Third Quarter Revenues Exceed Revenues for the First Half of 2019
CEDAR KNOLLS, N.J., Nov. 7, 2019 /PRNewswire/ -- MYOS RENS Technology Inc. ("MYOS" or "the Company") (MYOS), an advanced nutrition company and the owner of Fortetropin®, an innovative proprietary bioactive composition made from fertilized egg yolks that helps build lean muscle, today announced its financial results for the three and nine months ended September 30, 2019.
Financial Highlights: (Amounts in thousands except where noted)
Third Quarter - Three Months Ended September 30, 2019:
Net revenues increased $284, or 430%, to $350 compared to net revenues of $66 for the three months ended September 30, 2018.
Gross profit for the three months ended September 30, 2019 increased $169 or 2,414% to $176, compared to $7 for the three months ended September 30, 2018.
Operating expenses for the three months ended September 30, 2019 increased $171 or 18% to $1,087 compared to $916 for the three months ended September 30, 2018.
Net loss increased $10 or 1% to $921 for the three months ended September 30, 2019 compared to $911 for the three months ended September 30, 2018.
Nine Months Ended September 30, 2019:
Net revenues for the nine months ended September 30, 2019 increased $442 or 209% to $653 compared to net revenues of $211 for the nine months ended September 30, 2018.
Gross profit for the nine months ended September 30, 2019 increased $276 or 452% to $337, compared to $61 for the nine months ended September 30, 2018.
Operating expenses for the nine months ended September 30, 2019 increased $161 or 5% to $3,377, compared to $3,216 for the nine months ended September 30, 2018.
Net loss decreased 3% to $3,071 for the nine months ended September 30, 2019 compared to $3,158 for the nine months ended September 30, 2018.
As of September 30, 2019, the Company had cash of $396 and total current assets of $2,163 less current liabilities of $1,048. Working capital increased $154 to $1,115 at September 30, 2019 compared to $1,269 at December 31, 2018.
During the third quarter, cash increased $381 primarily due to net proceeds provided by financing activities of $2,285 offset by net cash used in operating activities of $1,904.
Business & Operational Highlights:
Announced the expansion of its animal health business with the launch of Veterinarian Strength Myos Canine Muscle Formula®. Sold exclusively through leading veterinary practices, Veterinarian Strength Myos Canine Muscle Formula combines Fortetropin, with the branched-chain amino acids (BCAA) leucine, isoleucine and valine, further boosting the beneficial effects of muscle protein synthesis.
Entered into a research agreement with the Department of Kinesiology at McMaster University in Hamilton, Canada, which will conduct a study to examine the impact of Fortetropin on reducing muscle disuse atrophy in young men. Muscle atrophy due to disuse commonly occurs in response to immobilization such as the atrophy of the thigh muscles following a period of casting for fracture or following surgery such as knee replacement.
Announced a marketing partnership with the Texas Golf Association (TGA), the largest statewide amateur golf association in the United States, with over 147,000 active members. As part of this marketing partnership, MYOS will present a 4-part instructional video series available exclusively to TGA members during the fall and winter months. The series is aimed at introducing members to Yolked®, our NSF Certified for Sports®-branded sports nutrition product.
Announced positive top-line results from its randomized, double-blind, placebo-controlled study that was conducted at the University of California, Berkeley and the University of Arkansas for Medical Sciences, evaluating the impact of Fortetropin on the rate of muscle protein synthesis in older men and women (60-75 years of age). The study showed that Fortetropin significantly increased the fractional synthetic rate of muscle proteins relative to placebo.
Completed a randomized, double blind, placebo-controlled veterinary clinical trial at Kansas State University to evaluate the impact of Fortetropin on 100 dogs recovering from tibial plateau leveling osteotomy (TPLO) surgery. The trial demonstrated that dogs that received Fortetropin had reduced muscle atrophy and could exert more force with their operated limb relative to dogs that received a placebo. Further, dogs in the Fortetropin group maintained stable levels of myostatin following surgery while an increase in myostatin levels of ~10% was noted in dogs that received the placebo.
Announced that its Chief Executive Officer, Joseph Mannello, will deliver remarks on Myos Canine Muscle Formula®, the Company's fast-growing Fortetropin-based veterinary product, at the New York Vet Show on Friday, November 8th at 12:30pm, at Innovation Showcase 1 in the Javits Center. Over the last 2 years, the New York Vet Show has provided veterinary healthcare professionals with practical and relevant educational, training and networking opportunities, hosting over 200 exhibitors and over 2,000 delegates each year.
Joseph Mannello, Chief Executive Officer of MYOS, commented, "We are very pleased with our strong financial results for the third quarter 2019, with revenues during this quarter exceeding our revenues during the first half of 2019. As stated in previous communications, we are extremely focused on growing sales for our two key products, Myos Canine Muscle Formula® and Yolked®. Our various commercial initiatives are focused on increasing Fortetropin's reach and presence, and growing our revenues substantially.
"We are extremely encouraged by the promising results from multiple human and canine clinical studies to date and are delighted to work with the respected research group of Professor Phillips at McMaster University. Completing this study is an important part of our commercial strategy to increase our business in this growing market of tremendous opportunity.
"Moving forward, we expect continued growth in our veterinary segment as the positive results from our clinical study at Kansas State University become more widely known, which will be supported by an aggressive marketing campaign.
"We are truly excited about the course ahead for the remainder of 2019 and beyond. We firmly believe that this quarter has been a major turning point for our company and that the future looks exceedingly positive. We believe that we are well positioned to drive future growth in multiple market segments, which will enable us to build upon our business and deliver value for our shareholders," concluded Mr. Mannello.
The Company will hold a conference call on Friday, November 8, 2019 at 10am (ET), at which time Mr. Mannello will provide commentary on the Company's financial results and provide an update on the Company's ongoing clinical studies and commercial efforts.
Call Date/Time: Friday, November 8, 2019 at 10 AM (ET)
Dial In: 877-407-4019 from the U.S.; international callers may telephone 201-689-8337 approximately 15 minutes before the call.
A digital replay will be available by telephone approximately two hours after the completion of the call until February 7, 2020 and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, using the Conference ID# 13696237.
This call will be simultaneously webcast. The webcast will be available on the MYOS website, www.myosrens.com, in the "Investor Relations" section. The webcast will be archived and available at the same web address for two weeks following the call.
About MYOS RENS Technology Inc.
MYOS RENS Technology Inc. (MYOS), "The Muscle Company®", is a Cedar Knolls, NJ-based advanced nutrition company that develops and markets products that improve muscle health and performance. MYOS is the owner of Fortetropin®, a fertilized egg yolk-based product manufactured via a proprietary process to retain and optimize its biological activity. Fortetropin has been clinically shown to increase muscle size and lean body mass in conjunction with resistance training. MYOS believes Fortetropin has the potential to redefine existing standards of physical health and wellness. For more information, please visit www.myosrens.com.
About Myos Canine Muscle Formula®
Myos Canine Muscle Formula is an advanced veterinary health supplement to support muscle health in dogs, featuring Fortetropin as the active ingredient. Fortetropin is made through a patented process that maintains the vital nutrients of fertilized egg yolks to help build more lean muscle and decrease muscle loss. For more information, please visit www.myospet.com.
Yolked is an NSF Certified for Sport® all-natural sports nutrition product designed to work in conjunction with your protein of choice to help your body utilize that protein more efficiently. Its key ingredient, Fortetropin, is made through a patented process that maintains the vital nutrients of fertilized egg yolks to help build more lean muscle and decrease muscle loss. For more information, please visit www.yolked.com.
Any statements in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements involve risks and uncertainties, including but not limited to those relating to product and customer demand, market acceptance of our products, the ability to create new products through research and development, the successful results of strategic initiatives, the success of our products, including Qurr®, Yolked®, MYOS Canine Muscle Formula®, and MYOS Enteral Nutrition Formula™, the success of our research and development, the results of the clinical evaluation of Fortetropin® and its effects, the ability to enter into new partnership opportunities and the success of our existing partnerships, the ability to generate revenue and cash flow from sales of our products, the ability to increase our revenue and gross profit margins, the ability to achieve a sustainable, profitable business, the effect of economic conditions, the ability to protect our intellectual property rights, competition from other providers and products, the continued listing of our securities on the Nasdaq Stock Market, risks in product development, our ability to raise capital to fund continuing operations, and other factors discussed from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made except as required by law.
The following tables should be read in conjunction with the footnotes accompanying the condensed consolidated financial statements contained in the Quarterly Report on Form 10-Q previously filed by the Company with the Securities and Exchange Commission.
MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED Consolidated Balance Sheets
(in thousands, except share and per share amounts)
Accounts receivable, net
Other current asset
Total current assets
Operating lease right of use asset
Deferred offering costs
Fixed assets, net
Intangible assets, net
LIABILITIES AND STOCKHOLDERS' EQUITY
Accrued expenses and other current liabilities
Operating lease liabilities – current portion
Related party promissory note payable and accrued interest
Total current liabilities
Operating lease liabilities – net of current portion
Commitments and contingencies
Preferred stock, $.001 par value; 500,000 shares authorized; no shares issued and
Common stock, $.001 par value; 12,000,000 shares authorized at September 30,
Additional paid-in capital
Total stockholders' equity
Total liabilities and stockholders' equity
MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in thousands, except share and per share amounts)
Three Months Ended
Nine Months Ended
Cost of sales
Selling, marketing and research
Personnel and benefits
General and administrative
Total operating expenses
Loss before income taxes
Net loss per share attributable to common shareholders:
Basic and diluted
Weighted average number of common shares outstanding:
Basic and diluted
MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)
Nine Months Ended
Cash Flows From Operating Activities:
Adjustments to reconcile net loss to net cash used in operating activities:
Deferred offering costs
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable
Decrease in other current asset
Decrease in inventories
(Increase) decrease in prepaid expenses
Decrease in other asset bond deposit
Increase in deferred revenue
Increase in accrued interest on promissory note payable
Decrease in accounts payable and accrued expenses
Net cash used in operating activities
Cash Flows From Financing Activities:
Proceeds from registered direct offering of common stock, net
Proceeds from related promissory note payable
Deferred offering costs from at-the-market transaction
Deferred offering costs from private placement
Net proceeds from issuance of common stock in private placement
Net cash provided by financing activities
Net increase (decrease) in cash
Cash at beginning of period
Cash at end of period
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Supplemental schedule of non-cash investing and financing activities:
Conversion of related party promissory note into shares of common stock
Reclassification of deferred offering costs to additional paid in capital
Porter LeVay & Rose
Matthew Abenante, IRC, SVP
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