 WOBURN, Mass., July 23, 2020 GLOBE NEWSWIRE -- NeuroMetrix, Inc. Nasdaq: NURO today reported financial and business highlights for the quarter ended June 30, 2020. The Company is a leading developer of neurostimulation-based medical devices that are used to diagnose and treat chronic health conditions. Q2 2020 Highlights: Total revenue of 1.4 million provided a gross margin of 0.9 million, at a gross margin rate of 63.6. The COVID-19 effects on the economy and health care delivery adversely affected customer orders in all product lines. DPNCheck contributed 0.8 million revenue with about 46 coming from Asian markets. Quell contributed 0.4 million revenue and ADVANCE 0.1 million revenue. Operating expenses were reduced to 1.7 million with lower variable spending in SM and GA. The RD program maintained its primary focus on the DPNCheck technology upgrade. The Company is also making focused investments in Quell RD, including development of Quell Flex to support the previously announced large fibromyalgia study by the University of Iowa and Vanderbilt University. Expanded DPNCheck distribution was announced, both in the U.S. Medicare Advantage market involving Biomedix, a data-oriented provider of diagnostics for value-based care, and in the China market involving Yabao Pharmaceutical Co., Ltd. Yabao, based in north China, is focused on chronic diseases affecting the elderly, women, and children, including those with diabetes. Yabao will work with the Companys exclusive distributor for China, Omron Healthcare. The Company announced a Quell marketing initiative focusing on chronic knee pain. The effort includes direct-to-consumer digital marketing as well as informing physicians and other health care providers about the use of Quell for patients with knee pain. The Company utilized its at-the-market ATM facility to raise 3.7 million in net proceeds from sale of common stock.Early signs of commercial recovery became evident during June in the Medicare Advantage sector of our DPNCheck business, said Shai N. Gozani, M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. The timing and pace of the ultimate recovery remains an uncertainty. Weve taken this opportunity to strengthen our balance sheet and to broaden our business reach through the recently reported collaborations with Biomedix and Yabao. Both hold the potential to materially impact future DPNCheck revenue growth. Financials:In the second quarter of 2020, total revenues were 1.4 million, down 42 from 2.4 million in the prior year period. Gross margin was 0.9 million versus a negative 0.8 million in Q2 2019. The gross margin rate of 63.6 improved from 53.9 in Q2 2019, excluding the effect of inventory charges taken in the year ago quarter. Operating expenses were 1.7 million, a reduction of 2.3 million from 4.0 million in Q2 2019. Other income was de minimis in Q2 2020. In Q2 2019 other income included 1.4 million in milestones under the Companys GlaxoSmithKline collaboration. Net loss was 0.9 million compared to a net loss of 3.4 million in Q2 2019. Net cash usage from operations was 1.1 million compared with 2.2 million in Q2 2019. The Company ended the quarter with cash of 5.4 million.Company to Host Live Conference Call and Webcast NeuroMetrix will host a conference call at 8:00 a.m. Eastern today, July 23, 2020. The call may be accessed in the United States at 844-787-0799, international at 661-378-9630 using confirmation code 4284442. A replay will be available starting two hours after the call at 855-859-2056 United States and 404-537-3406 international using confirmation code 4284442. It will remain available for one week. The call will also be webcast and accessible at under Investor Relations.About NeuroMetrix NeuroMetrix is a leading developer and manufacturer of diagnostic and therapeutic neurostimulation-based medical devices that are used throughout the world. The Company has three FDA cleared commercial products. DPNCheck is a point-of-care test that is used to evaluate peripheral neuropathies. ADVANCETM is a point-of-care device that provides nerve conduction studies as an aid in diagnosing and evaluating patients suspected of having focal or systemic neuropathies. Quell 2.0 is a wearable, mobile app enabled, neurostimulation device indicated for symptomatic relief and management of chronic pain and is available over-the-counter. The Company maintains an active, industry-leading RD program. For more information, visit Harbor StatementThe statements contained in this press release include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the companys or managements expectations regarding the business, as well as events that could have a meaningful impact on the companys revenues and cash resources. While the company believes the forward-looking statements contained in this press release are accurate, there are a number of factors that could cause actual events or results to differ materially from those indicated by such forward-looking statements, including, without limitation, the effects of the COVID-19 pandemic on all aspects of the Companys business, estimates of future performance, and the ability to successfully develop, receive regulatory clearance, commercialize and achieve market acceptance for any products. There can be no assurance that future developments will be those that the company has anticipated. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in the companys most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, as well as other documents that may be filed from time to time with the Securities and Exchange Commission or otherwise made public. The company is providing the information in this press release only as of the date hereof, and expressly disclaims any intent or obligation to update the information included in this press release or revise any forward-looking statements.Source: NeuroMetrix, Inc.Thomas T. Higgins SVP and Chief Financial Officer 781-314-2761 NeuroMetrix, Inc. Statements of Operations Unaudited Quarters Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues1,359,979 2,354,683 3,532,015 5,477,618 Cost of revenues495,086 3,143,787 1,115,276 5,468,018 Gross profit loss864,893, 789,104 2,416,739 9,600 Operating expenses: Research and development660,278 1,034,921 1,193,898 1,890,002 Sales and marketing379,113 1,373,949 803,462 3,399,237 General and administrative678,497 1,564,555 1,930,243 3,184,045 Total operating expenses1,717,888 3,973,425 3,927,603 8,473,284 Loss from operations852,995 4,762,529 1,510,864 8,463,684 Other income: Collaboration income 1,381,818 7,116,667 Other income1,051 18,520 1,549 35,333 Total other income1,051 1,400,338 1,549 7,152,000 Net loss851,944 3,362,191 1,509,315 1,311,684 NeuroMetrix, Inc. Condensed Balance Sheets Unaudited June 30, 2020 December 31, 2019 Cash and cash equivalents 5,434,983 3,126,206 Other current assets 1,968,699 2,304,608 Noncurrent assets 1,201,846 1,462,872 Total assets 8,605,528 6,893,686 Current liabilities 2,418,784 3,446,778 Lease Obligation, net of current portion 698,128 916,674 Stockholders equity 5,488,616 2,530,234 Total liabilities and stockholders equity 8,605,528 6,893,686 