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MYOS RENS Technology Reports First Quarter Financial Results

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Provides Update on Clinical Studies Programs

Conference Call to be Held Tomorrow at 11am ET

CEDAR KNOLLS, N.J., May 9, 2018 /PRNewswire/ -- MYOS RENS Technology Inc. ("MYOS" or the "Company") (NASDAQ: MYOS), a bionutrition company and owner of Fortetropin®, the  product that helps build lean muscle in conjunction with resistance training, announced today its financial results for the first quarter ended March 31, 2018.  (Amounts in thousands except where noted.)

 (PRNewsfoto/MYOS RENS Technology)

FINANCIAL HIGHLIGHTS:

First Quarter 2018:

  • Gross profit margin was 46% for the first quarter of 2018.
  • Net revenues decreased 62% to $57 for the first quarter of 2018, compared to $150 for the first quarter of 2017. The decrease in net revenues was primarily due to a non-recurring sale to a related party of $116 for the three months ended March 31, 2017.
  • Gross profit was $26, compared to $15 for the first quarter of 2017.
  • Operating expenses increased 9% to $1,238, compared to $1,137 for the first quarter of 2017.
  • Net loss increased 9% to $1,212, compared to $1,117 for the first quarter of 2017.

Liquidity
As of March 31, 2018, the Company had no debt and had $1.7 million in working capital. The Company raised approximately $287 from the sale of 140,295 shares of common stock for $2.11 per share through its at-the-market program with H.C. Wainwright & Co., LLC. Subsequent to the end of the quarter, the Company consummated a private placement of shares of common stock on April 25, 2018, issuing 806,452 shares at a purchase price of $1.24 per share to a group of accredited investors, including MYOS CEO Joseph Mannello and a member of the Company's board of directors, for aggregate gross proceeds of $1.0 million.

MANAGEMENT COMMENTARY:
Joseph Mannello, Chief Executive Officer of MYOS, commented, "Our results for the first quarter of 2018 are in-line with our expectations. I am optimistic about our sports nutrition vertical, as several key initiatives have begun which we believe will be a strong catalyst for additional sales growth for Myos.

We recently secured the prestigious NSF "Certified for Sport®" certification for the manufacture of our new Yolked™ line of products.  Gaining this certification activated our marketing relationship with IMG College, a division of IMG. We have begun meeting with several Division I universities in the northeast part of the country. We will place our product in these universities, and based on the overall demand, will establish accounts at these universities. I can't emphasize enough how efficient this process has been in terms of gaining entry into these universities, thanks to our marketing partnership with IMG.

In the coming days, we will debut a new, more focused website for our products. Based on feedback from customers and visitors, we learned that we needed to improve our messaging in terms of educating the marketplace about the science-based benefits of Fortetropin®. We are optimistic that our new website can be a central hub for learning about our products, as well as a tool to help people learn more about muscle health and nutrition.

Recently, we hired two direct sales organizations to support our internal sales team. These sales organizations allow us to run more efficient marketing campaigns, identifying key decision makers for advancing and selling our products across sports nutrition and veterinary products. We anticipate meaningful results from their efforts to begin in Q3 of 2018.

As I've stated in previous communications, we continue to be fully committed towards building shareholder value through science. We now have four active studies– Kansas State University; UC Berkeley; Rutgers, The State University of New Jersey; and today's announced pre-clinical cachexia study with Weill Cornell Medical Center.

I want to highlight our study with Kansas State University, relating to Fortetropin® and its impact on muscle health in dogs. As we announced in 2017, this is a randomized, double blind, placebo‐controlled clinical study initiated with Dr. Kenneth Harkin, College of Veterinary Medicine, Kansas State University, to determine if daily supplementation of Fortetropin® can reduce muscle atrophy in dogs that undergo TPLO surgery, which is comparable to ACL surgery in humans. The study involves 100 dogs, where 50 dogs receive daily supplementation of Fortetropin® over the course of 12 weeks following surgery, while the remaining 50 dogs will receive a macronutrient‐matched placebo control. The primary endpoint of this study is muscle thickness of coxofemoral extensors and flexors. The secondary end‐points are epaxial muscle thickness, muscle condition score and stance analysis. To date, the study is more than 90% complete and we expect to announce results before the end of 2018.

I'm very excited about the potential for our veterinary product; we continue to receive great feedback from veterinarians who have been using the product on dogs and cats. This is an important part of the MYOS story, and we have found several veterinary industry indicators that demonstrate the great promise of market success and acceptance for our Fortetropin®-based product.

Simply put, pet owners are paying more today for their pets than ever before. Nontraditional veterinary care and nutrition techniques have grown significantly in the past several years. Veterinarians are adopting new treatment protocols, including Integrative Veterinary Medicine, combining western veterinary science with nontraditional approaches. These methods include homeopathic and herbal remedies, along with massage, chiropractic work, and nutritional counseling. Now why is this all important?  Because new technologies and a changing marketplace of pet owners have spurred greater interest in more nontraditional supplements and therapies for pets. During the past decade, a majority of pet owners in the US were middle-aged. As millennials begin to outnumber baby boomers, however, this particular pet owner demographic has reached a tipping point. Now ranking the highest among generations, millennial pet ownership has surpassed baby boomers, according to a December 2017 Packaged Facts report on pet food in the US. The report also states that millennials account for 35% of all pet owners.

Research has shown that pets are living longer, thanks to advances in care, and have very different veterinary needs, both for wellness and sickness, compared to prior generations. In fact, some veterinary practices now offer customized wellness programs for aged pets. Many pet owners are willing to pay for treatments that were once reserved for only humans and are willing to pay a significant sum for these treatments. We can see this in the pet insurance business where policies have become more popular over the past few years. The US market for pet health insurance is expected to nearly double from more than $530 million in 2013 to almost $1 billion by 2020 according to a report by Packaged Facts.

As I mentioned earlier, this is just one of four ongoing clinical studies. The results of these and other studies will determine just how large the long-term potential for this company is going forward. I view our company today as a bio-nutrition company, with a portfolio of brands that are entering the marketplace and supporting our scientific initiatives. I believe that the best way to value MYOS over the long-term is through our scientific initiatives that will potentially provide large revenue opportunities. It is my belief and optimism in the long-term potential of MYOS that led me to participate, along with one of our board members and others, in an additional $1 million investment into the Company. We continue to have no debt. Fortetropin® is truly a disruptive and remarkable product that improves muscle health. Our strong balance sheet, conservative cash management strategy, improved scientific profile and brand development will yield both short-term and long-term success. We look forward to sharing more on our developing story in the months to come.

CONFERENCE CALL
MYOS will host a conference call tomorrow, Thursday, May 10, 2018 at 11:00 am ET, at which time MYOS Chief Executive Officer Joseph Mannello will provide highlights and commentary on earnings results and developments on clinical studies for the first quarter ended March 31, 2018.

Call Date/Time:   Thursday, May 10, 2018 at 11:00 am ET

Call Title:  

MYOS RENS Technology First Quarter 2018 Financial Results Conference Call



Dial In:     

877-407-4019 from the U.S.;


International callers may telephone 201-689-8337




Please call in approximately 10 minutes before the call.

A digital replay will be available by telephone approximately two hours after the completion of the call until July 31, 2018 and may be accessed by dialing 877-660-6853 from the U.S. or 201-612-7415 for international callers, using the Conference ID# 13679724.

This call will be simultaneously webcast. The webcast will be available on the MYOS website, www.myosrens.com, in the "Investor Relations" section. The webcast will be archived and available at the same web address for two weeks following the call.

About MYOS RENS Technology Inc. 
MYOS RENS Technology Inc. (MYOS), "The Muscle Company™", is a Cedar Knolls, NJ-based bionutrition 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 and lean body mass in conjunction with resistance training. MYOS believes Fortetropin® has the potential to redefine existing standards of physical health and wellness. 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 successful launch of our products, including Qurr® products, 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 the forecasted revenue stream and cash flow from sales of our products, the ability to continue increasing our revenue and gross profit margins, the ability to achieve a sustainable, profitable business, the effect of economic conditions, 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 the Company's Securities and Exchange Commission filings. The Company undertakes 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.

The following tables should be read in conjunction with the footnotes accompanying the consolidated financial statements contained within the Form 10Q issued on May 9, 2018.

 

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)




March 31,



December 31,




2018



2017




(Unaudited)





ASSETS







Current assets:







Cash


$

230



$

923


Accounts receivable, net



1




4


Inventories, net



1,782




1,779


Prepaid expenses and other current assets



161




163


Total current assets



2,174




2,869


Deferred offering costs



96




102


Fixed assets, net



173




184


Intangible assets, net



1,568




1,640


Total assets


$

4,011



$

4,795











LIABILITIES AND STOCKHOLDERS EQUITY









Current liabilities:









Accounts payable


$

184



$

176


Accrued expenses and other current liabilities



263




255


Total current liabilities



447




431











Total liabilities



447




431











Commitments and contingencies



-




-











Stockholders' equity:









Preferred stock, $.001 par value; 500,000 shares authorized; no shares issued and 
     outstanding



-




-


Common stock, $.001 par value; 12,000,000 shares authorized at March 31, 2018 
     and at December 31, 2017; 6,536,046 and 6,340,604 shares issued and 
     outstanding at March 31, 2018 and December 31, 2017, respectively



7




6


Additional paid-in capital



36,614




36,202


Accumulated deficit



(33,057)




(31,844)


Total stockholders' equity



3,564




4,364











Total liabilities and stockholders' equity


$

4,011



$

4,795


 

 

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except share and per share amounts)




Three Months Ended




March 31,




2018



2017









Net revenues


$

57



$

150


Cost of sales



31




135


Gross profit



26




15











Selling, marketing and research



394




300


Personnel and benefits



417




333


General and administrative



427




504


Total operating expenses



1,238




1,137


Operating loss



(1,212)




(1,122)


Other (expense) income, net



(1)




5


Net loss


$

(1,213)



$

(1,117)











Net loss per share attributable to common shareholders:









Basic and diluted


$

(0.19)



$

(0.20)











Weighted average number of common shares outstanding:









Basic and diluted



6,504,590




5,627,705


  

 

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)




Three Months Ended




March 31,




2018



2017


Cash Flows From Operating Activities:







Net loss


$

(1,213)



$

(1,117)


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









Depreciation



11




13


Amortization



72




53


Stock-based compensation



123




41


Changes in operating assets and liabilities:









Decrease (increase) in accounts receivable



3




(57)


Increase in inventories



(3)




(3)


Decrease (increase) in prepaid expenses



2




(181)


Decrease in deferred revenue



-




(56)


Increase (decrease) in accounts payable and accrued expenses



16




(121)


Net cash used in operating activities



(989)




(1,428)











Cash Flows From Financing Activities:









Deferred offering costs from at the market transaction



-




(125)


Proceeds from registered direct offering of common stock



296




1,926


Net cash provided by financing activities



296




1,801











Net (decrease) increase in cash



(693)




373


Cash at beginning of period



923




1,866


Cash at end of period


$

230



$

2,239











Supplemental schedule of non-cash investing and financing activities:







Recognition of deferred offering costs



6




-


 

 

Investor Relations:
Porter LeVay & Rose
Michael Porter, President
Phone: 212-564-4700
Email: MYOS@plrinvest.com

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SOURCE MYOS RENS Technology Inc.