Revenue Growth - Product revenue for the three months ended June 30, 2024, increased by approximately $3,277,100, or 77%, compared to the same period in 2023, reaching $7,520,767[84] - Total revenue for the six months ended June 30, 2024, increased by approximately $1,869,900, or 20%, compared to the same period in 2023, totaling $11,275,156[84] - Revenues from Medicare Part B beneficiaries represented 47% and 35% of product revenues for the three and six months ended June 30, 2024, respectively[80] Gross Margin - Gross margin for product revenue was 70.8% for the three months ended June 30, 2024, compared to 60.5% for the same period in 2023[85] Operating Expenses - Operating expenses for the three months ended June 30, 2024, totaled $6,440,576, an increase of 20% compared to $5,384,062 for the same period in 2023[87] - SC&M expenses rose by approximately $505,200 (22%) and $836,500 (19%) during the three and six months ended June 30, 2024, respectively, driven by increased headcount and higher travel costs[90] - G&A expenses increased by approximately $108,300 (4%) and $507,000 (10%) for the three and six months ended June 30, 2024, respectively, mainly due to higher payroll costs and increased legal fees[92] Research and Development - Research and development expenses increased by 79% to $1,007,224 for the three months ended June 30, 2024, compared to $564,235 for the same period in 2023[87] - R&D expenses increased by approximately $443,000 (79%) and $922,200 (89%) for the three and six months ended June 30, 2024, compared to the same periods in 2023, primarily due to higher payroll costs[89] Net Loss and Cash Flow - The company reported a net loss of $1,121,607 for the three months ended June 30, 2024, compared to a net loss of $1,014,150 for the same period in 2023[97] - The company used approximately $5.2 million in cash for operating activities during the six months ended June 30, 2024, compared to $2.1 million for the same period in 2023[101] - The company anticipates continued net losses and negative cash flows as it expands sales and marketing efforts and invests in product development[81] Financial Position - As of June 30, 2024, the company had cash and cash equivalents of approximately $5.8 million and total working capital of approximately $8.7 million[98] - The company generated net proceeds of approximately $5.4 million from a registered direct equity offering completed in January 2024[99] - The company entered into a Loan and Security Agreement with Silicon Valley Bank, allowing it to borrow up to $4.0 million against eligible accounts receivable[99] Future Plans - The company plans to hire 50 to 60 people through the second quarter of 2024 to increase clinical, reimbursement, and manufacturing capacity[78] - The company plans to increase clinical, reimbursement, and manufacturing capacity, aiming for cash flow breakeven by the fourth quarter of 2024[101] Regulatory and Market Information - The Centers for Medicare and Medicaid Services (CMS) published final average payment determinations of approximately $33,500 for MyoPro Motion W and $65,900 for MyoPro Motion G, effective April 1, 2024[79] - The joint venture in China has a minimum purchase commitment of $10.75 million for MyoPro Control System units over the next ten years[77] - Recent accounting standards are detailed in Note 3 of the unaudited condensed consolidated financial statements[106] - Item 3 regarding quantitative and qualitative disclosures about market risk is not applicable as the company is classified as a smaller reporting company[107]
Myomo(MYO) - 2024 Q2 - Quarterly Report