NeuroOne Medical Technologies (US:NMTC)2026-02-17 12:01Revenue and Profit - Product revenue for the three months ended December 31, 2025, was $2,892,635, a decrease of $381,532 compared to $3,274,167 in the same period of 2024[154] - Product gross profit for the same period was $1,567,828, down from $1,926,889, reflecting a decrease of $359,061[154] - License revenue was $0 for the three months ended December 31, 2025, compared to $3,000,000 in the same period of 2024, a decrease of $3,000,000[154] - Product revenue for the three months ended December 31, 2025, was $2.9 million, with a gross profit of $1.6 million and a gross profit percentage of 54.2%[155] - License revenue was $3.0 million for the three months ended December 31, 2024, but no license revenue was generated during the same period in 2025[157] Expenses - Total operating expenses increased to $3,275,135 for the three months ended December 31, 2025, from $3,215,682 in 2024, an increase of $59,453[154] - Selling, general and administrative expenses were $1,885,455 for the three months ended December 31, 2025, down from $2,043,454 in 2024, a decrease of $157,999[154] - Research and development expenses increased to $1,389,680 for the three months ended December 31, 2025, from $1,172,228 in 2024, an increase of $217,452[154] - Selling, general and administrative expenses decreased to $1.9 million for the three months ended December 31, 2025, from $2.0 million in the prior year[158] - Research and development expenses increased to $1.4 million for the three months ended December 31, 2025, compared to $1.2 million in the same period of 2024[159] Net Loss and Financial Position - The net loss for the three months ended December 31, 2025, was $1,437,890, compared to a net income of $1,785,322 in the same period of 2024, a change of $3,223,212[154] - As of December 31, 2025, the accumulated deficit was $80.0 million, primarily due to research and development expenses and other operational costs[136] - The net loss for the three months ended December 31, 2025, was $1.4 million, which included non-cash expenses and a net cash use of approximately $1.9 million due to changes in operating assets and liabilities[188] - The company experienced a net decrease in cash of $3.0 million for the three months ended December 31, 2025, compared to a decrease of $325,692 in the same period of 2024[187] Cash Flow and Financing - As of December 31, 2025, cash and cash equivalents totaled approximately $3.6 million, raising concerns about the company's ability to continue as a going concern[164][179] - The company anticipates significant cash requirements for ongoing product development and commercialization operations, including royalty obligations[173] - The company entered into an underwriting agreement in April 2025, resulting in net proceeds of approximately $8.2 million from the sale of 16 million shares of common stock[166] - The company has issued 5,544,489 shares under the ATM Program for gross proceeds of $8.0 million through December 31, 2025[171] - The company has a delayed draw term loan facility of up to $3.0 million, which was terminated in November 2024 without any amounts drawn[172] - The company expects to satisfy its short-term and long-term obligations through cash on hand and future revenue from commercial sales[176] - Net cash used in operating activities was $3.1 million for the three months ended December 31, 2025, compared to a net cash provided of $0.2 million in the same period of 2024[188][189] - Net cash used in investing activities was $41,000 for the three months ended December 31, 2025, compared to $24,000 in the same period of 2024, both related to purchases of property and equipment[190] - Net cash provided by financing activities was $148,000 for the three months ended December 31, 2025, primarily from the exercise of warrants amounting to $174,000[191] Operational Developments - The company initiated a limited market release of the OneRF TN Ablation System in December 2025[139] - The company has received FDA 510(k) clearance for four devices, including the Evo Cortical and OneRF Ablation System[133] Accounting and Financial Reporting - The financial statements are prepared in accordance with U.S. generally accepted accounting principles, requiring estimates and judgments that can affect reported amounts[194] - The company has not had significant variable consideration adjustments related to product revenue, indicating stable revenue recognition practices[195] - The warrants issued in connection with the August 2024 Private Placement are classified as liabilities and will be adjusted for fair value changes until certain conditions are met[196] Cash Flow Dynamics - The increase in accounts receivable was linked to the Zimmer Distribution Agreement, impacting cash flow negatively[188][189] - The company reported a decrease in accrued expenses and accounts payable, which also contributed to the cash flow dynamics observed[188]