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Description of Business
3 Months Ended
Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Description of Business

Note 1 — Description of Business

Myomo Inc. (“Myomo” or the Company”) is a wearable medical robotics company that develops, designs, and produces myoelectric orthotics for people with neuromuscular disorders. The MyoPro ® myoelectric upper limb orthosis product is registered with the U.S. Food and Drug Administration as a Class II medical device. The Company sells its products directly to patients, to orthotics and prosthetics (O&P) providers, the Veterans Health Administration, rehabilitation hospitals, and through distributors. When we provide devices directly to patients and bill their insurance companies directly, we may evaluate, cast and fit the MyoPro devices using our own clinical staff or utilize the clinical consulting services of O&P professionals for which they are paid a fee. The Company was incorporated in the State of Delaware on September 1, 2004 and is headquartered in Boston, Massachusetts.

Liquidity

The company has incurred recurring losses to date and had net losses of approximately $3.0 million and $3.8 million during the three months ended March 31, 2021 and 2020, respectively. Cash used in operating activities was approximately $2.1 million and $2.4 million for the three months ended March 31, 2021 and 2020, respectively.  The Company has historically funded its operations through financing activities, including raising equity and debt capital.

The Company’s operating plans are primarily focused on scaling up its operations, increasing the proportion of patients carrying commercial health insurance with payers that have historically reimbursed for the Company’s products and continued work with the Centers for Medicare and Medicaid Services, or CMS, and their administrative contractors regarding reimbursement of its products. In addition, the Company believes that it has access to capital resources through payment of a license fee associated with the Company’s entry into a joint venture and technology license agreement with Beijing Ryzur Medical Investment Co., Ltd. possible public or private equity offerings, exercises of outstanding warrants, debt financings, or other means.  Debt financing may require the Company to pledge other assets and enter into covenants that could restrict certain business activities or its ability to incur further indebtedness; and may contain other terms that are not favorable to the Company or its stockholders.

During the first quarter of 2021, the Company received approximately $7.3 million from the exercise of outstanding warrants.  Based on the Company’s cash balance of approximately $17.4 million as of March 31, 2021and its expected cash flows, the Company believes that its available cash will fund its operations for at least the next twelve months from the issuance date of these financial statements.