Form 8-K MYOMO, INC. For: Jan 11
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 11, 2021
Myomo, Inc.
(Exact Name of Company as Specified in Charter)
Delaware | 001-38109 | 47-0944526 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
One Broadway, 14th Floor Cambridge, MA |
02142 | |||
(Address of Principal Executive Offices) | (Zip Code) |
Companys telephone number, including area code: (617) 996-9058
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Common Stock, $0.0001 par value per share | MYO | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. | Results of Operations and Financial Condition. |
On January 11, 2021, Myomo, Inc. announced its preliminary financial and operational results for the fourth quarter and fiscal year ended December 31, 2020. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Form 8-K (including Exhibit 99.1) is intended to be furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits:
The following exhibits shall be deemed to be furnished, and not filed:
Exhibit No. |
Description | |
99.1 | Press release issued by Myomo, Inc. on January 11, 2021, furnished herewith |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MYOMO, INC. | ||||||
Date: January 11, 2021 | By: | /s/ David A. Henry | ||||
Name: | David A. Henry | |||||
Title: | Chief Financial Officer |
Exhibit 99.1
Myomo Reports Preliminary Fourth Quarter and Full Year 2020 Results
Fourth Quarter 2020 Revenue Expected to More than Double Compared With Fourth Quarter 2019
Quarterly cash utilization is the lowest since IPO in 2017
CAMBRIDGE, Mass. (January 11, 2021) Myomo, Inc. (NYSE American: MYO) (Myomo or the Company), a wearable medical robotics company that offers increased functionality for those suffering from neurological disorders and upper-limb paralysis, today announced preliminary financial and operational results for the fourth quarter and fiscal year ended December 31, 2020. In particular, Myomo expects revenue for the three months ended December 31, 2020 to more than double compared with the fourth quarter ended December 31, 2019, and also expects quarterly cash utilization to be the lowest since it became a publicly traded company in June 2017.
Myomo expects revenue for the fourth quarter of 2020 to be between $3.2 million and $3.7 million, representing an increase of 110% to 143%, compared with the fourth quarter of 2019. The Company notes that this estimate includes as much as $0.5 million in direct billing channel revenue that may be accelerated into the fourth quarter of 2020 from the first half of 2021 due to the Company meeting the conditions for revenue recognition upon delivery to the patient. The Company expects revenue for the full year 2020 to be between $7.0 million and $7.5 million, representing an increase of 84% to 97%, compared with the full year 2019.
We are proud of our continued strong revenue growth during the fourth quarter, said Paul R. Gudonis, Myomos chairman and chief executive officer. Notably, we achieved impressive growth for 2020 despite restrictions earlier in the year due to the COVID-19 pandemic. Our team remained committed to improving the lives of patients with upper limb paralysis by providing them with our MyoPro devices, and rose to meet the challenges with innovation and efficiency.
The relatively wide range for fourth quarter 2020 revenue expectations is attributable to a change in revenue recognition from certain insurance plans, said David Henry, Myomos chief financial officer. This accounting treatment is expected to be applied on a go-forward basis and applies to certain insurers where the Company has demonstrated sufficient payment history. These insurers represented approximately 40% of direct billing channel revenue in 2020. This change also is expected to result in the backlog entering the first quarter of 2021 to be lower than the backlog of 162 units entering the fourth quarter of 2020. Overall, the change is expected to reduce the cycle time from receipt of a lead to the recognition of revenue by one to two months on average and reduce quarter to quarter volatility in gross margin. For more than a year, we have keenly focused on the direct billing channel, and we are now benefiting from accelerated revenue recognition with certain payers. We continue to work with other insurers to shorten the revenue cycle, while also striving to expand coverage, as these efforts are intended to help us achieve our target of cash flow breakeven by the fourth quarter of 2021, Mr. Henry added.
Myomo had cash and cash equivalents of $12.3 million as of December 31, 2020. Cash utilization for the fourth quarter of 2020 was approximately $1.1 million, the lowest level since the Companys IPO in June 2017, prior to investments made to scale-up the business. There were no dilutive financing activities in the fourth quarter 2020.
The Company expects to report financial results for the fourth quarter and full year 2020 and hold an investment community conference call in mid-March.
About Myomo
Myomo, Inc. is a wearable medical robotics company that offers improved arm and hand function for those suffering from neurological disorders and upper-limb paralysis. Myomo develops and markets the MyoPro product line. MyoPro is a powered upper-limb orthosis designed to support the arm and restore function to the weakened or paralyzed arms of certain patients suffering from CVA stroke, brachial plexus injury, traumatic brain or spinal cord injury, ALS or
other neuromuscular disease or injury. It is currently the only marketed device that, sensing a patients own EMG signals through non-invasive sensors on the arm, can restore an individuals ability to perform activities of daily living, including feeding themselves, carrying objects and doing household tasks. Many are able to return to work, live independently and reduce their cost of care. Myomo is headquartered in Cambridge, Massachusetts, with sales and clinical professionals across the U.S. and representatives internationally. For more information, please visit www.myomo.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding the Companys future business expectations, including expected revenues and other operating results for the fourth quarter and year ended December 31, 2020, the impact of COVID-19 on the Companys business, its current authorization backlog and its cash position, and the Companys goal to achieve cash flow breakeven, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors.
These factors include, among other things:
| the direct and indirect impact of the novel coronavirus (COVID-19) on our business and operations, including fabrication and delivery, sales, patient consultations, supply chain, manufacturing, insurance reimbursements and employees; |
| our ability to continue normal operations and patient interactions in order to cast, deliver and fit our custom-fabricated device; |
| our sales and commercialization efforts; |
| our ability to achieve reimbursement from third-party payers for our products; |
| our dependence upon external sources for the financing of our operations, to the extent that we do not achieve or maintain cash flow breakeven; |
| our ability to effectively execute our business plan and scale up our operations; |
| our expectations as to our development programs, and; |
| general market, economic, environmental and social factors that may affect the evaluation, fitting, delivery and sale of our products to patients. |
More information about these and other factors that potentially could affect our financial results is included in Myomos filings with the Securities and Exchange Commission, including those contained in the risk factors section of the Companys annual report on Form 10-K, quarterly reports on Form 10-Q and other filings with the Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Although the forward-looking statements in this release of financial information are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contacts:
For Myomo:
Investor Relations:
Kim Sutton Golodetz
LHA Investor Relations
212-838-3777
Public Relations:
Kate McCann
Matter Communications
# # #
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- First Annual Cultural Celebration Day in Lansing, Illinois Calls For Participants
- AVI Systems and Technology Partners Team to Contribute More Than $110,000 to the AVIXA Foundation’s Brad Sousa Impact Fund
- Gen Z Beginning Financial Planning Earlier Than Previous Generations
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!