Revenue Performance - Revenues for Q2 2024 decreased by $886,596 or 53.5% compared to Q2 2023, primarily due to a decline in DPNCheck sales attributed to adverse CMS reimbursement changes[57] - Revenues for the first half of 2024 decreased by $1.5 million or 44.9% compared to the first half of 2023, primarily due to a decline in DPNCheck sales[63] Gross Profit and Margin - Gross profit for Q2 2024 was $491,919, reflecting a decrease of $627,339 or 56.0% from Q2 2023, with a gross margin rate of 64.0% compared to 67.6% in the prior year[59] - Gross profit for the first half of 2024 decreased by $1.3 million or 56.5%, with a gross margin of 54.2%, down from 68.6% in the same period last year[64] Operating Expenses - Operating expenses in Q2 2024 decreased by $422,139 or 15.4% from Q2 2023, driven by employee headcount restructuring[61] - Operating expenses increased by $440 thousand or 7.8% in the first half of 2024, driven by higher G&A spending[65] Net Loss - The net loss for Q2 2024 was $1.5 million, a decrease of $49 thousand from Q2 2023, with net loss per share improving to ($0.74) from ($1.56) per share[62] - The net loss for the first half of 2024 increased by $1.4 million compared to 2023, with net loss per share at ($2.37) versus ($3.20) in the prior year[66] Sales Performance - DPNCheck sales were the primary contributor to the revenue decline in Q2 2024, with international sales also affected by excess inventory at the Japan distributor[58] - Quell sales provided a small offset to the decline in DPNCheck sales during Q2 2024[58] - DPNCheck sales in Asian markets remain unaffected by recent reimbursement changes in the Medicare Advantage market[54] Strategic Initiatives - The Company plans to reactivate promotion of Quell OTC for lower extremity chronic pain in Q4 2024[51] - A De Novo application for marketing Quell-CIPN is planned for filing in the second half of 2024, expanding the portfolio of Quell-based Rx wearable therapeutics[52] - The Company has initiated a strategic review to promote growth of Quell and DPNCheck, considering various options including potential acquisitions and marketing strategy changes[56] - The company is exploring strategic options to maximize shareholder value, including changes in marketing strategies and potential mergers or acquisitions[67] Cash and Working Capital - As of June 30, 2024, the company had working capital of $16.9 million and cash, cash equivalents, and marketable securities totaling $16.4 million[68] - Cash used in operating activities increased by $873 thousand in the first half of 2024, reflecting a higher net loss[69] - Investing activities in the first half of 2024 included $18.7 million in purchases of AFS securities, offset by $20.5 million from the maturity of AFS securities[70] - Equity sales contributed $1.5 million in the first half of 2024, compared to $700 thousand in the same period of 2023[71]
NeuroMetrix(NURO) - 2024 Q2 - Quarterly Report