Myomo(US:MYO)2023-11-07 22:29Revenue Growth - Product revenue for the three months ended September 30, 2023, was $5,029,523, a 27% increase from $3,968,201 in the same period of 2022[110] - Total revenue for the nine months ended September 30, 2023, reached $14,484,775, reflecting a 26% increase compared to $11,513,702 in the prior year[110] - The company recorded a license revenue of $1,764,920 for the nine months ended September 30, 2023, a 76% increase from $1,000,000 in the previous year[110] Gross Margin and Expenses - Gross margin improved to 68.7% for the three months ended September 30, 2023, up from 66.5% in the same period of 2022[114] - Research and development expenses increased by approximately $26,800, or 4%, for the three months ended September 30, 2023, compared to the same period in 2022[118] - Operating expenses for the nine months ended September 30, 2023, were $15,875,870, a slight decrease of 1% compared to $16,068,330 in the same period of 2022[116] - Selling, general and administrative expenses (SG&A) increased by approximately $30,700, or 1%, during the three months ended September 30, 2023, compared to the same period in 2022[121] Cash Flow and Financial Position - As of September 30, 2023, cash and cash equivalents were $6,911,747, and working capital was approximately $10.3 million[130] - The net cash used in operating activities for the nine months ended September 30, 2023, was $(3,817,019), compared to $(7,769,321) for the same period in 2022[140] - Adjusted EBITDA for the three months ended September 30, 2023, was $(1,658,648), compared to $(2,468,910) for the same period in 2022[129] Strategic Initiatives - The company has submitted six claims to CMS, with five claims already receiving rental payments, indicating progress in reimbursement efforts[107] - A joint venture in China has been established, with a minimum investment commitment of $8 million and up to $20 million over five years[104] - The company plans to continue expanding sales and marketing efforts, particularly in international markets, while developing a pediatric version of the MyoPro[108] Reimbursement Changes - The company expects a change in CMS reimbursement policy to allow lump-sum payments for MyoPro sales starting January 1, 2024, which may improve cash flow[106] - CMS issued a final rule effective January 1, 2024, changing the reimbursement approach for MyoPro from rental to a lump sum[133] Workforce and Cost Management - The company reduced its workforce by approximately 12% in January 2023 as part of cost reduction activities[132] - In August 2023, the company completed a public equity offering generating proceeds of approximately $3.9 million[131] Going Concern - The company believes there is substantial doubt regarding its ability to continue as a going concern due to cash flow uncertainties[131]