electroCore, Inc. (NASDAQ:ECOR) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET Company Participants Nicole Jones - Investor Relations Dan Goldberger - Chief Executive Officer Brian Posner - Chief Financial Officer Peter Staats - Chief Medical Officer Conference Call Participants Destiny Hance - Ladenburg Thalmann John Vandermosten - Zacks Operator Greetings and welcome to the electroCore Third Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is bein ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 1 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, 2022 ☐ 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 ...

electroCore, Inc. (NASDAQ:ECOR) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Rich Cockrell - Investor Relations Dan Goldberger - Chief Executive Officer Brian Posner - Chief Financial Officer Conference Call Participants John Vandermosten - Zacks Operator Good afternoon, ladies and gentlemen and thank you for standing by. Welcome to the electroCore Second Quarter 2022 Earnings Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 1 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 June 30, 2022 ☐ 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 20-3454976 ( ...

electroCore, Inc. (NASDAQ:ECOR) Q1 2022 Earnings Conference Call May 5, 2022 4:30 PM ET Company Participants Rich Cockrell - Investor Relations Dan Goldberger - Chief Executive Officer Brian Posner - Chief Financial Officer Peter Staats - Chief Medical Officer Conference Call Participants Swayampakula Ramakanth - H.C. Wainwright Jeffrey Cohen - Ladenburg Thalmann John Vandermosten - Zacks Jeremy Pearlman - Maxim Group Operator Greetings and welcome to electroCore First Quarter 2022 Earnings Conference Call. ...

Financial Performance - Net sales for Q1 2022 were $1,899,000, representing a 57.7% increase from $1,204,000 in Q1 2021[15] - Gross profit for Q1 2022 was $1,539,000, compared to $840,000 in Q1 2021, indicating an increase of 83.3%[15] - The net loss for Q1 2022 was $5,582,000, slightly higher than the net loss of $5,384,000 in Q1 2021[15] - The net loss per share for Q1 2022 was $0.08, compared to $0.11 in Q1 2021[15] - The company reported a net loss of $5.582 million for the three months ended March 31, 2022, compared to a net loss of $5.384 million for the same period in 2021, indicating a slight increase in losses[33] - The net loss for March 2022 was $5,582,000, compared to a net loss of $5,384,000 in March 2021, showing a slight increase in loss of 3.7%[15] Expenses - Research and development expenses rose to $934,000 in Q1 2022, up from $499,000 in Q1 2021, reflecting an increase of 87.1%[15] - Total operating expenses increased to $7,120,000 in Q1 2022, compared to $6,224,000 in Q1 2021, marking a rise of 14.4%[15] - Cash used in operating activities was $4.780 million for the three months ended March 31, 2022, compared to $4.156 million for the same period in 2021, reflecting increased operational expenses[24] - Total accrued expenses as of March 31, 2022, amounted to $2,384,000, a decrease from $3,881,000 as of December 31, 2021[52] - The company recognized lease expenses of $38,000 for the three months ended March 31, 2022, compared to $40,000 in the same period of 2021[49] Assets and Liabilities - Total current assets decreased to $32,494,000 as of March 31, 2022, down from $37,541,000 at the end of 2021, a decline of 13.5%[13] - Total assets decreased to $37,181,000 as of March 31, 2022, from $42,833,000 at the end of 2021, a decrease of 13.2%[13] - Total liabilities decreased to $5,365,000 as of March 31, 2022, down from $6,185,000 at the end of 2021, a reduction of 13.2%[13] - Stockholders' equity decreased to $31,816,000 as of March 31, 2022, from $36,648,000 at the end of 2021, a decline of 13.3%[13] - Cash and cash equivalents decreased to $29,882,000 as of March 31, 2022, down from $34,689,000 at the end of 2021, a decline of 13.5%[13] Revenue Sources - The company experienced significant revenue concentration, with five VA/DoD facilities accounting for approximately 62.4% of total VA/DoD net sales during the three months ended March 31, 2022[36] - Revenue from the VA/DoD channel accounted for 66.4% of total revenue, up from 55.5% in the prior year, while revenue from the National Health Service decreased to 13.0% from 25.8%[38] Inventory and Compensation - As of March 31, 2022, the company reported current inventories of $1,577,000, an increase from $1,361,000 as of December 31, 2021[48] - The reserve for obsolete inventory decreased to $711,000 as of March 31, 2022, down from $821,000 at the end of 2021, due to the disposal of previously reserved inventory[48] - Total stock-based compensation expense for the three months ended March 31, 2022, was $777,000, down from $942,000 in 2021[59] - Total unrecognized compensation cost related to unvested awards was $4.3 million, expected to be recognized over the next 2.1 years[59] Legal and Regulatory Matters - The Company is involved in multiple stockholder litigation cases, including class action lawsuits related to its IPO, which could result in substantial defense costs[64][66][69] - The Company intends to vigorously defend itself in ongoing litigation matters, but cannot determine the reasonable probability of loss at this time[72] - The Company has not established an accrual for potential losses from litigation, indicating uncertainty in financial impact[72] Market and Operational Risks - The company has significant foreign currency exchange risk related to revenue and operating expenses in currencies other than its local currencies[36] - The company continues to face risks and uncertainties related to the impact of the COVID-19 pandemic on its operations and financial condition[10] - The company expects to continue incurring net losses and cash used in operations as it works to increase market acceptance of its gammaCore therapy[33] Licensing and Agreements - The company entered into a licensing agreement with Teijin Limited for its nVNS technology, which includes non-refundable upfront payments and milestone payments based on commercialization decisions[45][46]

Financial Data and Key Metrics Changes - Full year 2021 revenue was a record $5.5 million, increasing 56% over $3.5 million in 2020 [9] - Gross margins expanded to 76% for the full year 2021 compared to 63% in 2020 [28] - GAAP net loss for the full year 2021 was $17.2 million, an improvement from a net loss of $23.5 million in 2020 [31] - Net cash used in operations for the full year 2021 was $13.6 million, down from $20.1 million in 2020 [33] - Cash, cash equivalents, and marketable securities totaled approximately $34.7 million at December 31, 2021, compared to $22.6 million at the end of 2020 [34] Business Line Data and Key Metrics Changes - Net sales from government channels, including the Department of Veterans Affairs and Department of Defense, increased 69% in Q4 2021 compared to Q4 2020 [14] - Revenue from channels outside the United States increased 36% to $1.5 million in 2021 compared to $1.1 million in 2020 [15] - U.S. commercial headache channel net revenue was $679,000 for 2021, up from $358,000 in 2020 [15] Market Data and Key Metrics Changes - The company established three new cash pay commercial channels to improve access for patients willing to pay for therapy [11] - The U.S. sales function will focus on four revenue growth initiatives, including deeper penetration into existing VA hospital customers and increasing direct-to-consumer advertising [16] Company Strategy and Development Direction - The company plans to invest in digital awareness campaigns to drive headache patients to various channels in the U.S. and U.K. [13] - Future applications of non-invasive vagus nerve stimulation (nVNS) are being advanced across several clinical trials and regulatory submissions [17] - The company is exploring growth opportunities through acquisitions targeting revenue-stage companies that optimize channel synergies [41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in the VA/DOD channel as the pandemic recedes and highlighted the potential for new indications such as PTSD and opioid use disorder [37][40] - The company is focused on expanding its international business through a growing distributor network and enhancing its digital health platforms [25][40] Other Important Information - The company received breakthrough designation from the FDA for nVNS therapy for PTSD, indicating potential for significant market expansion [20] - The company announced changes to its board of directors, bringing in new members with experience in direct-to-consumer businesses [26] Q&A Session Summary Question: Can you discuss the data expected from the 150 patient trial and treatment specifics? - Management indicated that higher doses of nVNS showed significant improvement in stroke data, with ongoing trials assessing the need for extended stimulation [44][45] Question: What are the expectations for margins and SG&A expenses moving forward? - Management expects SG&A expenses to increase as investments in sales and marketing grow, while gross margins are projected to remain strong [48][49] Question: What is the market potential for the cash pay business? - The company highlighted a large addressable market for headache sufferers, emphasizing the need for prescriptions and the challenges posed by limited insurance coverage [59] Question: What is the status of insurance coverage discussions? - Management noted slow progress in discussions with commercial insurers but remains optimistic that consumer demand from cash pay initiatives will drive interest [69] Question: What are the plans for R&D spending in 2022? - The company plans to increase R&D spending for the next generation of products while most clinical work is funded by government agencies [73]

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, 2021 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 ...

electroCore, Inc. (NASDAQ:ECOR) Q3 2021 Earnings Conference Call November 4, 2021 4:30 PM ET Company Participants Rich Cockrell - CG Capital Daniel Goldberger - CEO & Director Peter Staats - Chief Medical Officer Brian Posner - CFO & Corporate Secretary Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann & Co. Swayampakula Ramakanth - H.C. Wainwright & Co. John Vandermosten - Zacks Investment Research Operator Greetings, and welcome to electroCore's Third Quarter 2021 Earnings Call. [Operator In ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Financial%20Statements) Q3 2021 unaudited financials show significant cash and equity growth from financing, with sales up and net loss narrowed [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2021, total assets and equity significantly increased due to cash growth, while liabilities decreased Condensed Consolidated Balance Sheet Data (in thousands) | Balance Sheet Item | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $37,995 | $4,242 | | Total current assets | $41,885 | $25,064 | | **Total assets** | **$47,571** | **$31,518** | | **Liabilities & Equity** | | | | Total current liabilities | $5,739 | $5,890 | | **Total liabilities** | **$6,454** | **$7,874** | | **Total equity** | **$41,116** | **$23,645** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 and nine-month 2021 statements show strong net sales growth and significantly narrowed net losses year-over-year Statement of Operations Highlights (in thousands) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $1,487 | $1,081 | $3,960 | $2,568 | | Gross profit | $1,132 | $733 | $2,867 | $1,649 | | Loss from operations | $(3,985) | $(4,489) | $(14,571) | $(18,425) | | Net loss | $(3,994) | $(4,486) | $(12,271) | $(17,187) | | Net loss per share | $(0.06) | $(0.10) | $(0.22) | $(0.47) | [Condensed Consolidated Statements of Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss improved in Q3 and nine-month 2021 periods, driven by a smaller net loss and positive FX adjustments Comprehensive Loss Summary (in thousands) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(3,994) | $(4,486) | $(12,271) | $(17,187) | | Other comprehensive (loss) income | $(22) | $(84) | $127 | $(149) | | **Comprehensive loss** | **$(4,016)** | **$(4,570)** | **$(12,145)** | **$(17,336)** | [Condensed Consolidated Statements of Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) Total equity substantially increased to $41.1 million, primarily from common stock issuance, offsetting the net loss - Total equity grew from **$23.6M** on Jan 1, 2021, to **$41.1M** on Sep 30, 2021, mainly due to capital raised from issuing new stock, which counteracted the period's net loss[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Improved operating cash flow and significant financing from stock issuances led to a substantial increase in cash reserves Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(9,274) | $(16,470) | | Net cash provided by (used in) investing activities | $17,217 | $(11,666) | | Net cash provided by financing activities | $25,685 | $18,550 | | **Net increase (decrease) in cash** | **$33,753** | **$(9,731)** | | **Cash and cash equivalents – end of period** | **$37,995** | **$3,832** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, liquidity risks, revenue concentration, PPP loan forgiveness, stock offerings, and ongoing litigation [Note 3. Significant Risks and Uncertainties](index=11&type=section&id=Note%203.%20Significant%20Risks%20and%20Uncertainties) Going concern doubt is mitigated by recent financing, providing 12-month capital, despite high revenue concentration with key clients - The company acknowledges substantial doubt about its ability to continue as a going concern due to historical net losses, but believes this is alleviated by recent capital raises, providing a cash runway for at least the next 12 months[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) Revenue Concentration by Channel | Revenue Channel | Q3 2021 | Nine Months 2021 | | :--- | :--- | :--- | | Dept. of Veterans Affairs & DoD | 63.6% | 60.7% | | National Health Service (UK) | 24.1% | 25.6% | [Note 4. Revenue Recognition](index=12&type=section&id=Note%204.%20Revenue%20Recognition) Revenue from gammaCore sales is recognized upon delivery, with the US and UK as primary growing markets Net Sales by Geographic Area (in thousands) | Geographic Market | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | United States | $1,104 | $801 | $2,810 | $1,759 | | United Kingdom | $367 | $278 | $1,038 | $801 | | Other | $17 | $2 | $112 | $7 | | **Total Net Sales** | **$1,487** | **$1,081** | **$3,960** | **$2,568** | [Note 10. Notes Payable & Note 11. Stockholders' Equity](index=16&type=section&id=Note%2010.%20Notes%20Payable%20%26%20Note%2011.%20Stockholders'%20Equity) PPP loan was forgiven, and significant capital was raised from a public offering and prior equity agreement termination - The company's **$1.4 million** Paycheck Protection Program (PPP) loan was fully forgiven by the SBA in May 2021[71](index=71&type=chunk)[72](index=72&type=chunk) - A public offering in July 2021 raised net proceeds of approximately **$18.8 million** from the sale of **20.7 million** shares of common stock[72](index=72&type=chunk) - The equity facility with Lincoln Park was terminated in March 2021 after the company sold an additional **2.75 million** shares for **$6.9 million** in January 2021[76](index=76&type=chunk) [Note 15. Commitments and Contingencies](index=20&type=section&id=Note%2015.%20Commitments%20and%20Contingencies) Company faces multiple stockholder lawsuits related to its IPO and disclosures, with potential losses currently unestimable - The company is involved in multiple stockholder lawsuits, including class actions and derivative actions, stemming from its IPO and post-IPO disclosures[92](index=92&type=chunk)[94](index=94&type=chunk)[97](index=97&type=chunk) - Due to the preliminary stage of the litigation, the company cannot determine the reasonable probability of loss or a range of potential loss and has not established an accrual[98](index=98&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=22&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights strong revenue growth, narrowed net loss, and sufficient liquidity for 12 months despite going concern doubts [Overview](index=22&type=section&id=Overview) electroCore focuses on its FDA-cleared gammaCore nVNS therapy, targeting US VA/DoD and UK markets, and expanding globally - The company's core business is its proprietary nVNS therapy, **gammaCore**, which is FDA-cleared for multiple headache indications[103](index=103&type=chunk) - The primary commercial focus is on two channels: the U.S. Department of Veterans Affairs/DoD and the United Kingdom's National Health Service[106](index=106&type=chunk) - The company is expanding its global presence through agreements with new international distributors[108](index=108&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Q3 and nine-month 2021 results show significant sales growth, improved gross margin, and narrowed net losses, aided by PPP loan forgiveness Q3 2021 vs. Q3 2020 Results (in thousands) | Metric | Q3 2021 | Q3 2020 | Change | | :--- | :--- | :--- | :--- | | Net sales | $1,487.1 | $1,080.9 | $406.2 | | Gross profit | $1,132.1 | $733.4 | $398.7 | | Loss from operations | $(3,985.0) | $(4,488.6) | $503.6 | | Net loss | $(3,993.7) | $(4,486.4) | $492.7 | Nine Months 2021 vs. 2020 Results (in thousands) | Metric | Nine Months 2021 | Nine Months 2020 | Change | | :--- | :--- | :--- | :--- | | Net sales | $3,960.4 | $2,567.6 | $1,392.8 | | Gross profit | $2,867.1 | $1,649.0 | $1,218.1 | | Loss from operations | $(14,571.3) | $(18,425.3) | $3,854.0 | | Net loss | $(12,271.3) | $(17,187.3) | $4,916.0 | - The nine-month net loss improvement was supported by a **$1.4 million** gain on the extinguishment of the PPP loan[128](index=128&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Company holds $39.0 million in cash, asserting sufficient liquidity for 12 months despite recurring losses and going concern doubts - The company had **$39.0 million** in cash, cash equivalents, and marketable securities as of September 30, 2021[134](index=134&type=chunk) - Net cash used in operating activities for the first nine months of 2021 was **$9.3 million**, a significant improvement from **$16.5 million** in the same period of 2020[130](index=130&type=chunk) - Management believes that despite a history of losses, cash on hand is sufficient to fund operating expenses and capital requirements for at least the next 12 months[138](index=138&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks are foreign currency and interest rate fluctuations, with no current hedging instruments - The company's main market risks include foreign currency fluctuations, particularly from sales in British Pound Sterling, and interest rate changes affecting its cash and marketable securities[140](index=140&type=chunk) [Controls and Procedures](index=28&type=section&id=Controls%20and%20Procedures) Management concluded disclosure controls were effective as of September 30, 2021, with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of September 30, 2021[142](index=142&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[143](index=143&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) Company faces multiple stockholder lawsuits related to its IPO, with potential losses currently unestimable - The company is defending against multiple stockholder lawsuits (class action and derivative) in both state and federal courts concerning its IPO and subsequent disclosures[145](index=145&type=chunk)[146](index=146&type=chunk)[150](index=150&type=chunk) - A state court dismissal was reversed on appeal, and a federal case was dismissed with leave to re-plead. The company cannot determine the probability or range of potential loss at this stage[145](index=145&type=chunk)[147](index=147&type=chunk)[153](index=153&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors focus on COVID-19 impacts, including operational disruptions, revenue loss, and vaccine mandate challenges - The COVID-19 pandemic continues to pose significant risks to the business, including potential impacts on manufacturing, sales efforts, and overall financial condition[156](index=156&type=chunk)[157](index=157&type=chunk) - A federal vaccine mandate for contractors could lead to the loss of the company's Federal Supply Schedule contract, and the company's internal mandatory vaccination policy may adversely affect employee recruitment and retention[157](index=157&type=chunk) - The broad availability of COVID-19 vaccines may reduce demand for **gammaCore Sapphire CV**, which is authorized for use under an Emergency Use Authorization (EUA)[163](index=163&type=chunk) [Other Items (Items 2, 3, 4, 5, 6)](index=32&type=section&id=Other%20Items%20(Items%202,%203,%204,%205,%206)) Other disclosures include no unregistered equity sales, no senior security defaults, and a list of filed exhibits - The company reported no unregistered sales of equity securities or defaults upon senior securities during the reporting period[165](index=165&type=chunk)[166](index=166&type=chunk) - The report includes standard exhibits, such as officer certifications required by the Sarbanes-Oxley Act and interactive data files (XBRL)[172](index=172&type=chunk)