10-Q

請勾選以下選項以表示申報人（1）已提交證券交易法1934年第13條或15(d)條所要求提交的所有報告，且在過去12個月中（或申報人需要提交此類報告的較短期間）已提交；（2）已受到過去90天內此類提交要求的限制。是的: ☒ 否: ☐

請打勾號表明註冊人是否根據《S-t條例405條規定（本章節232.405號）的規定，在過去12個月內（或註冊人需要提交此類文件的更短期限內），已提交每個交互數據文件。是的 ☒ 否 ☐

請勾選指示登記者是否為大型快速提交人、快速提交人、非快速提交人、較小的報告公司或新興成長型公司。請參閱交易所法規120億2條，了解「大型快速提交人」、「快速提交人」、「較小的報告公司」和「新興成長型公司」的定義。

如果是新興成長公司，請用勾選表示該註冊人已選擇不使用根據《交易所法》第13(a)條提供的任何新的或修訂的財務會計標準的擴展過渡期來遵守。 ☐

以勾號標示註冊人是否為殼牌公司（如本法例第 120億 2 條所定義）。是 ☐ 否 ☒

於2024年11月1日，登記人如果 30,245,870 股票份額每股面值$0.0001的普通股，現有。

本季度的10-Q表格報告包含前瞻性聲明。前瞻性聲明與期望、信念、預測、未來計劃和策略、預期事件或趨勢以及其他不屬於歷史事實的類似事項相關。在某些情況下，您可以通過“預期”、“相信”、“可能”、“估計”、“期望”、“打算”、“可能”、“計劃”、“潛在”、“應該”、“將會”和“會”或這些詞的否定形式或其他可比術語來識別前瞻性聲明。

您不應過分依賴前瞻性陳述。本季度10-Q表格中設定的警語陳述，包括“風險因素”和其他地方，確定了您在評估我們的前瞻性陳述時應考慮的重要因素。這些因素包括，但不限於：

盡管此第10-Q表格中的前瞻性陳述基於我們的信念、假設和期望，考慮到我們目前掌握的所有信息，但我們無法保證未來交易、成果、表現、成就或結果。任何人都無法向任何投資者保證，我們前瞻性陳述中反映的期望將被實現，或者與之不符的情況不會對我們造成重大負面影響。除非法律要求，我們沒有義務重發此第10-Q表格，或者公開更新我們的前瞻性陳述。, 雖然此前瞻性陳述基於我們的信念、假設和期望，考慮到我們目前掌握的所有信息，但我們無法保證未來交易、結果、表現、成就或結果。任何人都無法向任何投資者保證，我們的前瞻性陳述所反映的期望將被實現，或者與之相左的情況將對我們造成重要而不利的影響。除非法律要求，我們無需重發此第10-Q表格，或以其他方式公開更新我們的前瞻性陳述。, 或者向公眾更新我們的前瞻性陳述，除非法律要求，我們沒有義務重發此第10-Q表格。

所附的說明是該簡明合併的未經審核基本報表的不可或缺部分。

綜合收入和綜合損益的簡明總結合併財務報告營運摘要（未經審核）

所附的說明是該簡明合併的未經審核基本報表的不可或缺部分。

綜合收入和綜合損益的簡明總結合併財務報告綜合虧損表附註（未經審計）

所附的說明是該簡明合併的未經審核基本報表的不可或缺部分。

註 2 — 流動性

本公司損失淨額約為伊利 $5,923,600 和 $5,687,500 在截至二零二四年九月三十日及二零二三年九月三十日止九個月內，累計赤字約為 $102,850,000 在二零二四年九月三十日。在營運活動中使用的現金約為 $6,660,000 和 $3,817,000 分別截至二零二四年九月三十日和二零二三年九月三十日止九個月。本公司的歷史虧損及用於營運的現金是對本公司能夠繼續保持持續性的能力顯著懷疑的指標。

根據其當前現金及現金等值，以及其信用額度（見下文）以及未來預期現金流量，本公司相信其可用現金及現金等值將在本財務報表發行日起至少未來十二個月內為其業務提供資金。

本公司歷史上通過融資活動資助其業務，包括募集股權和債務。2024 年 7 月 11 日，該公司與第一公民銀行和信託公司的一部門矽谷銀行簽訂了貸款和保證協議，該協議提供該公司最高借貸美元的能力4.0 以百萬計算合資格的應收帳款。在這些財務報表發行日期未提供的信用限額下的可用性約為 $0.9 百萬。有關進一步討論，請參閱註 7-信用額度。二零二四年一月十九日，公司完成註冊直接股票發售，出售 1,354,218 普通股股份及 224,730 預先資助認股權證以 $ 購買普通股3.80 每股，或 $3.7999 每張預先資助認股權證，在費用和開支約為 $ 後產生淨收益5.4 百萬。於 2023 年 8 月 29 日，本公司完成公開股票發行，並在費用及開支約為 $ 後獲得所得款項3.9 百萬，賣出 5,413,334 普通股股份及 1,920,000 預先資助認股權證以 $ 購買普通股0.60 每股或 $0.5999 每份預先資助認股證。於 2023 年 1 月 17 日，本公司完成公開股票發行，並在費用及開支約為 $ 後獲得所得款項5.7 百萬，賣出 13,169,074 普通股股份及 6,830,926 使用預先資金認股權證以 $ 購買普通股0.325 每股或 $0.3249 每份預先資助認股證。有關進一步討論，請參閱附註 8-普通股及認股權證。融資活動，例如信貸額度和最近完成的註冊直接股票發行，使本公司能夠維持其營運。

管理層的營運計劃主要集中在其直接計費渠道中增加收入，通過為越來越多的聯邦醫療保險患者提供服務並培訓美國的 O&P 提供商，這將使他們能夠為病人提供 MyoPro，預計將在 2025 年及以後進一步增長收入。根據聯邦醫療保險和醫療補助服務中心（「CMS」）對本公司產品公布的最終費用，如果供應鏈能夠無中斷滿足其數量要求，該公司可以在 2024 年下半年補償其原計劃的額外廣告支出，預期收到付款，並且第四季度未出現銷售日數增加，該公司認為可以第四季按季度達到營運現金流平衡2024 年的季度。此外，本公司認為透過使用其信用額、可能的公開或私募股權發行、行使未償還認股權證或其他方式，可以獲得資本資源。根據本公司在某些開支的時間和金額、當前現金狀況、信貸限制下的可用性和營運計劃方面的寬度，本公司認為截至本財務報表發行日期，本公司認為本財務報表發行日期，這項重大疑問已緩解。然而，本公司將成功實施其營運計劃，並無法保證。

連同本公司截至二零二三年十二月三十一日及二零二年十二月三十一日及當時截止年度之經審核財務報表及相關披露內容，包括截至二零二三年十二月三十一日止年度之公司表格 10-k 年報.

合併基礎

簡明綜合財務報表包括本公司及其全資子公司 Myomo Europe GmbH 的帳目。所有重要的公司間餘額和交易都被消除。

綜合收益（虧損）

包括全面損失指定期間內所有股權變動，除了因股東投資及分派給股東而產生的所有股權變動。本公司的綜合虧損包括外幣轉換調整的變動，以及短期投資未實現的收益和虧損。由累計其他綜合收益（虧損）轉為其他（收入）開支，而管理層認為不是重要的，有關三項及三項之短期投資實現收益或虧損的其他（收入）費用。截至二零二四年九月三十日止九個月。截至二零二三年九月三十日止的三個月和九個月內沒有重新分類。

估算的使用

根據美國普遍接受的會計原則撰寫財務報表，要求管理層作出影響某些報告金額和披露的估計和假設。這些估計和假設會持續審查，並根據適當更新。實際結果可能與這些估計不同。本公司的重要估計包括遞延稅估值減免、股票賠償的估值、保固義務以及緩速庫存儲備。

現金、現金等值及短期投資

本公司認為所有購買時原有期限為三個月或以下的高流動性投資均為現金等值。現金及現金等值主要包括於 2024 年 9 月 30 日及 2023 年 12 月 31 日的存款戶口和貨幣市場賬戶。

本公司將所有原始到期超過三個月但少於一年的投資視為短期投資。有沒有截至二零二四年九月三十日，分類為短期投資的工具。截至 2023 年 12 月 31 日的短期投資包括商業證券、美國國庫票據和短期公司債務證券，這些證券被歸類為持有至到期，以及總值約為 $ 的存款證書1,994,700 截至二零二三年十二月三十一日。公司在購買時確定其投資的適當資產負債表分類，並在每個資產負債表日期評估分類。

根據新租約，公司將以信用證的形式向業主提供了 $ 的抵押金375,000. 本公司已於二零二四年九月三十日在簡明綜合資產負債表中的獨立銀行帳戶內現金抵押信用信用信用證。


	九月三十日 2024		十二月三十一日 2023
現金、現金等值及限制現金
現金	$	850,544	$	1,231,871
貨幣市場基金		5,772,131		4,893,387
商業紙		—		746,048
限制現金		375,000		—
	$	6,997,675	$	6,871,306
短期投資
美國政府機構債務證券	$	—	$	1,497,099
商業紙		—		497,563
	$	—	$	1,994,662

應收帳款及信貸損失補償

該公司以發票金額減去信貸損失的免稅額報告應收帳款。本公司會持續評估其應收帳款，如有必要，根據多種因素，包括當前信貸條件和客戶支付歷史記錄，為信貸損失設定抵免額。本公司不要求應收帳款及信貸保證金或累積利息

條款通常為30天。截至2024年9月30日截至2023年12月31日，公司記錄了一項信貸損失準備，該準備對於簡明合併基本報表而言是微不足道的。

合資企業

在2022年3月28日，公司投資現金考慮金額為$199,000 一段 19.9%在江西myomo醫療輔助器具有限公司（「合資公司」）的持股權益，該公司總部位於中國，主要由北京瑞澤醫療投資有限公司（「瑞澤醫療」）擁有。合資公司將在大中華地區（包括香港、澳門和台灣）製造和賣出公司的現有及未來產品。由於公司對其管理具有重大影響，因此公司根據權益法會計處理對合資公司的投資。由於在前期記錄了公司在合資公司中的損失份額，該投資已於2023年12月31日完全註銷，這些損失被計入簡明合併損益表中的其他費用（收入），公司對合資公司所產生的任何損失不承擔資助責任。

收入確認

本公司根據ASC 606《來自客戶合約的營業收入》及所有相關修訂（主題606）來確認營業收入。根據主題606的營業收入需要在「某一時點」或「隨時間」進行確認，具體取決於安排的事實和情況，並使用五步驟模型進行評估。一般而言，本公司在某一時點確認營業收入。

本公司在應用以下五個步驟後確認營業收入：

與客戶的合約或合約的識別，

合約中履行義務的識別，包括它們在合約背景下是否明確，

交易價格的確定，包括對變量考量的限制，

將交易價格分配給合約中的履行義務，並

當履行義務得到滿足時確認營業收入。

當這些服務的控制權轉移給我們的客戶時，營業收入便會被確認，金額反映公司預期在交易所獲得的對價。

產品營收

公司日益增加的營業收入來自於直接計費。公司還從銷售其產品給美國及國際的O&P提供商和退伍軍人事務部（“VA”）中獲得營業收入。在直接計費中，當以下所有標準都滿足時，公司確認營業收入：

(i)

產品已交付給病人，包括對使用的初步指導完成，

(ii)

收款被視為可能，並且在解決與變量對價相關的不確定性後，已確定不會發生重大營業收入的逆轉。例如，如果公司收到通知，保險公司打算付款並提供了付款金額，則公司將記錄營業收入，

(iii)

可使用「預期價值」估算技術或ASC 606中定義的「最可能金額」來估算待收款項。

對於來自特定支付者的營業收入，包括康哲藥業，當公司已證明付款歷史足夠時，公司在收到支付者的預授權時確認營業收入，或者在醫療保險患者的情況下，當公司收集到適當的醫療文件以證明符合公司的納入標準，設備交付時控制權將轉移給患者，金額反映公司預期在交易所獲得的對價，並且索賠已提交給支付者。這些支付者代表過去 93%及 69% 的直銷渠道營業收入於截至三個月之間 2024年9月30日及2023年，分別。這些支付者佔 88%及 61% 的直銷渠道營業收入於截至2024年9月30日和2023年9月30日的九個月之間。於截至2024年9月30日的三個月，來自受Medicare Part b覆蓋的患者的營業收入是在設備交付時記錄的，並且索賠提交給康哲藥業，預期可從康哲藥業和補充保險支付者那裡收到的金額。

根據產品交付給客戶的時機，這是記錄營業成本的時候，以及公司滿足記錄營業收入的標準時，毛利率可能會有波動。於截至2024年和2023年9月30日的三個月，公司的營業收入約為億美元的車輛，以車製造商融資為主，並在處置車輛時收到現金。相關承諾中有一部分取決於各車輛製造商履行其各自的回購和保值保證協議的義務。2,440,900 和$1,324,300截至2024年及2023年9月30日的九個月內，公司確認的營業收入約為$2,185,300 及2,305,500來自第三方付款者，相應的完成公司績效義務的成本並未在當前期間記錄。

對於從O＆P提供商和退伍軍人事務部（VA）獲得的營業收入，公司在控制權轉移給客戶並反映公司預期將獲得作為那些服務交換的考慮的金額時確認收入。根據安排的條款，可能根據運輸或交付時認可收入，前提是具有安排的有力證據，客戶接受方面不存在不確定性，並且預計收回款項應該是可以確定的。

公司選擇以淨額基礎記錄從客戶收取的稅款，並且不將稅額包括在營業收入或營業成本中。

授權收入

如果公司的知識產權許可被確定為與安排中確認的其他履行義務不同，當許可轉移給客戶並且客戶能夠使用和受益於許可時，以及收款被認為是可能的時，公司將確認分配給許可的收入。

於2021年1月21日，公司與Ryzur Medical達成了明確協議，以組建合資公司在大中華區域，包括香港、澳門和台灣，製造和銷售公司目前和未來的產品（“JV Agreement”）。根據JV協議，公司有權收取一筆前期授權費$2.7 百萬美元。截至2023年9月30日，初始授權費的最後部分已全額支付並確認為許可收入。此外，公司有資格從JV協議生效日起的十年期間獲得MyoPro控制單元的保證最低付款。只要認為可以確保收款，公司將在JV公司開立發票時對這些金額確認收入。

合約餘額

營業收入確認的時機可能與客戶支付的時機不同。當收入在付款之前確認且存在無條件的支付權時，公司會記錄應收款項。相反，當支付在相關服務提供之前時，公司將記錄透過前述服務完成應該記錄的延後收入。公司約有$32,000 o截至2024年9月30日的待滿足收入，約為$8,500 截至2023年12月31日的待滿足收入，預計未來待滿足收入將在2024年第四季度結束時認列。截至2024年第四季度結束時。

與客戶合同的分解收入

以下表格呈現主要來源的營業收入：


	三個月內截至九月三十日，				截至九個月截至九月三十日，
	2024		2023		2024		2023
直接面對患者	$	7,431,751	$	3,501,958	$	15,491,584	$	9,245,345
臨床/醫療提供者		1,775,835		1,527,565	$	4,991,158	$	3,474,510
許可營業收入		—		50,000		—		1,764,920
與客戶合同的總收入	$	9,207,586	$	5,079,523	$	20,482,742	$	14,484,775

地理資料

該公司產生d 88％的營業收入來自美國和 12德國來的百分比截至2024年9月30日的三個月。該公司的營業收入中 78百分之日來自美國， 19百分之日來自中國， 3百分之日來自德國。在截至2023年9月30日的三個月內。

在截至2024年9月30日的九個月內，該公司賺取了 85美國為公司總營業收入的%。 14德國為公司總營業收入的%。 1其他國際地區為公司總營業收入的%。截至2023年9月30日的九個月內，該公司從美國賺取了總營業收入的%。 72截至2023年9月30日的九個月內，該公司從美國賺取了總營業收入的%。 14德國在公司總營業收入中的%。 13中國在公司總營業收入中的%。 1其他國際地區在截至2023年9月30日的九個月內，該公司從中營業收入中的%。在這九個月中，不包括許可收入。 82來自美國的產品營收佔比%。 16德國的營業收入佔比%。 2其他國際地區的收入佔比%。

營業成本

隨著ASC 606的採用，公司在某些情況下將根據ASC 340-40-25要求在發生時確認費用。在某些情況下，公司將MyoPro設備運送給O&P供應商，或直接將設備提供給患者，等待第三方支付者的報銷，之後確認營業收入。至2024年9月30日止的三個月和九個月，公司錄得的營業成本約為億美元的車輛，以車製造商融資為主，並在處置車輛時收到現金。相關承諾中有一部分取決於各車輛製造商履行其各自的回購和保值保證協議的義務。107,200 及140,800，分別未對應的營業收入。至2023年9月30日止的三個月和九個月，公司錄得的營業成本為$32,800 及76,900，分別未對應的營業收入。根據ASC 340-40-25，支付給O&P供應商的直接計費費用將作為獲取合約的成本，在發生時確認費用。這些成本作為銷售和營銷費用入賬。為測量、適配和配送設備給患者而發生的內部成本及支付給O&P供應商的費用則會列入營業收入的成本。

本公司將廣告費用於發生時計入營業費用。廣告費用約為$1,043,700 及822,500 截至2024年和2023年9月30日的三個月期間，分別為約$，大約$2,680,600 及2,360,400 在截至2024年和2023年9月30日的九個月期間內。

外幣兌換

公司的外國子公司myomo Europe GmbH的功能貨幣是歐元指數。匯率期貨的翻譯收益和損失由歐元指數轉化為美元，並計入其他綜合（損失）收益。該公司記錄的收益約為 $256,400 和損失約為 $47,100 在截至2024年和2023年9月30日的三個月期間，分別為，和一收益約為 $312,000 和損失約為 $50,500 在截至的九個月期間 2024年9月30日截至2023年，這些項目包含在簡明綜合資產負債表中的其他綜合收益累計中。來自外幣到功能貨幣的交易和翻譯匯率期貨損益被包含在合併營運報表中的營業成本中。這些金額在截至2024年和2023年的三個月和九個月中均不重要。資產負債表使用報告日的即期匯率進行翻譯，營運報表則使用該月份的平均匯率進行每月翻譯。

每股淨虧損

基本每股普通股淨虧損是通過將屬於普通股股東的淨虧損除以期內流通的加權平均普通股數來計算的。稀釋每股普通股淨虧損是通過將屬於普通股股東的淨虧損除以流通的普通股加權平均數，加上可能的稀釋普通股來計算的。限制性股票、限制性股票單位、期權和warrants在其影響為抗稀釋時被排除在稀釋每股淨虧損計算之外。公司報告截至2024年和2023年三個月的淨虧損，因此這些期間所有可能的稀釋普通股都被視為抗稀釋。

可能發行的稀釋普通股包括以下項目：


	九月三十日，
	2024		2023
股票期權		23,246		24,982
限制性股票單位		1,234,357		1,621,935
其他warrants		668,250		668,250
總計		1,925,853		2,315,167

由於其名義行使價為$0.0001 每股，共計所有板塊 7,721,519 和 8,750,926 的截至2024年9月30日及2023年，未行使的預先資助warrants被視為普通股等價物，並在附帶的簡明綜合營運報表中計入基本加權平均已發行股份，這些報表的關閉日期為公司於2023年1月、2023年8月及2024年1月的公開股權發行。

所得稅

公司在截至2024年和2023年9月30日的三個月和九個月內報告了淨虧損，但仍然記錄了稅務費用。這項稅務費用的性質是由於其全資擁有的外國myomo歐洲公司GmhH的稅務準備，導致有效稅率與法定稅率之間的差異。

最近採納的會計準則

由於這些金融工具的短期性，公司的金融工具如現金及現金等價物、應收賬款和應付賬款的帳面價值接近公允價值。現金等價物由貨幣市場基金組成，這些基金僅限於投資短期美國國債和與這些證券相關的回購協議。短期投資主要由商業票據和美國國庫券組成，並在簡明合併資產負債表上按攤銷成本列示，該攤銷成本接近公允價值。

現金等價物按照公允價值經常性計量於於2024年9月30日的情況如下：


	在活躍中 Markets for Identical Assets 或負債 (一級)		重要其他可觀察 Inputs (二級)		重要不可觀察 Inputs (三級)		總計
現金等價物
貨幣市場基金	$	5,772,131	$	—	$	—	$	5,772,131
	$	5,772,131	$	—	$	—	$	5,772,131

截至2023年12月31日，按公允價值定期計量的現金及現金等價物和短期投資數據如下：


	在運行中 Markets for Identical Assets 或負債 (一級)		重要其他可觀察 Inputs (二級)		重要不可觀察 Inputs (三級)		總計
貨幣市場基金	$	4,893,387	$	—	$	—	$	4,893,387
商業本票	$	—	$	746,762	$	—	$	746,762
短期投資	$	—	$	1,994,662	$	—	$	1,994,662

Note 6 — Accounts Payable and Other Accrued Expenses

Accounts Payable and Other Accrued Expenses consists of the following at:


	September 30, 2024		December 31, 2023
Trade payables	$	1,301,550	$	1,073,405
Accrued compensation and benefits		2,598,932		1,964,487
Accrued insurance		240,575		95,680
Accrued professional services		54,533		52,202
Warranty reserve		159,531		231,108
Customer deposits		1,857,565		1,114,979
Other		235,390		354,083
	$	6,448,076	$	4,885,944

Note 8 — Common Stock and Warrants

On January 17, 2023, the Company completed a public equity offering, selling 13,169,074 shares of common stock and 6,830,926 pre-funded warrants at $0.325 per share or at $0.3249 per warrant, generating proceeds after fees and expenses of approximately $5.7 million. As of September 30, 2024, 5,801,519 pre-funded warrants remain exercisable. Each pre-funded warrant is exercisable for one share of the Company’s common stock at a nominal exercise price of $0.0001 per share.

On August 29, 2023, the Company completed a public equity offering, selling 5,413,334 shares of common stock and 1,920,000 pre-funded warrants at $0.60 per share, or at $0.5999 per warrant, generating proceeds after fees and expenses of approximately $3.9 million. Each pre-funded warrant is exercisable for one share of the Company’s common stock at a nominal exercise price of $0.0001 per share. All of these pre-funded warrants remain exercisable at September 30, 2024.

On January 19, 2024, the Company completed a registered direct equity offering, selling 1,354,218 shares of common stock and 224,730 pre-funded warrants at $3.80 per share, or at $3.7999 per pre-funded warrant, generating proceeds after fees and expenses of approximately $5.4 million. Each pre-funded warrant is exercisable for one share of the Company’s common stock at a nominal exercise price of $0.0001 per share. All of these pre-funded warrants were exercised during the nine months ended September 30, 2024.

As of September 30, 2024 there were 7,721,519 pre-funded warrants outstanding.

On August 2, 2022, the Company entered into an ATM Facility with Alliance Global Partners on (“AGP”). Under the ATM Facility, the Company may sell up to an aggregate of $15 million of the Company’s common stock from time to time and shall pay to AGP cash commissions of 3.0% of the gross proceeds of sales of common stock under the ATM Facility. There were no sales under the ATM Facility during the three and nine months ended September 30, 2024 and 2023, respectively. In conjunction with the public equity offering in August 2023, the Company reduced the amount available to sell under the ATM Facility to $1,000. In May 2024, the ATM Facility expired and has not been renewed.

No shares of common stock were issued through the exercise of stock options during the three and nine months ended September 30, 2024 and September 30, 2023, respectively.

During the three and nine months ended September 30, 2024, 42,828 and 980,173 restricted stock units vested, respectively. During the three and nine months ended September 30, 2023, 10,099 and 199,163 restricted stock units vested, respectively.

settled upon vesting to cover the required employee statutory withholding taxes and the remaining amount is converted into shares based upon their share-value on the date the award vests. In such instances, these payments of employee withholding taxes are presented in the statements of cash flows as a financing activity. There were no stock awards that were net share settled during the three and nine months ended September 30, 2024. There were no restricted stock units that were withheld as part of net share settlement transactions during the three months ended September 30, 2023 and 16,744 restricted stock units were withheld during the nine months ended September 30, 2023.

Share-Based Compensation Expense

The Company accounts for stock awards to employees and non-employees based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award.

The Company attributes the value of stock-based compensation to operations on the straight-line method such that the expense associated with awards is evenly recognized over the vesting period.

The Company recognized stock-based compensation expense related to the issuance of stock option awards and restricted stock units to employees, non-employees and directors in the statements of operations as follows:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Cost of goods sold	$	22,805	$	24,222	$	35,601	$	66,815
Research and development		30,599		11,362		63,562		(24,056	)
Selling, clinical and marketing		41,925		50,984		95,237		142,432
General and administrative		228,856		243,826		358,180		596,322
Total	$	324,185	$	330,394	$	552,580	$	781,513

As of September 30, 2024, there was approximately $9,200 of unrecognized compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of 0.79 years.

As of September 30, 2024, there was approximately $2,511,100 of unrecognized compensation expense related to unvested restricted stock units that is expected to be recognized over a weighted-average period of 2.50 years.

As of September 30, 2024, operating lease assets were approximately $467,000. The amount and the maturity of the Company’s operating lease liabilities as of September 30, 2024, are as follows:


	September 30, 2024
2024	$	144,610
2025		102,841
2026		—
2027		—
Thereafter		—
Total future minimum lease payments		247,451
Less imputed interest		12,822
Total operating lease liabilities	$	234,629
Included in the condensed consolidated balance sheet:
Current operating lease liabilities	$	205,464
Non-current operating lease liabilities		29,165
Total operating lease liabilities	$	234,629

For the three and nine months ended September 30, 2024 and 2023, the total lease cost is comprised of the following amounts:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease expense	$	87,836	$	116,314	$	263,506	$	367,613
Short-term lease expense		1,615		-		4,884		-
Total lease expense	$	89,451	$	116,314	$	268,390	$	367,613

The following summarizes additional information related to operating leases:


	September 30, 2024			December 31, 2023
Weighted-average remaining lease term (in years)		0.54			1.20
Weighted-average discount rate		23.3	%		23.3	%

Major Customers

For the three and nine months ended September 30, 2024 and 2023, there were no customers which accounted for more than 10% of product revenues. For the three and nine months ended September 30, 2024 and 2023, a U.S. insurance payer represented 19% and 22% and 36% and 40% of product revenues, respectively. For the three and nine months ended September 30, 2024, patients with Medicare Part B coverage represented 55% and 44% of product revenues, respectively.

For the three and nine months ended September 30, 2024, approximately 24% and 27% of the Company's product revenues, respectively, were derived from patients with Medicare Advantage insurance plans. For the three and nine months ended September 30, 2023, approximately 59% and 59% of the Company's product revenues were derived from patients with Medicare advantage plans, respectively.

At September 30, 2024 and December 31, 2023, one insurance payer and its affiliates accounted for approximately 25% and 56% of accounts receivable, respectively.

Supplier Finance Program Obligations

The Company finances its Directors and Officers Insurance policy, which requires the Company to make a down payment, followed by equal payments over a defined term. During the year ended December 31, 2023, the Company completed its payment obligation associated with its 2022-2023 policy and entered into a new policy covering the twelve-month period ending June 2024. Under this financing arrangement, the Company made a down payment of approximately $29,000 during the three months ended June 30, 2023 and made nine equal monthly payments of approximately $27,000, starting in July 2023. During the nine months ended September 30, 2024, the Company completed its payment obligation associated with its 2023-2024 policy and entered into a new policy covering the twelve-month period ending June 2025. Under this new financing arrangement, the Company made a down payment of approximately $39,000 during the three months ended June 30,

2024, and is making nine equal monthly payments of approximately $39,000, starting in July 2024. Changes in the Company's supplier finance obligations were as follows:



For the Nine Months Ended September 30,	2024			2023
Balance January 1	$	142,217		$	56,603
Increase		—			128,692
Expensed		(80,109	)		(132,988	)
Balance March 31,	$	62,108		$	52,307
Increase		349,909			375,824
Expensed		(78,593	)		(155,076	)
Balance June 30,	$	333,424		$	273,055
Increase		63,478			29,809
Expensed		(121,512	)		(80,538	)
Balance September 30,	$	275,390		$	222,326

No assets are pledged as security under this arrangement.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our condensed consolidated financial statements and the related notes contained elsewhere in this Quarterly Report on Form 10-Q and in our other Securities and Exchange Commission filings. The following discussion may contain predictions, estimates, and other forward-looking statements that involve a number of risks and uncertainties, including those discussed under “Risk Factors”, “Cautionary Statement Regarding Forward-Looking Statements” and elsewhere in this Quarterly Report on Form 10-Q. These risks could cause our actual results to differ materially from any future performance suggested below.

We are a wearable medical robotics company, specializing in myoelectric braces, or orthotics, for people with neuromuscular disorders. We develop and market the MyoPro product line, which is a myoelectric-controlled upper limb brace, or orthosis. The orthosis is a rigid brace used for the purpose of supporting a patient’s weak or deformed arm to enable and improve functional activities of daily living (“ADLs”), in the home and community. It is custom constructed by a trained professional during a custom fabrication process for each individual user to meet their specific needs. Our products are designed to help regain function in individuals with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury and other neurological disorders.

We have relationships with physicians and therapists who generate patient referrals, and we utilize digital ads on various platforms as well as television ads to reach patients who are potential candidates for our product. Once the prospective patient contacts us or is referred to us, either our trained clinical staff or a trained Orthotics and Prosthetics (“O&P”) provider will evaluate the patient for their suitability as a candidate. Initial evaluations by our trained clinical staff are often conducted using telehealth techniques, followed by an in-person clinical evaluation of the candidate. Prior to delivering our device to a Medicare patient or obtaining authorizations from commercial insurance companies, the patient’s medical records are collected and reviewed to make sure the device is appropriate for their condition and a prescription is always obtained from a physician. Once these documents are obtained, a pre-authorization request is submitted to the patient’s commercial insurer. If we receive a pre-authorization, we proceed to measure the patient’s arm, a process we refer to as shape capture. For a Medicare patient, we will commence shape capture once we are in possession of all relevant medical records and have assessed that the patient meets our inclusion criteria. Arm measurements are being done in many cases using a digital measurement kit supplied to the patient. We then use those measurements to 3D print orthotic parts, which are used to fabricate the MyoPro, and then deliver it to the patient. Since we are directly providing the device to the patient and then billing insurance ourselves, we refer to this process as direct billing. We also call on O&P practices in the United States, Europe and Australia that provide our products to their patients as well as generate indirect sales. The MyoPro product line has been approved by the Veterans Administration (“VA”) for impaired veterans, and nearly 130 VA facilities have ordered devices for their patients.

Our myoelectric orthoses have been clinically shown in peer reviewed published research studies to help regain the ability to complete functional tasks by supporting the affected joint and enabling individuals to self-initiate and control movement of their partially paralyzed limbs by using their own muscle signals. Our technology was originally developed at MIT in collaboration with medical experts affiliated with Harvard Medical School. Myomo was incorporated in 2004.

On January 21, 2021, we entered into a definitive agreement with Beijing Ryzur Medical Investment Co., Ltd. (“Ryzur Medical”), a medical device manufacturer based in Beijing, to form a joint venture (the “JV”) to manufacture and sell our current and future products in greater China, including Hong Kong, Macau and Taiwan (the “JV Agreement”).

Majority ownership in the joint venture, named Jiangxi Myomo Medical Assistive Appliance Co., Ltd. (the "JV Company") is held by Ryzur Medical with minority ownership by Wuxi Chinaleaf Investment Management Limited Partnership, a private fund that invests in growth opportunities in new technologies. We own a minimum 19.9% stake in the JV Company. Ryzur Medical and its partners have committed to invest a minimum of $8 million and up to $20 million in the JV Company over five years.

The JV Company was established on August 12, 2021. On December 29, 2021, we entered into an amendment to the JV Agreement, as well as a Technology License Agreement and a Trademark License Agreement (collectively, the “Agreements”). Under the Agreements, we and the JV Company have entered into a ten-year agreement to license our intellectual property, including recently issued patents in China and Hong Kong, and purchase MyoPro Control System units from us. Pursuant to the Agreements, the JV Company has agreed to an escalating purchase commitment for a minimum of $10.75 million in MyoPro Control System Units during the next ten years, subject to receipt of regulatory approvals necessary to permit sales of the product in the greater China territory.

In September 2024, the JV Company was notified it received provincial approval to produce and sell two products for use by hospitals in China, an upper limb joint rehabilitation training device and a surface electromyographic instrument, which are based off the functionality of our Mobile Arm Rehabilitation Kit, or MARK. First revenues for the JV Company are expected to be generated from these products in the future. With respect to its version of the MyoPro to be provided to patients, the JV Company is expected to begin enrolling patients in a clinical trial before the end of 2024, which must be completed in order to receive registration from the National Medical Products Administration, or NMPA.

On January 19, 2024 we completed a registered direct equity offering, selling 1,354,218 shares of common stock and 224,730 pre-funded warrants to purchase common stock at $3.80 per share, or $3.7999 per pre-funded warrant, generating net proceeds after fees and expenses of approximately $5.4 million. Net proceeds from the offering were used to hire 50 to 60 people through the second quarter of 2024 in order to increase our clinical, reimbursement and manufacturing capacity to serve a growing number of patients, including Medicare Part B beneficiaries. On August 29, 2023, we completed a public equity offering, selling 5,413,334 shares of common stock and 1,920,000 pre-funded warrants to purchase common stock at $0.60 per share, or at $0.5999 per pre-funded warrant, generating net proceeds after fees and expenses of approximately $3.9 million. In January 2023, we completed a public equity offering, whereby we sold 13,169,074 shares of common stock and 6,830,926 pre-funded warrants to purchase common stock at $0.325 per share, or $0.3249 per pre-funded warrant. Each pre-funded warrant in the above offerings entitles the holder to one share of common stock upon exercise at a nominal exercise price of $0.0001 per share. See section titled “Liquidity” for further discussion.

On November 1, 2023, CMS issued a final rule that results in a change in the benefit category associated with products billed under the HCPCS codes for our products from durable medical equipment rental to a brace, which would permit reimbursement of MyoPro sales on a lump sum basis. The rule became effective on January 1, 2024. On February 29, 2024, CMS published final average payment determinations for the HCPCS codes describing our products of approximately $33,500 for L8701, the MyoPro Motion W, and approximately $65,900 for L8702, the MyoPro Motion G, which became effective on April 1, 2024. We are being paid by CMS at approximately 80% of the published fees, with the remaining 20% from either the patient directly or their supplemental insurance, if any.

Beginning January 1, 2024, we began deliveries to Medicare Part B patients for lump sum reimbursement under the brace benefit category. During the three and nine months ended September 30, 2024, revenues from Medicare Part B beneficiaries represented 55% and 44% of product revenues, respectively.

We have been growing revenues while incurring net losses and negative cash flows from operations since inception and anticipate this to continue as we focus our efforts on continuing to expand our sales and marketing efforts by increasing the breadth of our marketing activities, increasing our investment in the German and other international markets, investing in development of the pediatric version of the MyoPro, the MyoPal, and the funding of resources focused on obtaining reimbursement from insurance companies.

The following table sets forth our revenue, cost of revenue, gross profit and gross margin for each of the periods presented.

We derive revenue primarily from providing devices directly to patients and billing insurance companies or Medicare directly. We also sell our products to O&P providers in the United States, Europe and Australia, to the VA, and to rehabilitation hospitals. Though we increasingly provide devices directly to patients, we sometimes utilize the clinical services of O&P providers for which they are paid a fee.

Total revenue increased by approximately $4,128,100 and $5,998,000, or 81% and 41%, for the three and nine months ended September 30, 2024, as compared to the same periods in 2023. Product revenue increased by approximately $4,178,100 and $7,762,900, or 83% and 61%, for the three and nine months ended September 30, 2024 as compared to the same periods in 2023. Higher product revenues in the three and nine months ended September 30, 2024 were due to a higher number of revenue units, driven by deliveries to Medicare Part B patients and a higher average selling price as a result of the recently published fees for the MyoPro by CMS and successfully obtaining reimbursements from CMS and the respective patient's supplemental insurance, as applicable.

Cost of revenue consists of direct costs for the manufacturing, printing of orthotic parts, fabrication and fitting of our products, changes in inventory and warranty reserves, and costs for our quality and fulfillment organizations.

Gross margin was 75.4% and 71.1% for the three and nine months ended September 30, 2024 respectively, compared to 68.7% and 69.6% for the three and nine months ended September 30, 2023, respectively. Gross margin on product revenue was the same as overall gross margin for the three and nine months ended September 30, 2024, respectively. Gross margin on product revenue was 68.4% and 65.4% for the three and nine months ended September 30,2023, respectively. The increases in gross margin during the three and nine months ended September 30, 2024 were due primarily due to a higher average selling price, fixed cost absorption and a write-down of inventory in the prior year, partially offset by an increased manufacturing overhead as we are adding capacity in support of planned revenue growth in 2024 and higher material costs.

The following table sets forth our operating expenses for each of the periods presented.

Research and development (“R&D”) expenses consist of costs for our R&D personnel, including salaries, benefits, bonuses and stock-based compensation, product development costs, clinical studies, and the cost of certain third-party contractors and travel expense. R&D costs are expensed as they are incurred. We intend to enhance our existing products in 2024 and expect R&D costs to increase on an annual basis.

R&D expenses increased by approximately $531,600 and $1,453,800, or 74% and 83%, during the three and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023. The increases were primarily due to higher costs for payroll as we are adding headcount in order to accelerate our sustaining engineering and product development efforts as a result of coverage by Medicare.

Selling, clinical, and marketing (“SC&M”) expenses consist of costs for our field clinical staff, O&P channel managers, clinical training organization, and marketing personnel, including salaries, benefits, bonuses, stock-based compensation and sales commissions, costs of advertising, marketing and promotional events, corporate communications, product marketing and travel expenses. Variable compensation for personnel engaged in sales and marketing activities is generally earned and recorded as expense in the period in which the measurable work is performed. We expect SC&M expenses to increase in 2024 as we plan to add clinical capacity in support of serving Medicare Part B patients.

SC&M expenses increased by approximately $1,014,100 and $1,850,600 or 42% and 28%, during the three and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023. The increases were primarily due to higher payroll costs due to increased headcount in our clinical functions to support higher expected sales volume in 2024, higher advertising and travel costs and the effect on payroll costs from a headcount decrease in the first quarter of 2023.

General and administrative (“G&A”) expenses consist primarily of costs for administrative, reimbursement, and finance personnel, including salaries, benefits, bonuses and stock-based compensation, professional fees associated with legal matters, consulting expenses, costs for pursuing insurance reimbursements for our products and costs required to comply with the regulatory requirements of the SEC, as well as costs associated with accounting systems, insurance premiums and other corporate expenses. We expect that general and administrative expenses will increase in 2024 as we plan to add headcount in our human resources and reimbursement functions in support of serving Medicare Part B patients.

G&A increased by approximately $844,200 and $1,351,200, or 35% and 18%, during the three and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023. The increases were primarily due to increased payroll costs due to increased headcount in our clinical, reimbursement and human resource functions as part of our plan to increase our reimbursement capacity in 2024 in order to serve Medicare Part B patients, and the effect on payroll costs from a headcount decrease in the first quarter of 2023, as well as increases in legal fees and other outside services.

The following table sets forth our other income, net for each of the periods presented:

Other income, net was approximately $76,000 and $318,600 for the three and nine months ended September 30, 2024, respectively, compared to approximately $41,700 and $196,100 for the same periods in 2023, respectively. The increase in other income, net in the three months ended September 30, 2024 was due the loss on equity investment related to our joint venture in China in prior year period, offset by lower interest income due to a decrease in lower average investment balances compared to the prior year period. The increase in other income, net during the nine months ended September 30, 2024 was due to higher interest income, partially offset by the loss on equity investment in the prior year period.

Income tax expense recorded during the three and nine months ended September 30, 2024 and 2023 represents the provision for income taxes for our wholly-owned subsidiary, Myomo Europe GmbH. Income tax expense increased in the three and nine months ended September 30, 2024 as a result of higher taxable income compared to the same periods in 2023.

We believe that the presentation of Adjusted EBITDA, a non-GAAP financial measure, provides investors with additional information about our financial results. Adjusted EBITDA is an important supplemental measure used by our board of directors and management to evaluate our operating performance from period-to-period on a consistent basis and as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations.

We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization adjusted for, stock-based compensation and other unusual items.

Adjusted EBITDA is not in accordance with, or an alternative to, measures prepared in accordance with U.S. GAAP. In addition, this non-GAAP measure is not based on any comprehensive set of accounting rules or principles. As a non-GAAP measure, Adjusted EBITDA has limitations in that it does not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. In particular:

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures including net income (loss) and our financial results presented in accordance with U.S. GAAP.

The following table provides a reconciliation of net loss to Adjusted EBITDA for each of the periods indicated:

As of September 30, 2024, we had working capital of approximately $7.8 million and stockholders’ equity of approximately $9.3 million. We used approximately $6.7 million in cash for operating activities during the nine months ended September 30, 2024. Our historical losses and cash used in operations are indicators of substantial doubt regarding our ability to continue as a going concern. Considering our balance of cash and cash equivalents, as of September 30, 2024 and our plans to grow our revenues by serving Medicare Part B beneficiaries and availability under our line of credit, we believe there is sufficient cash and cash equivalents to fund our operations and capital expenditures for the next 12 months from the date of this report.

We have historically funded our operations through financing activities, including raising equity and debt capital. On July 11, 2024, we entered into a Loan and Security Agreement with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, which provides us the ability to borrow up to $4.0 million against eligible accounts receivable. The line of credit is undrawn as of the issuance date of this Quarterly Report on Form 10-Q and availability under the line was approximately $0.9 million as of September 30, 2024. In January 2024, we completed a registered direct equity offering, pursuant to which we sold 1,354,218 shares of common stock and 224,730 pre-funded warrants to purchase common stock at $3.80 per share, or $3.7999 per pre-funded warrant, generating net proceeds after fees and expenses of approximately $5.4 million. In August 2023, we completed a public equity offering pursuant to which we sold 5,413,334 shares of common stock and 1,920,000 pre-funded warrants to purchase common stock at $0.60 per share, or at $0.5999 per warrant, generating proceeds after fees and expenses of approximately $3.9 million. In January 2023, we completed an equity offering under which we sold 13,169,074 shares of common stock and 6,830,926 pre-funded warrants to purchase common stock at $0.325 per share, or at $0.3249 per pre-funded warrant, generating proceeds after fees and expenses of approximately $5.7 million.

Our business is dependent upon reimbursement of our products by insurance companies and government-controlled health care plans such as Medicare and Medicaid in the United States and by Statutory Health Insurance plans in Germany, which could prevent our revenues from growing to the level necessary to achieve operating cash flow breakeven. We believe that we have access to capital resources, if necessary, through usage of our line of credit, potential public or private equity offerings, exercises of outstanding warrants, debt financings, or other means. If we are unable to obtain adequate funds on reasonable terms, we may be required to significantly curtail or discontinue operations or obtain funds by entering into financing agreements on unattractive terms. We may also explore strategic alternatives for the purpose of maximizing stockholder value. There can be no assurance we will be successful in implementing our plans to sustain our operations and continue to conduct our business.

Our operating plans are primarily focused on growing revenues in our direct billing channel by serving an increasing number of Medicare patients and training O&P providers in the United States to provide the MyoPro to their patients, which is expected to result in further revenue growth in 2025 and beyond. Based on the final fees published by CMS for our products, which became effective on April 1, 2024, if our supply chain is able to meet our volume requirements without disruption, we are able to compensate for additional advertising spending in the second half of 2024 above our original plan, expected payments are received and there is no increase in days sales outstanding in the fourth quarter, we believe we can achieve operating cash flow breakeven on a quarterly basis in the fourth quarter of 2024. In addition, we believe that we have access to capital resources through the use of our line of credit, possible public or private equity offerings, exercises of outstanding warrants, or other means. Based on our latitude as to the timing and amount of certain expenses, our current cash position, availability under our line of credit and operating plans, we believe that the substantial doubt is alleviated as of the issuance date of these financial statements.

Operating Activities. The net cash used in operating activities for the nine months ended September 30, 2024 was primarily used to fund a net loss of approximately $5.9 million, adjusted for non-cash expenses in the aggregate amount of approximately $0.8 million and by approximately $1.8 million of cash used by net changes in the levels of operating assets and liabilities, primarily related to an increase in accounts receivable, inventory and prepaid expenses and other current assets, offset by an increase in accounts payable and accrued expenses.

The net cash used in operating activities for the nine months ended September 30, 2023 was primarily used to fund a net loss of approximately $5.7 million, adjusted for non-cash expenses in the aggregate amount of approximately $1.3 million and by approximately $0.6 million of cash generated by net changes in the levels of operating assets and liabilities, primarily related to an increase in accounts payable and accrued expenses, partially offset by an increases in accounts receivable and prepaid expenses and other current assets.

Investing Activities. During the nine months ended September 30, 2024, and 2023, cash provided by investing activities was $1.6 million and used in investing activities was $4.3 million respectively. These amounts were impacted by the net difference between maturities and purchases of short term investments, in addition to purchases of equipment.

Financing Activities. There was $5.4 million and $9.7 million in cash generated from financing activities during the nine months ended September 30, 2024 and 2023, respectively, due entirely to the net proceeds from our equity offerings in January 2024, January 2023 and August 2023.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America require management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates and assumptions are reviewed on an on-going basis and updated as appropriate. Actual results could differ from those estimates. Our significant estimates include deferred tax valuation allowances, valuation of stock-based compensation, warranty obligations and reserves for credit losses and slow-moving inventory.

There have been no material changes to our critical accounting policies from those described in our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023.

Information regarding new accounting standards is included in Note 3 — Recently Adopted Accounting Standards to our unaudited condensed consolidated financial statements contained in Item 1 of this Quarterly Report on Form 10-Q.

The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), refers to controls and procedures that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to a company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

Our management, with the participation of our Chief Executive Officer, our principal executive officer, and our Chief Financial Officer, our principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2024. Based upon such evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of such date.

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) identified in connection with the evaluation of our internal control that occurred during the quarter ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The Company may be involved in legal proceedings, claims and assessments arising from the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. During the fourth quarter of 2023, the Company settled an age discrimination claim by a former employee. The settlement was paid and all insurance proceeds were received during the three months ended March 31, 2024. There is no material litigation against the Company at this time that is required to be disclosed under Item 103 of Regulation S-K.

The following important factors, among others, could cause our actual operating results to differ materially from those indicated or suggested by forward-looking statements made in this Form 10-Q or presented elsewhere by management from time to time. Investors should carefully consider the risks described below before making an investment decision. The risks described below are not the only ones we face. Additional risks not presently known to us or that we currently believe are not material may also significantly impair our business operations. Our business could be harmed by any of these risks. The trading price of our common stock could decline due to any of these risks, and investors may lose all or part of their investment.

We have a history of operating losses. Factors both within and outside of our control could result in a delay in our ability to achieve cash flow breakeven on a quarterly basis.

We have a history of losses since inception. For the three and nine months ended September 30, 2024, we incurred net losses of $0.9 million and $5.9 million, respectively. For the year ended December 31, 2023, we incurred a net loss of $8.1 million. At September 30, 2024, we had an accumulated deficit of approximately $102.8 million. The extent and duration of future operating and net losses will depend on our ability to grow our revenues and absorb the headcount and additional clinical, reimbursement and manufacturing capacity we added in the first half of 2024, the ability of our supply chain to meet our volume requirements without disruption and our ability to compensate for additional advertising expenditures in the second half of 2024. Additionally, our expected payments must be received and our days sales outstanding in accounts receivable must not increase. Under these assumptions, we believe it is achievable to be operating cash flow breakeven on a quarterly basis in the fourth quarter of 2024. However, there can be no assurance that we can cost effectively grow our revenues without requiring additional capital.

Our cash, cash equivalents and restricted cash at September 30, 2024 were approximately $6.9 million. On July 11, 2024, we entered into a Loan and Security Agreement with Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (“Silicon Valley Bank”), which provides us the ability to borrow up to $4.0 million against eligible accounts receivable. The line of credit remains undrawn as of the issuance date of these financial statements. Availability under the line of credit is approximately $0.9 million as of September 30, 2024. On January 19, 2024, we completed a registered direct offering of our common stock and pre-funded warrants, generating net proceeds of approximately $5.4 million. We believe that our existing cash, cash equivalents, and short-term investments at September 30, 2024 will be sufficient to fund our operations for the twelve months from the date of this report. If we encounter obstacles such as those that have been referred to above, the timing of our ability to achieve operating cash flow breakeven could extend beyond the fourth quarter of 2024 and additional capital may be required.

Our direct billing revenues are concentrated with a small number of payers, including CMS. Adverse changes in the reimbursement policies of these payers regarding the MyoPro could have an adverse effect on our business.

Revenues from providing the MyoPro directly to patients, a sales channel we refer to as direct billing, represented 81% and 76% of revenues for the three and nine months ended September 30, 2024, respectively. In 2024, we began providing the MyoPro to Medicare Part B patients. Revenues from the Centers for Medicare & Medicaid Services (“CMS”) represented 68% and 58% of direct billing revenues (55% and 44% of total revenues) for the three and nine months ended September 30, 2024, respectively. In order to maximize revenues and minimize cash used for operations, we focus on patients with commercial insurers who have previously reimbursed for the MyoPro. Beginning in September 2021, a large insurer that has historically reimbursed for the MyoPro began denying claims after having granted a pre-authorization and after we delivered the devices to patients, and these post-service denials currently continue. Revenues from patients insured by this payer represented 24% and 29% of direct billing revenues (19% and 22% of total revenue) during the three and nine months ended September 30, 2024, respectively. With a small number of exceptions, appeals filed with the payer have been successful and these claims have ultimately been paid.

This payer also continues to provide us with pre-authorizations to serve new patients, however denials are increasing with this payer, as with other Medicare Advantage plans. If CMS were to change their coverage criteria for the MyoPro, or the aforementioned commercial payer were to continue to regularly deny appeals on filed claims, reduce the number of MyoPro’s that it will authorize for its insured patients, or delays payments pending resolution of the denial and appeals process, our revenues and cash flows would be negatively impacted, which would have an adverse effect on our business.

Fluctuations in our quarterly and annual financial results have resulted and will continue to result from numerous factors, including:

These factors, some of which are not within our control, may cause the price of our common stock to fluctuate substantially. If our quarterly operating results fail to meet or exceed the expectations of securities analysts or investors, our stock price could drop suddenly and significantly. We believe quarterly comparisons of our financial results are not always meaningful and should not be relied upon as an indication of our future performance.

We may not be able to obtain third-party payer reimbursement, including reimbursement by Medicare, for our products.

Sales of our device depend, in part, on the extent to which our products are covered by third-party payers, such as government health programs, commercial insurance and managed healthcare organizations. See section titled “Business Section – Government Regulation – Health Insurance Reimbursement”, in our December 31, 2023 annual report on Form 10-K. Third-party payers are increasingly challenging the prices charged, examining the medical necessity and creating additional restrictions on coverage, and reviewing the cost-effectiveness of medical products and services and imposing controls to manage costs. Third-party payers may limit coverage to specific products on an approved list, also known as a formulary, which might not include all of the approved products for a particular indication. In addition, CMS may issue local or national coverage determinations which could result in more restrictive coverage for our products. The coverage determination process is often a time-consuming and costly process that requires us to provide scientific and clinical support for the use of our products to each payer separately, with no assurance that coverage and adequate reimbursement will be obtained. In addition, the absence of in-network contracts with Medicare Advantage plans or commercial insurers could result in utilization management for out-of-network patients. Currently, we are almost entirely dependent on third parties to cover the cost of our products to patients and rely on their reimbursement for the cost of our products. If CMS, the U.S. Department of Veterans Affairs (the “VA”) health insurance companies and other third-party payers do not provide adequate coverage or reimbursement for our products, then our sales will be limited to clinical facilities and individuals who can pay for our devices without reimbursement. To our knowledge, from inception through September 30, 2024, fewer than 50 units have been self-paid or funded by non-profit foundations. Some commercial health insurance plans have published statements that they will not cover the cost of the

MyoPro for their members. In the event we are unsuccessful in obtaining additional coverage and adequate reimbursement for our products from third-party payers, our sales will be significantly constrained. Currently, reimbursement for the cost of our products is obtained primarily on a case-by-case basis until such time, if any, we obtain broad coverage policies with Medicare and third-party payers. There can be no assurance that we will be able to obtain these broad coverage policies or that Medicare or its local administrative billing contractors will not establish more restrictive coverage requirements for the MyPro in the future (for example, in the form of a local or national coverage determination). See section titled “Business Section – Government Regulation – Health Insurance Reimbursement”, in our December 31,2023 annual report on Form 10-K.

In connection with Medicare reimbursement, in November 2023 CMS reclassified the MyoPro from the durable medical equipment benefit to the brace benefit category effective January 1, 2024, thereby allowing for lump sum reimbursement. Such lump sum reimbursements based on the fees posted by CMS, are now being made. CMS published final average payment determinations for the MyoPro Motion W (L8701) of approximately $33,500 and the MyoPro Motion G (L8702) of approximately $65,900, effective April 1, 2024. Our claims can be reviewed on a case-by-case basis at any time by CMS.

There can be no assurance that the final fees will be sufficient to permit us to generate gross margin required to allow us to operate on a profitable basis. Third-party payers also may continue to deny or limit coverage, limit reimbursement or reduce their levels of payment, or our costs of production may increase faster than increases in reimbursement levels. In addition, we may not obtain coverage and reimbursement approvals in a timely manner. Our failure to operate profitably could negatively impact market acceptance of MyoPro.

If CMS amends, restricts, or retracts coverage requirements, its billing contractors and insurers offering Medicare Advantage insurance plans may restrict what they reimburse for the MyoPro, which would have an adverse effect on our business.

Revenues from patients who are covered by Medicare Advantage insurance plans have become a significant portion of our overall revenues. Approximately 24% and 27% of our product revenues were derived from patients with Medicare Advantage insurance plans for the three and nine months ended September 30, 2024, respectively. Revenues from Medicare Part B patients represented 55% and 44% of total revenue for the three and nine months ended September 30, 2024, respectively. If CMS amends, restricts, or retracts its November 2023 rule classifying MyoPro as a brace, amends or retracts any published fees, or establishes more restrictive inclusion criteria for coverage, our Medicare revenues could be negatively impacted and insurers offering Medicare Advantage insurance plans may no longer cover or adequately reimburse for the MyoPro. As a result, our overall revenues and cash flows would be negatively impacted, which could have an adverse effect on our business. See “Risks Related to our Reliance on Third Parties—We may not be able to obtain third-party payer reimbursement, including reimbursement by Medicare, for our products” for additional information about CMS coverage decisions.

We currently rely, and in the future will rely, on sales of our MyoPro products for our revenue, and we may not be able to expand market acceptance or grow revenues in the orthotics and prosthetics channel.

We currently rely, and in the future will rely, on sales of our MyoPro products for our revenue. MyoPro products are relatively new products, and continuing market acceptance and adoption will depend on educating people with limited upper extremity mobility and healthcare providers as to the distinct features, ease-of-use, improved quality of life and other benefits of MyoPro systems compared to alternative technologies and treatments. Our products may not be perceived to have sufficient potential benefits compared with these alternatives, which include rehabilitation therapy or amputation with a prosthetic replacement. Also, healthcare providers such as orthotics and prosthetics ("O&P") practices and the VA want to see good outcomes for their patients and certainty of third-party reimbursement. Accordingly, healthcare providers may not recommend the MyoPro until there is sufficient evidence to convince them to alter the treatment methods they typically recommend. This evidence may include prominent healthcare providers or other key opinion leaders in the upper extremity paralysis community recommending the MyoPro as effective in providing identifiable immediate and long-term health benefits, and the publication of additional peer-reviewed clinical studies demonstrating its value. Additionally, because the MyoPro is a prescription device, patients require the prescription of a healthcare provider to access our products and to have the device reimbursed by insurance.

Expanding market acceptance of MyoPro products could be negatively impacted by many other factors, including, but not limited to:

Any factors that negatively impact sales of MyoPro would adversely affect our business, financial condition and operating results.

We depend on a single third-party to manufacture key subassemblies for the MyoPro and a limited number of third-party suppliers for certain components of the MyoPro.

While we are the manufacturer of record with the U.S. Food and Drug Administration, (the “FDA”) for the MyoPro device we sell, we have contracted with Cogmedix, Inc. (“Cogmedix”), a contract manufacturer with expertise in the medical device industry, for the contract manufacture of certain subassemblies and the sourcing of some of our components and raw materials. Pursuant to this contract, Cogmedix manufactures subassemblies for the MyoPro pursuant to our specifications at its facility in West Boylston, Massachusetts. As the manufacturer of the MyoPro, we ultimately remain responsible to the FDA for overseeing Cogmedix’s manufacturing activities to ensure that they conform with product specifications and applicable laws and regulations, including FDA’s good manufacturing practice requirements for medical devices. Any failure to effectively oversee the regulatory compliance of the product and contract manufacturing activities by Cogmedix can lead to potential enforcement actions, including civil or criminal liabilities, as well as recalls with the FDA. We may terminate our relationship with Cogmedix at any time upon sixty (60) days’ written notice. For our business strategy to be successful, Cogmedix must be able to manufacture our subassemblies in sufficient quantities, and to source raw materials and components, in compliance with regulatory requirements and quality control standards, in accordance with agreed upon specifications, at acceptable costs and on a timely basis. Increases in our product sales, whether forecasted or unanticipated, or supply chain constraints that may arise for any number of reasons, could strain the ability of Cogmedix to manufacture an increasingly large supply of our current or future subassemblies in a manner that meets these various requirements. In addition, although we are not restricted from engaging an alternative manufacturer, the process of moving our manufacturing activities would be time consuming and costly, and may limit our ability to meet our sales commitments, which could harm our reputation and could have a material adverse effect on our business. Further, any new contract manufacturer would need to be compliant with FDA regulations and International Organization for Standardization (“ISO”) standard 13485.

We also rely on third-party suppliers, including AB Corp, for 3D printed orthotic components. Some third-party suppliers contract directly with Cogmedix, to supply certain components of the MyoPro products. Cogmedix does not have long-term supply agreements with most of their suppliers and, in many cases, makes purchases on a purchase order basis. We do not have any long-term supply agreements directly with Cogmedix’s suppliers. Our ability and Cogmedix’s ability to secure adequate quantities of such products may be limited. Suppliers may encounter problems that limit their ability to manufacture components for our products, including financial difficulties or damage to their manufacturing equipment or facilities. If we, or Cogmedix, fail to obtain sufficient quantities of high-quality components to meet demand on a timely basis, or fail to effectively oversee the regulatory compliance of the supply chain, we could face regulatory enforcement, have to conduct recalls, lose customer orders, our reputation may be harmed, and our business could suffer.

Cogmedix generally uses a small number of suppliers for the MyoPro products. Depending on a limited number of suppliers exposes us to risks, including limited control over pricing, availability, quality and delivery schedules. If any one or more of our suppliers ceases to provide sufficient quantities of components in a timely manner or on acceptable terms, Cogmedix would have to seek alternative sources of supply. It may be difficult to engage additional or replacement suppliers in a timely manner. Failure of these suppliers to deliver products at the level our business requires would limit our ability to meet our sales commitments, which could harm our reputation and could have a material adverse effect on our business. Cogmedix also may have difficulty obtaining similar components from other suppliers that are acceptable to the FDA or other regulatory agencies, and the failure of Cogmedix’s suppliers to comply with strictly enforced regulatory requirements could expose us to regulatory action including warning letters, product recalls, termination of distribution, product seizures or civil penalties. It could also require Cogmedix to cease using the components, seek alternative components or technologies and we could be forced to modify our products to incorporate alternative components or technologies, which could result in a requirement to seek additional regulatory approvals. Any disruption of this nature or increased expenses could harm our commercialization efforts and adversely affect our operating results.

We also rely on a limited number of suppliers for certain materials and components used by the MyoPro and do not maintain any long-term supply agreement with respect to these materials and components. If we fail to obtain sufficient quantities of these materials and components in a timely manner, our reputation may be harmed and our business could suffer.

While we currently believe we have sufficient inventory in our supply chain in the near term, if we, or any third parties in our supply chain for materials which are used in either the manufacture of our products are adversely impacted by infections or restrictions from public heath crises, or other factors, our supply chain may be disrupted and our ability to manufacture and ship our products may be limited. While many

companies continue to experience shortages of certain electronic components, so far we and our contract manufacturing partners have been able to procure the electronic components necessary for the manufacture of our products, but we are dealing with longer lead times and delivery delays for certain critical components. There can be no assurance that such supplies will become less constrained in the future.

Our limited operating history makes it difficult for us to evaluate our future business prospects and make decisions based on those estimates of our future performance.

Since inception through September 30, 2024, we have delivered more than 2,800 units for use by patients at home and at clinical facilities. Our latest product line, the MyoPro, was introduced to the market in fiscal year 2012 and we have delivered more than 2,500 units since such time. As a result, we have a limited operating history. It is difficult to forecast our future results based upon our historical data. Because of the uncertainties related to our limited historical operations, we may be hindered in our ability to anticipate and timely adapt to increases or decreases in revenues or expenses.

Our cash, cash equivalents and restricted cash at September 30, 2024 was approximately $6.9 million. On July 11, 2024, we entered into a Loan and Security Agreement with Silicon Valley Bank, which provides us the ability to borrow up to $4.0 million against eligible accounts receivable. The line of credit is undrawn as of the issuance date of these financial statements. Availability under the line of credit is approximately $0.9 million as of September 30, 2024. On January 19, 2024, we completed a registered direct offering of our common stock and pre-funded warrants, generating net proceeds of approximately $5.4 million.

Our ability to grow our business is dependent on our ability to generate sufficient cash flows from operations or to raise additional capital to meet our obligations, if necessary. We believe that our existing cash and cash equivalents will be sufficient to enable us to achieve operating cash flow breakeven on a quarterly basis, which we believe is achievable in the fourth quarter of 2024, assuming that we are able to grow revenues as planned, our supply chain is able to meet our volume requirements without disruption, we are able to compensate for additional advertising expenditures in the second half of 2024, expected payments are received and our days sales outstanding in accounts receivable does not increase. If additional capital is required to achieve operating cash flow breakeven, we may be unable to obtain additional funds on reasonable terms, or at all. Our ability to secure financing and the cost of raising such capital are dependent on numerous factors, including general economic and capital markets conditions, credit availability from lenders, investor confidence and the existence of regulatory and tax incentives that are conducive to raising capital. Uncertainty in the financial markets has caused banks and financial institutions to decrease the amount of capital available for lending and has significantly increased the risk premium of such borrowings. In addition, such turmoil and uncertainty has significantly limited the ability of companies to raise funds through the sale of equity or debt securities. If we are unable to raise additional funds, we may need to delay, modify or abandon some or all of our business plans or cease operations. If we raise funds through the issuance of debt, the amount of any indebtedness that we may raise in the future may be substantial, and we may be required to secure such indebtedness with our assets and may have substantial interest expenses. If we default on any future indebtedness, our lenders could declare all outstanding principal and interest to be due and payable and our secured lenders may foreclose on the facilities securing such indebtedness. Usage of our line of credit requires us to meet financial and operating covenants, which could place limits on our operations, decrease our liquidity and increase the amount of cash flow required to service our debt. If we raise funds through the issuance of equity securities, such issuance could result in dilution to our stockholders and the newly issued securities may have rights senior to those of the holders of our common stock.

Continued inflation may materially impact our financial operations or results of operations.

Inflation has and is expected to remain elevated for the near future. Inflationary factors, such as increases in the cost of our raw materials, manufacturing, interest rates and overhead costs may adversely affect our operating results. The price and availability of key components used to manufacture our products has been increasing and may continue to fluctuate significantly. In addition, the cost of labor internally or at our third-party manufacturers could increase significantly due to regulation or inflationary pressures. Additionally, the cost of logistics and transportation fluctuates in large part due to the price of oil, and availability can be limited due to political and economic issues. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future, especially if inflation rates continue to rise.

Our level of indebtedness and debt service obligations could adversely affect our financial condition and may make it more difficult for us to fund our operations.

In July 2024, we entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank. Pursuant to the terms of the Loan Agreement, we may request advances on a revolving line of credit whereby we may borrow up to $4 million (the “Revolving Line”), which Revolving Line may be increased to $5.5 million at Silicon Valley Bank’s sole discretion upon the occurrence of certain events. The

Revolving Line is secured on a first priority basis by all of our assets other than intellectual property and certain customary exceptions. To the extent we use the Revolving Line, such indebtedness may create additional financing risk for us, particularly if our business or prevailing financial market conditions are not conducive to paying off or refinancing our outstanding debt obligations at maturity. This indebtedness could also have important negative consequences, including the fact that:

The industries in which we operate are highly competitive and subject to rapid technological change. If our competitors are better able to develop and market products that are safer, more effective, less costly, easier to use, or are otherwise more attractive, we may be unable to compete effectively with other companies.

Industrial and medical robotics is characterized by intense competition and rapid technological change, and we will face competition on the basis of product features, clinical outcomes, price, services and other factors. Publication of fees by CMS under our Healthcare Common Procedures Coding System billing codes L8701 and L8702 is also expected to attract competition. Competitors may include large medical device and other companies, some of which have significantly greater financial and marketing resources than we do, and firms that are more specialized than we are with respect to particular markets. Our competition may respond more quickly to new or emerging technologies, undertake more extensive marketing campaigns, and have greater financial, marketing and other resources than we do or may be more successful in attracting potential customers, employees and strategic partners.

Our competitive position will depend on multiple complex factors, including our ability to maintain and grow market acceptance for our products, develop new products, implement production and marketing plans, secure regulatory clearances or approvals, if necessary, for products under development and protect our intellectual property. In some instances, competitors may also offer, or may attempt to develop, alternative therapies for disease states that may be delivered without a medical device. The development of new or improved products, processes or technologies by other companies may render our products or proposed products obsolete or less competitive. The entry into the market of manufacturers located in low-cost manufacturing locations may also create pricing pressure, particularly in developing markets. Our future success depends, among other things, upon our ability to compete effectively against current technology, as well as to respond effectively to technological advances, and upon our ability to successfully implement our marketing strategies and execute our research and development plans.

We sell to O&P providers and distributors who are free to market products that compete with the MyoPro, and we rely on these parties to market and promote our products in accordance with their FDA listings, select appropriate patients and provide adequate follow-on care.

We rely on our relationships with qualified O&P providers and our distribution arrangements to market and sell our products. We believe that a meaningful percentage of our sales will continue to be generated through these channels in the future. However, none of these partners are required to sell or provide our products exclusively. If a key independent O&P provider were to cease to distribute our products, our sales could be adversely affected. In such a situation, we may need to seek alternative independent providers or increase our reliance on our other independent providers or our direct field representatives, which may not prevent our sales from being adversely affected. Additionally, to the extent that we enter into additional arrangements with independent distributors to perform sales, marketing, or distribution services, the terms of the arrangements could cause our profit margins to be lower than if we directly marketed and sold our products.

If these independent O&P providers or distributors do not follow our inclusion/exclusion criteria for patient selection or do not provide adequate follow-on care, then our reputation may be harmed by patient dissatisfaction. This could also lead to product returns and adversely affect our financial condition. When issues with distributors have arisen in the past, we have supplied additional training and documentation and/or ended the distributor relationship.

The sales and marketing of medical devices is under increased scrutiny by the FDA and other enforcement bodies. If our sales and marketing activities fail to comply with FDA regulations, such as regulations for the labeling and advertising of our products, or other applicable laws, we may be subject to warnings or enforcement actions from the FDA or other enforcement bodies. For example, we are restricted from promoting our products for any use that is beyond the scope of their applicable FDA classification regulation. Such promotion could result in enforcement action by the FDA, which may include, but is not limited to untitled letters or warning letters, injunctions, recall or seizure of our products, and imposition of FDA’s premarket clearance or approval requirements.

The market for myoelectric braces is new and the rate of adoption is uncertain, and important assumptions about the potential market for our products may be inaccurate.

The market for myoelectric braces, or orthotics, is new and the rate of adoption is uncertain. Our estimates of market size are derived from statistics regarding the number of individuals with paralysis, but not necessarily limited to their upper extremities. Accordingly, it is difficult to predict the future size and rate of growth of the market. We cannot be certain whether the market will continue to develop or if orthotics will achieve and sustain a level of market acceptance and demand sufficient for us to continue to generate revenue and achieve profitability.

Limited sources exist to obtain reliable market data with respect to the number of mobility-impaired individuals and the occurrence of upper extremity paralysis in our target markets. In addition, there are no third-party reports or studies regarding what percentage of those with upper extremity paralysis would be able to use orthotics in general, or our current or planned future products in particular. In order to use our current products marketed to those with upper extremity paralysis, users must meet a set of inclusion criteria and not have a medical condition which disqualifies them from being an appropriate candidate. Future products for those with upper extremity paralysis may have the same or other restrictions. Our business strategy is based, in part, on our estimates of the number of upper extremity impaired individuals and the incidence of upper extremity injuries in our target markets and the percentage of those groups that would be able to use our current and future products. Our assumptions and estimates may be inaccurate and may change.

If the upper extremity orthotics market fails to develop or develops more slowly than we expect, or if we have relied on sources or made assumptions or estimates that are not accurate, our business could be adversely affected.

In addition, because we operate in a new market, the actions of our competitors could adversely affect our business. Adverse events such as product defects or legal claims with respect to competing or similar products could cause reputational harm to the market on the whole. Further, adverse regulatory findings or reimbursement-related decisions with respect to other products could negatively impact the entire market and, accordingly, our business.

We may receive a significant number of warranty claims or our MyoPro may require significant amounts of service after sale.

Sales of MyoPro products generally include a three-year warranty for parts and labor, other than for normal wear and tear. As the number and complexity of the features and functionalities of our products increase, we may experience a higher level of warranty claims. If product returns or warranty claims are significant or exceed our expectations, we could incur unanticipated expenditures for parts and services, which could have a material adverse effect on our operating results.

Defects in our products or the software that drives them could adversely affect the results of our operations.

The design, manufacture and marketing of the MyoPro products involve certain inherent risks. Manufacturing or design defects, unanticipated use of the MyoPro, or inadequate disclosure of risks relating to the use of MyoPro products can lead to injury or other adverse events. In addition, because the manufacturing of our products is outsourced to Cogmedix, we may not always be aware of manufacturing defects that could occur and corrective or preventive actions implemented by Cogmedix may not be effective at resolving such defects. Such adverse events could lead to recalls or safety alerts relating to MyoPro products (either voluntary or required by the FDA or similar governmental authorities in other countries), and could result, in certain cases, in the removal of MyoPro products from the market. A recall could result in significant costs. To the extent any manufacturing defect occurs, our agreement with Cogmedix contains a limitation on Cogmedix’s liability, and therefore we could be required to incur the majority of related costs. A defect in connection with the fabrication of our products may result in significant costs in connection with lawsuits or refunds. Product defects or recalls could also result in negative publicity, damage to our reputation or, in some circumstances, delays in new product approvals.

MyoPro users may not use MyoPro products in accordance with safety protocols and training, which could enhance the risk of injury. Any such occurrence could cause delay in market acceptance of MyoPro products, damage to our reputation, additional regulatory filings, product recalls, increased service and warranty costs, product liability claims and loss of revenue relating to such hardware or software defects.

The medical device industry has historically been subject to extensive litigation over product liability claims. We have not been subject to such claims to date, but we may become subject to product liability claims alleging defects in the design, manufacture or labeling of our products in the future. A product liability claim, regardless of its merit or eventual outcome, could result in significant legal defense costs and high punitive damage payments. Although we maintain product liability insurance, the coverage is subject to deductibles and limitations, and may not be

adequate to cover future claims. Additionally, we may be unable to maintain our existing product liability insurance in the future at satisfactory rates or in adequate amounts.

While there is long-term clinical data supporting the safety of our existing MyoPro products, updates to our products inherently have uncertain safety risks as they enter the market.

While clinical data have established the safety of MyoPro products, our products undergo periodic updates for various reasons, including performance and reliability improvements and cost reductions. For example, in January 2022, we announced the availability of MyoPro2+. Because MyoPro users generally do not have feeling in their upper extremities, they may not immediately notice adverse effects from updates to the MyoPro, which could exacerbate their impact. If MyoPro products are shown to present new risks or to be unsafe or cause such unforeseen effects in the future, our business and reputation could be harmed, including through field corrections, withdrawals, removals, mandatory product recalls, suspension or withdrawal of FDA registration, significant legal liability or harm to our business reputation.

We may enter into collaborations, licensing arrangements, joint ventures, strategic alliances or partnerships with third parties that may not result in the development of commercially viable products or the generation of significant future revenues.

In the ordinary course of our business, in the future we may enter into collaborations, in-licensing arrangements, joint ventures, strategic alliances or partnerships to develop the MyoPro and to pursue new markets. We are selling the MyoPro in several European countries, as well as Australia. In January 2021, we announced that we had entered into a joint venture (the “JV”) with Beijing Ryzur Medical Investment Co., Ltd. (“Ryzur Medical”), to manufacture and sell the products containing our technology in China, including Hong Kong, Taiwan and Macau. The company is named Jiangxi Myomo Medical Assistive Appliance Co., Ltd. (the “JV Company”). In December 2021, we entered into a technology license agreement and a trademark license agreement with the JV Company, under which we were entitled to receive a license fee of $2.7 million and the JV Company will commit to purchase a minimum of $10.75 million of MyoPro control units over the next ten years. During 2023, we received full payment of the $2.7 million initial license fee and have received payment for MyoPro control units of $50,000. This and any other of these relationships may require us to incur non-recurring and other charges, increase our near and long-term expenditures, issue securities that dilute our existing stockholders or disrupt our management and business. In addition, proposing, negotiating and implementing collaborations, licensing arrangements, joint ventures, strategic alliances or partnerships may be a lengthy and complex process. We may not identify, secure, or complete any such transactions or arrangements in a timely manner, on a cost-effective basis, on acceptable terms or at all. We have limited institutional knowledge and experience with respect to these business development activities, and we may also not realize the anticipated benefits of any such transaction or arrangement. In particular, these collaborations may not result in the development of products that achieve commercial success or result in significant revenues and could be terminated prior to developing any products. Any delays in entering into new strategic partnership agreements related to our products could delay the development and commercialization of our products in certain geographies, which would harm our business prospects, financial condition and results of operations.

If we pursue collaborations, additional licensing arrangements and joint ventures, strategic alliances or partnerships, we may not be able to consummate them, or we may not be in a position to exercise sole decision decision-making authority regarding the transaction or arrangement, which could create the potential risk of creating impasses on decisions, and our collaborators may have economic or business interests or goals that are, or that may become, inconsistent with our business interests or goals. It is possible that conflicts may arise with our collaborators. Our collaborators may act in their self-interest, which may be adverse to our best interest, and they may breach their obligations to us. Any such disputes could result in litigation or arbitration which would increase our expenses and divert the attention of our management. Further, these transactions and arrangements are contractual in nature and may be terminated or dissolved under the terms of the applicable agreements.

We will be moving our operations to a new, larger facility, by the end of 2024. Regulatory requirements in the United States and other countries, compliance with which is included under our certified quality management system, requires us to re-qualify our new manufacturing operation before we can manufacture and deliver our products from our new facility. Delays in completing this qualification could adversely affect our business

We will be moving our operations to a new, larger facility by the end of 2024. Our lease on our current headquarters and manufacturing facility in Boston expires in January 2025. In August 2024, we entered into a lease for our new corporate headquarters and manufacturing facility in Burlington, Massachusetts. We are required under regulations in the United States. and other countries, which are codified in our certified quality management system, to re-qualify our manufacturing operation before we can manufacture and deliver our products from our new facility. If there are delays in completing this re-qualification, the start up of our manufacturing will be delayed, which would adversely impact the planned growth of our manufacturing capacity. In addition, we would be required remain in our facility in Boston until the re-qualification is completed. If the delay was beyond the expiration date of our lease, we would be required to pay the landlord holdover rental

payments, which are double our existing lease payment. Payment of holdover rental payments for an extended period of time could negatively affect our cash flows.

If we fail to properly manage our anticipated growth, including in O&P channel and international markets, our business could suffer.

As we grow our revenues from Medicare Part B patients and expand the number of locations which provide the MyoPro products, including O&P practices in the United States, and future planned international distribution, we expect that it will place significant strain on our management team and on our financial resources. Failure to manage our growth effectively could cause us to mis-allocate management or financial resources and result in losses or weaknesses in our infrastructure, systems, processes and controls, which could materially adversely affect our business. Additionally, our anticipated growth will increase the demands placed on our suppliers, resulting in an increased need for us to manage our suppliers and monitor for quality assurance.

Moreover, there are significant costs and risks inherent in selling our products, particularly in international markets, including: (a) time and difficulty in building a widespread network of distribution partners; (b) increased shipping and distribution costs, which could increase our expenses and reduce our margins; (c) potentially lower margins in some regions; (d) longer collection cycles in some regions; (e) compliance with foreign laws and regulations; (f) compliance with anti-bribery, anti-corruption, and anti-money laundering laws, such as the Foreign Corrupt Practices Act and the Office of Foreign Assets Control regulations, by us, our employees, and our business partners; (g) currency exchange rate fluctuations and related effects on our results of operations; (h) economic weakness, including inflation, or political instability in foreign economies and markets; (i) compliance with tax, employment, immigration, and labor laws for employees living or traveling abroad; (j) workforce uncertainty in countries where labor unrest is more common than in the United States; (k) business interruptions resulting from geopolitical actions, including war and terrorism, or natural disasters, including earthquakes, typhoons, floods and fires; and (l) other costs and risks of doing business internationally, such as new tariffs which may be imposed. For example, we have entered into a joint venture with Beijing Ryzur Medical Investment Co., Ltd., to manufacture and sell the products containing the Company’s technology in China, including Hong Kong, Taiwan and Macau. In connection with this joint venture, we may encounter challenges in working with our joint venture partners, including with respect to compliance with local laws and domestic laws related to foreign operations.

These and other factors could harm our ability to implement planned growth in international operations and, consequently, harm our business, results of operations, and financial condition. Further, we may incur significant operating expenses as a result of our planned expansion activities, and they may not be successful. We have limited experience with regulatory environments and market practices internationally, and we may not be able to penetrate or successfully operate in new markets. We may also encounter difficulty growing the O&P channel while simultaneously being a direct provider to patients in the United States. and expanding into international markets because of limited brand recognition. These factors my lead to delayed or limited acceptance of our products by patients in these markets. Accordingly, if we are unable to expand O&P channel revenues in the United States., expand internationally or manage our international operations successfully, we may not achieve the expected benefits of this expansion and our financial condition and results of operations could be harmed.

We have benefited substantially from the leadership and performance of our senior management and other key employees. We do not carry key person insurance. Our success will depend on our ability to retain our current management and key employees. Competition for these key persons in our industry is intense and we cannot guarantee that we will be able to retain our personnel. The loss of the services of certain members of our senior management or key employees could prevent or delay the implementation and completion of our strategic objectives or divert management’s attention to seeking qualified replacements.

We may seek to grow our business through acquisitions of complementary products or technologies, and the failure to manage acquisitions, or the failure to integrate them with our existing business, could have a material adverse effect on our business, financial condition and operating results.

From time to time, we may consider opportunities to acquire other products or technologies that may enhance our products or technology or advance our business strategies. Potential acquisitions involve numerous risks, including:

We have no current commitments with respect to any acquisition and no current plans to seek acquisitions; however, depending on industry and market conditions, we may consider acquisitions in the future. If we do proceed with acquisitions, we do not know if we will be able to identify acquisitions we deem suitable, whether we will be able to successfully complete any such acquisitions on favorable terms or at all, or whether we will be able to successfully integrate any acquired products or technologies. Our potential inability to integrate any acquired products or technologies effectively may adversely affect our business, operating results and financial condition.

We are subject to extensive governmental regulations relating to the design, development, manufacturing, labeling and marketing, delivery and billing of our products, and a failure to comply with such regulations could lead to withdrawal or recall of our products from the market.

Our products are regulated as medical devices in the United States under the FFDCA, as implemented and enforced by the FDA. Under the FFDCA, medical devices are classified into one of three classes–Class I, Class II or Class III–depending on the degree of risk associated with the medical device, what is known about the type of device, and the extent of control needed to provide reasonable assurance of safety and effectiveness. Classification of a device is important because the class to which a device is assigned determines, among other things, the necessity and type of FDA pre-market review. This determination is required prior to marketing the device. See section titled “Business — Government Regulation”, in our December 31,2023 annual report on Form 10-K.

In 2012, we listed the MyoPro device as a Class I, 510(k)-exempt, limb orthosis with the FDA. From time to time, the FDA may disagree with the classification regulation under which a registrant lists their device. For example, the FDA may disagree with a registrant’s determination to classify their device as a Class I medical device. Instead, the FDA may determine the device to be a Class II or Class III device requiring the submission of a premarket notification, or 510(k), or a premarket approval (“PMA”) application for premarket clearance or approval. As the FDA is now giving more attention to the differentiated performance of myoelectric controlled orthotics, we elected to change our device listing to be under a Class II classification regulation for biofeedback devices. Under the classification regulation, we believe our device remains 510(k)-exempt as a prescription battery powered external limb orthosis that is indicated for functional improvement, a device which is generally 510(k)-exempt under the classification regulation. In the event that the FDA determines that our devices, whether by functionality or marketing claims, exceed the limitations on 510(k)-exemption such that premarket clearance or approval is required (i.e., that our device is intended for a use different from the intended use of a legally marketed device in the generic type of device under the applicable classification regulation or that our modified device operates using a different fundamental scientific technology than such a legally marketed device), should be classified as Class II devices or Class III devices requiring premarket clearance or approval, or should FDA decide to reclassify our device as a Class II or Class III device requiring premarket clearance or approval, we could be precluded from marketing our devices for clinical use within the United States for months or longer depending on the requirements of the classification. Obtaining premarket clearance or approval could significantly increase our regulatory costs, including expense associated with required pre-clinical (animal) and clinical (human) trials, more extensive mechanical and electrical testing and other costs.

We are registered with the FDA as a manufacturer for medical devices. We are also subject to regulation by foreign governmental agencies in connection with international sales. The agencies enforce laws and regulations that govern the development, testing, manufacturing, labeling, advertising, marketing and distribution, and market surveillance of our medical device products. Following the introduction of a product, the governmental agencies will periodically review our product development methodology, quality management systems, and product performance. We are under a continuing obligation to ensure that all applicable regulatory requirements, such as the FDA’s medical device good manufacturing practice / Quality System Regulation (“QSR”) requirements and the FDA’s medical device reporting requirements for certain device-related adverse events and malfunction, continue to be met. Our facilities are subject to periodic and unannounced inspection by U.S. and foreign regulatory agencies to audit compliance with the QSR, and comparable foreign regulations.

The process of complying with the applicable QSR, medical device reporting, and other requirements can be costly and time consuming, and could delay or prevent the production, manufacturing or sale of the MyoPro. If the FDA determines that we fail to comply with applicable regulatory requirements, they may issue an inquiry or an untitled or warning letter with one or more citations of non-compliance. These inquiries or letters, if not closed promptly, can result in fines, delays or suspensions of regulatory clearances, closure of manufacturing sites, seizures or recalls of products and damage to our reputation. Similarly, if we fail to comply with applicable foreign regulatory requirements, we may be subject to, among other things, fines, suspension or withdrawal of regulatory approvals, product recalls, seizure of products, operating restrictions and criminal prosecution. Recent changes in enforcement practice by the FDA and other agencies have resulted in increased enforcement activity, which increases the compliance risk that we and other companies in our industry are facing.

In addition, governmental agencies of the United States or other countries may impose new requirements regarding registration, labeling or prohibited materials that may require us to modify or re-register the MyoPro once it is already on the market or otherwise impact our ability to market the MyoPro in the United States or other countries. For example, on February 2, 2024, the FDA published a final rule to amend its QSR requirements to align more closely with the international consensus standards for medical devices by converging with quality management system (“QMS”) requirements used by other regulatory authorities from other countries. Specifically, the final rule does so primarily by incorporating by reference the 2016 edition of the ISO 13485 standard. The amended regulation is referred to as the Quality Management System Regulation (“QMSR”) and is effective February 2, 2026. If we are slow or unable to adapt to changes in existing requirements or the adoption of new requirements or policies, or if we are not able to maintain regulatory compliance, we may lose any marketing authorization that we may have obtained, which could have a material adverse effect on our business, prospects, results of operations, financial condition and our ability to achieve or sustain profitability. The process of complying with these governmental regulations can be costly and time consuming, and could delay or prevent the production, manufacturing or sale of the MyoPro. For instance, the FDA may issue mandates, known as 522 orders, requiring us to conduct post-market surveillance studies of our devices. Failure to comply could result in enforcement of the FFDCA against us or our products including an agency request that we recall our MyoPro products.

Our relationships with healthcare providers and physicians and third-party payers will be subject to applicable anti-kickback, fraud and abuse and other healthcare laws and regulations, which could expose us to criminal sanctions, civil penalties, contractual damages, reputational harm and diminished profits and future earnings.

We are subject to broadly applicable fraud and abuse and other healthcare laws and regulations, including, without limitation, the federal Anti-Kickback Statute and the federal False Claims Act, which may constrain the business or financial arrangements and relationships through which we sell, market and distribute our products. In particular, the promotion, sales and marketing of healthcare items and services, as well as certain business arrangements in the healthcare industry (e.g., healthcare providers, physicians and third-party payers), are subject to extensive laws designed to prevent fraud, kickbacks, self-dealing and other abusive practices. These laws and regulations may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, structuring and commission(s), certain customer incentive programs and other business arrangements generally. We are also subject to patient information and privacy and security regulation by both the federal government and the states and foreign jurisdictions in which we conduct business. See section titled “Business – Government Regulation – Healthcare Privacy Laws and Regulations”, in our December 31,2023 annual report on Form 10-K.

The scope and enforcement of each of these laws is uncertain and subject to rapid change in the current environment of healthcare reform. Federal and state enforcement bodies often scrutinize interactions between healthcare companies and healthcare providers, which has led to a number of investigations, prosecutions, convictions and settlements in the healthcare industry. Ensuring business arrangements comply with applicable healthcare laws, as well as responding to possible investigations by government authorities, can be time- and resource-consuming and can divert a company’s attention from the business.

The failure to comply with any of these laws or regulatory requirements subject entities to possible legal or regulatory action. Because of the breadth of these laws and the narrowness of the statutory exceptions and regulatory safe harbors available, it is possible that some of our business activities, could, despite efforts to comply, be subject to challenge under one or more of such laws. It is possible that governmental and enforcement authorities will conclude that our business practices may not comply with current or future statutes, regulations or case law interpreting applicable fraud and abuse or other healthcare laws and regulations. Depending on the circumstances, failure to meet applicable regulatory requirements can result in civil, criminal and administrative penalties, damages, fines, disgorgement, individual imprisonment, exclusion from participation in federal and state funded healthcare programs, contractual damages, reputational harm and the curtailment or restricting of our operations, as well as additional reporting obligations and oversight if we become subject to a corporate integrity agreement or other agreement to resolve allegations of non-compliance with these laws. Any action for violation of these laws, even if successfully defended, could cause us to incur significant legal expenses and divert management’s attention from the operation of the business. Prohibitions or restrictions on sales or withdrawal of future marketed products could materially affect business in an adverse way. Efforts to ensure that our business arrangements will comply with applicable healthcare laws may involve substantial costs. In addition, the commercialization of any of our products outside the United States will also likely subject us to foreign equivalents of the healthcare laws mentioned above, among other foreign laws.

If we or our third-party manufacturers or key suppliers fail to comply with the FDA’s Quality System Regulation, our manufacturing operations could be interrupted.

We and our third-party manufacturers and key suppliers are also required to comply with the FDA’s QSR which covers the methods and documentation of the production, control, quality assurance, labeling, packaging, storage and shipping of our products. We, Cogmedix, our electromechanical kit manufacturer, and other key suppliers are also subject to the regulations of foreign jurisdictions regarding the manufacturing process with respect to the market for our products abroad.

We continue to monitor our quality management, as well as that of our third-party manufacturers and suppliers to improve our overall level of compliance. Our facilities and those of our third-party manufacturers and key suppliers are subject to periodic and unannounced inspection by

U.S. and foreign regulatory agencies to audit compliance with the QSR and comparable foreign regulations. If our facilities or the facilities of our third-party manufacturers and suppliers are found to be in violation of applicable laws and regulations, or if we or our third-party manufacturers and suppliers fail to take satisfactory corrective action in response to an adverse inspection, the regulatory authority could take enforcement action, including any of the following sanctions:

Any of these sanctions could impair our ability to produce the MyoPro in a cost-effective and timely manner in order to meet our customers’ demands and could have a material adverse effect on our reputation, business, results of operations and financial condition. We may also be required to bear other costs or take other actions that may have a negative impact on our future sales and our ability to generate profits.

Our employees, principal investigators, consultants and commercial partners may engage in misconduct or other improper activities, including non-compliance with regulatory standards and requirements and insider trading.

It is not always possible to identify and deter misconduct by employees and other third parties, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to comply with these laws or regulations. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, including the imposition of civil, criminal and administrative penalties, damages, monetary fines, imprisonment, possible exclusion from participation in Medicare, Medicaid and other federal healthcare programs, additional reporting requirements and oversight if we become subject to a corporate integrity agreement or similar agreement to resolve allegations of noncompliance with these laws, contractual damages, reputational harm, diminished profits and future earnings, and curtailment of our operations, any of which could adversely affect our ability to operate our business, financial condition and results of operations.

We face risks in connection with the Affordable Care Act (“ACA”) or its possible replacement or modifications and other ongoing healthcare legislative and regulatory reform measures.

The United States and many foreign jurisdictions have enacted or proposed legislative and regulatory changes affecting the healthcare system that could affect our ability to profitably sell our products. Changes in regulations, statutes or the interpretation of existing regulations could impact our business in the future by requiring, for example: (i) changes to our manufacturing arrangements; (ii) additions or modifications to product labeling; (iii) the recall or discontinuation of our products; or (iv) additional record-keeping requirements. If any such changes were to be imposed, they could adversely affect the operation of our business.

Payers, whether domestic or foreign, or governmental or private, are developing increasingly sophisticated methods of controlling healthcare costs and those methods are not always specifically adapted for new technologies. In the United States, there have been and continue to be a number of legislative and regulatory initiatives and judicial challenges to contain healthcare costs. See section titled “Business – Government Regulations – Current and Future Legislation”, in our December 31,2023 annual report on Form 10-K.

We expect that the ACA, as well as other healthcare reform measures that may be adopted in the future, may result in additional reductions in Medicare and other healthcare funding, more rigorous coverage criteria, lower reimbursement, and new payment methodologies. This could lower the price that we receive for our products. Any denial or narrowing of coverage or reduction in reimbursement from Medicare or other government-funded programs may result in a similar denial or reduction in payments from private payers, including Medicare Advantage plans, which may prevent us from being able to generate sufficient revenue, attain profitability or commercialize our products. Litigation and legislative efforts to change or repeal the ACA are likely to continue, with unpredictable and uncertain results. It is not clear how these developments, or other future potential changes to the ACA, will change the reimbursement model and market outlook for O&P devices such as the MyoPro. We intend to monitor industry trends relative to the ACA to assist in our determination of how the MyoPro can fit into patient care protocols with providers such as rehabilitation hospitals and surgery centers. If reimbursement policies change significantly, the demand for MyoPro products may be impacted.

Our internal computer systems, or those of our customers, collaborators or other contractors, may be subject to cyber-attacks, compromises or security breaches, which could result in a material disruption of our product development programs.

Despite the implementation of security measures, our internal computer systems and infrastructures and those of our customers, collaborators, contractors, or other third parties are vulnerable to damage, compromise or interruption from computer viruses, unauthorized access, misuse, or other security compromises or breaches. Cyber-attacks are increasing in their frequency, sophistication and intensity, and have become increasingly difficult to detect. Cyber-attacks could include the deployment of harmful malware, ransomware, denial-of-service attacks, wrongful conduct by employees, vendors, or other third parties, hostile foreign governments, industrial espionage, social engineering and business email compromises, and other means to affect service reliability and threaten or compromise the security, confidentiality, integrity and availability of systems and information. Cyber-attacks also could include phishing attempts or e-mail fraud to cause payments or information to be transmitted to an unintended recipient. We have in the past experienced threats and security incidents related to our data and systems, and we may in the future experience other threats, compromises, breaches, or incidents. A cyber-attack or security compromise or breach could cause interruptions in our operations and could result in a material disruption of our business operations, damage to our reputation or a loss of revenues.

In the ordinary course of our business, we collect and store confidential and/or proprietary information or other sensitive information, including, among other things, personal information about our employees and patients, intellectual property, and proprietary business information. Any cyber-attack or security compromise or breach that leads to unauthorized access, use, disclosure, loss, corruption or other compromise of confidential and/or proprietary information or other sensitive information could harm our reputation, cause us not to comply with federal and/or state breach notification laws and foreign law equivalents and otherwise subject us to liability under laws and regulations, including those that protect the privacy and security of personal information. In addition, we could be subject to risks caused by misappropriation, misuse, leakage, falsification or intentional or accidental release or loss of information maintained in the information technology systems, infrastructure, and networks of our company and our vendors, including personal information of our employees, and patients, and company and vendor confidential data. In addition, outside parties may attempt to penetrate our systems and infrastructure or those of our vendors or fraudulently induce our personnel or the personnel of our vendors to disclose sensitive information in order to gain access to our data and/or systems. If a breach or compromise of our information technology systems or infrastructure or those of our vendors occurs, the market perception of the effectiveness of our security measures could be harmed and our reputation and credibility could be damaged.

We could be required to expend significant amounts of money and other resources to detect, mitigate and respond to these threats, compromises, or breaches and to repair or replace information technology systems infrastructure or networks and could suffer financial loss or the loss of valuable confidential and/or proprietary information. In addition, we could be subject to regulatory actions, inquiries, investigations, orders, penalties, fines, and/or claims made by individuals and groups in private litigation, including those involving privacy and security issues related to data collection and use practices and other data privacy and security laws and regulations, including claims for misuse or inappropriate disclosure of data, as well as unfair or deceptive practices. Although we develop and maintain systems and controls designed to prevent these events from occurring, and we have a process designed to identify and mitigate threats, the development and maintenance of these systems, controls and processes is costly and requires ongoing monitoring and updating as technologies change and efforts to overcome security measures become increasingly sophisticated. Moreover, despite our efforts, instances of unauthorized access to our computer systems have occurred in the past, though these events have not resulted in financial loss or disruption to our operations. The possibility of these events occurring in the future cannot be eliminated entirely. There can be no assurance that any measures we take will prevent or adequately address cyber-attacks or security compromises or breaches that could adversely affect our business.

We, our collaborators and our service providers may be subject to a variety of privacy and data protection laws, regulations and contractual obligations, which may require us to incur substantial compliance costs, and any failure or perceived failure by us to comply with them could expose us to fines or other penalties and otherwise harm our business and operations.

In the United States, several layers of federal and state data protection laws and regulations may apply to our business, including HIPAA, the Federal Trade Commission (“FTC”) Act and state consumer privacy and health data privacy laws. For example, the California Consumer Privacy Act (“CCPA”) is a comprehensive law that creates new individual privacy rights for California consumers (as defined in the law) and places increased privacy and security obligations on entities handling personal data of consumers or households. The CCPA requires covered companies to provide certain disclosures to consumers about its data collection, use and sharing practices, and to provide affected California residents with ways to opt-out of certain sales or transfers of personal information. The CCPA went into effect on January 1, 2020 and the California State Attorney General became empowered to commence enforcement actions against violators as of July 1, 2020. Further, as of January 1, 2023, the California Privacy Rights Act, created additional obligations with respect to processing and storing personal information.

Similar consumer privacy laws have passed or come into force in numerous U.S. states. Like the CCPA, these laws grant consumers rights in relation to their personal information and impose new obligations on regulated businesses, including, in some instances, broader data security requirements. In addition, federal and state legislators and regulators have signaled their intention to further regulate health and other sensitive information, and new and strengthened requirements relating to this information could impact our business. At the state level, some states have passed or proposed laws to specifically regulate health information. For example, Washington’s My Health My Data Act, which went into effect in March 2024, requires regulated entities to obtain consent to collect health information, grants consumers certain rights, including to request deletion, and provides for robust enforcement mechanisms, including enforcement by the Washington state attorney-general and a private right of action for consumer claims. At the federal level, the FTC has used its authority over “unfair or deceptive acts or practices” to impose stringent requirements on the collection and disclosure of sensitive categories of personal information, including health information. Moreover, the FTC’s expanded interpretation of a “breach” under its Health Breach Notification Rule could impose new disclosure obligations that would apply in the event of a qualifying breach.

European data collection is governed by restrictive regulations governing the use, processing, and cross-border transfer of personal information.

The collection and use of personal data, including personal health data in the European Economic Area (“EEA”) and the UK is governed by the provisions of the EU General Data Protection Regulation (“EU GDPR”) (with regards to the EEA) and the UK General Data Protection Regulation (“UK GDPR”) (with regards to the UK), as well as applicable data protection laws in effect in the member states of the EEA and in the UK (including the UK Data Protection Act 2018). In this Annual Report on Form 10-K, “GDPR” refers to both the EU GDPR and the UK GDPR, unless specified otherwise. The GDPR applies to the processing of personal data by any company established in the EEA/UK and to companies established outside the EEA/UK to the extent they process personal data in connection with the offering of goods or services to data subjects in the EEA/UK or the monitoring of the behavior of data subjects in the EEA/UK. The GDPR imposes a broad range of strict requirements on companies subject to the GDPR, such as including requirements relating to having legal bases or conditions for processing personal data relating to identifiable individuals and transferring such information outside the EEA/UK , including to the United States., providing details to those individuals regarding the processing of their personal data, implementing safeguards to keep personal data secure, having data processing agreements with third parties who process personal data, providing information to individuals regarding data processing activities, responding to individuals’ requests to exercise their rights in respect of their personal data, where required obtaining consent of the individuals to whom the personal data relates, reporting security and privacy breaches involving personal data to the competent national data protection authority and affected individuals, appointing data protection officers, conducting data protection impact assessments, and record-keeping. In the event of any non-compliance with the GDPR and any supplemental EEA Member State or UK national data protection laws, we could be subject to warning letters, mandatory audits, orders to cease/change the use of data, and financial penalties, including fines of up to €20,000,000 (£17.5 million for the UK GDPR) or 4% of total annual global revenue, whichever is greater. The GDPR also confers a private right of action on data subjects and consumer associations to lodge complaints with supervisory authorities, seek judicial remedies, and obtain compensation for damages resulting from violations of the GDPR.

The GDPR imposes strict rules on the transfer of personal data outside of the EEA or the UK to countries that do not ensure an adequate level of protection, like the United States in certain circumstances unless adequate safeguards (such as the European Commission approved standard contractual clauses (“SCCs”) or the UK International Data Transfer Agreement/Addendum, (“IDTA”) and transfer impact assessments carried out when relying on the SCCs and UK IDTA. The international transfer obligations under the EU data protection laws will require significant effort and cost and may result in us needing to make strategic considerations around where EEA and UK personal data is transferred and which service providers we can utilize for the processing of EEA and UK personal data. Any inability to transfer personal data from the EEA and UK to the United States in compliance with data protection laws may impede our ability to conduct trials and may adversely affect our business and financial position. Although the UK is regarded as a third country under the EU GDPR, the European Commission (“EC”) has now issued a decision recognizing the UK as providing adequate protection under the EU GDPR and, therefore, transfers of personal data originating in the EEA to the UK remain unrestricted. Like the EU GDPR, the UK GDPR restricts personal data transfers outside the UK to countries not regarded by the UK as providing adequate protection. The UK government has confirmed that personal data transfers from the UK to the EEA remain free flowing.

The UK’s data protection regime is independent from but aligned to the EU’s data protection regime. However, following the UK’s exit (“Brexit”) from the European Union (“EU”), there will be increasing scope for divergence in application, interpretation and enforcement of the data protection laws between these territories. For example, the UK Government has announced plans to introduce a Digital Information and Smart Data Bill (“Data Reform Bill”) into the UK legislative process to reform the UK’s data protection regime following Brexit. If passed, the final version of the Digital Reform Bill may have the effect of further altering the similarities between the UK and EEA data protection regimes and threaten the UK adequacy decision from the EU Commission, which may lead to additional compliance costs and could increase our overall risk. The respective provisions and enforcement of the EU GDPR and UK GDPR may further diverge in the future and create additional regulatory challenges and uncertainties. This lack of clarity on future UK laws and regulations and their interaction with EU laws and regulations could add legal risk, complexity and cost to our handling of European personal data and our privacy and data security compliance programs, and could require us to implement different compliance measures for the UK and the EEA.

Compliance with the GDPR will be a rigorous and time-intensive process that may increase our cost of doing business or require us to change our business practices, and despite those efforts, there is a risk that we may be subject to fines and penalties, litigation, and reputational harm in connection with any European and UK-based activities.

Our success depends in part on our ability to obtain and maintain protection for the intellectual property relating to or incorporated into our products.

Our success depends in part on our ability to obtain and maintain protection for the intellectual property relating to or incorporated into our products. We seek to protect our intellectual property through a combination of patents, trademarks, confidentiality and assignment agreements with our employees and certain of our contractors and confidentiality agreements with certain of our consultants, scientific advisors and other vendors and contractors. In addition, we rely on trade secrets law to protect our proprietary software and product candidates or products in development.

The patent position of myoelectric orthotic inventions can be highly uncertain and involves many new and evolving complex legal, factual and technical issues. Patent laws and interpretations of those laws are subject to change and any such changes may diminish the value of our patents or narrow the scope of protection. In addition, we may fail to apply for or be unable to obtain patents necessary to protect our technology or products or enforce our patents due to lack of information about the exact use of technology or processes by third parties. Also, we cannot be sure that any patents will be granted in a timely manner or at all with respect to any of our patent pending applications or that any patents that are granted will be adequate to protect our intellectual property for any significant period of time or at all.

Litigation to establish or challenge the validity of patents, or to defend against or assert against others infringement, unauthorized use, enforceability or invalidity claims, can be lengthy and expensive and may result in our patents being invalidated or interpreted narrowly and our not being granted new patents related to our pending patent applications. Even if we prevail, litigation may be time consuming and force us to incur significant costs, and any damages or other remedies awarded to us may not be valuable and management’s attention could be diverted from managing our business. In addition, U.S. patents and patent applications may be subject to interference proceedings, and U.S. patents may be subject to re-examination and review in the U.S. Patent and Trademark Office. Foreign patents may also be subject to opposition or comparable proceedings in the corresponding foreign patent offices. Any of these proceedings may be expensive and could result in the loss of a patent or denial of a patent application, or the loss or reduction in the scope of one or more of the claims of a patent or patent application.

In addition, we seek to protect our trade secrets, know-how and confidential information that is not patentable by entering into confidentiality and assignment agreements with our employees and certain of our contractors and confidentiality agreements with certain of our consultants, scientific advisors and other vendors and contractors. However, we may fail to enter into the necessary agreements, and even if entered into, these agreements may be breached or otherwise fail to prevent disclosure, third-party infringement or misappropriation of our proprietary information, may be limited as to their term and may not provide an adequate remedy in the event of unauthorized disclosure or use of proprietary information. Enforcing a claim that a third-party illegally obtained and is using our trade secrets is expensive and time consuming, and the outcome is unpredictable. We also have taken precautions to initiate reasonable safeguards to protect our information technology systems. However, these measures may not be adequate to safeguard our proprietary information, which could lead to the loss or impairment thereof or to expensive litigation to defend our rights against competitors who may be better funded and have superior resources. In addition, unauthorized parties may attempt to copy or reverse engineer certain aspects of our products that we consider proprietary or our proprietary information may otherwise become known or may be independently developed by our competitors or other third parties. If other parties are able to use our proprietary technology or information, our ability to compete in the market could be harmed. Further, unauthorized use of our intellectual property may have occurred, or may occur in the future, without our knowledge.

If we are unable to obtain or maintain adequate protection for intellectual property, or if any protection is reduced or eliminated, competitors may be able to use our technologies, resulting in harm to our competitive position.

Filing, prosecuting, maintaining and defending patents on each of our products in all countries throughout the world would be prohibitively expensive, and thus our intellectual property rights outside the United States are currently limited to selected countries in the EU, including China, including Hong Kong, and Japan. In addition, the laws of some foreign countries, especially developing countries, do not protect intellectual property rights to the same extent as federal and state laws in the United States. Also, it may not be possible to effectively enforce intellectual property rights in some countries at all or to the same extent as in the United States and other countries. Consequently, we are unable to prevent third parties from using our inventions in all countries, or from selling or importing products made using our inventions in the jurisdictions in which we do not have (or are unable to effectively enforce) patent protection. Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop, market or otherwise commercialize their own products, and we may be unable to prevent those competitors from importing those infringing products into territories where we have patent protection, but enforcement

is not as strong as in the United States. These products may compete with our products and our patents and other intellectual property rights may not be effective or sufficient to prevent them from competing in those jurisdictions. Moreover, competitors or others in the chain of commerce may raise legal challenges against our intellectual property rights or may infringe upon our intellectual property rights, including through means that may be difficult to prevent or detect.

Many companies have encountered significant problems in protecting and defending intellectual property rights in foreign jurisdictions. Proceedings to enforce our patent rights in the United States or foreign jurisdictions could result in substantial costs and divert our efforts and attention from other aspects of our business, could put our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing, and could provoke third parties to assert patent infringement or other claims against us. We may not prevail in any lawsuits that we initiate, and the damages or other remedies awarded, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property rights in the United States and around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license from third parties.

We may be subject to patent infringement claims, which could result in substantial costs and liability and prevent us from commercializing our current and future products.

The medical device industry is characterized by competing intellectual property and a substantial amount of litigation over patent rights. In particular, our competitors in both the United States and abroad, many of which have substantially greater resources and have made substantial investments in competing technologies, have been issued patents and filed patent applications with respect to their products and processes and may apply for other patents in the future. The large number of patents, the rapid rate of new patent issuances, and the complexities of the technology involved increase the risk of patent litigation.

Determining whether a product infringes a patent involves complex legal and factual issues and the outcome of patent litigation is often uncertain. Even though we have conducted research of issued patents, no assurance can be given that patents containing claims covering our products, technology or methods do not exist, have not been filed or could not be filed or issued. In addition, because patent applications can take years to issue and because publication schedules for pending applications vary by jurisdiction, there may be applications now pending of which we are unaware and may result in issued patents which our current or future products infringe. Also, because the claims of published patent applications can change between publication and patent grant, published applications may issue with claims that potentially cover our products, technology or methods.

Infringement actions and other intellectual property claims brought against us, with or without merit, may cause us to incur substantial costs and could place a significant strain on our financial resources, divert the attention of management and harm our reputation. We cannot be certain that we will successfully defend against any allegations of infringement. If we are found to infringe another party’s patents, we could be required to pay damages. We could also be prevented from selling our products that infringe, unless we could obtain a license to use the technology covered by such patents or could redesign our products so that they do not infringe. A license may be available on commercially reasonable terms or none at all, and we may not be able to redesign our products to avoid infringement. Further, any modification to our products could require us to conduct clinical trials and revise our filings with the FDA and other regulatory bodies, which would be time consuming and expensive. In these circumstances, we may not be able to sell our products at competitive prices or at all, and our business and operating results could be harmed.

We rely on trademark protection to distinguish our products from the products of our competitors.

We rely on trademark protection to distinguish our products from the products of our competitors. We have registered the trademarks “MyoPro” (Registration No. 4,532,331), “MYOMO” (Registration No. 4,451,445), “MyoPal” (Registration No. 6,086,533) and “MyoCare” (Registration No. 6,579,736) in the United States. The MyoPro mark is registered in Canada and in selected EU countries with pending registration. In jurisdictions where we have not yet registered our trademark and are using it, and as permitted by applicable local law, we seek to rely on common law trademark protection where available. Third parties may oppose our trademark applications, or otherwise challenge our use of the trademarks, and may be able to use our trademarks in jurisdictions where they are not registered or otherwise protected by law. If our trademarks are successfully challenged or if a third-party is using confusingly similar or identical trademarks in particular jurisdictions before we do, we could be forced to rebrand our products, which could result in loss of brand recognition, and could require us to devote additional resources to marketing new brands. If others are able to use our trademarks, our ability to distinguish our products may be impaired, which could adversely affect our business. Further, we cannot assure you that competitors will not infringe upon our trademarks, or that we will have adequate resources to enforce our trademarks.

We may be subject to damages resulting from claims that our employees or we have wrongfully used or disclosed alleged trade secrets of their former employers.

Some of our employees were previously employed at other medical device companies, including our competitors or potential competitors, and we may hire employees in the future that are so employed. We could in the future be subject to claims that these employees, or we, have

inadvertently or otherwise used or disclosed trade secrets or other proprietary information of their former employers. If we fail in defending against such claims, a court could order us to pay substantial damages and prohibit us from using technologies or features that are found to incorporate or be derived from the trade secrets or other proprietary information of the former employers. If any of these technologies or features are important to our products, this could prevent us from selling those products and could have a material adverse effect on our business. Even if we are successful in defending against these claims, such litigation could result in substantial costs and divert the attention of management.

Our stockholders will experience significant dilution upon the issuance of common stock if the shares of our common stock underlying our warrants are exercised or converted.

We have a significant number of securities convertible into, or allowing the purchase of, our common stock. Investors could be subject to increased dilution upon the conversion or exercise of these securities. For example, in conjunction with equity offerings in January 2024, August 2023 and January 2023, we issued 224,730, 1,920,000 and 6,830,926 pre-funded warrants, respectively. Each pre-funded warrant is exercisable for one share of common stock at the nominal exercise price of $0.0001 per share. As of September 30, 2024, we had 7,721,519 shares issuable upon the exercise of pre-funded warrants with an exercise price of $0.0001 per share, 668,250 shares issuable upon the exercise of other warrants, with a weighted-average exercise price of $7.50 per share and 1,234,357 unvested restricted stock units outstanding. In addition, we had 23,246 shares issuable upon the exercise of stock options under our equity incentive plans, with a weighted-average exercise price of $42.89 per share.

We may not be able to maintain a listing of our common stock on the NYSE American.

We must meet certain financial and liquidity criteria to maintain such listing. If we fail to meet any of the NYSE American’s listing standards, our common stock may be delisted. In addition, our board may determine that the cost of maintaining our listing on a national securities exchange outweighs the benefits of such listing. A delisting of our common stock from the NYSE American may materially impair our stockholders’ ability to buy and sell our common stock and could have an adverse effect on the market price of, and the efficiency of the trading market for, our common stock. A delisting of our common stock could significantly impair our ability to raise capital.

There is no public market for our warrants or pre-funded warrants to purchase common stock.

There is no established public trading market for our warrants or pre-funded warrants and we do not expect a market to develop. In addition, we do not intend to apply for listing of such warrants on any securities exchange. Without an active market, the liquidity of such warrants will be limited.

Holders of our warrants and pre-funded warrants have no rights as a common stockholder until such holders exercise their warrants and acquire our common stock.

Until holders of our warrants and pre-funded warrants exercise such warrants, they will have no rights with respect to the shares of our common stock underlying such warrants. Upon exercise of such warrants, the holders thereof will be entitled to exercise the rights of a common stockholder only as to matters for which the record date occurs after the exercise date.

The stock market in general, and the market price of our common stock in particular will likely be subject to fluctuation, whether due to, or irrespective of, our operating results, financial condition and prospects. For example, from September 30, 2023 to September 30, 2024, the high and low sales price of our common stock on the NYSE American has fluctuated from a low of $0.96 to a high of $5.64 per share. During the period from October 1, 2024 to the date of the filing of this report, our stock price has ranged from $3.66 to $4.02.

Our financial performance, our industry’s overall performance, changing consumer preferences, technologies, government regulatory action, tax laws and market conditions in general could have a significant impact on the future market price of our common stock. Some of the other factors that could negatively affect our share price or result in fluctuations in our share price include:

We do not expect to declare or pay dividends in the foreseeable future, as we anticipate that we will invest future earnings in the development and growth of our business. In addition, pursuant to the terms of our Loan Agreement, we are prohibited from paying cash dividends without the prior written consent of Silicon Valley Bank. Therefore, holders of our common stock will not receive any return on their investment unless they sell their securities, and holders may be unable to sell their securities on favorable terms or at all.

If securities industry analysts do not publish research reports on us, or publish unfavorable reports on us, then the market price and market trading volume of our common stock could be negatively affected.

Any trading market for our common stock will be influenced in part by any research reports that securities industry analysts publish about us. We do not have any control over these analysts. We currently have limited research coverage by securities industry analysts and we may be unable to maintain analyst coverage or have analysts initiate coverage on us. If securities industry analysts cease coverage of us, the market price and market trading volume of our common stock could be negatively affected. In the event we are covered by analysts, and one or more of such analysts downgrade our securities, or otherwise reports on us unfavorably, or discontinues coverage on us, the market price and market trading volume of our common stock could be negatively affected.

Future issuances of our common stock or equity-related securities could cause the market price of our common stock to decline and would result in the dilution of your holdings.

Future issuances of our common stock or securities convertible into our common stock could cause the market price of our common stock to decline. We cannot predict the effect, if any, of future issuances of our common stock or securities convertible into our common stock on the price of our common stock. In all events, future issuances of our common stock would result in the dilution of your holdings. In addition, the perception that new issuances of our common stock, or other securities convertible into our common stock, could occur, could adversely affect the market price of our common stock.

Future issuances of debt securities, which would rank senior to our common stock upon our bankruptcy or liquidation, and future issuances of preferred stock, which could rank senior to our common stock for the purposes of dividends and liquidating distributions, may adversely affect our common stock price.

In the future, we may attempt to increase our capital resources by offering debt securities. Upon bankruptcy or liquidation, holders of our debt securities, and lenders with respect to other borrowings we may make, would receive distributions of our available assets prior to any distributions being made to holders of our common stock. Moreover, if we issue preferred stock, the holders of such preferred stock could be entitled to preferences over holders of common stock in respect of the payment of dividends and the payment of liquidating distributions. Because our decision to issue debt or preferred securities in any future offering, or borrow money from lenders, will depend in part on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of any such future offerings or borrowings. Holders of our common stock must bear the risk that any future offerings we conduct or borrowings we make may adversely affect the level of return they may be able to achieve from an investment in our common stock.

If our shares of common stock become subject to the penny stock rules, it would become more difficult to trade our shares.

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. If we do not retain a listing on the NYSE American or another national securities exchange and if the price of our common stock is less than $5.00, our common stock will be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise

exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser’s written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.

Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.

Provisions in our amended and restated certificate of incorporation and bylaws may have the effect of delaying or preventing a change in control or changes in our management. Our amended and restated certificate of incorporation and bylaws include provisions that:

These provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of our board of directors, which is responsible for appointing the members of our management. In addition, because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law (“DGCL”) which generally prohibits a Delaware corporation from engaging in any of a broad range of business combinations with any “interested” stockholder for a period of three years following the date on which the stockholder became an “interested” stockholder. Any of the foregoing provisions could limit the price that investors might be willing to pay in the future for shares of our common stock, and they could deter potential acquirers of our company, thereby reducing the likelihood that you would receive a premium for your common stock in an acquisition.

We are a "smaller reporting company” under the reporting rules set forth under the Exchange Act. For so long as we remain a “smaller reporting company,” we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not “smaller reporting companies”.

We are a “smaller reporting company,”. For as long as we continue to be a smaller reporting company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not “smaller reporting companies,” including exemption from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act (so long as we remain a non-accelerated filer) and reduced disclosure obligations regarding executive compensation in the Annual Report on Form 10-K and our periodic reports and proxy statements.

We cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

We are obligated to develop and maintain a system of effective internal control over financial reporting. We may not complete our analysis of our internal control over financial reporting in a timely manner, or these internal controls may not be determined to be effective, which may harm investor confidence in our company and, as a result, the value of our common stock.

We are required, pursuant to Section 404 of the Sarbanes-Oxley Act (“Section 404”) to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting in the annual and quarterly reports we file with the SEC. This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial

reporting. However, our auditors are not required to formally attest to the effectiveness of our internal control over financial reporting pursuant to Section 404 until we are no longer a “smaller reporting company” as set forth under the Exchange Act.

We will need to continue to dedicate internal resources, engage outside consultants and adopt a detailed work plan to assess and document the adequacy of internal control over financial reporting, continue steps to improve control processes as appropriate, validate through testing that controls are functioning as documented and implement a continuous reporting and improvement process for internal control over financial reporting. As we continue to grow as a public company, we may need to add additional finance staff. We may not be able to remediate any future material weaknesses, or to complete our evaluation, testing and any required remediation in a timely fashion. During the evaluation and testing process, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable to assert that our internal controls are effective. If we are unable to assert that our internal control over financial reporting is effective, or if our auditors are unable to express an opinion on the effectiveness of our internal controls when they are required to issue such opinion, investors could lose confidence in the accuracy and completeness of our financial reports, which could harm our stock price.

The preparation of our financial statements involves the use of estimates, judgments and assumptions, and our financial statements may be materially affected if such estimates, judgments or assumptions prove to be inaccurate.

Financial statements prepared in accordance with accounting principles generally accepted in the United States typically require the use of estimates, judgments and assumptions that affect the reported amounts. Often, different estimates, judgments and assumptions could reasonably be used that would have a material effect on such financial statements, and changes in these estimates, judgments and assumptions may occur from period to period over time. Significant areas of accounting requiring the application of management’s judgment include, but are not limited to, determining the fair value of assets and the timing and amount of cash flows from assets. These estimates, judgments and assumptions are inherently uncertain and, if our estimates were to prove to be wrong, we would face the risk that charges to income or other financial statement changes or adjustments would be required. Any such charges or changes could harm our business, including our financial condition and results of operations and the price of our securities. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a discussion of the accounting estimates, judgments and assumptions that we believe are the most critical to an understanding of our financial statements and our business.

We are incurring increased costs as a public company and our management team is required to devote substantial time to new compliance initiatives and corporate governance practices.

As a public company, and particularly after we are no longer a “small reporting company,” we will incur significant legal, accounting and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the listing requirements of the NYSE American and other applicable securities rules and regulations impose various requirements on public companies. Our management and other personnel will need to devote a substantial amount of time to compliance with these requirements. Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costly.

We may be subject to adverse legislative or regulatory changes in tax laws that could negatively impact our financial condition.

The rules dealing with U.S. federal, state and local income taxation are constantly under review by persons involved in the legislative process and by the U.S. Internal Revenue Service (“IRS”) and the U.S. Treasury Department. Changes to tax laws (which changes may have retroactive application) could adversely affect our stockholders or us. In recent years, many such changes have been made and changes are likely to occur in the future. We cannot predict whether, when, in what form, or with what effective dates, tax laws, regulations and rulings may be enacted, promulgated or decided, which could result in an increase in our, or our stockholders’ tax liability or require changes in the manner in which we operate in order to minimize increases in our tax liability.

Our ability to use net operating losses and research and development credits to offset future taxable income may be subject to certain limitations.

As of December 31, 2023, we had U.S. federal and state net operating loss (“NOL”) carryforwards of $77.4 million and $72.7 million, respectively, which begin to expire in the year 2028 and 2024 through 2044, respectively. Additionally, we had U.S. federal and state research and development tax credits (“tax credits”) of $0.4 million and $0.2 million, respectively, which begin to expire in the year 2026 and 2033, respectively. These NOL and tax credit carryforwards could expire unused and be unavailable to offset future taxable income or tax liabilities, respectively. In addition, in general, under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the “Code”), and corresponding provisions of state law, a corporation that undergoes an “ownership change” is subject to limitations on its ability to utilize its pre-change NOL carryforwards or tax credits, (“NOLs”) or credits, to offset future taxable income. For these purposes, an ownership change generally occurs where the aggregate stock ownership of one or more stockholders or groups of stockholders who owns at least 5% of a corporation’s stock increases its ownership by more than 50 percentage points over its lowest ownership percentage within a specified testing

period. We have determined that such ownership changes have occurred in prior years. The result of these ownership changes is that we have a $64,000 annual limitation on our ability to utilize pre-ownership change NOLs and approximately $20.0 million of our federal NOLs and $48.0 million of our state NOLs will expire unutilized. There may have been an ownership change associated with our equity offerings in August 2023 and January 2024. We may undergo an ownership change in connection with future changes in our stock ownership (many of which are outside of our control), whereby our ability to utilize NOLs or credits could be further limited by Sections 382 and 383 of the Code or under corresponding provisions of state law. Furthermore, our ability to utilize our NOLs or tax credits is conditioned upon our attaining profitability and generating U.S. federal and state taxable income. As described above under “Risk factors— Risks Associated with Our Business,” we have incurred net losses since our inception and anticipate that we will continue to incur losses for the foreseeable future; and therefore, we do not know whether or when we will generate the U.S. federal or state taxable income necessary to utilize our NOLs or tax credits that are subject to limitation by Sections 382 and 383 of the Code. Under current law, U.S. federal NOL carryforwards generated in taxable years beginning after December 31, 2017 will not be subject to expiration, but the amount of such NOL carryforwards that we are permitted to deduct in a taxable year beginning after December 31, 2020 will be limited to 80% of our taxable income in each such year to which the NOL carryforwards are applied.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities

The exhibits filed as part of this Quarterly Report on Form 10-Q are set forth on the Exhibits Index, which is incorporated by reference.

+ The certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the Registrant specifically incorporates it by reference. Such certification will not be deemed to be incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Registrant specifically incorporates it by reference.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


特拉華		47-0944526
（成立或組織的）州或其他轄區		(國稅局雇主
或組織成立的州或其他司法管轄區)		識別號碼)

137 波特蘭街。, 4樓, 波士頓, 麻薩諸塞州		02114
(總部辦公地址)		(郵遞區號)


每種類別的名稱	交易標的（s）	每個註冊交易所的名稱
普通股，每股面值$0.0001	MYO	紐交所美國板塊


第一部分. 財務資訊

項目 1. 基本報表（中期未經審核）			1

截至2024年9月30日和2023年12月31日的簡明合併資產負債表（已審核）			1

2024年和2023年截至9月30日三個月和九個月的控制項綜合損益表			2

截至2024年9月30日和2023年，三個月和九個月的綜合虧損簡明綜合數表			3

2024年9月30日和2023年的三個月和九個月結束於9月30日的簡明股東權益變動表			4

截至2024年和2023年9月30日的綜合現金流量表			5

基本報表未經審核簡明合併財務報表註腳			6

項目2. 管理層對財務狀況和營運結果的討論與分析。			17

項目3.有關市場風險的定量和質量披露			23

第四項。控制和程序			23

第二部分。其他資訊

項目1. 法律訴訟			24

第1A項。風險因素			24

項目2. 未登記的股權證券銷售及已登記證券收益的使用			44

項目5 其他資訊			44

項目6. 附件			45

簽名			46


	九月三十日，			12月31日,
	2024			2023
	（未經審核）
資產
流動資產：
現金及現金等價物	$	6,622,675		$	6,871,306
短期投資		—			1,994,662
應收帳款，淨額		3,729,387			2,382,658
存貨，淨額		3,383,513			1,803,507
預付費用及其他流動資產		968,569			598,850
所有流動資产總額		14,704,144			13,650,983
受限現金		375,000			—
具使用權之營運租賃資產，淨額		466,962			663,554
設備，淨額		561,325			175,794
其他資產		205,440			91,237
總資產	$	16,312,871		$	14,581,568
負債及股東權益
當前負債：
應付帳款及應計費用		6,448,076			4,885,944
當前經營租賃負債		205,464			486,143
應付所得稅		305,861			96,461
透過收入		31,971			8,510
全部流动负债		6,991,372			5,477,058
非流動營運租賃負債		29,165			115,160
總負債		7,020,537			5,592,218
承諾和條件		—			—
股東權益：
優先股，面額$0.01，授權股數為5,000,000股，發行且流通股數為截至2024年6月30日和2023年12月31日之184,668,188股和181,364,180股。0.0001 面值； 10,000,000 授權股份； no發行或流通的股份		—			—
普通股面值 $0.0001每股, 65,000,000授權的股數; 30,244,182 和 27,135,061股份截至2024年9月30日發行及2013年12月31日分別; 以及 30,244,155 和 27,135,034 股份在2024年9月30日及2013年12月31日分別現有		3,026			2,715
資本公積額額外增資		111,754,495			105,840,239
其他綜合收益累積額		395,734			83,669
累積虧損		(102,854,457	)		(96,930,809	)
庫藏股票：$373,420和$353,470的股票成本分別在2024年6月30日和2023年12月31日。 27 股份成本		(6,464	)		(6,464	)
股東權益總計		9,292,334			8,989,350
負債總額和股東權益總額	$	16,312,871		$	14,581,568


	For the Three Months ended						截至九個月結束的日期
	九月三十日，						九月三十日，
	2024			2023			2024			2023
營業收入
產品銷售額	$	9,207,586		$	5,029,523		$	20,482,742		$	12,719,855
許可營業收入		—			50,000			—			1,764,920
		9,207,586			5,079,523			20,482,742			14,484,775

成本收入		2,262,031			1,590,675			5,912,632			4,407,270
毛利潤		6,945,555			3,488,848			14,570,110			10,077,505
營運費用：
研發		1,248,870			717,256			3,212,309			1,758,480
銷售、臨床和行銷		3,401,182			2,387,090			8,540,161			6,689,578
一般及行政費用		3,253,056			2,408,871			8,779,024			7,427,818
		7,903,108			5,513,217			20,531,494			15,875,876

營運虧損		(957,553	)		(2,024,369	)		(5,961,384	)		(5,798,371	)

其他（收入）費用，淨額
利息收益，淨額		(76,020	)		(112,300	)		(318,555	)		(302,053	)
其他費用，淨額		—			467			—			6,098
股權投資損失		—			70,124			—			99,840
		(76,020	)		(41,709	)		(318,555	)		(196,115	)
稅前損失		(881,533	)		(1,982,660	)		(5,642,829	)		(5,602,256	)
所得稅費用		84,876			46,356			280,819			85,204
淨虧損	$	(966,409	)	$	(2,029,016	)	$	(5,923,648	)	$	(5,687,461	)

流通的普通股加權平均數量：
基本與稀釋		37,950,515			35,266,361			37,359,366			27,537,357
歸屬於普通股東的每股淨損失
基本與稀釋	$	(0.03	)	$	(0.06	)	$	(0.16	)	$	(0.21	)


大型加速歸檔人	☐	加速歸檔人	☐
非加速歸檔人	☒	小型報告公司	☒
新興成長型企業	☐


	在結束的三個月內						已結束的九個月
	九月三十日						九月三十日
	2024			2023			2024			2023
淨虧損	$	(966,409	)	$	(2,029,016	)	$	(5,923,648	)	$	(5,687,461	)
其他綜合收益（虧損）（除稅）：
外幣轉換調整		256,354			(47,072	)		311,939			(52,640	)
短期投資未實現收益（虧損）		492			(774	)		126			860
其他綜合收益（虧損）		256,846			(47,846	)		312,065			(51,780	)
全面損失	$	(709,563	)	$	(2,076,862	)	$	(5,611,583	)	$	(5,739,241	)


	截至2024年和2023年9月30日止三個和九個月
	普通股		追加已繳資本	累積綜合	累積的	庫藏股		總計股東的
	股份	金額	資本	收入（損失）	赤字	股份	金額	權益
2024年1月1日的餘額	27,135,061	$2,715	$105,840,239	$83,669	$(96,930,809)	27	$(6,464)	$8,989,350
在公開直接配售中出售普通股票後的收益，扣除發行成本 $547,257	1,354,218	135	4,598,636	—	—	—	—	4,598,771
出售的收益 224,730在公開直接配售中出售預先購買的認股權證後的收益，扣除發行成本 $90,814	—	—	763,138	—	—	—	—	763,138
發行普通股以執行限制股單位	300,544	31	(31)	—	—	—	—	—
基於股票的薪酬	—	—	320,288	—	—	—	—	320,288
其他綜合收益	—	—	—	63,842	—	—	—	63,842
淨虧損	—	—	—	—	(3,835,632)	—	—	(3,835,632)
2024年3月31日結存	28,789,823	$2,881	$111,522,270	$147,511	$(100,766,441)	27	$(6,464)	$10,899,757
發行普通股以執行限制股單位	636,801	63	(63)	—	—	—	—	—
基於股票的薪酬	—	—	(91,893)	—	—	—	—	(91,893)
行使預先資助的認股權證	774,730	77	—	—	—	—	—	77
其他綜合損失	—	—	—	(8,623)	—	—	—	(8,623)
淨虧損	—	—	—	—	(1,121,607)	—	—	(1,121,607)
2024年6月30日資產負債表	30,201,354	$3,021	$111,430,314	$138,888	$(101,888,048)	27	$(6,464)	$9,677,711
發行普通股以執行限制股單位	42,828	4	(4)	—	—	—	—	—
基於股票的薪酬	—	—	324,185	—	—	—	—	324,185
其他綜合收益	—	—	—	256,846	—	—	—	256,846
淨虧損	—	—	—	—	(966,409)	—	—	(966,409)
截至2024年9月30日的餘額	30,244,182	$3,025	$111,754,495	$395,734	$(102,854,457)	27	$(6,464)	$9,292,334

2023年1月1日的結餘	7,750,635	$775	$95,105,071	$43,227	$(88,783,244)	27	$(6,464)	$6,359,365
發行普通股以執行限制股單位	2,821	—	—	—	—	—	—	—
普通股公開發行的銷售收入，扣除發行成本$663,856	13,169,074	1,317	3,614,777	—	—	—	—	3,616,094
出售的收益 6,830,926預付認股權，扣除募集成本后淨額$155,356	—	—	2,064,012	—	—	—	—	2,064,012
基於股票的薪酬	—	—	171,027	—	—	—	—	171,027
其他綜合收益	—	—	—	65,788	—	—	—	65,788
淨虧損	—	—	—	—	(2,644,295)	—	—	(2,644,295)
2023年3月31日結餘	20,922,530	$2,092	$100,954,887	$109,015	$(91,427,539)	27	$(6,464)	$9,631,991
通行股發放後，扣除限制股單位應發行股份后淨額 16,744員工稅項代扣部分股份	169,499	18	$(8,165)	—	—	—	—	(8,147)
基於股票的薪酬	—	—	280,061	—	—	—	—	280,061
未實現的外幣貨幣虧損	—	—	—	(71,357)	—	—	—	(71,357)
其他綜合收益	—	—	—	1,634	—	—	—	1,634
淨虧損	—	—	—	—	(1,014,150)	—	—	(1,014,150)
2023年6月30日結餘	21,092,029	$2,110	$101,226,783	$39,292	$(92,441,689)	27	$(6,464)	$8,820,032
普通股公開發行銷售款項，扣除發行成本$332,413	5,413,334	541	2,915,047	—	—	—	—	2,915,588
銷售款項 1,920,000預購權證款項，扣除發行成本$117,880	—	—	1,033,928	—	—	—	—	1,033,928
發行普通股以執行限制股單位	10,099	1	30	—	—	—	—	31
基於股票的薪酬	—	—	330,394	—	—	—	—	330,394
其他綜合損失	—	—	—	(47,846)	—	—	—	(47,846)
淨虧損	—	—	—	—	(2,029,016)	—	—	(2,029,016)
2023年9月30日的餘額	26,515,462	$2,652	$105,506,182	$(8,554)	$(94,470,705)	27	$(6,464)	$11,023,111


截至9月30日止九個月	2024			2023
營運活動現金流量
淨虧損	$	(5,923,648	)	$	(5,687,461	)
調整以將淨虧損調整為營運中使用的淨現金：
折舊		114,346			136,416
基於股票的薪酬		552,580			781,513
Accretion of discount on short-term investments		(118,520	)		—
Credit losses		5,257			12,626
股權投資損失		—			99,840
租賃權資產攤銷		196,592			301,053
其他非現金費用		84,180			(49,271	)
營運資產和負債的變化：
應收賬款		(1,116,352	)		(625,596	)
存貨		(1,573,193	)		(90,100	)
預付費用及其他流動資產		(614,951	)		(439,584	)
其他資產		(16,640	)		19,797
應付帳款及應計費用		1,895,795			2,141,978
應付所得稅		202,137			(74,944	)
租賃負債		(366,675	)		(352,820	)
透過收入		23,460			9,533
經營活動所用的淨現金		(6,655,632	)		(3,817,020	)
投資活動現金流量
購買短期投資		(5,482,757	)		(5,209,866	)
短期投資到期		7,595,814			1,000,000
資產采購		(499,877	)		(114,151	)
投資活動所提供（使用）的淨現金		1,613,180			(4,324,017	)
融資活動之現金流量淨額
普通股發行的淨收益		4,598,771			6,623,633
預資助warrants出售的收益，扣除發行成本		763,138			3,097,940
已歸屬限制性股票單位的淨結算，用以支付相關員工的法定稅款扣繳		-			(8,147	)
待發行成本		(199,500	)		—
籌資活動提供的淨現金		5,162,409			9,713,426

匯率變動對現金的影響		6,412			(6,610	)

現金、現金等价物和受限制的現金的净(减少)增加		126,369			1,565,780

本期期初現金、現金及受限制的現金餘額為		6,871,306			5,345,967

本期期末現金、現金及受限制的現金餘額為	$	6,997,675		$	6,911,747

非現金投資的補充披露及融資活動
因租賃負債而獲得的使用權資產	$	—		$	508,186
在以前期間產生的延期發行成本計入額外實收資本	$	—		$	(91,952	)
短期投資的公允價值變動（未實現的盈虧）	$	126		$	860


	九月三十日， 2024		12月31日, 2023
成品	$	1,367,375	$	321,484
在製品		74,859		6,589
零件和子組件		1,941,279		1,475,434
存貨，淨額	$	3,383,513	$	1,803,507


	For the Three Months Ended September 30,		Period- to-Period Change		For the Nine Months Ended September 30,		Period- to-Period Change
	2024	2023	$	%	2024	2023	$	%
Product revenue	$9,207,586	$5,029,523	$4,178,063	83%	$20,482,742	$12,719,855	$7,762,887	61%
License revenue	—	50,000	(50,000)	(100)%	—	1,764,920	(1,764,920)	(100)%
Total revenue	9,207,586	5,079,523	4,128,063	81%	20,482,742	14,484,775	5,997,967	41%
Cost of revenue	2,262,031	1,590,675	671,356	42%	5,912,632	4,407,270	1,505,362	34%
Gross profit	$6,945,555	$3,488,848	$3,456,707	99%	$14,570,110	$10,077,505	$4,492,605	45%
Gross margin %	75.4%	68.7%		6.7%	71.1%	69.6%		1.5%


	For the Three Months Ended September 30,		Period-to-Period Change		For the Nine Months Ended September 30,		Period-to-Period Change
	2024	2023	$	%	2024	2023	$	%
Research and development	$1,248,870	$717,256	$531,614	74%	$3,212,309	$1,758,480	$1,453,829	83%
Selling, clinical and marketing	3,401,182	2,387,090	1,014,092	42%	8,540,161	6,689,578	1,850,583	28%
General and administrative	3,253,056	2,408,871	844,185	35%	8,779,024	7,427,818	1,351,206	18%
Total operating expenses	$7,903,108	$5,513,217	$2,389,891	43%	$20,531,494	$15,875,876	$4,655,618	29%


	September 30, 2024		December 31, 2023
Cash and cash equivalents	$	6,622,675	$	6,871,306
Short-term investments		-		1,994,662
Total		6,622,675		8,865,968
Working capital	$	7,712,772	$	8,173,925


	Nine Months Ended September 30,
	2024			2023
Net cash used in operating activities	$	(6,655,632	)	$	(3,817,020	)
Net cash provided by (used in) investing activities		1,613,180			(4,324,017	)
Net cash provided by financing activities		5,162,409			9,713,426
Effect of foreign change rate changes on cash		6,412			(6,610	)
Net (decrease) increase in cash, cash equivalents and restricted cash	$	126,369		$	1,565,780


Exhibit No.		Exhibit Description
3.1		Eighth Amended and Restated Certificate of Incorporation (Incorporated by reference to Exhibit 2.3 contained in the Registrant’s Form 1-A filed on January 6, 2017)

3.2		Amended and Restated Bylaws (Incorporated by reference to Exhibit 2.4 contained in the Registrant’s Form 1-A filed on January 6, 2017)

3.3		Certificate of Amendment to the Eighth Amended and Restated Certificate of Incorporation, as amended, of Myomo, Inc., filed with the Secretary of the State of Delaware on January 30, 2020 (Incorporated by reference to Exhibit 3.1 contained in the Registrant’s Form 8-K filed on January 30, 2020)

3.4		Second certificate of Amendment to the Eighth Amended and Restated Certificate of Incorporation, as amended, of Myomo, Inc., filed with the Secretary of the State of Delaware on June 10, 2021 (Incorporated by reference to Exhibit 3.1 contained in the Registrant’s Form 8-K filed on June 15, 2021)

10.1		Loan and Security Agreement, dated July 11, 2024, between the Registrant and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company (Incorporated by reference to Exhibit 10.1 contained in the Registrant's Form 8-K filed on July 15, 2024)

10.2		Lease Agreement, dated August 9, 2024, by and between the Registrant and NDB Property Owner 1. L.P. (Incorporated by reference to Exhibit 10.1 contained in the Registrant's Form 8-K filed on August 13, 2024)

31.1*		Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) or 15(d)-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) or 15(d)-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1+		Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2+		Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH*		Inline XBRL Taxonomy Extension Schema Document with embedded linkbase documents.
104*		Cover Page Interactive Data File (embedded within the Inline XBRL document)


	Myomo, Inc.

	/s/ David A. Henry
	David A. Henry
	Chief Financial Officer (Principal Financial and Accounting Officer)