NanoVibronix Highlights Second Quarter Revenue Growth and Narrowing of Loss from Operations in Letter to Stockholders
To Our Shareholders:
We are committed to our strategic vision of developing, improving and commercializing our distinct and effective therapies, which we believe enable healthcare providers to treat patients in need, fill a void in the market and have the potential to increase stockholder value. We are focused on several areas that we believe will have a substantial impact on our growth and product adoption. Many of those areas of focus have begun showing positive results, as reflected in our most recent quarter’s financial results for the quarter ended
Q2 Financial Results
We recorded revenues of approximately
Domestic update
We continue to make progress in several channels of domestic sales and product adoption. Our Veterans' Affairs penetration continues to improve in terms of the number of facilities served, and we have added valuable sales resources in areas previously uncovered by our current sales partner, Delta Medical.
Delta Medical was awarded a GSA grant that we believe will provide for an accelerated uptick in product adoption within the
Additionally, we continue to make progress in the Workers’ Compensation area of our business, from multiple sales channels. Our Durable Medical Equipment (“DME”) exclusive distributor has been steadily delivering and expanding its reach through the addition of qualified and competent dealers, and we believe there is significant upside potential in this area. We are gratified to see the adoption of PainShield increase within both reimbursable market segments and become the accepted product of choice for the DME market. The PainShield product family is increasingly becoming a recognizable and acceptable standard for pain relief and the avoidance of opioids.
Reimbursement
Reimbursement is currently approved in the Veterans’ Health System and several Workers' Compensation plans, Third Party Administrators and insurance companies. Our revenues in these markets have grown and continue to grow substantially. Through our strategic, exclusive distributor partners for select markets, and through our direct sales efforts, we are seeing growth every month. The sales growth follows the payer and patient testimonials of superior product efficacy, which is heavily scrutinized in these markets. It is truly gratifying to witness the product loyalty and increased adoption of PainShield.
Reimbursement for UroShield remains in effect for the
International update
We continue to make progress and generate additional sales in the Australian and
In the
Relative to the broader market in
Research
The
Product development
We have been working on several exciting improvements to the existing product portfolio as well as exploring new product opportunities. The goals of the product development are to improve the therapy, reduce costs and “future-proof” the componentry. The “kick-off” for the project began on time and the development process is progressing rapidly.
A look ahead
We remain focused on driving profitable growth by expanding and increasing our distribution and licensing channels, nurturing relationships with new and existing accounts and engaging consumers through a variety of creative mediums. Today, we have initial distribution agreements in place, a solid manufacturing partner and the necessary working capital to meet existing and anticipated near-term demand.
We continue to negotiate for sector-specific private label agreements. This strategy is intended to develop long-lasting, profitable, forecastable revenue. COVID-19 interrupted our momentum, but these discussions are moving forward.
In the near-term, we are primarily focused on achieving the following milestones:
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Supplementing distribution to achieve broader geographic coverage in both
VA andWorkers' Compensation channels - Selection of UroShield distribution to key markets
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Adding market segment specific distribution for PainShield in the
U.S. -
Finalizing a private label partnership for PainShield in the
U.S. - Expanding UroShield distribution throughout the world.
Thank you for your continued support. We remain optimistic and motivated to deliver improved results for 2024.
Kind regards,
Chief Executive Officer
About
Forward-looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified; consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) market acceptance of our existing and new products or lengthy product delays in key markets; (ii) negative or unreliable clinical trial results; (iii) inability to secure regulatory approvals for the sale of our products; (iv) intense competition in the medical device industry from much larger, multinational companies; (v) product liability claims; (vi) product malfunctions; (vii) our limited manufacturing capabilities and reliance on subcontractor assistance; (viii) insufficient or inadequate reimbursements by governmental and/or other third party payers for our products; (ix) our ability to successfully obtain and maintain intellectual property protection covering our products; (x) legislative or regulatory reform impacting the healthcare system in the
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Investor Contact:
brett@haydenir.com
(646) 536-7331
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