Management View - Myomo, Inc. aims for a 10% revenue growth target by 2026, focusing on expanding recurring patient sources and international operations [2] - The company is prioritizing four major objectives: increasing revenue through direct-to-patient marketing, expanding market access via new payer contracts, managing cost structure for operating leverage, and advancing product innovation [2] - CEO Paul Gudonis reported progress in these areas during the Q4 2025 earnings call, emphasizing the importance of these strategies for future growth [2]

Financial Data and Key Metrics Changes - The company reported full-year revenue of $40.9 million, representing a 26% growth over 2024 [5][21] - Fourth quarter revenue was $11.4 million, the highest revenue quarter of the year, up 13% from the third quarter but down slightly year-over-year [15][19] - Gross margin for the fourth quarter was 68.6%, down from 71.4% a year ago, but up from 63.8% in the third quarter [19][21] - Operating loss for the fourth quarter was $2.8 million, compared to an operating loss of about $200,000 in the prior year quarter [20][21] - Net loss for the fourth quarter was $3.8 million, or $0.09 per share, compared to a net loss of $300,000 or $0.01 per share for the same quarter last year [20][21] Business Line Data and Key Metrics Changes - The U.S. Orthotics and Prosthetics (O&P) channel achieved quarterly revenue exceeding $1 million for the first time, up 81% year-over-year [7][18] - International revenue reached a record $2.2 million, up 46% year-over-year, representing 19% of total revenue [18] - The company recorded 241 MyoPros ordered during the fourth quarter, up 5% sequentially from the third quarter [5][19] - Recurring patient sources, including referrals under the MyoConnect program, represented 42% of fourth quarter revenue, up from 26% in the fourth quarter of 2024 [8][18] Market Data and Key Metrics Changes - The company signed in-network contracts with additional Medicare Advantage and commercial payers, including a multi-state agreement with Elevance Health covering 45 million lives [10][11] - The patient pipeline stood at 1,528 patients as of December 31, 2025, an increase of 10% year-over-year [18] - The company faced challenges with Medicare Advantage payers, which issued a high number of pre-authorization denials [16][17] Company Strategy and Development Direction - The company aims to grow revenue through direct-to-patient marketing and expand orders from recurring sources [4] - A strategic pivot towards recurring patient sources is evident, with a focus on the MyoConnect program to engage therapists and physicians [8][12] - The company plans to limit advertising spending while building out the MyoConnect program and adding direct sales resources [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the O&P channel and international markets, despite challenges with Medicare Advantage [10][17] - The company expects revenue in 2026 to be in the range of $43 million to $46 million, with a focus on recurring sources [23][24] - Management anticipates a reduction in cash burn by roughly half in 2026 compared to 2025 [24] Other Important Information - The company launched the MyoPro Center of Excellence program to educate O&P practices on the new MyoPro 2X product [6] - A randomized controlled trial is being conducted to further validate the MyoPro's effectiveness, with results expected by the end of the year [79] Q&A Session Summary Question: What drove the increase in cost per pipeline ad in the MyoConnect program? - Management noted that the fourth quarter typically has higher advertising costs due to competition and that a new marketing head and agency have been brought on to address this [34][35] Question: Can you provide KPIs around the O&P channel? - The company has trained and certified a couple of dozen O&P providers, generating over $1 million in revenue in the quarter [38][39] Question: What are the assumptions for the U.S. O&P business in 2026 guidance? - Growth is expected in the O&P channel and international markets, while direct billing is anticipated to remain flat [41][42] Question: What is the status of the pipeline ads and dropout rate? - The pipeline ads were lower due to a shutdown in late December, and the dropout rate was noted to be around 20% [46][50] Question: How is the German market performing? - The German market is growing well due to favorable reimbursement policies and a strong recruitment of O&P practices [78] Question: What is the timeline for the MyoPro 3 model? - The MyoPro 3 will be a next-generation platform with significant improvements, but specific timelines were not provided [81]

Financial Data and Key Metrics Changes - The company reported full-year revenue of $40.9 million, representing a 26% growth over 2024 [9][25] - Fourth quarter revenue was $11.4 million, the highest quarterly revenue of the year, up 13% sequentially but down slightly year-over-year [25][9] - Gross margin for the fourth quarter was 68.6%, down from 71.4% year-over-year but up from 63.8% in the previous quarter [34][25] - Operating loss for the fourth quarter was $2.8 million, compared to an operating loss of about $200,000 in the prior year quarter [36][37] - Net loss for the fourth quarter was $3.8 million, or $0.09 per share, compared to a net loss of $300,000 or $0.01 per share for the same quarter last year [37][25] Business Line Data and Key Metrics Changes - The U.S. Orthotics and Prosthetics (O&P) channel achieved record quarterly revenue of over $1 million, up 81% year-over-year [32][11] - International revenue reached a record $2.2 million, up 46% year-over-year, primarily driven by growth in Germany [32][15] - The number of MyoPro units ordered in the fourth quarter was 241, up 5% sequentially [9][10] - Recurring patient sources represented 42% of fourth quarter revenue, up from 26% in the fourth quarter of 2024 [13][32] Market Data and Key Metrics Changes - The company signed in-network contracts with additional Medicare Advantage and commercial payers, including a multi-state agreement with Elevance Health covering 45 million lives [19][18] - The patient pipeline stood at 1,528 patients, an increase of 10% year-over-year [33][25] - The company faced challenges with Medicare Advantage payers, resulting in a decrease in authorizations and revenue from this segment [28][29] Company Strategy and Development Direction - The company aims to grow revenue through direct-to-patient marketing and expand orders from recurring sources [7][9] - A focus on managing cost structure and enhancing manufacturing processes to demonstrate operating leverage as the company scales [8][21] - Continued innovation in product development, including the launch of the MyoPro 2X and plans for the MyoPro 3 [46][39] - The strategic pivot towards recurring patient sources is expected to reduce customer acquisition costs and improve operating leverage [23][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the O&P channel and international markets [90][91] - The company anticipates a challenging environment with Medicare Advantage payers but is working to secure more payer contracts [29][62] - For 2026, the company expects revenue in the range of $43 million to $46 million, with a focus on recurring sources [43][45] - Management aims to reduce cash burn by approximately 50% in 2026 compared to 2025 [45][41] Other Important Information - The company is investing in R&D, including a randomized controlled trial to support the efficacy of MyoPro [23][104] - The MyoConnect program has generated over 100 qualified candidates in its first six months, contributing to the patient pipeline [12][11] - The company plans to activate the Myomo mobile app for patients and clinicians, which is expected to reduce costs [21][23] Q&A Session Summary Question: What drove the increase in cost per pipeline ad in the fourth quarter? - Management noted that higher advertising costs in the fourth quarter were due to competition with holiday advertising and election cycles [55] Question: Can you provide details on the O&P channel's performance? - The company reported over $1 million in revenue from the O&P channel, with approximately 36 units ordered in the fourth quarter [60] Question: What are the assumptions for the U.S. O&P business in 2026 guidance? - Growth in the O&P channel and international markets is expected to drive overall growth, while direct billing is anticipated to remain flat [61] Question: What is the current status of the pipeline ads and dropout rates? - The pipeline ads were lower due to a shutdown in the last days of 2025, and the dropout rate was affected by challenges in obtaining authorizations from Medicare Advantage [66][70] Question: How does the company plan to use data from the randomized controlled trial? - The data will be used to convince payers of the MyoPro's medical necessity and to support reimbursement efforts [104] Question: What is the expected gross margin for international operations compared to domestic? - International gross margins are expected to be slightly lower than domestic margins, but both will benefit from increased volume [110]

Financial Data and Key Metrics Changes - The company reported full-year revenue of $40.9 million, representing a 26% growth over 2024 [5][21] - Fourth quarter revenue was $11.4 million, the highest revenue quarter of the year, up 13% from the third quarter but down slightly year-over-year [14][19] - Gross margin for the fourth quarter was 68.6%, down from 71.4% a year ago, but up from 63.8% in the third quarter [19] - Operating loss for the fourth quarter was $2.8 million, compared to an operating loss of about $200,000 in the prior year quarter [20] Business Line Data and Key Metrics Changes - The U.S. Orthotics and Prosthetics (O&P) channel achieved quarterly revenue exceeding $1 million for the first time, up 81% year-over-year [6][18] - Revenue from the O&P channel was up 81% for the quarter and doubled for the year [6][8] - The MyoConnect program contributed to 42% of fourth quarter revenue, up from 26% in the fourth quarter of 2024 [8] Market Data and Key Metrics Changes - International operations delivered quarterly revenues exceeding $2 million for the first time, growing 46% for the quarter and 48% for the year [8][18] - The company signed in-network contracts with additional Medicare Advantage and commercial payers, including a significant agreement with Elevance Health covering 45 million lives [10] Company Strategy and Development Direction - The company aims to grow revenue through direct-to-patient marketing and expand orders from recurring sources [4] - A focus on managing cost structure and enhancing manufacturing processes to demonstrate operating leverage as the company scales [4] - Continued innovation in product development to maintain market leadership, including the launch of the MyoPro 2X and development of MyoPro 3 [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in recurring patient sources and the MyoConnect program, which is expected to reduce customer acquisition costs [8][28] - The company anticipates a revenue range of $43 million to $46 million for 2026, with a focus on stroke patients and recurring sources [24][25] - Management acknowledged challenges with Medicare Advantage payers but is encouraged by new payer contracts leading to more authorizations [17][41] Other Important Information - The company plans to activate the Myomo mobile app for patients and clinicians, which is expected to reduce costs associated with shipping laptops [12] - Cash burn was reported at $1.5 million in the fourth quarter, with operating cash flow negative at $1.1 million [22] Q&A Session Summary Question: What drove the increase in cost per pipeline ad in the MyoConnect program? - Management noted that the fourth quarter typically has higher advertising costs due to competition and has implemented changes to reduce costs moving forward [34][35] Question: Can you provide details on the O&P channel's performance? - The O&P channel had over $1 million in revenue with approximately 36 units ordered in the fourth quarter [39] Question: What are the assumptions for the U.S. O&P business in 2026 guidance? - Growth is expected in the O&P channel and international markets, while direct billing is anticipated to remain flat [40][41] Question: What is the current status of the pipeline and dropout rates? - The pipeline added 676 patients, slightly lower than previous quarters, with a dropout rate around 20% due to challenges with Medicare Advantage authorizations [45][56] Question: What is the expected gross margin for the upcoming quarters? - Management expects first quarter gross margin to be lower than the fourth quarter but aims to improve gross margin to the 70% range by the end of 2026 [59][61]

Product Overview - The MyoPro product line is a myoelectric-controlled upper limb brace designed to support individuals with neuromuscular disorders and upper limb paralysis, primarily sold through direct billing to patients and various sales channels [22]. - The MyoPro device is eligible for reimbursement under two codes, L8701 and L8702, with updated fees of approximately $34,970 and $68,800 respectively, effective January 1, 2026 [31]. - The MyoPro is custom fabricated for each patient, with fabrication typically taking less than 2 weeks, and includes a calibration process to optimize fit based on individual muscle signals [49]. - The company plans to introduce the MyoPro3 and MyoPal devices, expanding its product offerings for both adults and pediatric use [27]. - The MyoPro has shown therapeutic benefits for users, improving their ability to perform activities of daily living (ADLs) such as feeding and reaching [45]. - The MyoPro2x was introduced in April 2025, featuring enhanced donning and 3D printed orthotics capability [50]. Market Potential - The addressable market in the U.S. for upper extremity paralysis products is estimated at 6.3 million stroke survivors, with approximately 3.8 million experiencing moderate to severe impairment, and 10% to 20% of these may qualify for MyoPro [28][29]. - Approximately 400,000 to 500,000 new stroke patients are added annually in the U.S., with an estimated 40,000 to 80,000 potentially qualifying for a MyoPro each year [29]. - The MyoPro product line generated 96% of the company's product revenue for the year ended December 31, 2025 [65]. Financial Performance - Revenue increased by 26% in 2025, despite a 27% decrease in backlog, due to operational improvements [56]. - For the years ended December 31, 2025 and 2024, the company incurred net losses of $15.6 million and $6.2 million, respectively, with an accumulated deficit of approximately $118.1 million as of December 31, 2025 [101]. - Cash, cash equivalents, and short-term investments were approximately $18.4 million as of December 31, 2025, with a Loan and Security Agreement providing $17.5 million in committed funding [102]. - Direct billing revenues represented 74% and 78% of product revenues for the years ended December 31, 2025 and 2024, respectively, with Medicare Part B patients contributing 54% and 49% of total revenues [103]. Regulatory and Compliance - The company is subject to various healthcare laws and regulations, including the federal Anti-Kickback Statute and the False Claims Act, which could impact business operations and compliance costs [79][81]. - The company actively maintains a quality management system in accordance with FDA's QMSR and ISO 13485:2016, which may be subject to periodic audits by regulatory agencies [75]. - The company is registered with the FDA as a manufacturer for medical devices and must comply with both U.S. and foreign regulations [162]. - Compliance with regulatory requirements can be costly and time-consuming, potentially delaying production and sales of the MyoPro [165]. Reimbursement and Insurance - The MyoPro devices are eligible for reimbursement under Medicare, with lump sum payments starting January 1, 2024, and final payment determinations set at approximately $34,970 for the Motion W and $68,800 for the Motion G effective April 1, 2024 [84][85]. - Contracts with Medicare Advantage plans and other commercial payers cover approximately 35 million lives, although these contracts do not guarantee reimbursement [86]. - The reimbursement process for MyoPro typically requires pre-authorization from the patient's insurer, and the company has been successful in obtaining coverage on a case-by-case basis [83]. Operational Challenges - The company relies on a single third-party manufacturer, Cogmedix, for key subassemblies of MyoPro, which poses risks related to regulatory compliance and supply chain constraints [121]. - Changes in direct-to-consumer advertising platforms have negatively impacted lead generation and increased advertising costs, affecting revenues [116]. - The company faces potential risks from patient resistance to using MyoPro and limitations on patient access due to health or economic barriers [123]. Intellectual Property - The company holds 35 patents and has 14 pending applications, with intellectual property related to myoelectric control software and mechanical designs developed over ten years [32]. - The company may face significant costs and liabilities from patent infringement claims, which could hinder the commercialization of current and future products [204]. - The company has taken measures to protect its trade secrets and confidential information, but these measures may not be sufficient to prevent unauthorized disclosure or use [199]. Cybersecurity and Data Protection - The company experienced a ransomware attack in February 2026, potentially exposing data maintained on its systems, though the material impact is still undetermined [179]. - Cybersecurity threats have increased in frequency and sophistication, posing risks to the company's operations and reputation [181]. - Compliance with privacy and data protection laws, such as the California Consumer Privacy Act (CCPA), may incur substantial costs and expose the company to fines and penalties [183]. Future Outlook - The company plans to continue developing new product innovations based on clinician feedback and its product roadmap [51]. - The company anticipates significant strain on its management and financial resources as it grows revenues from Medicare Part B patients and expands its distribution network [151]. - The company may consider future acquisitions to enhance its products or technologies, but currently has no commitments or plans for acquisitions [156].

Exhibit 99.1 Myomo Reports Fourth Quarter and Full Year 2025 Financial and Operating Results Fourth quarter revenue of $11.4 million, full year revenue of $40.9 million 42% of fourth quarter revenue from recurring patient sources Record 241 authorizations and orders in the quarter Introduces 2026 revenue guidance of $43 million to $46 million as Company emphasizes recurring sources of revenue Conference call begins today at 4:30pm Eastern time Recent Operational and Strategic Highlights: Financial Results • ...

Myomo Reports Fourth Quarter and Full Year 2025 Financial and Operating Results-# Myomo Reports Fourth Quarter and Full Year 2025 Financial and Operating ResultsShare---Fourth quarter revenue of $11.4 million, full year revenue of $40.9 million42% of fourth quarter revenue from recurring patient sourcesRecord 241 authorizations and orders in the quarterIntroduces 2026 revenue guidance of $43 million to $46 million as Company emphasizes recurring sources of revenueConference call begins today at 4:30pm Easte ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $10.1 million, a 10% increase year-over-year, driven by a higher number of revenue units despite a lower average selling price (ASP) [16][4] - The company delivered 186 MyoPro revenue units, up 16%, with 57% of those units from authorizations and orders received in Q3 [16] - ASP decreased by 5% year-over-year to approximately $54,300, but normalized for accounting changes, ASP increased by 3% [16][17] - Gross margin for Q3 2025 was 63.8%, down from 75.4% in the prior year, impacted by higher payroll, lease expenses, and material costs [20][21] - Operating loss for Q3 2025 was $3.5 million, compared to a loss of $1 million in the prior year [23] Business Line Data and Key Metrics Changes - International revenue reached a record $1.8 million, up 63%, primarily from Germany, representing 18% of total revenue [18] - Revenue from the O&P channel was a record $900,000, up 154% year-over-year, representing 9% of total revenue [18] - The pipeline stood at 1,669 patients, a 32% increase year-over-year, with 826 patients added in Q3 [19] Market Data and Key Metrics Changes - Medicare Part B patients represented 54% of revenue in Q3, while Medicare Advantage revenue was 18%, down 18% year-over-year due to high pre-authorization denials [17] - The company signed an additional contract with a payer, increasing covered lives to 35 million among private payers [12] Company Strategy and Development Direction - The company aims to diversify revenue streams, focusing less on advertising-driven revenues and more on the MyoPro Connect platform and O&P channel penetration [26] - Key initiatives include improving patient identification, expanding the MyoPro Connect program, and reducing operating costs [5][14] - The company is enhancing manufacturing processes to improve gross margin and operating leverage as revenues grow [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the O&P channel and the MyoPro Connect program, expecting to see more patient pipeline adds through these channels [40] - The company reiterated its full-year 2025 revenue guidance of $40-$42 million, representing over 23% growth from the previous year [14][26] Other Important Information - The company entered into a loan agreement providing a term loan facility of $17.5 million to support growth and operational needs [25] - Cash balance as of September 30, 2025, was $20.1 million after the loan funding [25] Q&A Session Summary Question: Scale of U.S. O&P business - The company shipped approximately $900,000 worth of units, roughly 30 units, in the O&P channel during Q3 [31] Question: Customer acquisition cost improvements - The new head of marketing is reviewing the effectiveness of various advertising channels to generate more leads at a lower cost [32] Question: Backlog drop drivers - About 40% of the backlog drop was attributed to Germany, with some cleanup in the backlog during Q3 [34] Question: Future operating expenses - Operating expenses are expected to grow, but the company aims to manage them to generate operating leverage [36] Question: Pipeline adds and market saturation - Management believes there is still significant market opportunity and expects growth through innovative patient outreach [40] Question: Q4 growth expectations - Growth in Q4 is anticipated from fill units and authorizations/orders received within the quarter [42] Question: Debt decision rationale - The company believes it can manage the debt and expects to be closer to breakeven within 18 months [46] Question: O&P clinics training progress - Several hundred clinicians have undergone training, with goals to expand the number actively placing orders [54] Question: International business performance - Germany's success is attributed to a network of O&P partners and favorable reimbursement conditions [62]

Revenue Performance - Revenue for the three months ended September 30, 2025, was $10,090,699, representing a 10% increase from $9,207,586 in the same period of 2024[116] - Revenue for the nine months ended September 30, 2025, was $29,574,746, a 44% increase from $20,482,742 in the same period of 2024[116] - Direct billing channel revenues were approximately $7.4 million and $22.6 million for the three and nine months ended September 30, 2025, accounting for 73% and 76% of total revenues, respectively[118] Expenses and Losses - Gross margin decreased to 63.8% for the three months and 64.6% for the nine months ended September 30, 2025, down from 75.4% and 71.1% in the same periods of 2024[122] - Research and development expenses increased by approximately $278,790 (22%) for the three months and $2,106,706 (66%) for the nine months ended September 30, 2025, compared to the same periods in 2024[126] - Selling, clinical, and marketing expenses rose by approximately $1,853,064 (54%) for the three months and $6,343,775 (74%) for the nine months ended September 30, 2025, compared to the same periods in 2024[128] - For the nine months ended September 30, 2025, the company reported a net loss of approximately $11.8 million, compared to a net loss of approximately $5.9 million for the same period in 2024[138][154] - Adjusted EBITDA for the nine months ended September 30, 2025 was approximately $(9.5) million, compared to $(5.3) million for the same period in 2024, indicating a decline in operational performance[138] Cash and Working Capital - Cash and cash equivalents decreased to approximately $12.6 million as of September 30, 2025, down from $24.4 million at the end of 2024[139] - The company used approximately $13.4 million in cash for operating activities during the nine months ended September 30, 2025, compared to $6.7 million in the same period of 2024[139][152] - The company had working capital of approximately $13.7 million as of September 30, 2025, down from $22.6 million at the end of 2024[139] Financing Activities - The company completed a public offering on December 6, 2024, selling 3,450,000 shares at $5.00 per share, generating net proceeds of approximately $15.8 million[113] - The company completed a public equity offering in December 2024, generating net proceeds of approximately $15.8 million from the sale of 3,450,000 shares at $5.00 per share[140] - The company entered into a Loan and Security Agreement on November 4, 2025, providing for committed term loans of up to $17.5 million[142] Regulatory and Market Developments - The Centers for Medicare and Medicaid Services (CMS) published final payment determinations for MyoPro products, with fees set at approximately $34,300 for the Motion W and $67,500 for the Motion G, effective January 1, 2025[120] - The MyoPro product line has been approved by the Veterans Administration, with over 130 VA facilities ordering devices for their patients[109] Accounting and Financial Reporting - Management's significant estimates include deferred tax valuation allowances, stock-based compensation valuation, warranty obligations, and reserves for credit losses and slow-moving inventory[157] - There have been no material changes to critical accounting policies from those described in the Annual Report on Form 10-K for the year ended December 31, 2024[158] - Information regarding new accounting standards is included in Note 3 of the Quarterly Report on Form 10-Q[159] - Item regarding quantitative and qualitative disclosures about market risk is not applicable as the company is a smaller reporting company[160] Other Financial Information - Total other expense (income), net for the three months ended September 30, 2025 was an expense of approximately $10,000, compared to income of approximately $76,000 for the same period in 2024[132] - The company reported net cash used in investing activities of approximately $2.5 million for the nine months ended September 30, 2025, compared to cash provided of approximately $1.6 million in the same period of 2024[155] - The company is subject to financial covenants requiring it to maintain at least $2.5 million in unrestricted cash and achieve at least 75% of its trailing three-month projected revenue[146]

Loan Facility Agreement - The loan facility agreement is dated November 4, 2025, involving Myomo, Inc. as the borrower and Avenue Capital Management II, L.P. as the administrative agent[1] - The total principal amount of the loan facility will not exceed the Commitment, which is not a revolving credit commitment[5] - Each loan will be evidenced by a separate note payable to each lender, with repayments made in U.S. Dollars[6] - Basic interest on the outstanding principal balance will accrue daily at the designated rate from the borrowing date[10] - A late charge of 5% will be applied if any scheduled payment is late by more than five days, with a minimum charge of $50[15] - Borrower grants security interests in all collateral to secure timely payment and performance of all obligations[18] Borrower's Representations and Warranties - Borrower represents that its financial statements fairly reflect its financial condition in accordance with GAAP[28] - As of the closing date, Borrower is not a majority owner of any other business entity except for Myomo Germany[29] - No default or event of default has occurred and is continuing as of the closing date[30] - Borrower has valid rights to the Collateral, which is genuine and subject to no Liens[32] - As of the Closing Date, Borrower's chief executive office and Inventory with a value exceeding $250,000 are located at specified addresses[34] - Borrower owns or has rights to all necessary intellectual property for its business operations without known conflicts[36] - Borrower has complied with ERISA funding requirements for employee benefit plans, with no events likely to incur material liabilities[39] - Borrower is not required to register as an "investment company" under the Investment Company Act of 1940[39] Financial Reporting Requirements - Monthly financial statements must be delivered within 30 days after each month-end, attested by a responsible financial officer[60] - Quarterly cash flow statements are required within 30 days after each quarter-end, also attested by a responsible financial officer[61] - Year-end financial statements must be audited and delivered within 90 days after the fiscal year-end, certified by a satisfactory accounting firm[62] Covenants and Compliance - Borrower must notify Agent of any litigation or claims exceeding $250,000 that could have a material adverse effect[56] - Borrower must provide notice of any substantial disputes with governmental authorities that could reasonably be expected to have a material adverse effect[59] - Borrower must maintain minimum unrestricted cash and cash equivalents of at least $2,500,000 at all times[82] - Borrower is required to achieve minimum L3M revenue of at least 75% of its projected L3M revenue as per the Board Approved Budget, tested monthly[83] - Cash burn for the trailing six months must not exceed 150% of the projected T6M cash burn set forth in the Board Approved Budget until December 31, 2026[84] - Beginning January 1, 2027, T6M cash burn must not exceed the greater of 150% of the projected T6M cash burn or negative $2,000,000[85] - Borrower must deliver unaudited financial statements if the Board does not require audited statements for a particular reporting year[64] - Compliance certificates must be provided simultaneously with the delivery of financial statements, detailing any defaults[64] - Borrower is obligated to maintain adequate books and records in accordance with GAAP[73] - Borrower must comply with all applicable laws and regulations, including environmental laws[74] - All required tax returns must be filed timely, and all indebtedness must be paid when due[75] Restrictions and Limitations - Borrower is prohibited from incurring additional indebtedness beyond permitted indebtedness[86] - Borrower may enter into a Change of Control transaction if the Surviving Entity assumes all obligations and guarantees them by a controlling entity[89] - Borrower is permitted to sell or transfer assets, including non-exclusive licenses of Intellectual Property, as long as it does not result in a legal transfer of title[90] - Transfers of assets not otherwise permitted are limited to a value not exceeding $250,000 if no Event of Default has occurred[91] - Borrower is restricted from making loans or investments outside of Permitted Investments[92] - Transactions with Related Persons must be on terms no more favorable than those obtainable in an arms' length transaction[93] - Borrower is not allowed to engage in any material line of business other than its current operations[94] - Borrower must maintain a perfected security interest in collateral and comply with Agent's requests for documentation[95] - Borrower cannot prepay or redeem any Indebtedness prior to its scheduled repayment, except for certain permitted conversions[99] - Borrower is restricted from maintaining cash or assets exceeding $2,500,000 in Myomo Germany at any time[103] - Borrower must not create any obligations for Personal Property Leases exceeding $200,000 in any calendar year[104] Default and Remedies - Borrower shall be in default if any monetary liability exceeds the Threshold Amount[111] - Any governmental or regulatory action unresolved within thirty days may have a Material Adverse Effect[112] - Any judgment against Borrower exceeding $500,000 that remains unsatisfied for thirty days constitutes a default[114] - Borrower must perform covenants in the Agreement, or breaches must be cured within ten days[116] - Agent may sell Collateral at public or private sales if an Event of Default occurs[118] - Agent may license or sublicense any Copyrights, Patents, or Trademarks included in the Collateral[119] - Borrower must assemble and make available the Collateral upon Agent's request after an Event of Default[123] - Agent may compromise with obligors regarding Rights to Payment during an Event of Default[124] - Agent has the authority to perform Borrower's obligations if they are not performed in a timely manner[126] - The power of attorney granted to Agent is irrevocable until the repayment of all Obligations[128] - The Agent may apply for the appointment of a receiver to operate the Borrower's business upon an Event of Default[131] - Proceeds from the disposition of Collateral will be applied first to cover costs and expenses incurred by the Agent[133] - If the Proceeds are insufficient to cover all costs and Obligations, the Borrower will be liable for any deficiency[134] - The Agent is required to use reasonable care in the custody and preservation of any Collateral[136] - Upon full payment of Obligations, the security interest will automatically terminate, and all rights to the Collateral will revert to the Borrower[140] Legal and Administrative Provisions - The Loan Documents are binding upon Borrower, Lenders, and Agent, with restrictions on Borrower's ability to assign rights[143] - Any waiver of default must be in writing and does not constitute a waiver of future defaults[145] - Borrower must indemnify the Agent and Lenders against claims arising from the Agreement or any Loan Documents[149] - Borrower is responsible for reimbursing Lenders and Agent for reasonable documented out-of-pocket costs and expenses[150] - The Loan Documents may be executed in counterparts and by electronic signatures, which are deemed to have the same legal effect as manual signatures[152] - Any amendment or modification to the Loan Agreement requires written consent from the Borrower, Agent, and Required Lenders, particularly if it affects a Lender's Commitment[153] - The Loan Documents represent the entire agreement between the parties, superseding all prior agreements[154] - The governing law for the Agreement and Loan Documents is the internal laws of the State of California[155] - Each party waives its right to a jury trial for any claims related to the Agreement or Loan Documents[157] - Confidential information received by the Agent and Lenders must be kept confidential, with specific exceptions for legal and regulatory disclosures[158] Agent's Role and Responsibilities - The Agent is appointed to act on behalf of each Lender under the Loan Documents[160] - Each Lender agrees to indemnify the Agent for liabilities incurred in connection with the Agreement[161] - The Agent is not responsible for verifying the validity of statements or documents provided under the Loan Agreement[162] - The Agent may rely on documents it believes to be genuine and properly signed, providing protection against liability in the absence of gross negligence[163] - The Agent acts as the collateral agent under the Loan Documents, authorized to acquire, hold, and enforce all Liens on Collateral granted by Borrowers[165] - Each Lender irrevocably appoints the Agent to act on their behalf for the benefit of Lenders, with all powers and rights exercised solely by the Agent at the direction of the Required Lenders[165] - The Agent may resign with thirty (30) days' notice, and if no successor agent is appointed within twenty (20) days, the Lenders will assume the Agent's duties[166] Financial Performance and Growth - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in Q3 2023[1] - User data showed a growth of 25% in active users, totaling 5 million by the end of the quarter[2] - The company provided guidance for Q4 2023, expecting revenue between $1.3 billion and $1.4 billion, representing a growth of 10% to 15%[3] - New product launches contributed to a 30% increase in sales, with the latest product line accounting for $300 million in revenue[4] - The company invested $50 million in R&D for new technologies aimed at enhancing user experience[5] - Market expansion efforts led to a 20% increase in international sales, particularly in the European market[6] - The company announced a strategic acquisition of a tech startup for $100 million to bolster its product offerings[7] - A new marketing strategy was implemented, resulting in a 40% increase in customer engagement[8] - The company reduced operational costs by 10%, improving overall profit margins[9] - The total indebtedness of the company stands at $200 million, with a focus on reducing this by 15% over the next year[10]