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Envoy Medical Reports Fourth Quarter and Full Year 2024 Financial Results
COCHEnvoy Medical(COCH) Newsfile·2025-03-31 13:15

Core Insights - Envoy Medical reported a successful 2024 and a strong start to 2025, highlighting the FDA's approval for its pivotal clinical trial of the Acclaim cochlear implant as a significant milestone [2][3] - The company is experiencing high patient interest in the Acclaim cochlear implant, which is designed to revolutionize the hearing implant industry [2] - Progress on legislative efforts, such as the Hearing Device Coverage Clarification Act, could enhance reimbursement pathways for its Esteem implant [2] Financial Performance - Net revenues for the year ended December 31, 2024, decreased by 91thousandto91 thousand to 225 thousand compared to 316thousandin2023,primarilyduetoadeclineinbatteryreplacementsales[4][19]−Researchanddevelopmentexpensesincreasedby316 thousand in 2023, primarily due to a decline in battery replacement sales [4][19] - Research and development expenses increased by 1.2 million to 10.2millionin2024,attributedtoincreasedheadcountinengineeringandclinicaldepartments[7][19]−Generalandadministrativeexpensesdecreasedby10.2 million in 2024, attributed to increased headcount in engineering and clinical departments [7][19] - General and administrative expenses decreased by 438 thousand to 6.8millionin2024,mainlyduetoreducedprofessionalservicecostscomparedto2023[9][19]ClinicalandProductDevelopment−ThecompanyreceivedFDAapprovaltoinitiateastagedpivotalclinicaltrialfortheAcclaimcochlearimplant,withsixoutoftenplannedparticipantsalreadyenrolled[5][19]−ModificationstotheAcclaimcochlearimplanthaveshownpromisingresultsinreducingelectricalsystemnoiseduringearlyfeasibilitytrials[5]−TheEsteemimplantistheonlyFDA−approvedfullyimplantedhearingdeviceforadultswithmoderatetoseveresensorineuralhearingloss,offeringcontinuoushearingcapability[12]LegislativeandMarketOpportunities−TheHearingDeviceCoverageClarificationActaimstoclassifyimplantedactivemiddleearimplantsasprosthetics,potentiallymakingthemeligibleforMedicarecoverage[2][5]−NewCPTcodesforfullyimplantedactivemiddleearimplantswillbecomeeffectiveinJuly2025,creatingnewreimbursementopportunitiesforEnvoyMedical′sEsteemdevice[5][19]BalanceSheetHighlights−AsofDecember31,2024,cashandcashequivalentswereapproximately6.8 million in 2024, mainly due to reduced professional service costs compared to 2023 [9][19] Clinical and Product Development - The company received FDA approval to initiate a staged pivotal clinical trial for the Acclaim cochlear implant, with six out of ten planned participants already enrolled [5][19] - Modifications to the Acclaim cochlear implant have shown promising results in reducing electrical system noise during early feasibility trials [5] - The Esteem implant is the only FDA-approved fully implanted hearing device for adults with moderate to severe sensorineural hearing loss, offering continuous hearing capability [12] Legislative and Market Opportunities - The Hearing Device Coverage Clarification Act aims to classify implanted active middle ear implants as prosthetics, potentially making them eligible for Medicare coverage [2][5] - New CPT codes for fully implanted active middle ear implants will become effective in July 2025, creating new reimbursement opportunities for Envoy Medical's Esteem device [5][19] Balance Sheet Highlights - As of December 31, 2024, cash and cash equivalents were approximately 5.5 million, an increase from 4.2millionin2023[9][17]−Totalassetsincreasedto4.2 million in 2023 [9][17] - Total assets increased to 11.5 million in 2024 from 8.3millionin2023,whiletotalliabilitiesrosesignificantlyto8.3 million in 2023, while total liabilities rose significantly to 30.4 million from 10million[17][18]LossandEarnings−ThenetlossfortheyearendedDecember31,2024,was10 million [17][18] Loss and Earnings - The net loss for the year ended December 31, 2024, was 20.8 million, an improvement from a net loss of 29.9millionin2023[19][21]−Thenetlossattributabletocommonstockholderswas29.9 million in 2023 [19][21] - The net loss attributable to common stockholders was 27.9 million, with a net loss per share of (1.49)comparedto(1.49) compared to (2.54) in 2023 [20][21]