Neuronetics(STIM) - 2022 Q2 - Quarterly Report

Revenue Performance - Total revenues increased by $2.1 million, or 15%, from $14.2 million for the three months ended June 30, 2021, to $16.3 million for the same period in 2022[113]. - U.S. revenues for the three months ended June 30, 2022, were $16.1 million, representing a 17% increase compared to $13.8 million for the same period in 2021[113]. - Total revenue for the three months ended June 30, 2022 was $16.3 million, an increase of 15% compared to $14.2 million for the same period in 2021[132]. - Total revenue for the six months ended June 30, 2022 was $30.5 million, an increase of 15% compared to $26.5 million for the same period in 2021[147]. - U.S. NeuroStar Advanced Therapy System revenue for the six months ended June 30, 2022 was $8.0 million, an increase of 85% compared to $4.3 million in the same period in 2021[148]. Losses and Financial Condition - The company incurred net losses of $10.4 million and $21.3 million for the three and six months ended June 30, 2022, compared to net losses of $7.5 million and $15.4 million for the same periods in 2021[113]. - Net loss for the three months ended June 30, 2022 was $10.4 million, a 38% increase compared to a net loss of $7.5 million in the same period in 2021[130]. - The company reported a net loss of $21.3 million for the six months ended June 30, 2022, primarily due to an increase in net operating assets[164]. - The company has incurred operating losses since inception and expects these losses to continue in the near term as it expands sales and marketing initiatives[157]. Revenue Sources - Revenues from sales of Treatment Sessions and NeuroStar Advanced Therapy Systems represented 70% and 27% of U.S. revenues for the three months ended June 30, 2022[108]. - The NeuroStar Advanced Therapy System has treated over 134,300 global patients with over 4.8 million treatment sessions to date[107]. - International revenues represented 1% and 3% of total revenues for the three months ended June 30, 2022, and 2021, respectively[110]. - International revenue decreased by 50% to $197,000 for the three months ended June 30, 2022, primarily due to a decline in international NeuroStar Advanced Therapy System sales[132]. Expenses and Investments - The company plans to increase research and development expenses to continue developing TMS Therapy for additional patient populations and new indications[127]. - The company anticipates that sales and marketing expenses will increase in 2022 compared to 2021 as it executes growth initiatives[123]. - Sales and marketing expenses increased by 51% to $13.7 million for the three months ended June 30, 2022, primarily due to new marketing initiatives[136]. - Research and development expenses decreased by 16% to $3.8 million for the six months ended June 30, 2022, due to reduced product development costs[153]. Cash Flow and Financing - As of June 30, 2022, the company had cash and cash equivalents of $70.9 million, down from $94.1 million as of December 31, 2021, and an accumulated deficit of $330.0 million[157]. - The company incurred negative cash flows from operating activities of $21.1 million for the six months ended June 30, 2022, compared to $14.9 million for the same period in 2021[157]. - Net cash used in investing activities for the six months ended June 30, 2022, was $2.0 million, an increase from $1.1 million in 2021, primarily due to purchases of property and equipment and capitalized software costs[166]. - The company had $35.0 million of borrowings outstanding under its credit facility as of June 30, 2022, with a final maturity in February 2025[157]. - The company anticipates that its cash and cash equivalents, along with expected revenues, will be sufficient to fund operations for at least 12 months from the issuance of the financial statements[157]. - The company may seek additional funding through equity or debt financing if cash and anticipated revenues are insufficient, which could lead to dilution for existing shareholders[158]. Market Conditions - The company continues to monitor inflationary factors that may affect operating results, although it does not believe inflation has materially impacted its financial condition to date[175].