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electroCore, Inc. Announces Second Quarter Financial Results

BASKING RIDGE, N.J., Aug. 13, 2018 (GLOBE NEWSWIRE) -- electroCore, Inc. (“electroCore”) (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company, today reported financial results for the three month and six months ended June 30, 2018.

Second Quarter 2018 and Recent Highlights

  • Second quarter net sales was $393,000, an increase of $217,000 over second quarter of 2017
  • Completed initial public offering of our common stock, receiving net proceeds of approximately $77.7 million after deducting underwriting discounts, commissions and offering costs
  • Presented six abstracts across three primary headache disorders at the 60th Annual Meeting of the American Headache Society
  • Launched Program with UpScript to Offer Direct-to-Patient Telemedicine Option for gammaCore™ in the US
  • Appointed Carrie S. Cox as Chairman of its Board of Directors, and Michael G. Atieh and Stephen L. Ondra, M.D. as Board members

“I am encouraged by our second quarter financial results,” said Frank Amato, Chief Executive Officer. “I believe our successful IPO will not only enable us to expand our commercial presence, but also allows us to build upon our growing list of positive clinical studies.”

Second Quarter Financial Results

Net sales for the three months ended June 30, 2018 increased $217,000 from the second quarter of 2017. The growth in sales was due to an increase in the company’s sales force and the January 29th FDA clearance for an expanded label for gammaCore as an acute treatment for pain associated with migraine in adult patients.           

Gross profit for the second quarter of 2018 was $153,000, up from $138,000 in the same period of the prior year.

Total operating expenses for the second quarter of 2018 were $16.4 million, an increase of $8.8 million compared to the same period in 2017. The increase in operating expenses was driven primarily by costs related to expansion of the company’s sales and additional stock based compensation expense, due to the corporate conversion.

Operating loss in the second quarter of 2018 was $16.2 million, as compared to an operating loss of $7.4 million in the second quarter of 2017.

Cash, cash equivalents, and short-term investments were $95.8 million as of June 30, 2018. In June 2018, electroCore completed an initial public offering, raising net proceeds of approximately $77.7 million, net of underwriting discounts, commissions and other offering expenses.

Webcast and Conference Call Information
electroCore’s management team will host a conference call today beginning at 4:30 p.m. ET. Investors interested in listening to the conference call may do so by dialing (877) 371-5740 for domestic callers or (629) 228-0724 for international callers, using Conference ID: 7279125. A live and archived webcast of the event will be available on the “Investors” section of the company’s website at: www.electrocore.com.

About 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 and rheumatology. The company’s initial targets are the acute treatment of migraine and episodic cluster headache.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about electroCore's business prospects and product development plans, its pipeline or potential markets for its technologies, and other statements that are not historical in nature, particularly those that utilize terminology such as "anticipates," "will," "expects," "believes," "intends," other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore™, competition in the industry in which electroCore operates and overall market conditions. Any forward-looking statements are made as of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.  Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents electroCore files with the SEC available at www.sec.gov.

electroCore, Inc. 
Consolidated Statements of Operations 
(Unaudited) 
(In thousands, except per share data) 
          
  Three Months Ended Six Months Ended 
  June 30, June 30, 
   2018   2017   2018   2017  
          
Net sales $  393  $  177  $  474  $  293  
          
Cost of goods sold    240     39     289     111  
          
Gross margin    153     138     185     182  
          
Research and development    4,367     2,771     6,673     4,498  
          
Selling, general and administrative    12,007     4,798     18,832     7,857  
          
Total operating expense    16,374     7,569     25,505     12,355  
          
Operating loss    (16,221)    (7,431)    (25,320)    (12,173) 
          
Other income (expense)         
          
Interest expense    -      3,434     -      4,474  
          
Other expense net    1,561     709     1,905     1,284  
          
Non-controlling interest loss    -      (6)    55     (6) 
          
     1,561     4,137     1,960     5,752  
          
Net loss $  (17,782) $  (11,568) $  (27,281) $  (17,925) 
          
Net loss attributable to electroCore, LLC subsidiaries and affiliate    (11,620)    (11,568)    (21,119)    (17,925) 
          
Net loss attributable to electroCore, Inc. subsidiaries and affiliate    (6,162)    -      (6,162)    -   
          
Net loss per common share - Basic and diluted $  (0.21) $  -   $  (0.21) $  -   
          
Weighted average common and potential shares outstanding    29,262     -      29,262     -   
          

 

electroCore, Inc. 
Consolidated Balance Sheet Information 
(Unaudited) 
(in thousands) 
      
  June 30, December 31, 
Assets  2018   2017  
Current assets:     
Cash and cash equivalents $  88,358  $  13,224  
Debt securities and other investments available for sale    7,469     23,951  
Accounts receivable, net    298     103  
Inventories    752     328  
Prepaid expenses and other current assets    2,857     570  
Deferred financing costs  -     857  
Total current assets  99,734   39,033  
      
Property and equipment – net    377     169  
Security deposits    31     31  
Total assets $  100,142  $  39,233  
      
Liabilities, Convertible Preferred Units and Stockholders and Members’ Equity/(Deficit)     
Current liabilities:     
Accounts payable and accrued expenses $  6,886  $  3,880  
Warrant liability  -   2,239  
Other current liabilities  28   -  
Total current liabilities  6,914   6,119  
Noncurrent liabilities:     
Deferred rent  279   307  
Total liabilities  7,193   6,426  
      
Convertible preferred units:     
Series A Preferred Units, 0 Units authorized at June 30, 2018 and 71,050,860     53,518  
  at December 31, 2017; 0 Units issued and outstanding at June 30, 2018 and
  70,918,506 at December 31, 2017
Series B Preferred Units, 0 Units authorized at June 30, 2018 and 123,000,000     68,756  
  at December 31, 2017; 0 Units issued and outstanding at June 30, 2018
  and 105,186,020 at December 31, 2017
Series B-1 Preferred Units, 0 Units authorized at June 30, 2018 and       
  December 31, 2017; 0 Units issued and outstanding at June 30,
  2018 and December 31, 2017
Total convertible preferred units     122,274  
Stockholders'/members’ equity/(deficit):     
Common Units, 0 Units authorized at June 30, 2018 and 600,000,000     40,181  
  December 31, 2017; 0 Units issued and outstanding at
  June 30, 2018 and 218,982,140 December 31, 2017
Preferred Stock, par value $0.001 per share; 10,000,000 shares authorized at       
  June 30, 2018,  0 shares authorized at December 31, 2017; 0 shares issued and
  outstanding at June 30, 2018 and December 31, 2017
Common stock, par value $0.001 per share; 500,000,000 shares authorized at  29     
  June 30, 2018, 0 shares authorized at December 31, 2017; 29,450,034 issued
  and outstanding at June 30, 2018 and 0 at December 31, 2017
Additional paid-in capital  102,775   22,596  
Accumulated deficit    (10,533)    (152,929) 
Accumulated other comprehensive income  42   80  
Total equity/(deficit) attributable to electroCore, Inc., subsidiaries and affiliate  92,313     (90,072) 
Noncontrolling interest  636   604  
Total stockholders' equity/members’ (deficit)  92,949     (89,468) 
Total liabilities, convertible preferred units and stockholders' equity/members' equity $  100,142  $  39,232  
      


Contacts

Investors:
Greg Chodaczek or Lynn Lewis
Gilmartin Group
investors@electrocore.com
(646) 924-1769

or

Media:
Alexandra Canale
GCI Health
(617) 921-9353
alexandra.canale@gcihealth.com

Monday, August 13, 2018 - 16:05