Financial Data and Key Metrics Changes - Total revenue for Q2 2019 was $2.4 million, down $1.4 million or 37% from $3.8 million in Q2 2018 [9] - Net loss for the quarter was $3.4 million compared to a net income of $600,000 in Q2 2018 [16] - Gross profit was negative $789,000 due to a $1.9 million inventory impairment charge, while adjusted gross profit was $1.1 million, representing a margin rate of approximately 47% [12] Business Line Data and Key Metrics Changes - Quell revenue was $800,000, down $1.3 million from Q2 of last year, indicating a significant decline [9] - DPNCheck revenue was $1.2 million, roughly flat with the prior year, with strong sales in U.S. Medicare Advantage, up 33% year-on-year [11] - Legacy diagnostic revenue decreased to $300,000 from $400,000 in the prior year [12] Market Data and Key Metrics Changes - Sales in Japan were even with Q2 of last year, while the Mexico business did not contribute revenue due to economic issues [11] - DPNCheck has no direct competition and is growing in established markets, including U.S. Medicare Advantage and Japan [26] Company Strategy and Development Direction - The company is reassessing its approach to commercializing the Quell technology, focusing on cost-effective digital marketing and exploring potential clinical applications [20][22] - A business restructuring was initiated to lower operating costs, including a reduction in workforce by over 50% [6] - The company is exploring options to monetize the DPNCheck business and has retained investment bankers to solicit interest [5][27] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment that the overall business has not progressed as hoped but remains optimistic about the company's value [18] - The company is working through an FTC matter related to Quell advertising, with expectations of a material monetary element in a resolution [25] - The company is exploring various strategic options, including potential mergers, to enhance shareholder value [28] Other Important Information - The total business restructuring charge booked in Q2 was $2.3 million, including severance costs of $225,000 [8][13] - The cash balance at the end of the quarter was $4.96 million, with a simple equity-only and debt-free capital structure [16] Q&A Session Summary - No questions were recorded during the Q&A session, and the call concluded without further inquiries [30][34]
NeuroMetrix(NURO) - 2019 Q2 - Earnings Call Transcript