Fourth Quarter 2024 Results for the Three Months Ended
- a
$0.6 million reduction in the 2024 bonus accrual that the Company assumed in connection with its acquisition of Greenbrook, resulting in an increase in the Company’s operating expenses from$25.8 million , as reported in the Initial Release, to$26.4 million under applicable purchasing accounting principles; - an increase in the net loss and net loss per share from
$(12.2) million and$(0.33) , respectively, as reported in the Initial Release, to$(12.7) million and$(0.34) , respectively; and - a decrease in the adjusted EBITDA from
$0.1 million , as reported in the Initial Release, to$(0.4) million .
Full Year 2024 Results
- a
$0.6 million reduction in the 2024 bonus accrual that the Company assumed in connection with its acquisition of Greenbrook, resulting in an increase in the Company’s Operating Expenses from$88.2 million , as reported in the Initial Release, to$88.7 million under applicable purchasing accounting principles; - an increase in the net loss and net loss per share from
$(43.2) million and$(1.37) , respectively, as reported in the Initial Release, to$(43.7) million and$(1.38) , respectively; and - a decrease in the adjusted EBITDA from
$(21.3) million , as reported in the Initial Release, to$(21.8) million .
The updated consolidated financial statements for the year and three months ending
About
NeuroStar Therapy is indicated for the treatment of depressive episodes and for decreasing anxiety symptoms for those who may exhibit comorbid anxiety symptoms in adult patients suffering from MDD and who failed to achieve satisfactory improvement from previous antidepressant medication treatment in the current episode. It is also cleared by the
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995:
Certain statements in this press release, including the documents incorporated by reference herein, include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and “forward-looking information” within the meaning of applicable Canadian securities laws. Statements in this press release that are not historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as “outlook,” “potential,” “believe,” “expect,” “plan,” “anticipate,” “predict,” “may,” “will,” “could,” “would” and “should” as well as the negative of these terms and similar expressions. These statements are subject to significant risks and uncertainties and actual results could differ materially from those projected. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. These risks and uncertainties include, without limitation, risks and uncertainties related to: the effect of the transaction with Greenbrook, on the Company’s business relationships, operating results and business generally; the Company’s ability to execute its business strategy; the Company’s ability to achieve or sustain profitable operations due to its history of losses; the Company’s ability to successfully complete the announced restructuring plans; the Company’s reliance on the sale and use of the NeuroStar System to generate revenues; the scale and efficacy of the Company’s salesforce; the Company’s ability to retain talent; availability of coverage and reimbursement from third-party payors for treatments using the Company’s products; physician and patient demand for treatments using the Company’s products; developments in competing technologies and therapies for the indications that the Company’s products treat; product defects; the Company’s revenue concentration among a small number of customers; the Company’s ability to obtain and maintain intellectual property protection for its technology; developments in clinical trials or regulatory review of the NeuroStar System for additional indications; developments in regulation in the
Investor Contact:
443-213-0499
ir@neuronetics.com
Media Contact:
EvolveMKD
646-517-4220
NeuroStar@evolvemkd.com
| NEURONETICS, INC. | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited; In thousands, except per share data) | ||||||||||||||||
| Three Months ended | Year ended | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 22,493 | $ | 20,314 | $ | 74,890 | $ | 71,348 | ||||||||
| Cost of revenues | 7,600 | 4,543 | 20,729 | 19,643 | ||||||||||||
| Gross profit | 14,893 | 15,771 | 54,161 | 51,705 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 9,811 | 11,716 | 45,631 | 47,318 | ||||||||||||
| General and administrative | 10,782 | 6,276 | 30,322 | 25,426 | ||||||||||||
| Research and development | 5,772 | 2,206 | 12,771 | 9,515 | ||||||||||||
| Total operating expenses | 26,365 | 20,198 | 88,724 | 82,259 | ||||||||||||
| Loss from operations | (11,472) | (4,427) | (34,563) | (30,554) | ||||||||||||
| Other (income) expense: | ||||||||||||||||
| Interest expense | 1,757 | 1,843 | 7,286 | 5,424 | ||||||||||||
| Loss on extinguishment of debt | — | — | 4,427 | — | ||||||||||||
| Other income, net | (548) | (893) | (2,549) | (5,789) | ||||||||||||
| Net loss | $ | (12,681) | $ | (5,377) | $ | (43,727) | $ | (30,189) | ||||||||
| Non-controlling interest | 19 | — | 19 | — | ||||||||||||
| Net loss attributable to | (12,662) | (5,377) | (43,708) | (30,189) | ||||||||||||
| Net loss per share of common stock outstanding, basic and diluted attributable to | $ | (0.34) | $ | (0.19) | $ | (1.38) | $ | (1.05) | ||||||||
| Weighted average common shares outstanding, basic and diluted | 36,855 | 29,048 | 31,734 | 28,658 | ||||||||||||
| NEURONETICS, INC. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Unaudited; In thousands, except per share data) | ||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 18,459 | $ | 59,677 | ||||
| Restricted cash | 1,000 | — | ||||||
| Accounts receivable, net of allowance of credit losses of | 23,355 | 15,782 | ||||||
| Inventory | 4,248 | 8,093 | ||||||
| Current portion of net investments in sales-type leases | 206 | 905 | ||||||
| Current portion of prepaid commission expense | 3,078 | 2,514 | ||||||
| Current portion of note receivables | 930 | 2,056 | ||||||
| Prepaid expenses and other current assets | 6,846 | 4,766 | ||||||
| Total current assets | 58,122 | 93,793 | ||||||
| Property and equipment, net | 6,242 | 2,009 | ||||||
| 18,634 | — | |||||||
| Identified Intangibles, net | 19,606 | — | ||||||
| Operating lease right-of-use assets | 27,093 | 2,773 | ||||||
| Net investments in sales-type leases | 86 | 661 | ||||||
| Prepaid commission expense | 8,902 | 8,370 | ||||||
| Long-term notes receivable | 295 | 3,795 | ||||||
| Other assets | 1,923 | 4,430 | ||||||
| Total assets | $ | 140,903 | $ | 115,831 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 11,077 | $ | 4,752 | ||||
| Accrued expenses | 12,818 | 12,595 | ||||||
| Deferred revenue | 974 | 1,620 | ||||||
| Deferred and contingent consideration | 1,000 | — | ||||||
| Other payables | 605 | — | ||||||
| Current portion of operating lease liabilities | 4,791 | 845 | ||||||
| Total current liabilities | 31,265 | 19,812 | ||||||
| Long-term debt, net | 55,151 | 59,283 | ||||||
| Deferred revenue | 2 | 200 | ||||||
| Operating lease liabilities | 22,686 | 2,346 | ||||||
| Total liabilities | 109,104 | 81,641 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 557 | 291 | ||||||
| Additional paid-in capital | 446,938 | 409,980 | ||||||
| Accumulated deficit | (419,789) | (376,081) | ||||||
| Total Stockholders’ equity | 27,706 | 34,190 | ||||||
| Non-controlling interest | 4,093 | — | ||||||
| Total equity | 31,799 | 34,190 | ||||||
| Total liabilities and Stockholders’ equity | $ | 140,903 | $ | 115,831 | ||||
| NEURONETICS, INC. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (Unaudited; In thousands) | ||||||||
| Year ended | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from Operating activities: | ||||||||
| Net loss | $ | (43,727) | $ | (30,189) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 2,073 | 2,006 | ||||||
| 3,956 | — | |||||||
| Allowance for credit losses | 2,055 | 390 | ||||||
| Inventory impairment | 626 | 1,905 | ||||||
| Share-based compensation | 5,602 | 7,319 | ||||||
| Non-cash interest expense | 771 | 634 | ||||||
| Loss on extinguishment of debt | 4,427 | — | ||||||
| Loss on disposal of property and equipment | 28 | — | ||||||
| Changes in certain assets and liabilities: | ||||||||
| Accounts receivable, net | (3,727) | (8,831) | ||||||
| Inventory | 3,150 | (1,098) | ||||||
| Net investment in sales-type leases | 997 | 1,193 | ||||||
| Prepaid commission expense | (1,096) | (1,319) | ||||||
| Prepaid expenses and other assets | (1,155) | (2,845) | ||||||
| Accounts payable | (1,985) | 2,029 | ||||||
| Accrued expenses | (2,083) | (2,243) | ||||||
| Other Liabilities | (66) | — | ||||||
| Deferred revenue | (843) | (989) | ||||||
| (30,997) | (32,038) | |||||||
| Cash flows from Investing activities: | ||||||||
| Purchases of property and equipment and capitalized software | (1,466) | (2,369) | ||||||
| Fees paid on acquisition, net of cash acquired | (2,553) | — | ||||||
| Repayment of notes receivable | 1,606 | 1,047 | ||||||
| (2,413) | (1,322) | |||||||
| Cash flows from Financing activities: | ||||||||
| Payments of debt issuance costs | (2,624) | (1,104) | ||||||
| Proceeds from issuance of long-term debt | 57,479 | 25,000 | ||||||
| Proceeds from issuance of warrants | 2,521 | — | ||||||
| Repayment of long-term debt | (60,000) | (1,200) | ||||||
| Payment for debt extinguishment cost | (4,185) | — | ||||||
| Proceeds from exercises of stock options | 1 | 1 | ||||||
| (6,808) | 22,697 | |||||||
| Net decrease in Cash, Cash equivalents and Restricted cash | (40,218) | (10,663) | ||||||
| Cash and Cash equivalents, Beginning of Period | 59,677 | 70,340 | ||||||
| Cash, Cash equivalents and restricted cash, End of Period | $ | 19,459 | $ | 59,677 | ||||
Non-GAAP Financial Measures (Unaudited)
EBITDA and adjusted EBITDA are not measures of financial performance under generally accepted accounting principles in the
The following table reconciles reported net loss to EBITDA and adjusted EBITDA:
| Three Months ended | Year ended | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||
| Net loss | $ | (12,681) | $ | (5,377) | $ | (43,727) | $ | (30,189) | ||||||||
| Interest expense, net | 1,209 | 1,843 | 4,737 | 5,424 | ||||||||||||
| Income taxes | — | — | — | — | ||||||||||||
| Depreciation and amortization | 442 | 503 | 2,152 | 2,006 | ||||||||||||
| EBITDA | $ | (11,030) | $ | (3,031) | $ | (36,838) | $ | (22,759) | ||||||||
| Acquisition related expense (Note 1) | 6,584 | — | 6,584 | — | ||||||||||||
| Software impairment (Note 2) | 4,031 | — | 4,034 | — | ||||||||||||
| Loss on extinguishment of debt (Note 3) | — | — | 4,427 | — | ||||||||||||
| Inventory impairment on circuit boards (Note 4) | — | — | — | 1,747 | ||||||||||||
| Adjusted EBITDA | $ | (415) | $ | (3,031) | $ | (21,793) | $ | (21,012) | ||||||||
- In connection with the acquisition of Greenbrook, the Company incurred acquisition related expenses totaling approximately
$6.6 million which were non-recurring and infrequent in nature. These expenses are removed from EBITDA in order to provide a more accurate depiction of the Company’s core operational performance for the period presented. - During the quarter ended
December 31, 2024 , following a change in strategy, the Company halted development on a certain product release resulting in a software impairment charge of approximately$4.0 million . This expense, which is infrequent and non-recurring in nature, is removed from EBITDA in order to provide a more accurate depiction of the Company’s core operational performance for the period presented. - In connection with its
$60 million debt refinance in the third quarter of 2024 from SLR Investment Corp. toPerceptive Credit Holdings IV, LP , the Company recorded a loss on extinguishment of approximately$4.4 million . This infrequent and non-recurring expense is removed from EBITDA in order to provide a more accurate reflection of the Company’s core operational performance for the period presented. - Due in part to a change in strategy, in 2023, the Company recorded an inventory impairment charge related to circuit boards totaling
$1.7 million . This infrequent and non-recurring expense is removed from EBITDA in order to provide a more accurate reflection of the Company’s core operational performance for the period presented.
2025 GlobeNewswire, Inc., source
