Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $2.1 million, a slight increase of 1% from Q3 2020 [7] - Gross profit was $1.4 million, with a gross profit margin of 70%, down from 73.6% in Q3 2020, attributed to unfavorable purchase price variances due to global parts shortages [8] - Net loss for the quarter was $687,000, compared to a net loss of $257,000 in Q3 2020, reflecting margin contraction and increased operating expenses [10] - Operating expenses totaled $2.1 million, an increase of $376,000 from Q3 2020 [9] - Cash on hand at the end of the quarter was $23.2 million, with stockholders' equity of $24.2 million [11] Business Line Data and Key Metrics Changes - DPNCheck, the diagnostic for peripheral neuropathy, contributed the majority of sales and grew 7% year-on-year, primarily in the US Medicare Advantage market [7] - Sales of ADVANCE electrodes showed slight year-on-year growth, while Quell revenue declined due to reduced promotional spending [7] Market Data and Key Metrics Changes - DPNCheck saw growth in Asia, particularly in Japan and China, in consumables biosensors [7] - The company is focusing on expanding DPNCheck in Medicare Advantage and other value-based markets [16] Company Strategy and Development Direction - The company plans to launch a second-generation DPNCheck device in the US in Q1 2022, which is expected to enhance adoption in Medicare Advantage [15] - The Quell platform is expanding into prescription treatments for specific pain syndromes, with a focus on fibromyalgia, for which the company received FDA breakthrough designation [17] - The company is also involved in a trial for Quell in patients with chemotherapy-induced peripheral neuropathy (CIPN), with results expected in the second half of next year [18] Management's Comments on Operating Environment and Future Outlook - Management highlighted challenges in sourcing critical parts and components, with no expected resolution in the near term, leading to anticipated further margin contraction [8] - The company has completed a recapitalization process and now has adequate capital to invest in new opportunities [12][13] Other Important Information - The company announced the addition of Su Bell to the management team to enhance growth in DPNCheck within value-based care markets [16] - The company is debt-free and has a clean capital structure, focusing on operational efficiency and novel product development [12][19] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with management expressing appreciation for participation and anticipation for future updates [21][22]
NeuroMetrix(NURO) - 2021 Q3 - Earnings Call Transcript