NEUROONE MEDICAL TECHNOLOGIES Corp Q2 FY2025 earnings call

• NeuroOne is a medical technology company focused on neurological disorders, with the OneRF ablation system being FDA cleared for brain procedures. - In the first half of fiscal 2025, product revenue increased 97% to $4.7 million and product gross margins rose to 57.9%. - Significant operational progress with the OneRF ablation system, including clinical success with patients remaining seizure-free, reduced hospitalizations, and hospitals/f physicians favoring FDA-cleared solutions. - Filed 510(k) submission for OneRF trigeminal nerve ablation system. - Initiating process to secure ISO 13485 certification for international commercialization. - Bolstered balance sheet with $8.2 million net proceeds from capital raise, no debt, and funded through at least fiscal 2026. - Added Dr. Parag Patil as Chief Medical Advisor and Emily Johns as General Counsel.

Product revenue in the second quarter of fiscal 2025 was $1.4 million, same as the second quarter of fiscal 2024. For the first half of fiscal 2025, product revenue increased 97% to $4.7 million compared to $2.4 million in the same period of fiscal 2024. Product gross profit in the second quarter of fiscal 2025 was $0.8 million or 55.6% of revenue, up from $0.4 million or 28.3% of revenue in the second quarter of fiscal 2024. For the first half of fiscal 2025, product gross profit increased over twofold to $2.7 million or 57.9% of revenue compared to $0.7 million or 27.9% of revenue in the first half of fiscal 2024. License revenue of $3 million was recognized in the first half of fiscal 2025, which was not present in the same period of fiscal 2024.

• Reiterating fiscal 2025 product revenue guidance of $8.0 million to $10 million, excluding the $3 million upfront license payment from Zimmer in the first quarter. - Product gross margin expected to be between 47% and 51% for fiscal 2025.

Q: On the guidance, is it excluding the $3 million from the first quarter?

A: Yes, that does exclude the licensing fee received in the first quarter.

Q: Do you expect all revenue for the current year to be from Zimmer Biomet?

A: It is almost entirely from Zimmer Biomet; first half of the year had about 6% from early centers, but going forward, all revenue is expected from Zimmer.

Q: Can you give a sense of pro forma cash now?

A: At April, had $9.4 million which included the financing from Ladenburg.

Q: Talk about adding a Chief Medical Advisor and what is anticipated to achieve from that?

A: Dr. Patil's clinical background and experience fits perfectly with the clinical areas we're in or looking to move into; he will help with product development and gathering patient outcome information for a registry.