electroCore Announces Second Quarter 2024 Financial Results

Seventh consecutive record quarterly net sales of $6.1 million, an increase of 73% over second quarter 2023

Company to host a conference call and webcast today, August 7, 2024 at 4:30 PM EST

ROCKAWAY, NJ, August 7, 2024 (GLOBE NEWSWIRE) – electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic medicine company and wellness company, today announced second quarter 2024 financial results.

Recent Highlights

Seventh consecutive record quarterly revenue of $6.1 million, an increase of 73% over second quarter 2023

	·	Net loss of $2.7 million, a decrease of 46% over second quarter 2023
	·	Launched our direct-to-consumer mobile app-enabled product for general wellness, Truvaga Plus™
	·	Raised approximately $9.0 million in a Registered Direct Offering and Concurrent Private Placements priced At-the-Market under Nasdaq Rules
	·	electroCore joined the Russel Microcap® Index
	·	Commercial launch of our next generation TAC-STIM™

Second Quarter 2024 Financial Results

For the quarter ended June 30, 2024, electroCore reported net sales of $6.1 million compared to $3.6 million during the same period of 2023, which represents an approximately 73% increase over the prior year. The increase of $2.6 million is primarily due to an increase in net sales across the majority of our major channels.

(in thousands)	Three months ended June 30,				% Change	Six months ended June 30,				% Change
Channel		2024		2023			2024		2023
Rx gammaCore™ – VA/DoD	$	4,572	$	2,081	120%	$	8,447	$	3,786	123%
Rx gammaCore – U.S. Commercial		476		445	7%		909		875	4%
Outside the United States		464		424	9%		913		834	9%
Truvaga™		572		290	97%		957		437	119%
Total Before TAC-STIM™		6,084		3,240	88%		11,226		5,932	89%
TAC-STIM		55		311	-82%		356		399	-11%
Total Revenue	$	6,139	$	3,551	73%	$	11,582	$	6,331	83%

Gross profit for the second quarter of 2024 was $5.3 million as compared to $3.0 million for the second quarter of 2023. Gross margin was 86% for the second quarter of 2024 as compared to 84% in the second quarter of 2023.

Total operating expenses in the second quarter of 2024 were approximately $7.9 million as compared to $8.0 million in the second quarter of 2023.

Research and development expense in the second quarter of 2024 was $0.6 million as compared to $1.2 million in the second quarter of 2023. This decrease was primarily due to a significant reduction in investments associated with the development of our next generation app-enabled platform.

Selling, general and administrative expense in the second quarter of 2024 was $7.3 million as compared to $6.8 million in the second quarter of 2023. The increase was driven by continued targeted investments in sales and marketing to support our commercial efforts.

GAAP net loss in the second quarter of 2024 was $2.7 million compared to the $4.9 million in the second quarter of 2023. This significant improvement was primarily due to the increase in net sales to $6.1 million for the second quarter of 2024 compared to $3.6 million during the same period in 2023.

Adjusted EBITDA net loss in the second quarter of 2024 was $1.9 million as compared to adjusted EBITDA net loss of $4.5 million in the second quarter of 2023. These improved results are also primarily due to the 73% increase in the second quarter 2024 net sales over the second quarter 2023.

The Company defines adjusted EBITDA net loss as GAAP net loss, adjusted to exclude non-operating gains/losses, depreciation and amortization, stock-compensation expense, inventory reserve charges, severance and other related charges, legal fees associated with stockholders’ litigation, and benefit from income taxes. A reconciliation of GAAP net loss to Non-GAAP adjusted EBITDA net loss has been provided in the financial statement tables included in this press release.

Cash, cash equivalents, marketable securities and restricted cash at June 30, 2024 totaled approximately $14.5 million, as compared to approximately $10.6 million as of December 31, 2023.

Webcast and Conference Call Information

electroCore’s management team will host a conference call today, August 7, 2024, beginning at 4:30 PM EST. Investors interested in listening to the conference call, or webcast may dial 877-407-8835 for domestic callers or 201-689-8779 for international callers, using Conference ID: 13744119, or click through the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=CJzxi2hM

An archived webcast of the event will be available on the “Investors” section of the company’s website at: www.electrocore.com.

About electroCore, Inc.

electroCore, Inc. is a commercial stage bioelectronic medicine and wellness company dedicated to improving health through its non-invasive vagus nerve stimulation (“nVNS”) technology platform. Our focus is the commercialization of medical devices for the management and treatment of certain medical conditions and consumer product offerings utilizing nVNS to promote general wellbeing and human performance in the United States and select overseas markets.

For more information, visit www.electrocore.com.

Forward-Looking Statements

This press release and other written and oral statements made by representatives of electroCore may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements about, electroCore’s business prospects and clinical and product development plans; its pipeline or potential markets for its technologies; the timing, outcome and impact of regulatory, clinical and commercial developments; business prospects around its prescription gammaCore product, general wellness Truvaga and TAC-STIM products, and other potential new products and markets, and other statements that are not historical in nature, particularly those that utilize terminology such as “anticipates,” “will,” “expects,” “believes,” “intends,” and other words of similar meaning, derivations of such words and the use of future dates. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to raise the additional funding needed to continue to pursue electroCore’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, the ability to commercialize gammaCore, TAC-STIM, and Truvaga, electroCore’s results of operations and financial performance, inflation and currency fluctuations, and any expectations electroCore may have with respect thereto, competition in the industry in which electroCore operates and overall economic and market conditions. Any forward-looking statements are made as of the date of this press release, and electroCore assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure set forth in the reports and other documents electroCore files with the SEC available at www.sec.gov.

Contact:

ECOR Investor Relations

(973) 302-9253

investors@electrocore.com

electroCore, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except per share data)

	Three months ended						Six months ended
	June 30,						June 30,
	2024			2023			2024			2023
Net sales	$	6,139		$	3,551		$	11,582		$	6,331
Cost of goods sold		838			585			1,726			1,043
Gross profit		5,301			2,966			9,856			5,288
Gross profit margin		86%			84%			85%			84%
Operating expenses
Research and development		635			1,155			1,034			2,964
Selling, general and administrative		7,257			6,799			15,262			13,509
Total operating expenses		7,892			7,954			16,296			16,473
Loss from operations		(2,591	)		(4,988	)		(6,440	)		(11,185	)
Other (income) expense
Interest and other income		(55	)		(85	)		(280	)		(204	)
Other expense		119			—			123			—
Total Other expense (income)		64			(85	)		(157	)		(204	)
Loss before income taxes		(2,655	)		(4,903	)		(6,283	)		(10,981	)
Benefit from income taxes		—			—			122			211
Net loss	$	(2,655	)	$	(4,903	)	$	(6,161	)	$	(10,770	)
Net loss per share of common stock - Basic and Diluted	$	(0.38	)	$	(1.03	)	$	(0.90	)	$	(2.27	)
Weighted average common shares outstanding - Basic and Diluted		7,046			4,751			6,831			4,747

electroCore, Inc.

Condensed Consolidated Balance Sheet Information

(unaudited)

(in thousands)

	June 30, 2024		December 31, 2023
Cash and cash equivalents	$	10,302	$	10,331
Restricted cash	$	250	$	250
Marketable securities	$	3,928	$	—
Total assets	$	22,355	$	16,102
Current liabilities	$	7,252	$	8,123
Total liabilities	$	10,883	$	8,660
Total stockholders' equity	$	11,472	$	7,442

(Unaudited) Use of Non-GAAP Financial Measure

The Company is presenting adjusted EBITDA net loss because it believes this measure is a useful indicator of its operating performance. Management uses this non-GAAP measure principally as a measure of the Company’s core operating performance and believes that this measure is useful to investors because it is frequently used by the financial community, investors, and other interested parties to evaluate companies in the Company’s industry. The Company also believes that this measure is useful to its management and investors as a measure of comparative operating performance from period to period. Additionally, the Company believes its use of non-GAAP adjusted EBITDA net loss from operations facilitates management’s internal comparisons to historical operating results by factoring out potential differences caused by gains and charges not related to its regular, ongoing business, including, without limitation, non-cash charges and certain large and unpredictable charges such as restructuring expenses.

The Company defines adjusted EBITDA net loss as GAAP net loss, adjusting to exclude non-operating gains/losses, depreciation and amortization, stock-compensation expense, inventory reserve charges, severance and other related charges, legal fees associated with stockholders’ litigation, and benefit from income taxes. A reconciliation of GAAP net loss to Non-GAAP adjusted EBITDA net loss is provided in the financial statement table below.

		Three months ended					Six months ended
		June 30,					June 30,
(in thousands)	2024			2023			2024			2023
GAAP net loss	$	(2,655	)	$	(4,903	)	$	(6,161	)	$	(10,770	)
Depreciation and amortization		201			322			407			444
Stock-based compensation		472			183			956			755
Inventory reserve charge		—			(10	)		—			65
Severance and other related charges		—			—			—			332
Legal fees associated with stockholders' litigation		2			35			71			35
Interest and other (income) expense		64			(85	)		(157	)		(204	)
Benefit from income taxes		—			—			(122	)		(211	)
Adjusted EBITDA net loss	$	(1,916	)	$	(4,458	)	$	(5,006	)	$	(9,554	)

The Company’s use of a non-GAAP measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of its results as reported under GAAP. Some of these limitations are: (i) the non-GAAP measure does not reflect interest or tax payments that may represent a reduction in cash available; (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and the non-GAAP measure does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (iii) the non-GAAP measure does not reflect the potentially dilutive impact of equity-based compensation; and (iv) the non-GAAP measure does not reflect changes in, or cash requirements for working capital needs; other companies, including companies in electroCore’s industry, may calculate adjusted EBITDA net loss differently, effectively reducing its usefulness as a comparative measure.

Because of these and other limitations, you should consider the non-GAAP measure together with other GAAP-based financial performance measures, including various cash flow metrics, net loss, and other GAAP results. A reconciliation of GAAP net loss to non-GAAP adjusted EBITDA net loss has been provided in the preceding financial statements table of this press release.