Financial Performance - Revenues for Q3 2024 decreased by $616,000 or 51.2% compared to Q3 2023, primarily due to a decline in DPNCheck sales attributed to adverse CMS reimbursement changes [68]. - Gross profit for Q3 2024 decreased by $470,000 or 60.1%, with a gross margin rate of 53.1% compared to 65.0% in the prior year quarter [69]. - Revenues for the nine months ended September 30, 2024 decreased by $2,133,661 or 46.5% compared to the same period in 2023 [72]. - Gross profit for the nine months ended September 30, 2024 decreased by $1,778,546 or 57.4% compared to the same period in 2023 [74]. - Net loss for Q3 2024 was $1.5 million, a decrease of $261,000 from Q3 2023, with net loss per common share improving to ($0.75) from ($1.66) [71]. - Net loss for the nine months ended September 30, 2024 increased by $1,145,792, with net loss per common share at ($3.10) compared to ($4.86) in 2023 [76]. Operating Expenses - Operating expenses declined by $689,000 or 25.1% in Q3 2024, driven by reduced employee headcount and lower research and development spending [70]. - Operating expenses for the nine months ended September 30, 2024 decreased by $248,274 or 3.0% compared to the same period in 2023 [75]. Sales Performance - DPNCheck sales were the primary contributor to the revenue decline in Q3 2024, with international sales also affected by excess inventory at the Japan distributor [68]. - Quell sales provided a small offset to the decline in DPNCheck sales during Q3 2024 [68]. - DPNCheck sales in Asian markets remain unaffected by the reimbursement changes in the Medicare Advantage market [64]. Strategic Initiatives - The company is considering reactivating the promotion of Quell OTC for lower extremity chronic pain in late 2024 or early 2025 [61]. - A De Novo application for marketing Quell-CIPN is planned for filing in late 2024 or early 2025, expanding the portfolio of Quell-based Rx wearable therapeutics [62]. - The company has initiated a strategic review to promote growth of Quell and DPNCheck, exploring various options including potential acquisitions and changes in marketing strategies [66]. - The company is exploring strategic options to maximize shareholder value, including potential asset acquisitions and mergers [78]. Cash and Working Capital - Cash, cash equivalents, and marketable securities as of September 30, 2024 totaled $14,834,600, down from $17,637,675 in September 2023 [78]. - Working capital as of September 30, 2024 was $15,585,819, a decrease from $19,445,277 in September 2023 [79]. - Days sales outstanding (DSO) improved to 32.9 days in 2024 from 50.9 days in 2023, indicating a shift towards cash sales [80]. - Net cash used in operating activities increased by $603,949, reflecting a higher net loss in 2024 [82]. - Equity sales contributed $1,473,700 in financing activities for the nine months ended September 30, 2024, compared to $701,546 in 2023 [85].
NeuroMetrix(NURO) - 2024 Q3 - Quarterly Report