electroCore Announces Third Quarter 2021 Financial Results
Third quarter 2021 revenue grew 17% sequentially and 38% over third quarter 2020
Company to host a conference call and webcast today,
Third Quarter 2021 and Recent Highlights
- Revenue of
$1.5 million, representing an increase of 17% sequentially and 38% over third quarter 2020
- Gross margin expanded to 76%
- Net cash used to fund operations was
$3.4 million, leaving approximately $39.0 millionof cash, cash equivalents, and marketable securities at September 30, 2021
Third Quarter 2021 Financial Results
For the quarter ended
Revenue from the
Revenue from outside
Gross profit for the third quarter of 2021 was
Total operating expenses in the third quarter of 2021 were approximately
Research and development expense in the third quarter of 2021 was
Selling, general and administrative expense in the third quarter of 2021 was
GAAP net loss in the third quarter of 2021 was
Adjusted EBITDA net loss in the third quarter of 2021 was
The company defines adjusted EBITDA net loss as GAAP net loss, excluding depreciation and amortization, stock-compensation expense, restructuring and other severance related charges, legal fees associated with stockholders’ litigation, total other income/expense, extinguishment of debt, and provision/ benefit from income taxes. A reconciliation of GAAP net loss to Non-GAAP adjusted EBITDA net loss has been provided in the financial statement tables included in this press release.
Net cash used in operating activities during the quarter ended
Cash, cash equivalents and marketable securities at
Webcast and Conference Call Information
electroCore’s management team will host a conference call today,
Investors interested in listening to the conference call, or webcast may do so by dialing 877-269-7756 (Toll Free) or 201-689-7817 (Toll), or by connecting to the Web: electroCore 3Q21 Earnings Webcast
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 non-invasive vagus nerve stimulation therapy platform, initially focused on the treatment of multiple conditions in neurology. The company's current indications are the preventive treatment of cluster headache and migraine, the acute treatment of migraine and episodic cluster headache, the acute and preventive treatment of migraines in adolescents, and paroxysmal hemicrania and hemicrania continua in adults.
For more information, visit www.electrocore.com.
gammaCoreTM (nVNS) is the first non-invasive, hand-held medical therapy applied at the neck as an adjunctive therapy to treat migraine and cluster headache through the utilization of a mild electrical stimulation to the vagus nerve that passes through the skin. Designed as a portable, easy-to-use technology, gammaCore can be self-administered by patients, as needed, without the potential side effects associated with commonly prescribed drugs. When placed on a patient’s neck over the vagus nerve, gammaCore stimulates the nerve’s afferent fibers, which may lead to a reduction of pain in patients.
gammaCore (nVNS) is FDA cleared in
gammaCore is contraindicated for patients if they:
- Have an active implantable medical device, such as a pacemaker, hearing aid implant, or any implanted electronic device
- Have a metallic device, such as a stent, bone plate, or bone screw, implanted at or near the neck
- Are using another device at the same time (e.g., TENS Unit, muscle stimulator) or any portable electronic device (e.g., mobile phone)
Safety and efficacy of gammaCore have not been evaluated in the following patients:
- Adolescent patients with congenital cardiac issues
- Patients diagnosed with narrowing of the arteries (carotid atherosclerosis)
- Patients who have had surgery to cut the vagus nerve in the neck (cervical vagotomy)
- Pediatric patients (less than 12 years)
- Pregnant women
- Patients with clinically significant hypertension, hypotension, bradycardia, or tachycardia
Please refer to the gammaCore Instructions for Use for all of the important warnings and precautions before using or prescribing this product.
gammaCore Sapphire CV has been authorized only for the duration of the statement that circumstances exist that warrant authorization of the emergency use of medical devices under section 564(b)(1) of the Act, 21 U.S.C. § 360bbbb-3(b)(1), until the authorization is terminated or revoked.
More information can be found at:
Letter of authorization: https://www.fda.gov/media/139967/download
Fact sheet for healthcare workers: https://www.fda.gov/media/139968/download
Patient information sheet: https://www.fda.gov/media/139969/download
Instructions for use of gammaCore: https://www.fda.gov/media/139970/download
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 expectations for revenue and cash used in operations during the third quarter of 2021, its expectations for future performance, as well as electroCore's business prospects and clinical and product development plans for 2021 and beyond, its pipeline or potential markets for its technologies, additional indications for gammaCore, the timing, outcome and impact of regulatory, clinical and commercial developments (including human trials for the study of headache, PTH, mTBI, Parkinson’s diseases and sleep deprivation stress and the business, operating or financial impact of such studies), further international expansion, and statements about anticipated distribution arrangements, government and payor funding arrangements (including those relating to
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
|Three months||Nine months|
|Cost of goods sold||355.0||347.5||1,093.3||918.6|
|Research and development||470.3||629.1||1,794.1||3,182.7|
|Selling, general and administrative||4,646.8||4,592.9||15,644.3||16,427.0|
|Restructuring and other severance related charges||-||-||-||464.6|
|Total operating expenses||5,117.1||5,222.0||17,438.4||20,074.3|
|Loss from operations||(3,985.0||)||(4,488.6||)||(14,571.3||)||(18,425.3||)|
|Other (income) expense|
|Gain on extinguishment of debt||-||-||(1,422.2||)||-|
|Interest and other income||(3.8||)||(5.8||)||(8.4||)||(80.5||)|
|Total other (income) expense||-||(2.2||)||(1,423.3||)||(67.1||)|
|Loss before income taxes||(3,985.0||)||(4,486.4||)||(13,148.0||)||(18,358.2||)|
|(Provision) benefit from income taxes||(8.7||)||-||876.7||1,170.9|
|Net loss per share of common stock - Basic and Diluted||$||(0.06||)||$||(0.10||)||$||(0.22||)||$||(0.47||)|
|Weighted average number of common shares outstanding - Basic and Diluted||69,511,498||44,030,685||55,308,381||36,847,548|
Condensed Consolidated Balance Sheet Information
|Cash and cash equivalents||$||37,995.0||$||4,241.9|
(Unaudited) Use of Non-GAAP Financial Measure
The company is presenting adjusted EBITDA net loss because it believes this measure is a useful indicator of its operating performance. electroCore management uses this non-GAAP measure principally as a measure of the company’s core operating performance and believes that this measure is useful to investors because it is frequently used by the financial community, investors, and other interested parties to evaluate companies in the company’s industry. The company also believes that this measure is useful to its management and investors as a measure of comparative operating performance from period to period. Additionally, the company believes its use of non-GAAP adjusted EBITDA net loss from operations facilitates management’s internal comparisons to historical operating results by factoring out potential differences caused by charges not related to its regular, ongoing business, including, without limitation, non-cash charges and certain large and unpredictable charges such as restructuring expenses.
The company defines adjusted EBITDA net loss as GAAP net loss, excluding depreciation and amortization, stock-compensation expense, restructuring and other severance related charges, legal fees associated with stockholders’ litigation, total other income/expense, extinguishment of debt, and provision / benefit from income taxes. A reconciliation of GAAP net loss to Non-GAAP adjusted EBITDA net loss has been provided in the financial statement tables included in this press release.
|Three months ended||Nine months ended|
|(in thousands)||(in thousands)|
|GAAP net loss||$||(3,993.7||)||$||(4,486.4||)||$||(12,271.3||)||$||(17,187.3||)|
|Depreciation and amortization||286.4||288.6||286.4||288.6|
|Restructuring and other severance related charges||-||464.6||-||464.6|
|Legal fees associated with stockholders litigation||394.8||371.0||394.8||1,104.7|
|Interest and other (income) expense||-||(2.2||)||(1.1||)||(67.1||)|
|Provision (benefit) from income taxes||8.7||-||(876.7||)||(1,170.9||)|
|Gain on extinguishment of debt||-||-||(1,422.2||)||-|
|Adjusted EBITDA net loss||$||(763.2||)||$||(873.9||)||$||(11,349.5||)||$||(14,076.8||)|
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 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 to non-GAAP adjusted EBITDA net loss has been provided in the preceding financial statements table of this press release.