NeuroMetrix Inc. (NURO, Financial) filed Quarterly Report for the period ended 2011-09-30.
Neurometrix Inc. has a market cap of $6.7 million; its shares were traded at around $1.74 with and P/S ratio of 0.5.
Sales and marketing expenses decreased to $5.2 million for the nine months ended September 30, 2011 from $8.9 million for the nine months ended September 30, 2010. Personnel costs decreased $2.9 million, travel and entertainment costs decreased $656,000, recruiting costs decreased $175,000, and stock-based compensation decreased $139,000. These decreases were partially offset by an increase in consulting costs of $111,000 related to our diabetes initiative. We expect our sales and marketing expenses for the full year 2011 to be approximately $7 million.
Our operating activities used $5.3 million in the nine months ended September 30, 2011. The primary drivers for the use of cash in our operating activities during the first nine months of 2011 were our net loss of $7.6 million, which included non-cash expenses of $471,000 for stock-based compensation, $300,000 for depreciation and amortization, and $192,500 for an intangible asset impairment charge. Cash outflows were partially offset by reduced working capital balances, particularly a $773,000 decrease in inventories due to improved management of inventories and a $600,000 decrease in accounts receivable reflecting lower sales and improved collection efforts. For the nine months ended September 30, 2010, our operating activities used $11.5 million in cash. This use of cash resulted largely from the net loss for the nine months of $12.7 million.
Research and development expenses for the nine months ended September 30, 2011 and 2010 were $3.0 million and $4.8 million, respectively. The comparative results included decreases of $1.1 million in personnel related costs, $366,000 for clinical studies and product development costs, $267,000 in costs of consulting and outside services, $110,000 for stock-based compensation, and $72,000 for licenses and fees. In addition, we recorded an impairment charge of $192,500 in the second quarter of 2011 to write off the remaining value of intangible assets following our decision to terminate development efforts relating to certain technological and intellectual property assets acquired in 2009. We expect our research and development expenses for the full year 2011 to be approximately $4 million.
General and administrative expenses decreased to $3.9 million for the nine months ended September 30, 2011 from $5.9 million for the nine months ended September 30, 2010. This decrease included $567,000 from personnel costs, reflecting reduced headcount, $497,000 from professional fees, $206,000 from insurance costs, $175,000 from stock-based compensation, $117,000 from supplies and equipment costs, $94,000 from taxes, licenses and fees, $78,000 from consulting and temporary labor costs, $73,000 from bad debt expense, and $64,000 from recruiting costs. We expect our general and administrative expenses for the full year 2011 to be approximately $6 million.
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Neurometrix Inc. has a market cap of $6.7 million; its shares were traded at around $1.74 with and P/S ratio of 0.5.
Highlight of Business Operations:
Our cost of revenues decreased $527,400 to $3.5 million, or 43.8% of revenues for the first nine months of 2011, compared with $4.0 million, or 37.4% of revenues for the same period in 2010. This decrease is due primarily to lower shipment volume, partially offset by the impact of higher electrode costs due to reduced purchasing volume compared with the first nine months of 2010. Our gross margin percentage of 56.2% of revenues for the first nine months of 2011 decreased from 62.6% of revenues for the same period in 2010. We expect our gross margin percentage to be in the mid 50% range for the fiscal year ending December 31, 2011.Sales and marketing expenses decreased to $5.2 million for the nine months ended September 30, 2011 from $8.9 million for the nine months ended September 30, 2010. Personnel costs decreased $2.9 million, travel and entertainment costs decreased $656,000, recruiting costs decreased $175,000, and stock-based compensation decreased $139,000. These decreases were partially offset by an increase in consulting costs of $111,000 related to our diabetes initiative. We expect our sales and marketing expenses for the full year 2011 to be approximately $7 million.
Our operating activities used $5.3 million in the nine months ended September 30, 2011. The primary drivers for the use of cash in our operating activities during the first nine months of 2011 were our net loss of $7.6 million, which included non-cash expenses of $471,000 for stock-based compensation, $300,000 for depreciation and amortization, and $192,500 for an intangible asset impairment charge. Cash outflows were partially offset by reduced working capital balances, particularly a $773,000 decrease in inventories due to improved management of inventories and a $600,000 decrease in accounts receivable reflecting lower sales and improved collection efforts. For the nine months ended September 30, 2010, our operating activities used $11.5 million in cash. This use of cash resulted largely from the net loss for the nine months of $12.7 million.
Research and development expenses for the nine months ended September 30, 2011 and 2010 were $3.0 million and $4.8 million, respectively. The comparative results included decreases of $1.1 million in personnel related costs, $366,000 for clinical studies and product development costs, $267,000 in costs of consulting and outside services, $110,000 for stock-based compensation, and $72,000 for licenses and fees. In addition, we recorded an impairment charge of $192,500 in the second quarter of 2011 to write off the remaining value of intangible assets following our decision to terminate development efforts relating to certain technological and intellectual property assets acquired in 2009. We expect our research and development expenses for the full year 2011 to be approximately $4 million.
General and administrative expenses decreased to $3.9 million for the nine months ended September 30, 2011 from $5.9 million for the nine months ended September 30, 2010. This decrease included $567,000 from personnel costs, reflecting reduced headcount, $497,000 from professional fees, $206,000 from insurance costs, $175,000 from stock-based compensation, $117,000 from supplies and equipment costs, $94,000 from taxes, licenses and fees, $78,000 from consulting and temporary labor costs, $73,000 from bad debt expense, and $64,000 from recruiting costs. We expect our general and administrative expenses for the full year 2011 to be approximately $6 million.
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