 Received EUA and initiated gammaCore Sapphire CV distribution process for certain known or suspected COVID-19 patients experiencing asthma exacerbations Generated sequential increase in revenue Further strengthened balance sheet and reduced quarterly cash burnCompany to host conference call and webcast today, August 13, 2020 at 4:30 pm ETBASKING RIDGE, N.J., Aug. 13, 2020 GLOBE NEWSWIRE -- electroCore, Inc. Nasdaq: ECOR, a commercial-stage bioelectronic medicine company, today announced second quarter 2020 financial results and provided an operational update.Second Quarter 2020 and Recent Highlights Obtained Emergency Use Authorization EUA for the use of gammaCore Sapphire CV non-invasive nerve stimulation or nVNS in known or suspected COVID-19 patients who are experiencing an exacerbation of asthma-related dyspnea and reduced airflow, and for whom approved drug therapies are not tolerated or provide insufficient symptom relief. Commenced support of two investigator-initiated clinical trials IITs of gammaCore Sapphire CV in COVID-19 patients in Valencia, Spain SAVIOR 1 and in Pittsburgh, PA SAVIOR 2 which continue to enroll. Announced a publication in the journal Cephalalgia supporting the first line use of nVNS for the acute and preventative treatment of cluster headache and concluding that scientific and clinical studies support the emergence of non-invasive nerve stimulation as an effective, safe and practical treatment option for most primary headache disorders. Subsequent to the end of the second quarter, raised 10.3 million through the companys existing stock purchase agreement with Lincoln Park Capital announced in March 2020, resulting in pro-forma June 30, 2020 cash and cash equivalents and marketable securities of 29.2 million.Dan Goldberger, Chief Executive Officer of electroCore, commented: Following the FDAs recent issuance of an Emergency Use Authorization for the use of gammaCore Sapphire CV for the acute treatment of asthma exacerbations in certain known or suspected COVID-19 patients, we established a streamlined procurement process allowing hospitals and physicians to quickly and easily obtain the therapy. We are excited to play a role in the fight against this pandemic, particularly since reactive airway disease was one of the first areas of research for our company, and multiple pilot studies and publications strongly suggest that the therapy can provide a benefit to these patients.Notwithstanding the impact of the pandemic on our core operations during the second quarter, we were nonetheless able to generate a sequential increase in revenue, driven largely by the replenishment order in the commercial channel, even while physicians, hospitals, and military treatment facilities pivoted to treat COVID patients. Total paid months of therapy were down only single digit percentages, a testament to the unwavering focus of the entire electroCore team who experienced unprecedented restrictions in their physician outreach efforts. We are encouraged that our two most significant revenue channels, the U.S. Department of Veteran Affairs and Department of Defense, and the U.K., are showing early signs of potentially returning to pre-pandemic month run rates. The redeployment and cost reduction plan that we announced in May 2019 and have since implemented has transformed our company into a much leaner and nimbler organization. During the second quarter, we used approximately 5.2 million to fund our operations, a substantial reduction from approximately 11.3 million in the year ago period. Together with our strengthened balance sheet, we believe we have the resources necessary to achieve meaningful upcoming clinical and commercial milestones, Mr. Goldberger concluded.Second Quarter 2020 Financial ResultsFor the quarter ended June 30, 2020, electroCore reported net sales of 753,000 compared to 623,000 in the same period of 2019, and slightly above the guidance range of 700,000 to 750,000 provided by management on July 14, 2020. The company continues to focus on the VA and DOD channels in the United States and on sales in the United Kingdom.Revenue from the VA and DOD decreased 9 sequentially to 415,000 during the second quarter of 2020 from 454,000 in the first quarter of 2020 and 378,000 in the fourth quarter of 2019. Paid months of therapy shipped to the VA and DOD decreased 9 sequentially to 988 during the second quarter of 2020 from 1,084 in the first quarter of 2020.Revenue from outside the US decreased sequentially to 247,000 in the second quarter of 2020 from 277,000 in the first quarter of 2020 and 294,000 in the fourth quarter of 2019. Paid months of therapy shipped outside the US decreased 7 sequentially to 938 during the second quarter of 2020 from 1,008 in the first quarter of 2020 and 961 in the fourth quarter of 2019.During the quarter ended June 30, 2020, electroCore restructured its commercial distribution channel and exhausted all of the inventory that had previously been placed in that channel. As a result, the company recorded revenue of approximately 60,000 during the period for a small replenishment order and expects to be able to report recurring revenue in the commercial channel in the future.Total operating expenses for the second quarter of 2020 were approximately 6.4 million, a reduction of approximately 50 as compared to 12.7 million for the comparable period in 2019.SGA expense declined approximately 44 to 5.3 million in the second quarter of 2020 from approximately 9.4 million for the comparable period in 2019, primarily driven by a decrease in sales and marketing expenses consistent with the cost reduction plan first implemented in June 2019. Research and development expense decreased by approximately 1.5 million, or 60, to 1.0 million for the second quarter of 2020 from 2.5 million for the comparable period in 2019. This reduction is consistent with the companys strategy of reducing its near-term investment in research and development.During the second quarter of 2020, electroCore recorded a tax benefit of approximately 1.2 million in connection with the sales of some of its New Jersey net operating losses.GAAP net loss for the second quarter of 2020 was 4.7 million as compared to a GAAP net loss of 12.1 million for the same period in 2019.Adjusted EBITDA net loss for the second quarter of 2020 was a loss of 4.3 million as compared to an adjusted EBITDA net loss of 10.8 million for the same period in 2019.The company defines adjusted EBITDA net loss as GAAP net loss, excluding income tax expensebenefit, stock-compensation expense, restructuring and other severance related charges, legal fees associated with stockholders litigation and total other incomeexpense. 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 operations for the quarter ended June 30, 2020 was approximately 5.2 million, not including approximately 1.2 million received in connection with the sale of New Jersey net operating losses. Net cash used in operations was 11.3 million in the second quarter of 2019.Cash and cash equivalents and marketable securities at June 30, 2020 totaled approximately 18.9 million, as compared to approximately 24.1 million at December 31, 2019. Subsequent to the end of the second quarter of 2020, the company raised approximately 10.3 million through a partial draw down of the agreement with Lincoln Park Capital, resulting in a pro forma cash and cash equivalents and marketable securities balance of 29.2 million as of June 30, 2020.Webcast and Conference Call InformationelectroCores management team will host a conference call today August 13, 2020 beginning at 4:30 p.m. ET. Investors interested in listening to the conference call, or webcast may do so by dialing 877-407-4018 for domestic callers or 201-689-8471 for international callers, using Conference ID: 13706874, or by connecting to the Web: archived webcast of the event will be available on the Investors section of the companys website at: electroCore, Inc.electroCore, Inc. is a commercial-stage bioelectronic medicine company dedicated to improving patient outcomes through its platform non-invasive vagus nerve stimulation therapy initially focused on the treatment of multiple conditions in neurology. The companys current indications are the preventative treatment of cluster headache and migraine and acute treatment of migraine and episodic cluster headache.For more information, visit gammaCoreTMgammaCoreTM nVNS is the first non-invasive, hand-held medical therapy applied at the neck as an adjunctive therapy 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 can be self-administered by patients, as needed, without the potential side effects associated with commonly prescribed drugs. When placed on a patients neck over the vagus nerve, gammaCore stimulates the nerves afferent fibers, which may lead to a reduction of pain in patients. gammaCore 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, the acute treatment of pain associated with migraine headache in adult patients, and the prevention of migraine in adult patients. 