Limitations of Antidepressant Medications ieving remission (HAMD The largest prospective clinical trial of MDD ever conducted, STAR*D, showed that treatment resistance causes a patient's chance for remission to decrease with each subsequent medication attempt. STAR*D also showed discontinuation due to side effects increases with each medication attempt. | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|------------|------------------------|----------------------------------- ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements.) For the first quarter ended March 31, 2023, Neuronetics reported total revenues of $15.5 million, a 10% increase year-over-year, and a net loss of $10.5 million [Balance Sheets](index=3&type=section&id=Balance%20Sheets) Total assets decreased to $103.6 million as of March 31, 2023, primarily due to a reduction in cash and cash equivalents Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $ 55,443 | $ 70,340 | | Total current assets | $ 81,107 | $ 98,769 | | **Total Assets** | **$ 103,604** | **$ 116,884** | | **Liabilities & Equity** | | | | Total current liabilities | $ 15,130 | $ 33,199 | | Long-term debt, net | $ 36,641 | $ 22,829 | | **Total Liabilities** | **$ 55,259** | **$ 59,824** | | **Total Stockholders' Equity** | **$ 48,345** | **$ 57,060** | [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) Revenues increased to $15.5 million in Q1 2023, leading to a narrowed net loss of $10.5 million compared to the prior year Q1 2023 vs Q1 2022 Performance (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Revenues | $ 15,540 | $ 14,181 | | Gross Profit | $ 11,396 | $ 10,696 | | Total operating expenses | $ 21,303 | $ 20,831 | | Loss from operations | $ (9,907) | $ (10,135) | | Net Loss | $ (10,520) | $ (10,838) | | Net loss per share, basic and diluted | $ (0.38) | $ (0.41) | [Statements of Changes in Stockholders' Equity](index=5&type=section&id=Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity decreased to $48.3 million, primarily driven by the net loss for the quarter - The primary driver for the decrease in stockholders' equity during Q1 2023 was the **net loss of $10.5 million**[18](index=18&type=chunk) [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to $15.2 million in Q1 2023, resulting in a $14.9 million net decrease in cash Cash Flow Summary (in thousands) | Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $ (15,213) | $ (12,182) | | Net Cash Used in Investing Activities | $ (183) | $ (1,074) | | Net Cash Provided by (Used in) Financing Activities | $ 499 | $ (48) | | **Net Decrease in Cash and Cash Equivalents** | **$ (14,897)** | **$ (13,304)** | | **Cash and Cash Equivalents, End of Period** | **$ 55,443** | **$ 80,837** | [Notes to Interim Financial Statements](index=7&type=section&id=Notes%20to%20Interim%20Financial%20Statements) The notes detail business operations, liquidity, and financial instruments, including a new promissory note and credit facility amendment - The company is a commercial-stage medical technology firm focused on its NeuroStar Advanced Therapy System for treating major depressive disorder (MDD)[23](index=23&type=chunk) - As of March 31, 2023, the company had **$55.4 million in cash and cash equivalents** and an **accumulated deficit of $356.4 million**; management believes current cash is sufficient to fund operations for at least the next 12 months[24](index=24&type=chunk) - In Q1 2023, one customer accounted for **18% of total revenue**, with accounts receivable from this customer at **$1.0 million** as of March 31, 2023[66](index=66&type=chunk) - On March 29, 2023, the company amended its credit facility with Solar, borrowing an additional **$2.5 million** and extending the maturity date to March 2028, with total outstanding principal at **$37.5 million**[71](index=71&type=chunk)[72](index=72&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes Q1 2023 revenue growth to increased U.S. sales, while gross margin declined and R&D expenses significantly increased [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total revenue increased 10% to $15.5 million, driven by U.S. NeuroStar system and treatment session growth, despite a gross margin decline Revenue Breakdown (in thousands) | Revenue Category | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$15,540** | **$14,181** | **10%** | | U.S. Revenue | $14,964 | $13,517 | 11% | | - NeuroStar System | $3,850 | $3,642 | 6% | | - Treatment Sessions | $10,643 | $9,469 | 12% | | International Revenue | $576 | $664 | (13)% | - Gross margin decreased from **75.4% to 73.3%** year-over-year, primarily due to increased sales volume of lower-margin NeuroStar systems and higher capitalized software amortization[128](index=128&type=chunk) - Sales and marketing expenses decreased **6% to $11.9 million** due to reduced marketing initiatives and personnel costs[129](index=129&type=chunk) - Research and development expenses increased **55% to $2.8 million**, mainly because of lower capitalization of software project costs compared to the prior year[131](index=131&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company held $55.4 million in cash, with a net cash outflow from operations of $15.2 million, and believes it has sufficient liquidity for the next 12 months - The company had cash and cash equivalents of **$55.4 million** and an **accumulated deficit of $356.4 million** as of March 31, 2023[135](index=135&type=chunk) - Net cash used in operating activities was **$15.2 million** for Q1 2023, compared to **$12.2 million** for Q1 2022[135](index=135&type=chunk)[140](index=140&type=chunk) - Management believes current cash and anticipated revenues are sufficient to fund operations for at least 12 months from the financial statement issuance date[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) No material changes to market risk have occurred since the last annual report, and inflation has not materially impacted financial results - There have been no material changes to the company's market risk since the last annual report filed on March 7, 2023[147](index=147&type=chunk) - The company is monitoring inflation but does not believe it has had a material impact on its financial results to date[148](index=148&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2023[150](index=150&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2023 that materially affected, or are reasonably likely to materially affect, internal controls[151](index=151&type=chunk) [PART II – OTHER INFORMATION](index=36&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in routine legal actions but expects no material adverse effect on its financial condition or operations - The company reports no current legal proceedings that are reasonably expected to have a material adverse effect on its business or financials[153](index=153&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to the previously disclosed risk factors have occurred since the last annual report - No material changes to the risk factors disclosed in the Annual Report on Form 10-K have occurred[154](index=154&type=chunk) [Exhibits](index=37&type=section&id=Item%206.%20Exhibits.) The report includes key exhibits such as the Fourth Amendment to the Loan and Security Agreement and a new Secured Promissory Note - Key exhibits filed include the Fourth Amendment to the Loan and Security Agreement and a Secured Promissory Note with Greenbrook TMS Inc[161](index=161&type=chunk)

Neuronetics, Inc. (NASDAQ:STIM) Q1 2023 Earnings Conference Call May 13, 2023 8:30 AM ET Company Participants Mark Klausner - ICR Westwicke Keith Sullivan - President and Chief Executive Officer Steve Furlong - Chief Financial Officer Operator Thank you for standing by, and welcome to the Neuronetics First Quarter 2023 Financial and Operating Results. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. Mark Klausner. Plea ...

Table of Contents 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: 001-38546 NEURONETICS, INC. (Exact name of registrant as specified in its charter) incorporation or or ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $18.2 million, an increase of 21% compared to Q4 2021 revenue of $15 million [69] - U.S. NeuroStar Advanced Therapy System revenue was $4.6 million, up 64% from $2.8 million in the prior year [84] - U.S. treatment session revenue reached an all-time record of $12.5 million, an 11% increase over Q4 2021 [70] - Gross margins remained consistent at 76% compared to Q4 2021 [87] - Net loss for Q4 2022 was $8.3 million, compared to a net loss of $7.6 million in Q4 2021 [88] Business Line Data and Key Metrics Changes - The per click consumable segment and other segments are performing well, contributing to the anticipated 20% growth in 2023 [2] - Revenue per active site was approximately $11,500 in Q4 2022, down from approximately $12,200 in the prior year [85] - The number of treatment sessions surpassed 5.3 million across roughly 145,000 patients [67] Market Data and Key Metrics Changes - The company expects to see continued strength from local per click customers despite lower treatment session revenue from certain service providers [90] - The expansion of Medicare coverage and changes in United Health Care's policies are expected to positively impact market access [81] Company Strategy and Development Direction - The company aims to increase customer participation in NeuroStar University and co-op marketing programs to drive growth [49][51] - A focus on creating a network of accounts that follow NeuroStar best practices is planned for 2023 [15] - The company is working to simplify prior authorization processes to expand market access [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 20% growth in 2023, driven by strong performance in non-Greenbrook segments [2][39] - The company does not anticipate recessionary impacts affecting its guidance for 2023 [39] - Management acknowledged the challenges posed by the integration of Greenbrook and Success, which may lead to revenue headwinds [78] Other Important Information - The company shipped over 210 systems in 2022, bringing total systems shipped to over 2,000 [67] - The cash and cash equivalents as of December 31, 2022, were $70.3 million [89] Q&A Session Summary Question: What do you expect out of your core business in 2023? - Management expects growth to be consistent with the second half of 2022, in the 20% range [2] Question: How do you think about the capital versus disposable? - Capital is expected to be consistent with 2022, with 45 to 50 systems anticipated for the year [57] Question: What gets you to the high and low-end of the guidance range? - Management indicated that some contribution from Greenbrook is needed, but growth from other segments should suffice to meet guidance [11] Question: How do you view the impact of coverage policy updates? - Management believes the updates will expand the market and simplify access to care [24] Question: What are the key drivers of treatment session revenue? - The practice development managers and the implementation of PHQ-10s are key drivers of increased utilization [26]

TAP INTO A NEW POSSIBILITY for depression COMPANY PRESENTATION NASDAQ: STIM November 2022 Disclaimers n e u r o s t a r . c o m This presentation contains estimates and other statistical data prepared by independent parties and by Neuronetics, Inc. (the "Company") relating to market size and growth and other data about the industry in which the Company operates. These estimates and data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates and data ...

Neuronetics, Inc. (NASDAQ:STIM) Q3 2022 Earnings Conference Call November 8, 2022 8:30 AM ET Company Participants Mark Klausner - ICR Westwicke Keith Sullivan - President and Chief Executive Officer Stephen Furlong - Senior Vice President, Chief Financial Officer and Treasurer Conference Call Participants Adam Maeder - Piper Sandler Margaret Kaczor - William Blair Bill Plovanic - Canaccord Marie Thibault - BTIG Operator Good day and thank you for standing by. Welcome to the Neuronetics Report Third Quarter ...

Table of Contents 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, 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: 001-38546 NEURONETICS, INC. (Exact name of registrant as specified in its charter) incorporat ...

Table of Contents 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 June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ incorporation or organization) Delaware 33-1051425 (State or other jurisdiction of (I.R.S. Employer Identification No.) (A ...

Neuronetics Inc (NASDAQ:STIM) Q2 2022 Earnings Conference Call August 2, 2022 8:30 AM ET Company Participants Mark Klausner - Investor Relations Keith Sullivan - President & CEO Steve Furlong - SVP, CFO & Treasurer Conference Call Participants Adam Maeder - Piper Sandler Margaret Kaczor - William Blair William Plovanic - Canaccord Genuity Marie Thibault - BTIG David Turkaly - JMP Securities Operator Good day, and thank you for standing by. Welcome to the Neuronetics' Reports Second Quarter 2022 Financial an ...