electroCore, Inc. (Nasdaq: ECOR) (the “Company”), a
commercial-stage bioelectronic medicine and wellness company, today
announced fourth quarter and full year 2023 financial results.
Fourth Quarter 2023 and Recent
Highlights
- Reported record full year of 2023 revenue of $16.0 million, an
increase of approximately 87% over full year of 2022
- Record revenue in the fourth quarter of 2023 of $5.2 million,
an increase of approximately 103% over the fourth quarter of
2022
Fourth Quarter and Full Year 2023 Financial
Results
For the year ended December 31, 2023, electroCore reported net
sales of $16.0 million, compared to $8.6 million during the same
period of 2022, which represents an
approximately 87% increase over the prior year. The
increase of $7.4 million is due to an increase in net sales across
major channels including our prescription gammaCore medical
devices sold in the U.S. and abroad; and revenue from the sales of
our nonprescription general well-being and human performance
Truvaga and TAC-STIM products.
|
Three months ended |
|
Year ended |
(in thousands) |
December 31, |
|
December 31, |
Channel |
2023 |
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
|
% Change |
Rx gammaCore – VA/DoD |
$ |
3,113 |
|
|
$ |
1,539 |
|
|
|
102% |
|
|
|
$ |
9,636 |
|
|
$ |
5,099 |
|
|
|
89% |
|
Rx gammaCore – U.S.
Commercial |
|
483 |
|
|
|
489 |
|
|
|
(1% |
) |
|
|
|
1,797 |
|
|
|
1,735 |
|
|
|
4% |
|
Outside the United States |
|
523 |
|
|
|
429 |
|
|
|
22% |
|
|
|
|
1,821 |
|
|
|
1,618 |
|
|
|
13% |
|
Truvaga |
|
323 |
|
|
|
15 |
|
|
|
* |
|
|
|
|
1,027 |
|
|
|
15 |
|
|
|
* |
|
TAC-STIM |
|
749 |
|
|
|
88 |
|
|
|
* |
|
|
|
|
1,749 |
|
|
|
125 |
|
|
|
* |
|
|
$ |
5,191 |
|
|
$ |
2,560 |
|
|
|
103% |
|
|
|
$ |
16,030 |
|
|
$ |
8,592 |
|
|
|
87% |
|
|
* not
applicable |
|
Gross profit for the full year of 2023 was $13.2 million as
compared to $7.0 million for the full year of 2022. Gross margin
was 83% and 81% for the years ended December 31, 2023 and 2022,
respectively.
Total operating expenses for the full year of 2023 were
approximately $32.5 million, as compared to $29.9 million for the
full year of 2022.
Research and development expense for the full year of 2023 was
$5.3 million as compared to $5.5 million for the full year of 2022.
This decrease in research and development expense was due to a
decrease in compensation associated with cost cutting measures
effected April 1, 2023, offset by targeted investments to support
the future iterations of our therapy delivery platform, including
the use of our intellectual property around the delivery of smart
phone-integrated and smart phone-connected non-invasive
therapies.
Selling, general and administrative expense for the full year of
2023 was $27.2 million as compared to $24.3 million for the full
year of 2022. This increase was due to greater variable selling and
marketing costs consistent with our increase in sales and severance
charges, offset by decreases in insurance and stock-based
compensation expenses.
GAAP net loss for the full year of 2023 was $18.8
million, as compared to the $22.2 million net loss for the full
year of 2022.
Adjusted EBITDA net loss in the fourth quarter of 2023 was a
loss of $2.9 million as compared to a loss of $4.7 million in the
fourth quarter of 2022. Adjusted EBITDA net loss for the full year
of 2023 was a loss of $15.4 million, as compared to an
adjusted EBITDA net loss of $19.0 million for the full year
of 2022.
The Company defines adjusted EBITDA net loss as GAAP net loss,
adjusting to exclude non-operating gains/losses, depreciation
and amortization, stock-compensation expense, write-off of right of
use operating lease, inventory reserve charges, legal fees
associated with stockholders’ litigation, 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 for the full year ended
December 31, 2023 was $14.7 million, as compared to $16.6
million for the full year of 2022.
Cash, cash equivalents and restricted cash at December 31, 2023,
totaled approximately $10.6 million, as compared to approximately
$18.0 million as of December 31, 2022. In July 2023, the Company
raised net proceeds of approximately $7.5 million through a
registered direct offering and concurrent private placements
priced “at the market” under NASDAQ rules.
Webcast and Conference Call Information
electroCore’s management team will host a conference call today,
March 13, 2024, beginning at 4:30 pm EST.
Investors interested in listening to the conference call or
webcast may do so by dialing 877-407-8835 for domestic callers or
201-689-8779 for international callers, using conference ID:
13744117, or connecting to the Web at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=ISZCGFO3. 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
and wellness company dedicated to improving health through its
non-invasive vagus nerve stimulation (“nVNS”) technology platform.
Our focus is the commercialization of medical devices for the
management and treatment of certain medical conditions and consumer
product offerings utilizing nVNS to promote general wellbeing and
human performance in the United States and select overseas
markets.
For more information, visit www.electrocore.com.
Forward-Looking StatementsThis press release
and other written and oral statements made by representatives of
electroCore 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 business prospects and clinical and
product development plans; its pipeline or potential markets for
its technologies; the timing, outcome and impact of regulatory,
clinical and commercial developments; business prospects around its
general wellness Truvaga and TAC-STIM products and
other new products and markets, and other statements that are not
historical in nature, particularly those that utilize terminology
such as “anticipates,” “will,”
“expects,” “believes,” “intends,” and other words of
similar meaning, derivations of such words and the use of future
dates. Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the ability to raise the additional funding
needed to continue to pursue electroCore’s business and product
development plans, the inherent uncertainties associated with
developing new products or technologies, the ability to
commercialize gammaCore™, TAC-STIM™, and Truvaga™, electroCore’s
results of operations and financial performance, inflation and
currency fluctuations, and any expectations electroCore may have
with respect thereto, competition in the industry in which
electroCore operates and overall economic and market conditions.
Any forward-looking statements are made as of the date of this
press release, and electroCore assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements, except as required by law. Investors should consult all
of the information set forth herein and should also refer to the
risk factor disclosure set forth in the reports and other documents
electroCore files with the SEC available at www.sec.gov.
Contact:ECOR Investor Relations(973)
302-9253investors@electrocore.com
electroCore, Inc.Consolidated Statements
of Operations(in thousands, except per share data) |
|
|
Three months ended |
|
Year ended |
|
December 31, |
|
December 31, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net sales |
$ |
5,191 |
|
|
|
$ |
2,560 |
|
|
$ |
16,030 |
|
|
$ |
8,592 |
|
Cost of goods sold |
|
1,100 |
|
|
|
|
640 |
|
|
|
2,804 |
|
|
|
1,616 |
|
Gross profit |
|
4,091 |
|
|
|
|
1,920 |
|
|
|
13,226 |
|
|
|
6,976 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
1,108 |
|
|
|
|
1,628 |
|
|
|
5,321 |
|
|
|
5,520 |
|
Selling, general and
administrative |
|
6,941 |
|
|
|
|
6,209 |
|
|
|
27,174 |
|
|
|
24,330 |
|
Total operating expenses |
|
8,049 |
|
|
|
|
7,837 |
|
|
|
32,495 |
|
|
|
29,850 |
|
Loss from operations |
|
(3,958 |
) |
|
|
|
(5,917 |
) |
|
|
(19,269 |
) |
|
|
(22,874 |
) |
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
(135 |
) |
|
|
|
(142 |
) |
|
|
(433 |
) |
|
|
(287 |
) |
Other expense |
|
184 |
|
|
|
|
1 |
|
|
|
184 |
|
|
|
6 |
|
Total other income |
|
49 |
|
|
|
|
(141 |
) |
|
|
(249 |
) |
|
|
(281 |
) |
Loss before income taxes |
|
(4,007 |
) |
|
|
|
(5,776 |
) |
|
|
(19,020 |
) |
|
|
(22,593 |
) |
(Provision) Benefit from
income taxes |
|
(25 |
) |
|
|
|
(14 |
) |
|
|
186 |
|
|
|
431 |
|
Net loss |
$ |
(4,032 |
) |
|
|
$ |
(5,790 |
) |
|
$ |
(18,834 |
) |
|
$ |
(22,162 |
) |
Net loss per share of common
stock - Basic and Diluted |
$ |
(0.61 |
) |
|
|
$ |
(1.22 |
) |
|
$ |
(3.42 |
) |
|
$ |
(4.69 |
) |
Weighted average number of
common shares outstanding - Basic and Diluted |
|
6,616 |
|
|
|
|
4,744 |
|
|
|
5,515 |
|
|
|
4,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All common stock share and per share data reflects the
reverse stock split effective February 15, 2023. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
electroCore, Inc. Consolidated Balance Sheet
Information(in thousands) |
|
|
December 31, 2023 |
|
December 31, 2022 |
Cash and cash equivalents |
$ |
10,331 |
|
|
$ |
17,712 |
|
Restricted cash |
$ |
250 |
|
|
$ |
250 |
|
Total assets |
$ |
16,102 |
|
|
$ |
24,756 |
|
Current liabilities |
$ |
8,123 |
|
|
$ |
7,045 |
|
Total liabilities |
$ |
8,660 |
|
|
$ |
7,670 |
|
Total equity |
$ |
7,442 |
|
|
$ |
17,086 |
|
|
|
|
|
|
|
|
|
(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. 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 gains and 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,
adjusting to exclude non-operating gains/losses, depreciation
and amortization, stock-compensation expense, write-off of right of
use operating lease, inventory reserve charges, legal fees
associated with stockholders’ litigation, and provision/benefit
from income taxes. A reconciliation of GAAP net loss to Non-GAAP
adjusted EBITDA net loss is provided in the financial statement
table below.
|
Three months ended |
|
Year ended |
|
December 31, |
|
December 31, |
(in
thousands) |
2023 |
|
2022 |
|
2023 |
|
2022 |
GAAP net loss |
$ |
(4,032 |
) |
|
$ |
(5,790 |
) |
|
$ |
(18,834 |
) |
|
$ |
(22,162 |
) |
Depreciation and
amortization |
|
227 |
|
|
|
148 |
|
|
|
962 |
|
|
|
548 |
|
Stock-based compensation |
|
400 |
|
|
|
587 |
|
|
|
1,698 |
|
|
|
2,682 |
|
Inventory reserve charge |
|
424 |
|
|
|
217 |
|
|
|
682 |
|
|
|
217 |
|
Severance and other related
charges |
|
19 |
|
|
|
- |
|
|
|
464 |
|
|
|
- |
|
Legal fees associated with
stockholders’ litigation |
|
8 |
|
|
|
251 |
|
|
|
50 |
|
|
|
400 |
|
Interest and other income /
expense |
|
49 |
|
|
|
(141 |
) |
|
|
(249 |
) |
|
|
(281 |
) |
Provision (benefit) from
income taxes |
|
25 |
|
|
|
14 |
|
|
|
(186 |
) |
|
|
(431 |
) |
Adjusted EBITDA net
loss |
$ |
(2,880 |
) |
|
$ |
(4,714 |
) |
|
$ |
(15,413 |
) |
|
$ |
(19,027 |
) |
|
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: (i) the non-GAAP measure does not
reflect interest or tax payments that may represent a reduction in
cash available; (ii) 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; (iii) the
non-GAAP measure does not reflect the potentially dilutive impact
of equity-based compensation; and (iv) 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,
effectively reducing 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.
electroCore (NASDAQ:ECOR)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
electroCore (NASDAQ:ECOR)
Historical Stock Chart
Von Mai 2023 bis Mai 2024