electroCore Announces Fourth Quarter and Full Year 2019 Financial Results
Continued growth in
Company to host conference call and webcast today,
Fourth Quarter 2019 and Recent Highlights
- Net sales of approximately
$675,000compared to $368,000in the fourth quarter of 2018 and relatively unchanged compared to the third quarter of 2019.
- Net sales of
$2,390,000for the Full Year 2019; a 141% increase from $993,000in 2018.
- 829 Paid Months of Therapy shipped to
VAand DODfacilities during the fourth quarter 2019 as compared to 553 months of paid therapy shipped to VAand DODfacilities during the third quarter and 233 Paid Months of Therapy during the second quarter.
- 961 Paid Months of Therapy shipped in the
United Kingdomduring the fourth quarter 2019 as compared to 828 Paid Months of Therapy in the United Kingdomduring the third quarter and 567 months of paid therapy during the second quarter.
“During the fourth quarter, we continued to improve upon our key metrics, including revenue and total paid prescriptions, demonstrating that our sharpened commercial growth strategy is working,” stated
“We are pursuing these opportunities, mindful that we need to do so as efficiently as possible. In support of this goal, we continue to reduce operating expenses including dramatic changes to our Partners in Coverage and Co-Pay support programs and the suspension of enrollment in our PREMIUM 2 clinical trial for migraine prevention. We remain acutely focused on mining existing revenue channels while at the same time implementing operational efficiencies that maximize our cash runway.
“The COVID-19 pandemic has affected our access to prescribing physicians and their access to headache patients in recent weeks. We are suspending revenue guidance until we better understand the trajectory of our business through these difficult times.”
Fourth Quarter and Full Year 2019 Financial Results
For the quarter ended
Paid Months of Therapy shipped to the
Paid Months of Therapy shipped in the
Revenues in 2019 increased to
Total operating expenses for fourth quarter of 2019 were approximately
GAAP net loss from operations for the fourth quarter of 2019 was
Adjusted EBITDA from operations for the fourth quarter of 2019 was a loss of
The Company defines adjusted EBITDA from operations as GAAP net loss from operations, excluding income tax expense, stock-compensation expense, restructuring and other severance related charges, legal fees associated with stockholders litigation and total other income /expense. A reconciliation of GAAP net loss from operations to Non-GAAP adjusted EBITDA from operations has been provided in the financial statement tables included in this press release.
Cash and cash equivalents and marketable securities at
The company’s expected cash requirements for 2020 and beyond are based on the commercialization success of its products and its ability to reduce operating expenses. There are significant risks and uncertainties as to the company’s ability to achieve these operating results, including as a result of the potential adverse impact on its business from the COVID-19 pandemic. Due to these risks and uncertainties, the company may need to reduce activities significantly more than its current operating plan and cash flow projections assume in order to fund operations to the end of 2020.
Webcast and Conference Call Information
electroCore’s management team will host a conference call today
An archived webcast of the event will be available on the “Investors” section of the Company’s website at: www.electrocore.com.
About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine company dedicated to improving patient outcomes through its platform non-invasive vagus nerve stimulation therapy initially focused on the treatment of multiple conditions in neurology and rheumatology. The company’s current indications are for the preventative treatment of cluster headache and acute treatment of migraine and episodic cluster headache.
For more information, visit www.electrocore.com.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about electroCore's business prospects and product development plans, its expected net cash usage and cash burn rates and liquidity outlook, pipeline or potential markets for its technologies, and other statements that are not historical in nature, particularly those that utilize terminology such as "anticipates," "will," "expects," "believes," "intends," other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore™, competition in the industry in which electroCore operates and overall market conditions. Any forward-looking statements are made as of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents that electroCore files with the
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
|Consolidated statements of operations:|
|Cost of goods sold||391||192||1,157||579|
|Research and development||1,623||3,460||9,902||12,466|
|Selling, general and administrative||7,267||12,397||35,422||42,502|
|Restructuring and other severance related charges||-||-||1,997||-|
|Total operating expenses||8,890||15,857||47,322||54,968|
|Loss from operations||(8,606||)||(15,681||)||(46,089||)||(54,554||)|
|Change in fair value of warrant liability||-||-||-||1,871|
|Interest and other income, net||(121||)||(427||)||(971||)||(1,006||)|
|Total other (income)/expense||(125||)||(346||)||(958||)||1,210|
|Loss before income taxes||(8,481||)||(15,335||)||(45,130||)||(55,764||)|
|Provision for income taxes||18||-||18||2|
|Net loss from operations||(8,498||)||(15,335||)||(45,148||)||(55,766||)|
|Less: Net income attributable to noncontrolling interest||-||-||-||55|
|Total net loss attributable to Electrocore LLC and electroCore, Inc., subsidiaries and affiliates||$||(8,498||)||$||(15,335||)||$||(45,148||)||$||(55,821||)|
|Net loss attributable to
|Net loss attributable to electroCore, Inc., subsidiaries and affiliate||(8,498||)||(15,335||)||(45,148||)||(34,702||)|
|Weighted average shares of common shares outstanding - Basic and Diluted||29,561,345||29,261,943||29,379,975||29,261,943|
|Net loss per common stock - Basic and Diluted||$||(0.29||)||$||(0.52||)||$||(1.54||)||$||(1.19||)|
Condensed Consolidated Balance Sheet Information
|Cash and cash equivalents||$||13,564||$||7,600|
(Unaudited) Use of Non-GAAP Financial Measure
The Company is presenting adjusted EBIDTA from operations because it believes this measure is a useful indicator of its operating performance. electroCore management uses this non-GAAP measure principally as a measure of the Company’s core operating performance and believes that this measure is useful to investors because it is frequently used by the financial community, investors, and other interested parties to evaluate companies in the Company’s industry. The Company also believes that this measure is useful to its management and investors as a measure of comparative operating performance from period to period. Additionally, the Company believes its use of non-GAAP adjusted EBITDA from operations facilitates management’s internal comparisons to historical operating results by factoring out potential differences caused by charges not related to its regular, ongoing business, including, without limitation, non-cash charges and certain large and unpredictable charges such as restructuring expenses.
The Company has presented adjusted EBITDA from operations as a non-GAAP financial measure in this press release. The Company defines adjusted EBITDA as its reported GAAP net loss from operations excluding income tax expense, depreciation and amortization, stock-based compensation, restructuring and other severance related charges, legal fees associated with stockholders litigation and total other income /expense and other income and expense.
|Reconciliation of GAAP results to Non-GAAP results from operations
|Three months ended||Year ended|
|GAAP net loss from operations||$||(8,498||)||$||(15,336||)||$||(45,148||)||$||(55,766||)|
|Provision for income taxes||$||18||$||-||$||18||$||2|
|Depreciation and amortization||$||97||$||25||$||250||$||67|
|Restructuring and other severance related charges||$||-||$||-||$||1,997||$||-|
|Legal fees associated with stockholders litigation||$||641||$||-||$||963||$||-|
|Total other (income)/expense||$||(125||)||$||(345||)||$||(958||)||$||1,210|
|Adjusted EBIDTA net loss from operations||$||(6,662||)||$||(14,515||)||$||(38,983||)||$||(46,887||)|
The Company’s use of a non-GAAP measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of its results as reported under GAAP. Some of these limitations are: the non-GAAP measure does not reflect interest or tax payments that may represent a reduction in cash available; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and the non-GAAP measure does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; the non-GAAP measure does not reflect the potentially dilutive impact of equity-based compensation; and the non-GAAP measure does not reflect changes in, or cash requirements for, working capital needs; other companies, including companies in electroCore’s industry, may calculate adjusted EBITDA net loss from operations differently, which reduces its usefulness as a comparative measure.
Because of these and other limitations, you should consider the non-GAAP measure together with other GAAP-based financial performance measures, including various cash flow metrics, net loss and other GAAP results. A reconciliation of GAAP net loss from operations to non-GAAP adjusted EBITDA net loss from operations has been provided in the preceding financial statement table of this press release.