MYOS RENS Technology Announces Net Revenues Increase 39% for the Three Months Ended September 30, 2020

 

CEDAR KNOLLS, N.J., Nov. 6, 2020 /PRNewswire/ -- MYOS RENS Technology Inc. ("MYOS" or the "Company") (NASDAQ: MYOS), an advanced nutrition company and the owner of Fortetropin®, a proprietary bioactive composition that helps build lean muscle, announced today its results for the three and nine months ended September 30, 2020. 

"Q3 results have shown that Myos met the challenges of the new and uncertain "normal" with sensitivity, creativity and smarter, more aggressive marketing which helped us build deeper business relationships with our customers. This resulted in a significant increase in revenues while decreasing expenses during the quarter," said Joseph Mannello, CEO of MYOS.  "These challenges have brought out the best in our staff and set the bar for even greater future results."

FINANCIAL HIGHLIGHTS

Three Months Ended September 30, 2020 Compared to September 30, 2019 

Net revenues for the three months ended September 30, 2020 increased by $135 or 39% to $485 compared to net revenues of $350 for the three months ended September 30, 2019. This increase is primarily due to an increase of $243 of Myos Canine Muscle Formula offset by a decrease of $72 in White Label, $36 in Yolked, and $1 for our longevity products.

Cost of revenues for the three months ended September 30, 2020 increased by $74 or 42% to $248 compared to cost of revenues of $174 for the three months ended September 30, 2019. The increase is primarily due to costs related to an increase in our product sales of Canine Muscle Formula.

Gross profit increased $61 or 35% to $237 for the three months ended September 30, 2020 compared to $176 for the three months ended September 30, 2019.

Operating expenses for the three months ended September 30, 2020 decreased by $42 or 4% to $1,045, when compared to operating expenses of $1,087 for the three months ended September 30, 2019. The decrease primarily relates to a 31% decrease in selling, marketing and research expenses of $106 and a 3% decrease in personnel and benefits of $13, offset by an 18% increase in general and administrative of $77 relating primarily to an increase in professional fees of $140 relating to the reverse merger costs offset by a decrease in other business related costs of $63.

(amounts in thousands) 

 

Three Months Ended
September 30,

   

Change

 
   

2020

   

2019

   

Dollars

   

%

 
                         

Net revenues

 

$

485

   

$

350

   

$

135

     

39

%

Cost of revenues

   

248

     

174

     

74

     

42

%

Gross profit

   

237

     

176

     

61

     

35

%

                                 

Operating expenses:

                               

Selling, marketing and research

   

233

     

339

     

(106)

     

-31

%

Personnel and benefits

   

393

     

406

     

(13)

     

-3

%

General and administrative

   

419

     

342

     

77

     

18

%

Total operating expenses

   

1,045

     

1,087

     

(42)

     

-4

%

                                 

Operating loss

   

(808)

     

(911)

     

103

     

-21

%

                                 

Interest expense

   

(7)

     

(10)

     

3

     

-30

%

                                 

Net loss

 

$

(815)

   

$

(921)

   

$

106

     

-12

%

Nine Months Ended September 30, 2020 Compared to September 30, 2019

Net revenues for the nine months ended September 30, 2020 increased by $451 or 69% to $1,104 compared to net revenues of $653 for the nine months ended September 30, 2019. This increase is primarily due to an increase of $570 of Myos Canine Muscle Formula offset by a decrease of $72 for White Label, $36 for Yolked and $1 for our longevity products. 

Cost of revenues for the nine months ended September 30, 2020 increased by $262 or 83% to $578 compared to cost of revenues of $316 for the nine months ended September 30, 2019. The increase is primarily due to costs related to our product sales of Myos Canine Muscle Formula. 

Gross profit increased $189 or 56% to $526 for the nine months ended September 30, 2020 compared to $337 for the nine months ended September 30, 2019. 

Operating expenses for the nine months ended September 30, 2020 decreased by $426 or 13% to $2,951, compared to operating expenses of $3,377 for the nine months ended September 30, 2019. The decrease is primarily due to a 30% decrease in selling, marketing and research expenses of $289 and an 11% decrease in general and administrative of $137.

 (amounts in thousands) 

 

Nine Months Ended
September 30,

   

Change

 
   

2020

   

2019

   

Dollars

   

%

 
                         

Net revenues

 

$

1,104

   

$

653

   

$

451

     

69

%

Cost of revenues

   

578

     

316

     

262

     

83

%

Gross profit

   

526

     

337

     

189

     

56

%

                                 

Operating expenses:

                               

Selling, marketing and research

   

662

     

951

     

(289)

     

-30

%

Personnel and benefits

   

1,226

     

1,226

     

-

     

-

 

General and administrative

   

1,063

     

1,200

     

(137)

     

-11

%

Total operating expenses

   

2,951

     

3,377

     

(426)

     

-13

%

                                 

Operating loss

   

(2,425)

     

(3,040)

     

615

     

-26

%

                                 

Interest expense

   

(27)

     

(31)

     

4

     

-11

%

                                 

Net loss

 

$

(2,452)

   

$

(3,071)

   

$

619

     

-20

%

BUSINESS HIGHLIGHTS:                       

"It was a great quarter for Myos," said Mr. Mannello.  "Our team was able to grow revenues in each vertical while decreasing unnecessary expenses.  There is an art to leveraging spend to get the most ROI, and we hit the sweet spot in Q3.  Our momentum continues to build as our foundation gets stronger.

OTHER HIGHLIGHTS:

  • Appointed the S3 Agency to implement public relations and social media efforts around the ability of Fortetropin®, MYOS' proprietary ingredient, to improve muscle health.
  • Received approval from the American Association of Veterinary State Boards (AAVSB) to offer a Continuing Education Course to Veterinarians titled, "Nutritional Management of Canine Osteoarthritis" for 1 Credit Hour.

"On the corporate front, our merger with MedAvail is almost complete with the vote taking place on November 16th.  This will give shareholders ownership in both an exciting public company, MedAvail, and a larger piece of a private company.  Myos, as a private company, will have fewer expenses and a stronger balance sheet.  As a significant shareholder in Myos I am very excited about the merger and what lies ahead for both companies.

"On November 16, 2020 there will be a virtual shareholder meeting for shareholders of record of October 2, 2020, to vote the proposals in the Proxy Statement/Prospectus/Information Statement filed with the U.S. Securities and Exchange Commission by MYOS on October 15, 2020 in connection with the merger with MedAvail.

"I want to thank all of you for your continued support and wish you and your families continued health and safety during these trying times," said Mr. Mannello.

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 
   

September 30,

   

December 31,

   

2020

   

2019

ASSETS

 

(Unaudited)

     

Current assets:

         

Cash

 

$

791

   

$

64

Accounts receivable, net

   

60

     

5

Inventories, net

   

1,368

     

1,666

Prepaid expenses

   

94

     

23

Total current assets

   

2,313

     

1,758

               

Operating lease right of use asset

   

151

     

192

Deferred offering costs

   

-

     

95

Fixed assets, net

   

78

     

97

Intangible assets, net

   

739

     

896

Total assets

 

$

3,281

   

$

3,038

               

LIABILITIES AND STOCKHOLDERS' EQUITY

             

Current liabilities:

             

Accounts payable

 

$

127

   

$

277

Accrued expenses and other current liabilities

   

4

     

230

Operating lease liabilities – current portion

   

62

     

46

Related party promissory note payable and accrued interest

   

661

     

1,159

Total current liabilities

   

854

     

1,712

               

Long-term liabilities:

             

Note Payable PPP loan

   

310

     

-

Operating lease liabilities – net of current portion

   

95

     

146

Total liabilities

   

1,259

     

1,858

               

Commitments and contingencies (Note 11)

             
               

Stockholders' equity:

             

Preferred stock, $0.001 par value; 500,000 shares authorized; no shares issued and outstanding

             

Common stock, $0.001 par value; 15,000,000 shares authorized; 11,846,795 and 9,176,908 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

   

12

     

9

Additional paid-in capital

   

43,787

     

40,496

Accumulated deficit

   

(41,777)

     

(39,325)

Total stockholders' equity

   

2,022

     

1,180

Total liabilities and stockholders' equity

 

$

3,281

   

$

3,038

 

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

   

September 30,

   

September 30,

   

2020

   

2019

   

2020

   

2019

                       

Net revenues

 

$

485

   

$

350

   

$

1,104

     

653

Cost of revenues

   

248

     

174

     

578

     

316

Gross profit

   

237

     

176

     

526

     

337

Operating expenses:

                             

Selling, marketing and research

   

233

     

339

     

662

     

951

Personnel and benefits

   

393

     

406

     

1,226

     

1,226

General and administrative

   

419

     

342

     

1,063

     

1,200

Total operating expenses

   

1,045

     

1,087

     

2,951

     

3,377

Operating loss

   

(808)

     

(911)

     

(2,425)

     

(3,040)

Interest expense, net

   

(7)

     

(10)

     

(27)

     

(31)

Net loss

 

$

(815)

   

$

(921)

   

$

(2,452)

   

$

(3,071)

                               

Net loss per share attributable to common shareholders:

                             

Basic and diluted

 

$

(0.07)

   

$

(0.10)

   

$

(0.22)

   

$

(0.35)

                               

Weighted average number of common shares outstanding:

                             

Basic and diluted

   

11,846,795

     

9,173,851

     

10,996,891

     

8,675,666

 

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)

 
   

Nine Months Ended

   

September 30,

   

2020

   

2019

Cash Flows From Operating Activities:

         

Net loss

 

$

(2,452)

   

$

(3,071)

Adjustments to reconcile net loss to net cash used in operating activities:

             

Depreciation

   

19

     

20

Amortization

   

157

     

262

Stock-based compensation

   

236

     

93

Non-cash lease expense

   

41

     

-

Changes in operating assets and liabilities:

             

(Increase) decrease in accounts receivable

   

(55)

     

34

Decrease in other current asset

   

-

     

1,124

Decrease in inventories

   

298

     

51

Increase in prepaid expenses and other assets

   

(71)

     

(88)

Decrease in operating lease liabilities

   

(35)

     

-

Decrease in other asset bond deposit

   

-

     

50

Increase in deferred revenue

   

-

     

20

Increase in accrued interest on promissory note payable

   

27

     

29

Decrease in accounts payable and accrued expenses

   

(376)

     

(428)

Net cash used in operating activities

   

(2,211)

     

(1,904)

               

Cash Flows From Financing Activities:

             

Proceeds from registered direct offering of common stock, net

   

1,298

     

438

Proceeds from related party promissory note

   

300

     

-

Proceeds from note payable PPP loan

   

310

     

-

Deferred offering costs from at-the market transaction

   

-

     

(3)

Proceeds from issuance of common stock in private placement

   

1,030

     

1,850

Net cash provided by financing activities

   

2,938

     

2,285

               

Net increase in cash

   

727

     

381

Cash at beginning of period

   

64

     

15

Cash at end of period

 

$

791

   

$

396

               

Supplemental schedule of non-cash investing and financing activities:

             

Conversion of related party promissory note payable into shares of common stock

   

825

     

250

Reclassification of deferred offering costs to additional paid in capital

   

95

     

16

 

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(in thousands, except share amounts)

 
   

Nine Months Ended September 30, 2020

 
   

Common Stock

   

Additional
paid-in

   

Accumulated

   

Total
stockholders'

 
   

Shares

   

Amount

   

capital

   

deficit

   

equity

 

Balance at December 31, 2019

   

9,176,908

   

$

9

   

$

40,496

   

$

(39,325)

   

$

1,180

 

Proceeds from sale of common stock, net

   

964,102

     

1

     

1,202

     

-

     

1,203

 

Proceeds from private placement of common stock

   

851,240

     

1

     

1,029

     

-

     

1,030

 

Issuance of common stock upon exchange of related party promissory note payable

   

681,818

     

1

     

824

     

-

     

825

 

Stock-based compensation expense

   

-

     

-

     

27

     

-

     

27

 

Issuance of restricted common stock

   

172,727

     

-

     

209

     

-

     

209

 

Net loss

   

-

     

-

     

-

     

(2,452)

     

(2,452)

 

Balance at September 30, 2020

   

11,846,795

   

$

12

   

$

43,787

   

$

(41,777)

   

$

2,022

 
 
 
   

Nine Months Ended September 30, 2019

 
   

Common Stock

   

Additional
paid-in

   

Accumulated

   

Total
stockholders'

 
   

Shares

   

Amount

   

capital

   

deficit

   

equity

 

Balance at December 31, 2018

   

7,481,723

   

$

8

   

$

37,880

   

$

(35,067)

   

$

2,821

 

Proceeds from sale of common stock

   

111,129

     

-

     

211

     

-

     

211

 

Proceeds from private placement of common stock

   

1,267,123

     

1

     

1,849

     

-

     

1,850

 

Issuance of common stock upon exchange of related party promissory note payable

   

171,233

     

-

     

250

     

-

     

250

 

Stock-based compensation expense

   

-

     

-

     

93

     

-

     

93

 

Issuance of restricted common stock

   

145,700

     

-

     

211

     

-

     

211

 

Net loss

   

-

     

-

     

-

     

(3,071)

     

(3,071)

 

Balance at September 30, 2019

   

9,176,908

   

$

9

   

$

40,494

   

$

(38,138)

   

$

2,365

 
 
 
   

Three Months Ended September 30, 2020

 
   

Common Stock

   

Additional
paid-in

   

Accumulated

   

Total
stockholders'

 
   

Shares

   

Amount

   

capital

   

deficit

   

equity

 

Balance at June 30, 2020

   

11,846,795

   

$

12

   

$

43,778

   

$

(40,962)

   

$

2,828

 

Stock-based compensation expense

   

-

     

-

     

9

             

9

 

Net loss

           

-

             

(815)

     

(815)

 

Balance at September 30, 2020

   

11,846,795

   

$

12

   

$

43,787

   

$

(41,777)

   

$

2,022

 
 
 
   

Three Months Ended September 30, 2019

 
   

Common Stock

   

Additional
paid-in

   

Accumulated

   

Total
stockholders'

 
   

Shares

   

Amount

   

capital

   

deficit

   

equity

 

Balance at June 30, 2019

   

9,170,658

   

$

9

   

$

40,462

   

$

(37,217)

   

$

3,254

 

Stock-based compensation expense

   

-

     

-

     

22

     

-

     

22

 

Issuance of restricted common stock

   

6,250

     

-

     

10

     

-

     

10

 

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, lean body mass and reduce muscle atrophy. MYOS believes Fortetropin has the potential to redefine existing standards of physical health and wellness and produces muscle health support products featuring Fortetropin under the names of Yolked®, Physician Muscle Health Formula®, MYOS Canine Muscle Formula®, (Regular & Vet Strength) and Qurr®.  For more information, please visit www.myosrens.com

Forward-Looking Statements
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 Yolked®, Physician Muscle Health Formula®, MYOS Canine Muscle Formula®, Qurr®, 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 adverse economic conditions, including as a result of the COVID-19 pandemic, the ability to consummate the Merger Agreement with MedAvail, Inc., 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.

These statements have not been evaluated by the Food and Drug Administration. Our products are not intended to diagnose, treat, cure or prevent any disease.

Investor Relations:
MYOS RENS Technology
Joanne Goodford
Phone:  973-509-0444
Email:  jgoodford@myoscorp.com

 

 

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SOURCE MYOS RENS Technology

 
 
Company Codes: NASDAQ-SMALL:MYOS
 

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