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Neuronetics, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenues to $18.5 million from $17.9 million in the same quarter the previous year. This increase is attributed to higher sales of treatment sessions and NeuroStar Advanced Therapy Systems in the U.S.
Cost of revenues for the quarter was $4.5 million, representing 24% of sales, compared to 34% in the same quarter of the previous year. This decrease in cost ratio is due to a favorable product mix and absence of one-time manufacturing costs.
The company reported a gross profit of $14.0 million for the quarter, compared to $11.8 million in the previous year, with the improvement attributed to increased sales volume and improved cost management.
Sales and marketing expenses decreased slightly to $11.9 million from $12.1 million, while general and administrative expenses rose to $7.4 million from $6.3 million, primarily due to legal and professional fees related to the acquisition of Greenbrook.
Research and development expenses increased to $2.4 million from $2.2 million, with the rise attributed to software maintenance expenses.
Net loss for the quarter was $13.3 million, up from $9.4 million in the previous year, primarily due to a $4.4 million loss on extinguishment of debt related to the repayment of the SLR Facility.
Cash used in operating activities was $22.4 million for the nine months ended September 30, 2024, compared to $34.2 million in the previous year, reflecting improved cash management.
Neuronetics had cash and cash equivalents of $20.9 million as of September 30, 2024. The company anticipates that its cash and anticipated revenues are sufficient to fund operations for at least the next 12 months.
The filing also details the company's acquisition of Greenbrook, which was approved by shareholders on November 8, 2024, and is expected to enhance Neuronetics' market position.
Neuronetics received a deficiency letter from Nasdaq (NDAQ-0.10%) regarding its stock price, which has been below the minimum bid price requirement. The company has until April 1, 2025, to regain compliance.
Neuronetics implemented a strategic reorganization on November 8, 2024, resulting in a workforce reduction of approximately 10% to focus on growth and improve operational efficiency.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Neuronetics Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.