammaCore - Department of Veteran Affairs and Department of Defense | $3,786 | $2,430 | | Rx gammaCore - U.S. Commercial | $871 | $741 | | Outside the United States | $834 | $772 | | Truvaga | $437 | $0 | | TAC-STIM | $399 | $0 | | Other | $4 | $113 | | **Total** | **$6,331** | **$4,056** | [Gross Profit](index=25&type=section&id=Gross%20Profit_6M) This subsection analyzes the **$2.0 million increase** in gross profit and the rise in gross margin to **84%** for the six months ended June 30, 2023 - Gross profit increased by **$2.0 million**, with gross margin rising to **84%** for the six months ended June 30, 2023, from **82%** in the prior year[120](index=120&type=chunk) - Improved gross margin is attributed to increased sales of longer-duration therapy and refill kits with lower costs, and the incremental effect of device licensing was **2.9%** in 2023 vs. **7.9%** in 2022[120](index=120&type=chunk) [Research and Development](index=25&type=section&id=Research%20and%20Development_6M) This subsection reports a **30% ($689,000) increase** in research and development expense, primarily due to investments in future therapy delivery platforms - Research and development expense increased by **$689,000 (30%)** to **$2.964 million**, primarily due to targeted investments in future therapy delivery platforms, partially offset by compensation reductions[121](index=121&type=chunk) [Selling, General and Administrative](index=25&type=section&id=Selling,%20General%20and%20Administrative_6M) This subsection details a **$1.0 million increase** in selling, general and administrative expense, driven by severance charges and sales and marketing investments - Selling, general and administrative expense increased by **$1.0 million** to **$13.5 million**, due to **$332,000** in severance charges and continued sales and marketing investments, offset by decreases in insurance and stock-based compensation[122](index=122&type=chunk) [Other (Income) Expense](index=25&type=section&id=Other%20(Income)%20Expense_6M) This subsection attributes the increase in Other (Income) Expense primarily to rising interest rates - The increase in Other (Income) Expense is primarily due to rising interest rates[123](index=123&type=chunk) [Benefit from Income Taxes](index=25&type=section&id=Benefit%20from%20Income%20Taxes_6M) This subsection reports the **$211,000 payment** received from the sale of New Jersey state net operating losses on January 10, 2023 - The Company received a **$211,000 payment** from the sale of New Jersey state net operating losses on January 10, 2023[124](index=124&type=chunk) [Cash Flows](index=25&type=section&id=Cash%20Flows) This section analyzes the Company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2023 and 2022 [Operating Activities](index=26&type=section&id=Operating%20Activities) This subsection reports an increase in net cash used in operating activities to **$9.2 million** for the six months ended June 30, 2023 - Net cash used in operating activities increased to **$9.2 million** for the six months ended June 30, 2023, from **$8.0 million** in the prior year, primarily due to an increased net loss adjusted for non-cash expenses[126](index=126&type=chunk) [Investing Activities](index=26&type=section&id=Investing%20Activities) This subsection details **$91,000** in cash used for equipment purchases during the six months ended June 30, 2023 - Cash used in investing activities was **$91,000** for equipment purchases during the six months ended June 30, 2023, compared to no investing activities in the prior year[127](index=127&type=chunk) [Financing Activities](index=26&type=section&id=Financing%20Activities) This subsection reports no cash provided by financing activities for the six months ended June 30, 2023, or 2022 - No cash was provided by financing activities during the six months ended June 30, 2023, or 2022[128](index=128&type=chunk) [Liquidity Outlook](index=26&type=section&id=Liquidity%20Outlook) This section discusses the Company's expected negative cash flows, reliance on the FSS contract, and recent capital raise to fund operations - The Company expects substantial negative cash flows from operations and plans continued investments in sales, marketing, and therapy delivery platforms[129](index=129&type=chunk) - The Federal Supply Schedule (FSS) contract, a major revenue source, is scheduled to expire on January 15, 2024, with no assurance of renewal on favorable terms[130](index=130&type=chunk) - A registered direct offering and private placements on July 31, 2023, generated approximately **$7.5 million** in net proceeds, which are expected to fund operations for **12 months** from the financial statement date, but significant risks and uncertainties remain[131](index=131&type=chunk)[132](index=132&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily foreign currency exchange rate risk and interest rate risk - The Company is exposed to foreign currency exchange risk due to sales in British Pound Sterling and a license agreement in Japanese Yen, but does not hedge this risk[135](index=135&type=chunk)[137](index=137&type=chunk) - A **10%** increase or decrease in the U.S. dollar's strength would have an immaterial impact on net income for the three months ended June 30, 2023[136](index=136&type=chunk) - Interest rate risk on cash and cash equivalents is minimal due to their short-term nature, and the Company does not hedge interest rate exposure[137](index=137&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the Company's disclosure controls and procedures, confirming their effectiveness and reporting no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=27&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This subsection confirms the effectiveness of the Company's disclosure controls and procedures as of June 30, 2023, following management's evaluation - As of June 30, 2023, the Company's disclosure controls and procedures were evaluated and deemed effective by the CEO and CFO[139](index=139&type=chunk)[140](index=140&type=chunk) [Changes in Internal Control over Financial Reporting](index=27&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This subsection states that no material changes in internal control over financial reporting occurred during the three months ended June 30, 2023 - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2023[141](index=141&type=chunk) [PART II. OTHER INFORMATION](index=28&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part includes additional information not covered in the financial statements, such as legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference information on ongoing stockholder litigation and derivative actions from Note 12 of the financial statements - Information on legal proceedings is incorporated by reference from Note 12 of the condensed consolidated financial statements[144](index=144&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section states that previously disclosed risk factors remain current and could materially affect the Company's business, financial condition, and stock price - The risk factors from the 2022 Annual Report on Form 10-K and Q1 10-Q remain current and could materially affect the Company's business and financial condition[145](index=145&type=chunk) - These risk factors are not exhaustive, and past financial results are not a reliable indicator of future performance[145](index=145&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports that there were no unregistered sales of equity securities or use of proceeds during the period - No unregistered sales of equity securities or use of proceeds occurred during the period[146](index=146&type=chunk) [Item 3. Defaults Upon Senior Securities](index=28&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities to report during the period - No defaults upon senior securities occurred during the period[147](index=147&type=chunk) [Item 4. Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Company's operations - Mine safety disclosures are not applicable to the Company[148](index=148&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) This section reports that no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements during the quarter - No director or Section 16 officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2023[149](index=149&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various certifications and Inline XBRL documents - Exhibits include certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[151](index=151&type=chunk) [Signatures](index=30&type=section&id=Signatures) This section contains the signatures of the Company's Chief Executive Officer and Chief Financial Officer, certifying the report's filing on August 9, 2023 - The report was signed by Daniel S. Goldberger, Chief Executive Officer, and Brian M. Posner, Chief Financial Officer, on August 9, 2023[153](index=153&type=chunk)

electroCore, Inc. (NASDAQ:ECOR) Q1 2023 Earnings Conference Call May 3, 2023 4:30 PM ET Company Participants Nicole Jones - IR Dan Goldberger - Chief Executive Officer Brian Posner - Chief Financial Officer Conference Call Participants John Vandermosten - Zacks Small-Cap Research Ramakanth Swayampakula - H.C. Wainwright Kemp Dolliver - Brookline Capital Markets Nick Sherwood - Maxim Group Operator And welcome to the electroCore First Quarter 2023 Earnings Call. [Operator Instructions]. As a reminder, this c ...

Part I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) For the quarter ended March 31, 2023, the company reported an increased net loss of $5.9 million, with total assets decreasing to $18.3 million primarily due to reduced cash and cash equivalents, and net cash used in operating activities rising to $5.9 million Financial Metric (in thousands) | Financial Metric | March 31, 2023 (in thousands) | March 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Net Sales** | $2,780 | $1,899 | | **Gross Profit** | $2,322 | $1,539 | | **Loss from Operations** | $(6,197) | $(5,581) | | **Net Loss** | $(5,867) | $(5,582) | | **Net Loss Per Share** | $(1.24) | $(1.20) | Balance Sheet Item (in thousands) | Balance Sheet Item | March 31, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Cash and cash equivalents** | $11,908 | $17,712 | | **Total Current Assets** | $15,374 | $21,173 | | **Total Assets** | $18,300 | $24,756 | | **Total Liabilities** | $6,453 | $7,670 | | **Total Equity** | $11,847 | $17,086 | Cash Flow Activity (in thousands) | Cash Flow Activity | Three months ended March 31, 2023 (in thousands) | Three months ended March 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(5,860) | $(4,780) | | **Net cash provided by investing activities** | $0 | $0 | | **Net cash provided by financing activities** | $0 | $0 | | **Net decrease in cash** | $(5,804) | $(4,807) | | **Cash at end of period** | $12,158 | $29,882 | - In February 2023, the company executed a **1-for-15 reverse stock split** to regain compliance with Nasdaq's minimum bid price requirement, with all share and per-share data retroactively adjusted[31](index=31&type=chunk)[53](index=53&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 46% increase in net sales for Q1 2023 driven by growth across all major channels, particularly the U.S. Department of Veterans Affairs, though the net loss widened due to increased R&D and SG&A expenses, raising substantial doubt about the company's ability to continue as a going concern without additional funding due to its history of losses and dependence on the VA/DoD channel [Business Overview](index=19&type=section&id=Overview) electroCore is a commercial-stage bioelectronic medicine company focused on its non-invasive vagus nerve stimulation technology, marketing products like gammaCore, Truvaga, and TAC-STIM through key sales channels including the U.S. VA/DoD and the UK's NHS - The company's business is centered on its proprietary **nVNS technology platform**, with products targeting medical treatment, general wellness, and human performance[83](index=83&type=chunk)[84](index=84&type=chunk) - Primary revenue is derived from the sale of **gammaCore**, with significant concentration in the U.S. VA/DoD channel, which accounted for **64.5% of revenue in Q1 2023**[90](index=90&type=chunk)[91](index=91&type=chunk) - The company is expanding into cash-pay, physician-dispense, and direct-to-consumer models with its Truvaga and TAC-STIM products to diversify beyond its traditional channels[93](index=93&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) For Q1 2023, net sales increased by 46% to $2.8 million, and gross margin improved to 84%, but operating expenses rose by $1.4 million due to increased R&D and SG&A, resulting in an increased operating loss of $6.2 million Financial Performance (in thousands) | (in thousands) | Q1 2023 | Q1 2022 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $2,780 | $1,899 | $881 | 46% | | **Gross profit** | $2,322 | $1,539 | $783 | 51% | | **Research and development** | $1,809 | $934 | $875 | 94% | | **Selling, general and administrative** | $6,710 | $6,186 | $524 | 8% | | **Loss from operations** | $(6,197) | $(5,581) | $(616) | 11% | | **Net loss** | $(5,867) | $(5,582) | $(285) | 5% | - The **46% increase in net sales** was driven by growth across all major channels, including U.S. commercial, VA/DoD, and international sales[101](index=101&type=chunk) - R&D expenses nearly doubled due to targeted investments in future therapy delivery platforms, including smartphone-integrated technologies[103](index=103&type=chunk) - SG&A expenses increased primarily due to **$332,000 in severance charges** and continued investments in sales and marketing, partially offset by lower insurance and stock compensation costs[104](index=104&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company's cash and cash equivalents decreased to $11.9 million, with net cash used in operations at $5.9 million, leading management to expect continued negative cash flows and express substantial doubt about the company's ability to continue as a going concern beyond one year without additional funding, especially with the key FSS contract expiring in January 2024 - The company has a history of significant net losses and cash used in operations, which is expected to continue, raising **substantial doubt about its ability to continue as a going concern**[37](index=37&type=chunk)[96](index=96&type=chunk)[115](index=115&type=chunk) - The company's Federal Supply Schedule (FSS) contract, a major source of revenue from the VA/DoD, is scheduled to expire on **January 15, 2024**, with no assurance of renewal[38](index=38&type=chunk)[91](index=91&type=chunk)[114](index=114&type=chunk) - The company may need to seek additional funds or curtail activities, having filed a Form S-3 shelf registration for up to **$75.0 million** in January 2022, though the ability to raise capital may be limited[113](index=113&type=chunk)[116](index=116&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates and interest rate fluctuations, but management believes the impact of a 10% change in currency rates would be immaterial, and interest rate risk is minimal due to the short-term nature of its cash equivalents - The company's primary foreign currency exposures are to the **British Pound Sterling** and **Japanese Yen**[119](index=119&type=chunk) - A sensitivity analysis showed that a uniform **10% change in foreign currency exchange rates** would have an immaterial impact on net income for the quarter[120](index=120&type=chunk) - Interest rate risk is confined to cash and cash equivalents and is considered **minimal** due to their short-term maturities[121](index=121&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period, March 31, 2023[124](index=124&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[125](index=125&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several ongoing putative class action and stockholder derivative lawsuits alleging violations of the Securities Act and Exchange Act related to its IPO and subsequent disclosures, which it is vigorously defending but cannot currently determine the probability or range of potential loss - The company is defending against multiple stockholder lawsuits (Kuehl, Turnofsky, Maltz, Yuson) stemming from its IPO and post-IPO disclosures[68](index=68&type=chunk)[71](index=71&type=chunk)[74](index=74&type=chunk) - Allegations include violations of Sections 11, 12(a)(2), and 15 of the Securities Act, and Sections 10(b) and 20(a) of the Exchange Act[69](index=69&type=chunk)[71](index=71&type=chunk) - Due to the preliminary stage of the litigation, the company has not established an accrual for potential losses and cannot guarantee the outcome will not adversely affect its financial condition[76](index=76&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The company highlights a specific risk related to adverse developments in the financial services industry, noting that market-wide liquidity problems or the failure of financial counterparties, as seen with recent bank failures, could significantly impair its access to funding and adversely impact its business operations and financial condition - A key risk is the potential for adverse developments in the financial services industry, such as liquidity constraints or defaults by financial institutions[130](index=130&type=chunk)[132](index=132&type=chunk) - Recent failures of Silicon Valley Bank, Signature Bank, and First Republic Bank are cited as examples of events that could lead to market-wide liquidity problems[131](index=131&type=chunk) - Such events could impair the company's ability to access funding, obtain financing on acceptable terms, or meet operating expenses, potentially having a material adverse impact on liquidity and operations[133](index=133&type=chunk)

electroCore, Inc. (NASDAQ:ECOR) Q4 2022 Results Conference Call March 8, 2023 4:30 PM ET Company Participants Nicole Jones - IR Dan Goldberger - Chief Executive Officer Brian Posner - Chief Financial Officer Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann John Vandermosten - Zacks Small-Cap Research Ramakanth Swayampakula - H.C. Wainwright Kemp Dolliver - Brookline Capital Markets Operator Hello, and welcome to the electroCore Fourth Quarter and Full Year 2022 Earnings Conference Call and We ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-38538 electroCore, Inc. (Exact name of Registrant as specified in its Charter) (State or other jurisdiction of incorporation or organ ...