Earnings Labs

NeuroOne Medical Technologies Corporation (NMTC)

Q3 2021 Earnings Call· Sat, Aug 14, 2021

$4.75

+3.04%

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Transcript

Operator

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the NeuroOne Medical Technologies Corporation Third Quarter Fiscal 2021 Earnings Call. Today’s call will be conducted by the company’s Chief Executive Officer, Dave Rosa; and its Chief Financial Officer, Ron Mcclurg. Before I turn the call over to Mr. Rosa, I’d like to read to you the company’s abbreviated safe harbor statement. I’d like to remind you that prepared statements made in this conference call concerning future revenues, results from operations, financial position, markets, economic conditions, product releases, partnerships and any other statements that may be construed as a prediction of future performance or events are forward-looking statements, which may involve known and unknown risks, uncertainties, and other factors, which may cause actual results to differ materially from those expressed or implied by such statements. Non-GAAP results will also be discussed on the call. The company believes the presentation of non-GAAP information provides useful supplementary data concerning the company’s ongoing operations and is provided for informational purposes only. With that said, I’ll turn the call over to Dave Rosa, CEO of NeuroOne. Dave?

Dave Rosa

Management

Thank you, operator. First, I would like to welcome everyone to the call today and special thanks to all of our investors, as well as those interested in learning more about the company. Given that this is our first quarterly call since we successfully listed on Nasdaq, I’d like to provide a brief introduction of the company, then turn it over to Ron for financial comments before proceeding to discuss our fiscal third quarter results. In addition, for those of you with access to video, I will show some of the devices I refer to during the call. And we’ll let you know in advance when to turn your camera on. Starting with a brief introduction. Over four years ago, I joined NeuroOne with a vision to develop and commercialize game-changing world-class electrode technology that could improve upon existing treatments and enable future therapies that could benefit from NeuroOne’s unique platform technology. While our initial focus has been on patients suffering from epilepsy, chronic back pain and Parkinson’s disease, we have been approached by a number of physicians and industry leaders regarding potential applications for other areas, such as depression, mood disorders, pain management and continents and hypertension. I am firmly convinced that our electrode technology has the potential to improve therapies for these indications as well as play a critical role in the future for therapies requiring electrode technology that utilizes artificial intelligence. Some of the potential advantages of our thin film electrode technology include the following: it is a platform electrode technology that’s intended for large multi-billion dollar established neurosurgical markets; second, it utilizes automated manufacturing processes for lower manufacturing costs and reduce lead times; third, it is thin film, a lightweight electrode that may allow for less invasive insertions and less inflammation; four, it has the potential…

Ron Mcclurg

Management

Thank you, Dave. Product revenue was $40,000 in the third quarter of fiscal 2021 and collaboration revenue was $17,000 compared to no revenue in the prior year period. Our total operating expenses in the third quarter of fiscal 2021 were $3 million compared with $1.6 million in the same period of the prior year. R&D expenses in the third quarter of fiscal 2021 was $2.1 million compared to $1.1 million in the same period of fiscal 2020. SG&A expenses in the third quarter of fiscal 2021 was $900,000 compared to $0.5 million in the prior year period. Our net loss was $3 million for the third quarter of fiscal 2021 compared to a net loss of $7.1 million in the prior year period. The company ended the quarter with approximately $9 million in cash balances prior to $4 million at September 30, 2020, which is the end of the company’s most recent fiscal year. The company had no outstanding debt as of June 30, 2021. That concludes my remarks. I’ll now pass it back to Dave. Dave?

Dave Rosa

Management

Thanks, Ron. During our fiscal third quarter and year to date, we made significant progress across our product portfolio. I’ll remind everyone that our portfolio is composed of next-generation electrode technology for neurological disorders across both diagnostic and therapeutic indications. The two therapeutic categories include tissue ablation and chronic stimulation. At a high level, we started the year with one FDA approved product in diagnostics. Pending timely FDA clearance, we expect to commercialize our second product also in diagnostics before calendar year end. We are targeting commercialization of our third product as we launch into therapeutics, approximately at the end of calendar year 2022. Additionally, we expect data on our fourth electrode product family for chronic use later this calendar year. I’ll now take a deeper dive on the technology. And at this point, please turn on your video if you would like to see the products. Starting with diagnostics and our first FDA cleared product, our Evo cortical diagnostic electrodes. Evo cortical electrodes are a portfolio of high definition, strip and grid thin film diagnostic electrodes for recording brain activity, stimulation and monitoring for less than 30 days. Applications include identifying problematic areas of the brain during epilepsy surgery and intra-operative mapping for brain tumors. Now I’ll show you the product and how it is placed. So this represents a model of the brain. This is the brain tissue that I’m showing right here. The way these cortical electrodes are placed is the surgeon will remove the top part of the skull, take the electrode. Hopefully you can see that this is an example of one of them. And then place it on the brain depending upon which area they’re looking to map. They’ll place it on the brain, they’ll leave the product in for up again, up to…

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Management