Myomo(US:MYO)2025-11-10 21:15Revenue Performance - Revenue for the three months ended September 30, 2025, was $10,090,699, representing a 10% increase from $9,207,586 in the same period of 2024[116] - Revenue for the nine months ended September 30, 2025, was $29,574,746, a 44% increase from $20,482,742 in the same period of 2024[116] - Direct billing channel revenues were approximately $7.4 million and $22.6 million for the three and nine months ended September 30, 2025, accounting for 73% and 76% of total revenues, respectively[118] Expenses and Losses - Gross margin decreased to 63.8% for the three months and 64.6% for the nine months ended September 30, 2025, down from 75.4% and 71.1% in the same periods of 2024[122] - Research and development expenses increased by approximately $278,790 (22%) for the three months and $2,106,706 (66%) for the nine months ended September 30, 2025, compared to the same periods in 2024[126] - Selling, clinical, and marketing expenses rose by approximately $1,853,064 (54%) for the three months and $6,343,775 (74%) for the nine months ended September 30, 2025, compared to the same periods in 2024[128] - For the nine months ended September 30, 2025, the company reported a net loss of approximately $11.8 million, compared to a net loss of approximately $5.9 million for the same period in 2024[138][154] - Adjusted EBITDA for the nine months ended September 30, 2025 was approximately $(9.5) million, compared to $(5.3) million for the same period in 2024, indicating a decline in operational performance[138] Cash and Working Capital - Cash and cash equivalents decreased to approximately $12.6 million as of September 30, 2025, down from $24.4 million at the end of 2024[139] - The company used approximately $13.4 million in cash for operating activities during the nine months ended September 30, 2025, compared to $6.7 million in the same period of 2024[139][152] - The company had working capital of approximately $13.7 million as of September 30, 2025, down from $22.6 million at the end of 2024[139] Financing Activities - The company completed a public offering on December 6, 2024, selling 3,450,000 shares at $5.00 per share, generating net proceeds of approximately $15.8 million[113] - The company completed a public equity offering in December 2024, generating net proceeds of approximately $15.8 million from the sale of 3,450,000 shares at $5.00 per share[140] - The company entered into a Loan and Security Agreement on November 4, 2025, providing for committed term loans of up to $17.5 million[142] Regulatory and Market Developments - The Centers for Medicare and Medicaid Services (CMS) published final payment determinations for MyoPro products, with fees set at approximately $34,300 for the Motion W and $67,500 for the Motion G, effective January 1, 2025[120] - The MyoPro product line has been approved by the Veterans Administration, with over 130 VA facilities ordering devices for their patients[109] Accounting and Financial Reporting - Management's significant estimates include deferred tax valuation allowances, stock-based compensation valuation, warranty obligations, and reserves for credit losses and slow-moving inventory[157] - There have been no material changes to critical accounting policies from those described in the Annual Report on Form 10-K for the year ended December 31, 2024[158] - Information regarding new accounting standards is included in Note 3 of the Quarterly Report on Form 10-Q[159] - Item regarding quantitative and qualitative disclosures about market risk is not applicable as the company is a smaller reporting company[160] Other Financial Information - Total other expense (income), net for the three months ended September 30, 2025 was an expense of approximately $10,000, compared to income of approximately $76,000 for the same period in 2024[132] - The company reported net cash used in investing activities of approximately $2.5 million for the nine months ended September 30, 2025, compared to cash provided of approximately $1.6 million in the same period of 2024[155] - The company is subject to financial covenants requiring it to maintain at least $2.5 million in unrestricted cash and achieve at least 75% of its trailing three-month projected revenue[146]