NeuroMetrix(NURO) - 2023 Q3 - Quarterly Report

PART I – FINANCIAL INFORMATION This section provides NeuroMetrix's unaudited interim financial information for the reported periods Item 1. Financial Statements This section presents NeuroMetrix's unaudited interim financial statements, including balance sheets, operations, comprehensive loss, equity, cash flows, and notes Balance Sheets Summarizes the company's financial position, assets, liabilities, and equity at key reporting dates Balance Sheet Highlights (September 30, 2023 vs. December 31, 2022) | Metric | Sep 30, 2023 | Dec 31, 2022 | Change | % Change | | :-------------------------------- | :----------- | :----------- | :------- | :------- | | Total Assets | $21,286,772 | $24,669,615 | $(3,382,843) | -13.7% | | Cash and cash equivalents | $1,460,553 | $4,335,020 | $(2,874,467) | -66.3% | | Held-to-maturity securities | $0 | $16,864,707 | $(16,864,707) | -100.0% | | Available-for-sale securities | $16,177,122 | $0 | $16,177,122 | N/A | | Total Current Liabilities | $1,260,366 | $1,106,412 | $153,954 | 13.9% | | Total Stockholders' Equity | $19,903,536 | $23,355,687 | $(3,452,151) | -14.7% | Statements of Operations Presents the company's revenues, expenses, and net loss for the reported quarters and nine-month periods Statements of Operations Highlights (Quarter Ended September 30, 2023 vs. 2022) | Metric | Q3 2023 | Q3 2022 | Change | % Change | | :-------------------------------- | :---------- | :---------- | :------- | :------- | | Revenues | $1,203,164 | $1,968,003 | $(764,839) | -38.9% | | Gross profit | $781,782 | $1,274,432 | $(492,650) | -38.7% | | Total operating expenses | $2,742,680 | $2,987,423 | $(244,743) | -8.2% | | Net loss | $(1,768,737) | $(1,606,254) | $(162,483) | 10.1% | | Net loss per common share | $(0.21) | $(0.23) | $0.02 | -8.7% | Statements of Operations Highlights (Nine Months Ended September 30, 2023 vs. 2022) | Metric | 9M 2023 | 9M 2022 | Change | % Change | | :-------------------------------- | :---------- | :---------- | :------- | :------- | | Revenues | $4,583,679 | $6,408,695 | $(1,825,016) | -28.5% | | Gross profit | $3,099,439 | $4,520,129 | $(1,420,690) | -31.4% | | Total operating expenses | $8,393,861 | $8,405,428 | $(11,567) | -0.1% | | Net loss | $(4,879,940) | $(3,724,739) | $(1,155,201) | 31.0% | | Net loss per common share | $(0.61) | $(0.53) | $(0.08) | 15.1% | Statements of Comprehensive Loss Details the company's net loss and other comprehensive income/loss components for the reported periods Comprehensive Loss Highlights (Quarter Ended September 30, 2023 vs. 2022) | Metric | Q3 2023 | Q3 2022 | Change | | :------------------------------------------------------- | :---------- | :---------- | :------- | | Net loss | $(1,768,737) | $(1,606,254) | $(162,483) | | Unrealized gain on available-for-sale securities | $204,931 | $0 | $204,931 | | Reclassification of realized gain on available-for-sale securities to other income | $(166,783) | $0 | $(166,783) | | Comprehensive loss | $(1,730,589) | $(1,606,254) | $(124,335) | Comprehensive Loss Highlights (Nine Months Ended September 30, 2023 vs. 2022) | Metric | 9M 2023 | 9M 2022 | Change | | :------------------------------------------------------- | :---------- | :---------- | :------- | | Net loss | $(4,879,940) | $(3,724,739) | $(1,155,201) | | Unrealized gain on available-for-sale securities | $373,652 | $0 | $373,652 | | Reclassification of realized gain on available-for-sale securities to other income | $(166,783) | $0 | $(166,783) | | Comprehensive loss | $(4,673,071) | $(3,724,739) | $(948,332) | Statements of Changes in Stockholders' Equity Outlines changes in stockholders' equity, including net loss, stock-based compensation, and share issuances Stockholders' Equity Changes (Nine Months Ended September 30, 2023) | Item | Amount | | :------------------------------------ | :------- | | Balance at December 31, 2022 | $23,355,687 | | Stock-based compensation expense | $519,374 | | Issuance of common stock (ATM & ESPP) | $700,146 | | Unrealized gain on AFS securities | $373,652 | | Realized gain on AFS securities | $(166,783) | | Net loss | $(4,879,940) | | Balance at September 30, 2023 | $19,903,536 | Common Stock Shares Outstanding | Date | Shares | | :-------------------- | :------- | | December 31, 2022 | 7,771,938 | | September 30, 2023 | 8,588,455 | Statements of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities for the reported periods Cash Flow Summary (Nine Months Ended September 30, 2023 vs. 2022) | Activity | 9M 2023 | 9M 2022 | Change | | :-------------------------------- | :---------- | :---------- | :----------- | | Net cash used in operating activities | $(4,634,367) | $(3,806,422) | $(827,945) | | Net cash used in investing activities | $1,058,354 | $(18,944,558) | $20,002,912 | | Net cash provided by financing activities | $701,546 | $1,950,881 | $(1,249,335) | | Net decrease in cash and cash equivalents | $(2,874,467) | $(20,800,099) | $17,925,632 | | Cash and cash equivalents, end of period | $1,460,553 | $1,772,005 | $(311,452) | [Notes to Unaudited