10-Q - NeuroMetrix, Inc. (0001289850) (Filer)

Wed, May 15, 3:22 PM (72 days ago)

NeuroMetrix, Inc.'s Q1 2024 financial results show a challenging period with a significant revenue decline and increased net loss. Revenues dropped by 36.6% to $1.09 million, primarily due to reduced DPNCheck sales, impacted by adverse CMS reimbursement changes in the Medicare Advantage market. Gross profit fell by 56.9%, with a gross margin contraction to 47.3% from 69.5%, exacerbated by inventory write-downs and discontinuation costs for the ADVANCE product line. Operating expenses surged by 29.7% due to employee severance costs. Consequently, the net loss widened to $3.03 million from $1.57 million in Q1 2023. Despite these challenges, the company maintains a strong liquidity position with $17.6 million in cash and marketable securities. NeuroMetrix has initiated a strategic review to explore options including asset sales and mergers to maximize shareholder value. This review's outcome remains uncertain and could significantly impact future operations.