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electroCore Announces Record Second Quarter 2022 Financial Results | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
By: GlobeNewswire - 04 Aug 2022 | Back to overview list |
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Record second quarter 2022 net sales of $2.2 million, increased 70% over second quarter 2021 and 14% sequentially Company to host a conference call and webcast today, August 4, 2022 at 4:30 pm EDT ROCKAWAY, N.J., Aug. 04, 2022 (GLOBE NEWSWIRE) -- electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, announced second quarter 2022 financial results and provided an operational update. Second Quarter 2022 and Recent Highlights
Second Quarter 2022 Financial Results For the quarter ended June 30, 2022, electroCore reported net sales of $2.2 million as compared to $1.9 million in the first quarter of 2022 and $1.3 million during the same period of 2021.
Gross profit for the second quarter of 2022 was $1.8 million as compared to $1.5 million for the first quarter of 2022 and $895,000 for the second quarter of 2021. Gross margin for the second quarter of 2022 was 83%, compared to 81% in the first quarter of 2022 and 71% in the second quarter of 2021. The company's evolving commercial strategy has resulted in the launch of cash payment models under which it licenses certain starter devices. The cost of the licensed starter device is being recognized as cost of goods sold over the estimated useful life of the starter device versus expensing the cost of goods at the time of sale. Moreover, in recent quarters, the company has sold an increasing amount of longer duration therapy, resulting in a higher average selling price. These factors, including Teijin license revenue with no associated cost of goods and favorable absorption of labor and overhead costs due to an increase in the number of units sold, contributed to the increase in gross margin. Total operating expenses in the second quarter of 2022 were approximately $7.6 million as compared to $7.1 million in the first quarter of 2022 and $6.1 million in the second quarter of 2021. Research and development expense in the second quarter of 2022 was $1.3 million as compared to $934,000 in the first quarter of 2022 and $825,000 in the second quarter of 2021. This increase was primarily due to investments in the future iterations of our therapy delivery platform, including the use of our intellectual property around the delivery of smartphone-integrated and smartphone-connected non-invasive therapies. Selling, general and administrative expense in the second quarter of 2022 was $6.3 million as compared to $6.2 million in the first quarter of 2022 and $5.3 million in the second quarter of 2021. This increase was attributable to investments made to support commercial efforts. GAAP net loss in the second quarter of 2022 was $5.3 million compared to the first quarter of 2022 GAAP net loss of $5.6 million and $2.9 million in the second quarter of 2021. Adjusted EBITDA net loss in the second quarter of 2022 was $4.9 million as compared to $4.6 million during the first quarter of 2022 and as compared to a loss of $4.1 million in the second quarter of 2021. The company defines adjusted EBITDA net loss as GAAP net loss as adjusted to exclude non-operating gains and losses, depreciation and amortization, stock-based compensation expense, legal fees associated with stockholders’ litigation, benefit from income taxes, and gain on extinguishment of debt. 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 in the quarter ended June 30, 2022, was approximately $3.2 million as compared to $4.8 million in the first quarter of 2022, and $1.7 million in the second quarter of 2021. Cash proceeds from the sale of the company's New Jersey net operating loss (NOL) carryforwards are included in both the second quarter 2022 and 2021 results. Cash, cash equivalents and restricted cash at June 30, 2022 totaled approximately $26.6 million, as compared to approximately $34.7 million at December 31, 2021. Third Quarter 2022 Outlook For the third quarter of 2022, the Company expects net revenue to be approximately Q2 2022 levels and net cash usage to be between $4.5 million and $5.0 million. Webcast and Conference Call Information electroCore’s management team will host a conference call today, August 4, 2022, beginning at 4:30 PM EDT. Investors interested in listening to the conference call or webcast may do so by dialing 877-269-7756 for domestic callers or 201-689-7817 for international callers, using Conference ID: 13731362, or by connecting to the electroCore Earnings Webcast. 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 company dedicated to improving patient outcomes through its non-invasive vagus nerve stimulation therapy platform, initially focused on the treatment of multiple conditions in neurology. The company's current indications are the preventive treatment of cluster headache and migraine, the acute treatment of migraine and episodic cluster headache, the acute and preventive treatment of migraines in adolescents, and paroxysmal hemicrania and hemicrania continua in adults. For more information, visit www.electrocore.com. About gammaCore™ gammaCore™ (nVNS) is the first non-invasive, hand-held medical therapy applied at the neck to treat migraine and cluster headache through the utilization of a mild electrical stimulation to the vagus nerve that passes through the skin. Designed as a portable, easy-to-use technology, gammaCore is self-administered by patients, as needed, without the potential side effects associated with commonly prescribed drugs. When placed on a patient’s neck over the vagus nerve, gammaCore stimulates the nerve’s afferent fibers, which may lead to a reduction of pain in patients. gammaCore (nVNS) is FDA cleared in the United States for adjunctive use for the preventive treatment of cluster headache in adult patients, the acute treatment of pain associated with episodic cluster headache in adult patients, and the acute and preventive treatment of migraine in adolescent (ages 12 and older) and adult patients, and paroxysmal hemicrania and hemicrania continua in adult patients. gammaCore is CE-marked in the European Union for the acute and/or prophylactic treatment of primary headache (Migraine, Cluster Headache, Trigeminal Autonomic Cephalalgias and Hemicrania Continua) and Medication Overuse Headache in adults. gammaCore is contraindicated for patients if they:
Safety and efficacy of gammaCore have not been evaluated in the following patients:
For more information, please visit gammaCore.com. Forward-Looking Statements Contact: electroCore, Inc.
electroCore, Inc.
(Unaudited) Use of Non-GAAP Financial Measure The company defines adjusted EBITDA net loss as GAAP net loss, adjusting to exclude non-operating gains and losses, depreciation and amortization, stock-compensation expense, legal fees associated with stockholders’ litigation, interest and other income/expense, benefit from income taxes, and gain on extinguishment of debt. Following is a reconciliation of GAAP net loss to Non-GAAP adjusted EBITDA net loss (in thousands):
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