The following is a summary of the NeurAxis, Inc. (NRXS) Q1 2024 Earnings Call Transcript:
Financial Performance:
NeurAxis generated a Q1 revenue of $646,000 from 222 patient treatments, showing high demand despite being down year-on-year due to insurance coverage issues.
NeurAxis' Q1 financial results indicate a revenue decrease by 19.7% compared to Q1 2023 due to limited insurance policy coverage but project strong demand indicating potential for significant future growth.
Enough patients exist to potentially produce $1.8 million in quarterly revenue, amounting to a $7.2 million annual run rate, once insurance policy coverage issues are resolved.
The company secured $6.1 million in financial commitments through March 2025 via convertible notes, with $1.5 million funded in Q1 2024.
NeurAxis plans to strengthen their liquidity position with an additional $3 million in convertible notes from a reputable healthcare-focused fund.
Business Progress:
In Q1 2024 NeurAxis had a 27% year-on-year increase in the number of patients seeking treatment, showing high demand.
NeurAxis was able to increase their covered lives via insurance by 400% year-on-year to reach 22.5 million. They plan on significantly expanding this number throughout 2024.
The company launched their internal prior authorization team in the first quarter, which has been increasing access to care for children.
Successful launch of the Centers of Excellence program with the first being the Children's Hospital of Orange County.
They anticipate seeing revenue growth in the second half of 2024 and into 2025 based on acquiring more coverage from insurance companies, and the commercialization of their new product, the Rectal Expulsion Device (RED).
NeurAxis is accelerating outreach efforts to investors including multiple weekly meetings with existing and potential investors, and participating in monthly virtual and in-person conferences to increase visibility among the investment community.
The company is planning to tap into the total addressable market estimated at around $23 billion for its PENFS technology by targeting the adult market later this year.
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