NeuroOne Medical Technologies (US:NMTC)2025-08-14 12:31Part I – Financial Information Item 1. Financial Statements The company's financial position improved significantly by June 30, 2025, with cash increasing to $8.0 million, product revenue doubling to $6.4 million, and net loss substantially reduced to $2.0 million Condensed Balance Sheets Condensed Balance Sheet Highlights (Unaudited) | Metric | June 30, 2025 ($) | September 30, 2024 ($) | Change ($) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 8,039,683 | 1,460,042 | +6,579,641 | | Total current assets | 10,170,747 | 4,630,925 | +5,539,822 | | Total assets | 10,819,481 | 5,369,940 | +5,449,541 | | Total liabilities | 2,642,028 | 4,547,927 | -1,905,899 | | Total stockholders' equity | 8,177,453 | 822,013 | +7,355,440 | Condensed Statements of Operations Operating Results for the Nine Months Ended June 30 (Unaudited) | Metric | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Product revenue | 6,356,767 | 3,180,719 | +99.8% | | Product gross profit | 3,612,785 | 938,605 | +284.9% | | License revenue | 3,000,000 | 0 | N/A | | Loss from operations | (2,855,409) | (9,070,474) | +68.5% | | Net loss | (1,986,153) | (8,967,515) | +77.8% | | Net loss per share (Basic and diluted) | (0.05) | (0.35) | +85.7% | Operating Results for the Three Months Ended June 30 (Unaudited) | Metric | 2025 ($) | 2024 ($) | Change (%) | | :--- | :--- | :--- | :--- | | Product revenue | 1,696,050 | 825,776 | +105.4% | | Product gross profit | 914,835 | 281,872 | +224.5% | | Net loss | (1,500,868) | (2,767,525) | +45.8% | | Net loss per share (Basic and diluted) | (0.03) | (0.10) | +70.0% | Condensed Statements of Cash Flows Cash Flow Summary for the Nine Months Ended June 30 (Unaudited) | Cash Flow Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | (1,311,600) | (8,344,957) | | Net cash used in investing activities | (71,135) | (83,292) | | Net cash provided by financing activities | 7,962,376 | 4,725,733 | | Net increase (decrease) in cash | 6,579,641 | (3,702,516) | | Cash at end of period | 8,039,683 | 1,619,977 | Notes to Condensed Financial Statements Key notes detail improved liquidity, revenue recognition from the amended Zimmer agreement, recent equity financing activities, and stock-based compensation plans, with $8.0 million cash deemed sufficient for the next twelve months - The company believes its $8.0 million in cash and cash equivalents as of June 30, 2025, along with anticipated revenue increases and cost reductions, will be sufficient to fund planned expenditures for at least twelve months, addressing previous going concern issues25 - In October 2024, the company entered into an amended distribution agreement with Zimmer, receiving a $3.0 million upfront payment for the exclusive distribution license of its OneRF Ablation System, recognized as license revenue in the nine months ended June 30, 2025848892 - In April 2025, the company completed an underwritten public offering, issuing 18.4 million shares of common stock (including the full exercise of the overallotment option) at $0.50 per share, resulting in net proceeds of approximately $8.2 million117140 - Warrants issued in the August 2024 Private Placement are accounted for as a liability, with a fair value of $1.04 million as of June 30, 2025, and the change in fair value resulted in a gain of $1.1 million for the nine months ended June 30, 2025, recorded in the statement of operations40121 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes improved financial results to the Zimmer agreement, driving $6.4 million product revenue and a reduced $2.0 million net loss, supported by $8.2 million in financing for future operations Results of Operations For the nine months ended June 30, 2025, revenue substantially increased to $6.4 million in product sales and $3.0 million in license revenue, improving gross margin to 56.8% and reducing net loss to $2.0 million Comparison of Nine Months Ended June 30, 2025 and 2024 | Metric | 2025 ($) | 2024 ($) | Key Drivers of Change | | :--- | :--- | :--- | :--- | | Product Revenue | 6.4M | 3.2M | Increased sales of higher-margin OneRF Products under the Zimmer agreement | | Product Gross Profit % | 56.8% | 29.5% | Favorable product mix with more OneRF Products | | License Revenue | 3.0M | 0 | 3.0M upfront payment from Zimmer for OneRF distribution license | | Operating Expenses | 9.5M | 10.0M | Decrease in legal and investor relations costs | | Net Loss | (2.0M) | (9.0M) | Higher revenue, improved margins, and a 1.1M gain on warrant liability fair value | Comparison of Three Months Ended June 30, 2025 and 2024 | Metric | 2025 ($) | 2024 ($) | Key Drivers of Change | | :--- | :--- | :--- | :--- | | Product Revenue | 1.7M | 0.8M | Increased sales of higher-margin OneRF Products | | Product Gross Profit % | 53.9% | 34.1% | Favorable product mix | | Selling, General & Admin | 1.6M | 1.9M | Lower legal and investor relations costs | | Net Loss | (1.5M) | (2.8M) | Higher revenue, improved margins, and a 0.3M gain on warrant liability fair value | Liquidity and Capital Resources As of June 30, 2025, the company held $8.0 million in cash, significantly bolstered by $8.2 million from April 2025 financing, ensuring sufficient liquidity for at least the next twelve months - The company's cash and cash equivalents increased to $8.0 million as of June 30, 2025177 - In April 2025, the company raised approximately $8.2 million in net proceeds through an underwritten public offering of common stock180 - Management concluded that current cash reserves are sufficient to fund planned expenditures and meet obligations for at least twelve months from the financial statement issuance date, mitigating previous substantial doubt about its ability to continue as a going concern194 - The company terminated its Debt Facility Agreement in November 2024 without drawing any funds and decreased the available amount under its At-The-Market (ATM) offering to zero in April 2025184185 Item 3. Quantitative and Qualitative Disclosures About Market Risk This section is not applicable as the company is a smaller reporting company - Not applicable for smaller reporting companies213 Item 4. Controls and Procedures The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting during the quarter - The company's CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period214 - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting215 Part II – Other Information Item 1. Legal Proceedings The company is not currently a party to any legal proceedings that are expected to have a material adverse effect on its business - The company is not currently involved in any legal proceedings that management believes would have a material adverse effect on the business217 Item 1A. Risk Factors This section refers to the risk factors discussed in the company's Annual Report on Form 10-K for the year ended September 30, 2024 - For a discussion of risk factors, the report refers to Part I, Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024218 Item 5. Other Information On May 20, 2025, the board amended the 2021 Inducement Plan, increasing available shares by 575,000 to attract qualified employees - On May 20, 2025, the company's board amended the Inducement Plan to increase the aggregate number of shares available for equity incentive awards by 575,000223 Item 6. Exhibits This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, the Second Amendment to the 2021 Incentive Plan, the underwriting agreement for the April 2025 financing, and officer certifications