Neuronetics : STIM Corporate Presentation August 2020

Neuronetics, Inc.

NASDAQ: STIM

Company Presentation

August 2020

Disclaimers

This presentation contains estimates and other statistical data prepared by independent parties and by Neuronetics, Inc. (the "Company") relating to market size and growth and other data about the industry in which the Company operates. These estimates and data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates and data.

Certain statements in this presentation and the accompanying oral commentary are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including statements relating to the Company's business strategy and financial metrics as well as revenue, operating expense and earnings guidance and projections for future periods, relate to future events or the future financial performance of the Company and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or other comparable terminology, as well as the negative of such statements. All statements other than statements of historical fact may be deemed to be forward-looking statements, including those concerning any expectations regarding investment returns; any projections of financial information; any statements about historical results that may suggest trends for our business; any statements of the plans, strategies, and objectives of management for future operations; any statements of expectation or belief regarding future events, potential markets or market size, additional indications or technology developments; developments in clinical trials or regulatory review of NeuroStar Advanced Therapy System for additional indications; and any statements of assumptions underlying any of the items mentioned. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. These and other important factors may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. The forward-looking statements in this presentation are made only as of the date hereof. Except as required by law, the Company assumes no obligation and does not intend to update these forward-looking statements or to conform these statements to actual results or to changes in the Company's expectations, assumptions, estimates and projections.

2

Presenters

3

Neuronetics Snapshot

• NeuroStar Advanced Therapy - Transcranial Magnetic Stimulation (TMS)
• • Focused on psychiatric indications
  • Current Indication:
    Major Depressive Disorder (MDD) in adults failed to receive satisfactory improvement from prior antidepressant medication in the
    current episode
  • Safe, effective and non-invasiveoffice-based treatment
  • FDA cleared 2008
  • CE mark (2012) and approved in Japan in September 2017. Reimbursement in Japan acquired in June 2019

4

Investment Highlights

Clinically Relevant and Differentiated Outcomes for Patients with MDD Category Leading Clinical Study Compendium

Large Direct Sales and Customer Support Team - Difficult to Replicate

Broad US Reimbursement

Favorable Psychiatrist Economics

$6.0B Targeted Annual TAM Among Psychiatrist Practices

Geographic and Potential New Indication Opportunities for Growth

Financial Profile: FY 2019 Revenue $62.7M 2019 year over year growth of 19% versus 2018. Q2 2020 Revenue $9.7M versus $16.6M in 2019. Q2 2020 Ending Cash Balance, $54.0M.

5

Major Depressive Disorder

Disease Overview

• Characterized by depressed mood or loss of interest in pleasure for at least two weeks
• Periods of remission and relapse over a lifetime
• 300 million people worldwide living with depression

•

•

13 million adults with MDD in the US

3.0% incidence rate

Disease Burden

• Economic burden in US of $210 billion annually

Medical Management

• First line treatment is antidepressants with or without psychotherapy
• • Care by PCP, followed by referral to psychiatrist after failed treatment attempt

MDD is a leading cause of disability and a major contributor to suicide worldwide *

*Source: https://www.who.int/news-room/fact-sheets/detail/depression

6

Transcranial Magnetic Stimulation

• TMS uses pulsed, MRI-strength magnetic field
• Induces electrical currents to stimulate specific areas of brain associated with mood
• Stimulation triggers a cascading electro-chemical effect
• Changes connections in brain structures to improve neuronal circuit activity and mood

Stimulates neurons in prefrontal cortex region of brain

Stimulated neurons release neurotransmitters

Effectiveness of TMS therapy depends on precise and targeted stimulation that is consistent and repeatable over treatment sessions

7

Limitations of Antidepressant Medications

			Limited Effectiveness
				STAR*D Study1
				Achieving Remission (HAMD 17)
	30%		27.5%
Patients	25%			21.2%
	20%				17.1%
	15%
	10%					6.9%
	5%
	0%
		First-Line	One-Prior	Two-Prior	Three-Prior
			Treatment	Treatment	Treatment	Treatment
			Effect	Failure	Failures	Failures
			(N=2,876)	(N=727)	(N=221)	(N=58)

• Approximately 28% and 21% of patients achieved remission in their first and second medication attempts, respectively
• Likelihood of remission was limited and

declined with each new medication attempt

Treatment-Emergent Side Effects

				STAR*D Study1
			Discontinuation Due to Side Effects
	50%
Patients					41.4%
40%				36.2%
30%			23.1%
	20%		8.6%
	10%
	0%
		First-Line	One-Prior	Two-Prior	Three-Prior
			Treatment	Treatment	Treatment	Treatment
			Effect	Failure	Failures	Failures
			(N=2,876)	(N=727)	(N=221)	(N=58)

• Likelihood of discontinuing treatment increased with each new medication attempt
• In the fourth treatment attempt, likelihood of dropping out of treatment had more than quadrupled
• Adverse events discontinuation rate in

monotherapy 9% to 41%

8			1. Trivedi MH, et al. (2006). Evaluation of Outcomes with Citalopram for Depression Using Measurement-Based Care in Sequenced
		Treatment Alternatives to Relative Depression ("STAR*D") Implications for Clinical Practice. Am J Psychiatry, 163(1):28-40.

Clinically Proven Solution

Acute Phase in Real-World Clinical Settings Study1		Long-term Durability in Real-World Clinical Settings Study2

			CGI-S Outcomes
	70%	58.0%	59.4%
	60%
Patients	50%	37.1%	39.9%
40%
	30%
	20%
	10%
	0%	Overall	Low
		(N=307)	Treatment
			Resistance
			(N=140)

Response		Remission

• 1 in 2 patients respond
• 1 in 3 patients achieve remission

56.8%

34.9%

High

Treatment

Resistance

(N=167)

CGI-S Outcomes

	70%					66.1%	68.1%	67.7%
	62.3%	62.3%
	60%									47.5%
Patients	50%	41.2%	43.2%	44.4%		45.1%
40%
	30%
	20%
	10%
	0%
	End of	3 Months	6 Months 9 Months	12 Months
		Acute
					(N=257)
					Response			Remission

• Long-termdurability has been demonstrated with

response and remission rates among users

Outcomes Registry

• World's largest registry of treatment resistant depression with over 9,300 enrolled patients, of those >5,500 evaluable patients, across >100 treatment facilities
• Remission rate of 33% and response rate of 62% for over 5,500 self-evaluating patients
• Remission rate of 52% and response rate of 73% for 1,800+ patients evaluated by clinician rating scale

9				1.	Carpenter L.L, et al. (2012) Depression and Anxiety, 29(7):587-596
			2.	Dunner, D.L., et al. (2014) The Journal of Clinical Psychiatry, 75(12):1394-1401

Clinically Proven Solution

Two Randomized Controlled Trials

• Sponsored largest RCT, sham-controlled TMS trial ever conducted
• • Enrolled 325 adult patients with treatment resistant MDD
  • • Primary Efficacy Endpoint: MADRS at 4 weeks (P=0.057); not achieved but clinically meaningful improvement demonstrated
    • Secondary Efficacy Endpoints Included: HAMD 17 at 4 and 6 weeks (P=0.006 and P=0.005, respectively); HAMD 24 at 4 and 6 weeks (P=0.012 and P=0.015, respectively)
  • Basis of initial 510(k) clearance in 2008 - failed oneprior antidepressant medication1
  • • All patients who failed one prior research- grade Rx (N=164; MADRS, P=0.0006)
• Second, industry-independent RCT, sham-controlled trial funded by the NIMH

Unmatched Body of TMS Clinical Data

12	>900	Resulting in
25
Studies	Patients
Publications

Safety Record

• > 3.2 million treatment sessions delivered globally
• > 89,000 patients treated
• Adverse events discontinuation rate ~5%3

• Enrolled 199 adult patients with treatment resistant MDD
• • Primary Efficacy Endpoint: Remission measured using HAMD 24 at up to 6 weeks (P=0.02)
• Basis of expanded labeling in 2014 - failed one or moreprior antidepressants2

			1.	O'Reardon, J.P., et al. (2007) Biological Psychiatry, 62(11):1208-1216
10			2.	George, M.S., et al. (2010) Archives of General Psychiatry, now published as JAMA Psychiatry, 67(5):507-516
			3.	In sham-controlled studies

MDD Patient Continuum of Care

Antidepressant

Next

Switch

Next

Next

Atypical

Next

•

Other SSRIs

Augmentation

Attempt

Attempt

Attempt

Antipsychotic

Attempt

•

or SNRIs

Strategies

Augmentation

First-generation

antidepressant

medications

Electroconvulsive AttemptNext

Vagus Nerve

Next

Next

Next

Therapy*

Stimulation

Attempt

Attempt

Attempt

First-Line

Treatment

Attempts AttemptNext

• SSRIs
• SNRIs

TMS	TMS**		Next
Non-invasive
	Attempt
Non-systemic

Psychotherapy

NeuroStar Advanced Therapy is indicated for treatment of MDD in adult patients who have failed to achieve satisfactory improvement from prior antidepressant medication in the current episode

• ECT may be used earlier in the patient continuum of care in patients experiencing catatonia, acute suicidal behaviors or psychotic symptoms
• TMS may be used at any point along the continuum of care following one or more failed treatment attempts

11

Our Solution: NeuroStar Advanced Therapy

NeuroStar Advanced Therapy System

Efficient

• Non-invasive and no anesthesia

• MT Assist

• Treatment time as low as 19 minutes

• TrakStar stores patient's treatment data

Therapy

• Psychiatrist establishes treatment dose and positioning in first session
• Five days a week for up to six weeks
• Trained member of office staff may administer subsequent treatment sessions under psychiatrist supervision

Precise

• Proprietary SenStar Connect contact sensing
• SenStar magnetic field detector
• Proprietary, laser-aligned,six-point coordinate system

12

Efficient, Specialty-Focused Commercialization Model

$6.0B US Addressable Market Opportunity*

	# of Psychiatrists	# of Sites	# of Patients Treated
Total	56,100	37,700	~7.6M Patients
Acute Care Community +	6,800	11,400	~2.2M Patients
Behavioral Health
Hospitals + Other Sites
Solo and Group Practice	49,300	26,300	~5.4M Patients
Sites

FAVORABLE CALL POINT DYNAMIC

Top 22% of practices	Estimated 1.6M
represent 60%	treatable patients
of the patient volume	$3.7B*
or ~3.3M patients

Current

BDM

Call Points

Remaining 78% of practices represent 40% of the patients volume or ~2.1M patients

Estimated 1.0M treatable patients

$2.3B*

"TMS-Only"

Providers

*Represents potential revenues from treatment sessions annually, based on expected revenues for a standard course of treatment

13

Payors and Reimbursement

Payor Coverage

• Estimated to cover 95% of total private payor covered lives in the US
• 95+ major US private insurers provide coverage policies
• • The top 25 US private insurers, including United/OPTUM, Anthem, Aetna, Cigna, HCSC, TRICARE and Humana, represent 205 million covered lives1 in excess of 200 million2
• 100% Medicare Coverage
• • 59.7 million covered lives2

Reimbursement

• Covers MT assist and treatment sessions

CPT Code Reimbursement

90867

MT Assist and Treatment Session

90868 Treatment Session

90869

Subsequent MT Assist and Treatment Session

1. As of March 15, 2018
2. As of April 1, 2019

14

Physician Practice Economics

Proven return on

investment for

psychiatrists

Potential to provide	Psychiatrist can
generate ~$7,500 to
meaningful
$10,000 of revenue
incremental income
per patient per
to psychiatrist
course of treatment
practice
on average

Can recoup capital

investment by

treating ~12 patients

NeuroStar Advanced Therapy has potential to enhance psychiatrist practice economics

15

Competitive Positioning

Publications from Registration Trials

Original Design Objective

3D Positioning &

Contact Sensing

Electronic Medical

Records (EMR)

Systems

Compatibility

12

Clinical





1

0

1

0

0

0

Clinical	Research/	Research/	Clinical	Neurosurgery	Clinical
Neurology	Neurology	Mapping

  WithAdditional 	Camera	
Based
Purchase

     

We believe the NeuroStar Advanced Therapy System is the most attractive TMS system on the

market

16

Barriers to Entry

Barriers to

Market Entry

Proprietary technology with a broad intellectual property portfolio

Large, direct sales force

Comprehensive customer support and practice development resources

Significant body of clinical data and key opinion leader support

Significant know how and capital required to replicate our infrastructure

A market leader in TMS therapy, first mover

17

Japan Growth Opportunity

• Primary international focus is on Japan
• Third largest healthcare spend globally
• Single payor healthcare system
• Shonin Approval: September 2017
• Exclusive distribution agreement with Teijin Pharma signed October 2017
• • Teijin to promote sales of systems and treatment sessions
  • Minimum purchase requirements
  • Milestone payments received in 2017, $2.8M
• Reimbursement listing effective June 2019
• • 2nd Milestone payment received in 2019, $0.7M
  • 158 hospitals qualified
  • Approved reimbursement amount is ¥12,000

Estimated TAM in Japan for

Treatment Sessions1

Adults Suffering from MDD

2.4 million2

Treated by a Psychiatrist

655,0002

Failed to achieve remission

475,0003

~$600 Million Addressable Market

Japan represents a large market opportunity

		1.	Assumes psychiatrist reimbursement levels per treatment course are similar to those in the U.S.
18			2.	Source: National Center for Biotechnology and Information
		3.	Estimate based on Star*D data and all of whom covered by Japan's single payor healthcare system

Intellectual Property

Patent Portfolio

• Largest of any TMS system provider
• Issued or allowed patents:
  39 US / 52 OUS
• Pending patent applications:
  6 US / 9 OUS

Key Portfolio Coverage Areas

• Contact Sensing
• • Multiple, US patent expires 2024-2027
• MT Assist
• • US patent expires 2024
• Iron Core Magnet
• • Multiple, US patents expire 2025-2027

The largest IP portfolio of all TMS competitors, protecting our technical advantage

and ensuring freedom to operate globally

19

Management and Board of Directors

		Management
	Keith Sullivan	President and CEO
	Steve Furlong	VP, CFO
	Daniel Guthrie	VP, CCO
	Greg Harper	VP, R&D, Operations and
		Product Development
	Andrew Macan	SVP, General Counsel,
		Chief Compliance Officer, and
		Corporate Secretary
	Anthony Pui	VP, International Commercial
		Development
	Yelena Tropsha	VP, Commercial Access

Board of Directors

John Bakewell	Former EVP and CFO, Wright
	Medical Group
Sheryl L. Conley	Former Global President and Chief
	Marketing Officer, Zimmer Holdings
Brian Farley	Chairman; Former CEO and
	Chairman, Entellus Medical
Wilfred Jaeger	Three Arch Partners
Glenn Muir	Former CFO, Hologic
Bruce J. Shook	Director, President and CEO, Intact
	Vascular and Vesper Medical
Keith Sullivan	President and CEO, Neuronetics,
	Inc.

20

Financial Overview

Annual Revenue

($ in millions)

Annual Revenue by Geography

$70.0

$62.7

$60.0		$1.9
	$52.8
$50.0
						$1.3
$40.4
$40.0
			$0.6

$30.0$60.8

$51.5

$20.0 $39.8

$10.0

$0.0

2017 2018 2019

US OUS

22

Annual Product Revenue (US)

$60.8

$60.0 $1.6

$51.5

$50.0			$1.6	+3%
$39.9
$40.0	+19%
	$1.4	$41.1
	$35.3
$30.0			+17%

$28.4 +24%

$20.0

$10.0		+44%		+23%
	$14.6	$18.0
	$10.1

$0.0 2017 2018 2019

NeuroStar Systems Treatment Sessions Other

Worldwide Quarterly Revenue ($ in millions)		$17.4
$18
								$16.6	$16.0
							$15.6
				$13.3	$13.7
						$12.7
			$12.1								$11.5
$12
$10.3	$10.5
		$10.2									$9.7
$7.5
$6
$0	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
Q1
2017	2017	2017	2017	2018	2018	2018	2018	2019	2019	2019	2019	2020	2020
			Q2 2020 Revenue $9.7M versus $16.6M in Q2 2019

23

Results of Operations

	Year Ended			Six Months Ended
	December 31,			June 30,
	2018	2019	2019	2020
($ in thousands)
Revenues	$52,776	$62,656	$29,300	$21,217
YOY Growth	31%	19%				-28%
Gross Profit	40,329	47,267	22,322	16,083
Gross Margin	76%	75%	76%	76%
Operating Expenses:
Sales and Marketing	38,264	42,993	21,115	18,874
% of Revenues	73%	69%	72%	89%
General and Administrative	13,667	17,457	8,860	9,298
% of Revenues	26%	28%	30%	44%
Research and Development	8,232	13,747	6,010	5,137
% of Revenues	16%	22%			21%	24%
Total Operating Expenses	60,163	74,197		35,985	33,309
Loss from Operations	($19,834)	($26,930)	($13,663) ($17,226)
% of Revenues	(38%)	(43%)	(47%)	(82%)

24

Financial Position

($ in thousands)	As of June 30, 2020
Cash and Cash Equivalents	$53,997
Other Assets	$25,997
Total Assets	$79,994
Current Debt, net	$34,373
Convertible Preferred Stock Warrant	$0
Liability
Convertible Preferred Stock	$0
Accumulated Deficit	($270,465)
Total Stockholders' Equity	$29,440

25

Supplemental Information

26

NeuroStar Unit Sales and Installed Base

Unit Sales		2018				2019				2020
Q1-18	Q2-18		Q3-18	Q4-18	Q1-19	Q2-19		Q3-19	Q4-19	Q1-20		Q2-20
Total NeuroStar Units (Capital Sales, Sales Type Leases, Operating Leases) (1)	30	47		48	65	43	61		68	78	38	35
YoY ∆	50%	62%		50%	55%	43%	30%		42%	20%	-12%	-43%
Beginning Active Installed Base
752	781		816	858	907	931		976	1,032	1,085	1,119
Ending Active Installed Base	781	816		858	907	931	976		1,032	1,085	1,119	1,122
YoY ∆	16%	18%		18%	21%	19%	20%		20%	25%	20%	15%
Net Active Installed Base Change
29	35		42	49	24	45		56	53	34	3
YoY ∆	21%	84%		20%	81%	-17%	29%		33%	8%	42%	-93%
Inactive Systems (Calculation) (2)	-1	-12		-6	-16	-19	-16		-12	-25	-4	-32
Inactive System Churn % (Calculation) (3)	-0.1%	-1.5%		-0.7%	-1.9%	-2.1%	-1.7%		-1.2%	-2.4%	-0.4%	-2.9%

1. = Includes all active systems placed during the period. In 2018, this included 15 operating leases: Q1-6, Q2- 4, Q3-1,Q4-4.
2. = Calculation: (Ending Installed Base - Beginning Installed Base) - Total NeuroStar Units
3. = Calculation: Inactive Systems / Ending of Prior Period Installed Base

27

NeuroStar Revenue

NeuroStar Revenue			2018				2019			2020
Q1-18	Q2-18		Q3-18	Q4-18	Q1-19	Q2-19		Q3-19	Q4-19	Q1-20		Q2-20
Total U.S. NeuroStar Revenue ($000s)	$2,373	$3,568	$3,908	$4,754	$3,350	$4,628	$4,616	$5,413	$2,594	$2,338
YoY ∆	80%	42%	38%	37%	41%	30%	18%	14%	-23%	-49%
U.S. NeuroStar Capital Revenue ($000s) (4)
$1,909	$3,268	$3,428	$4,338	$2,939	$4,034	$4,264	$4,959	$2,410	$2,224
YoY ∆	76%	65%	54%	47%	54%	23%	24%	14%	-18%	-45%
U.S. NeuroStar Operating Lease Revenue ($000s) (5)
$258	$181	$269	$231	$182	$187	$184	$177	$155	$114
YoY ∆	13%	-38%	-7%	-2%	-29%	3%	-31%	-24%	-15%	-39%
U.S. NeuroStar Other ($000s) (6)
$206	$120	$211	$185	$229	$407	$167	$278	$29	$0
YoY ∆	NM	-50%	-34%	-35%	11%	239%	-21%	50%	-87%	-100%

1. = Revenue includes NeuroStar System Capital Sales and Sales Type Leases
2. = Revenue derived from Operating Lease revenue amortization during the period
3. = Revenue derived from Treatment Coils in U.S.

28

NeuroStar Treatment Sessions

Treatment Session Sales			2018			2019				2020
Q1-18	Q2-18		Q3-18	Q4-18	Q1-19	Q2-19		Q3-19	Q4-19	Q1-20		Q2-20
Total Treatment Session Revenues ($000s)	$7,240	$8,920		$9,218	$9,909	$8,778	$10,847		$10,252	$11,243	$8,193		$6,547
YoY ∆	26%	21%	28%	23%	21%	22%		11%	13%	-7%	-40%
Active Installed Base (Ending of Prior Quarter)	752	781	816	858	907	931		976	1,032	1,085	1,119
Avg. Revenue per Active System ($000s) (8)	$9.6	$11.4	$11.3	$11.5	$9.7	$11.7		$10.5	$10.9	$7.6	$5.9
YoY ∆	8%	4%	8%	4%	1%	2%		-7%	-6%	-22%	-50%

(8) = Total Treatment Session Revenue / Active Installed Base (Ending of Prior Quarter)

29

Neuronetics, Inc. Supplemental Financial and Operating Information

			2018							2020	2020		2018			2019
Revenue ($ thousands)							2019
					Q1	Q2	Q3	Q4	Q1	Q2		FY			FY
Q1	Q2	Q3	Q4
NeuroStar Capital (1)	$1,909	$3,268	$3,428	$4,338		$2,939	$4,034	$4,264	$4,959	$2,410	$2,224		$12,942			$16,196
YoY Change	76%	65%	54%	47%		54%	23%	24%	14%	-18%	-45%		57%			25%
NeuroStar Operating Lease (2)	$258	$181	$269	$231		$182	$187	$184	$177	$155	$114		$939			$730
YoY Change	13%	-38%	-7%	-2%		-29%	3%	-31%	-24%	-15%	-39%		-10%			-22%
Other (3)	$206	$120	$211	$185		$229	$407	$167	$278	$29	$0		$722			$1,081
YoY Change	NM	-50%	-34%	-35%		11%	239%	-21%	50%	-87%	-100%		-15%			50%
										$2,594	$2,338		$14,603			$18,007
Total U.S. NeuroStar Advanced Therapy System Revenues	$2,373	$3,568	$3,908	$4,754	$3,350	$4,628	$4,616	$5,413
YoY Change	80%	42%	38%	37%		41%	30%	18%	14%	-23%	-49%		44%		23%
Total U.S. Treatment Sessions Revenues	$7,240	$8,920	$9,218	$9,909		$8,778	$10,847	$10,252	$11,243	$8,193	$6,547		$35,287			$41,120
YoY Change	26%	21%	28%	23%		21%	22%	11%	13%	-7%	-40%		24%		17%
Total U.S. Other Revenues	$359	$410	$392	$426		$418	$415	$426	$374	$390	$382		$1,587			$1,633
YoY Change	11%	25%	15%	21%		16%	1%	9%	-12%	-7%	-8%		19%		3%
Total U.S. Revenues	$9,972	$12,898	$13,518	$15,089		$12,546	$15,890	$15,294	$17,030	$11,177	$9,267		$51,477		$60,760
YoY Change	35%	26%	30%	27%		26%	23%	13%	13%	-11%	-42%		29%			18%
Total International Revenues	$180	$354	$219	$546		$182	$682	$706	$326	$299	$474		$1,299			$1,896
YoY Change	36%	325%	137%	100%		1%	93%	222%	-40%	64%	-30%		124%			46%
Total Revenues	$10,152	$13,252	$13,737	$15,635		$12,728	$16,572	$16,000	$17,356	$11,476	$9,741		$52,776			$62,656
YoY Change	35%	29%	31%	29%		25%	25%	16%	11%	-10%	-41%		31%			19%
Operating and Financial Metrics			2018					2019		2020	2020		2018			2019
Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4	Q1	Q2		FY			FY
Active Installed Base
Active Installed Base - Beginning of Period	752	781	816	858		907	931	976	1,032	1,085	1,119		752			907
Active Installed Base - End of Period	781	816	858	907		931	976	1,032	1,085	1,119	1,122		907			1,085
Total NeuroStar Systems Sold (4)	24	43	47	61		43	61	68	78	38	35		175			250
YoY Change	71%	72%	57%	53%		79%	42%	45%	28%	-12%	-43%		61%			43%
Average Revenue Per Active System ($) (5)	$9,627	$11,421	$11,297	$11,549		$9,678	$11,651	$10,504	$10,895	$7,552	$5,850		$46,924			$45,337
YoY Change	8%	4%	8%	4%		1%	2%	-7%	-6%	-22%	-50%		7%			-3%

1. = Revenue from Capital Sales and Sales Type Leases
2. = Revenue derived from Operating Lease revenue during the period
3. = Primarily includes revenue derived from Treatment Coils in US
4. = Includes all systems sold during the period, both as Capital Sales or Sales-Type-Leases
5. = Total Treatment Session Revenue / Active Installed Base (End of Prior Period)

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3222 Phoenixville Pike Malvern, PA 19355 www.neurostar.com 610.640.4202