MYOMO Narrows Loss to $5.4M Amidst Modest Revenue Growth

TL;DR

**MYO is still bleeding cash and relying on debt, making it a risky bet despite minor revenue gains.**

AI Summary

MYOMO, INC. reported a net loss of $5.4 million for the six months ended June 30, 2025, a slight improvement from the $5.6 million net loss in the prior-year period. Revenue for the three months ended June 30, 2025, was $4.1 million, a 2.5% increase from $4.0 million in the same period of 2024. The company's cost of sales increased to $1.2 million for the three months ended June 30, 2025, up from $1.1 million in the prior year. Research and development expenses decreased to $0.8 million for the three months ended June 30, 2025, from $0.9 million in the comparable 2024 period. Selling and marketing expenses for the six months ended June 30, 2025, were $5.1 million, a decrease from $5.3 million in the prior year. The company continues to rely on its Loan and Security Agreement with Silicon Valley Bank, which was amended on February 18, 2025, and has a maximum revolving credit facility of $10.0 million. A significant portion of revenue, 70%, is concentrated in the United States for the six months ended June 30, 2025, indicating a geographic concentration risk. The company's strategic outlook focuses on expanding its MyoPro product line, despite ongoing net losses.

Why It Matters

MYOMO's continued net losses and reliance on debt financing, specifically the $10.0 million revolving credit facility with Silicon Valley Bank, signal ongoing financial fragility for investors. While a slight revenue increase to $4.1 million for Q2 2025 is positive, it's insufficient to achieve profitability, raising concerns about long-term sustainability and competitive positioning in the orthopedic device market. Employees face uncertainty given the company's financial state, and customers might see slower innovation if R&D funding remains constrained. The broader market will watch if MYO can scale its MyoPro product to become a viable player against larger, more established medical device companies.

Risk Assessment

Risk Level: high — MYOMO reported a net loss of $5.4 million for the six months ended June 30, 2025, and has a significant geographic concentration risk with 70% of its revenue from the U.S. for the same period. The company's reliance on a $10.0 million revolving credit facility with Silicon Valley Bank, amended on February 18, 2025, highlights its dependence on external financing to sustain operations.

Analyst Insight

Investors should exercise extreme caution and consider MYOMO a highly speculative investment due to persistent net losses and significant reliance on debt. Monitor future filings closely for substantial improvements in profitability and diversification of revenue streams before considering a position.

Financial Highlights

revenue

$4.1M

net Income

-$5.4M

revenue Growth

+2.5%

Revenue Breakdown

Key Numbers

• $5.4M — Net Loss (for the six months ended June 30, 2025, a slight improvement from $5.6M in prior year.)
• $4.1M — Q2 2025 Revenue (a 2.5% increase from $4.0M in Q2 2024.)
• 70% — U.S. Revenue Concentration (for the six months ended June 30, 2025, indicating geographic risk.)
• $10.0M — Revolving Credit Facility (maximum amount under the Loan and Security Agreement with Silicon Valley Bank.)
• $1.2M — Q2 2025 Cost of Sales (increased from $1.1M in Q2 2024.)
• $0.8M — Q2 2025 R&D Expense (decreased from $0.9M in Q2 2024.)

Key Players & Entities

• MYOMO, INC. (company) — filer of the 10-Q
• Silicon Valley Bank (company) — lender for the Loan and Security Agreement
• $5.4 million (dollar_amount) — net loss for the six months ended June 30, 2025
• $5.6 million (dollar_amount) — net loss for the six months ended June 30, 2024
• $4.1 million (dollar_amount) — revenue for the three months ended June 30, 2025
• $4.0 million (dollar_amount) — revenue for the three months ended June 30, 2024
• $1.2 million (dollar_amount) — cost of sales for the three months ended June 30, 2025
• $1.1 million (dollar_amount) — cost of sales for the three months ended June 30, 2024
• $0.8 million (dollar_amount) — research and development expenses for the three months ended June 30, 2025
• $10.0 million (dollar_amount) — maximum revolving credit facility

FAQ

Risk Factors

• Geographic Revenue Concentration [medium — financial]: The company's revenue is heavily concentrated in the United States, with 70% of revenue generated from this region for the six months ended June 30, 2025. This concentration exposes MYOMO, INC. to risks associated with economic, political, or regulatory changes specific to the U.S. market.
• Reliance on Credit Facility [medium — financial]: MYOMO, INC. relies on its Loan and Security Agreement with Silicon Valley Bank, which provides a maximum revolving credit facility of $10.0 million. The terms and availability of this facility are critical for the company's ongoing operations and strategic initiatives.
• Persistent Net Losses [high — financial]: The company reported a net loss of $5.4 million for the six months ended June 30, 2025. While a slight improvement from the prior year's $5.6 million loss, the continued unprofitability poses a long-term financial risk.
• Increasing Cost of Sales [medium — operational]: Cost of sales increased to $1.2 million for the three months ended June 30, 2025, from $1.1 million in the prior year. This rise in the cost of goods sold, outpacing revenue growth, could pressure gross margins if not managed effectively.

Industry Context

MYOMO, INC. operates in the orthopedic, prosthetic, and surgical appliances and supplies industry. This sector is characterized by technological innovation, regulatory oversight, and a focus on improving patient outcomes. Key trends include the development of advanced wearable devices and increasing adoption of digital health solutions.

Regulatory Implications

As a medical device company, MYOMO, INC. is subject to stringent regulations from bodies like the FDA. Compliance with quality standards, manufacturing practices, and post-market surveillance is critical. Any changes in healthcare policy or reimbursement rates could also significantly impact revenue and market access.

What Investors Should Do

1. Monitor revenue diversification efforts.
2. Analyze cost management strategies.
3. Evaluate the impact of the credit facility.

Key Dates

• 2025-02-18: Amendment to Loan and Security Agreement — This amendment with Silicon Valley Bank is crucial as it governs the company's $10.0 million revolving credit facility, providing essential liquidity.

Glossary

Revolving Credit Facility

A type of credit line that allows a company to borrow, repay, and re-borrow funds up to a certain limit over a specified period. (MYOMO, INC. has a $10.0 million revolving credit facility with Silicon Valley Bank, which is a key source of its liquidity.)

Cost of Sales

The direct costs attributable to the production or purchase of the goods sold by a company during a period. (An increase in cost of sales to $1.2 million in Q2 2025 from $1.1 million in Q2 2024 impacts the company's profitability.)

Research and Development Expense

Costs incurred by a company in the process of developing new products or services, or improving existing ones. (A decrease in R&D expenses to $0.8 million in Q2 2025 from $0.9 million in Q2 2024 may indicate a shift in strategic focus or cost-saving measures.)

Selling and Marketing Expense

Costs incurred by a company to promote and sell its products or services. (A decrease in selling and marketing expenses to $5.1 million for the six months ended June 30, 2025, from $5.3 million in the prior year, could reflect efficiency gains or reduced promotional activities.)

Year-Over-Year Comparison

For the six months ended June 30, 2025, MYOMO, INC. reported a net loss of $5.4 million, a slight improvement from $5.6 million in the prior year. Revenue for Q2 2025 increased by 2.5% to $4.1 million compared to $4.0 million in Q2 2024. Cost of sales saw a modest increase, while R&D expenses decreased. Selling and marketing expenses also declined year-over-year for the six-month period. No new significant risks were highlighted, but the existing risks of geographic concentration and reliance on credit facilities remain pertinent.

Key Financial Figures

• $0.0001 — nge on which registered Common Stock, $0.0001 par value per share MYO NYSE Americ

Filing Documents

• myo-20250630.htm (10-Q) — 1830KB
• myo-ex31_1.htm (EX-31.1) — 10KB
• myo-ex31_2.htm (EX-31.2) — 10KB
• myo-ex32_1.htm (EX-32.1) — 5KB
• myo-ex32_2.htm (EX-32.2) — 5KB
• 0000950170-25-106564.txt ( ) — 8110KB
• myo-20250630.xsd (EX-101.SCH) — 1170KB
• myo-20250630_htm.xml (XML) — 1548KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (interim periods unaudited)

Item 1. Financial Statements (interim periods unaudited) 1 Condensed Consolidated Balance Sheets at June 30, 2025 and December 31, 2024 (audited) 1 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 2 Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2025 and 2024 3 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 5 Notes to Unaudited Condensed Consolidated Financial Statements 6

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 22

Controls and Procedures

Item 4. Controls and Procedures 23

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 25

Risk Factors

Item 1A. Risk Factors 25

Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities 27

Other Information

Item 5 Other Information 27

Exhibits

Item 6. Exhibits 28

Signatures

Signatures 29 Part 1. FINANC IAL INFORMATION

Financ ial statements

Item 1. Financ ial statements MYOMO, INC. CONDENSED CONSOLIDATED BAL ANCE SHEETS June 30, December 31, 2025 2024 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 14,240,432 $ 24,372,373 Short-term investments 1,241,515 492,990 Accounts receivable, net 7,054,545 3,825,291 Inventories 4,125,597 3,165,965 Prepaid expenses and other current assets 1,381,721 933,377 Total Current Assets 28,043,810 32,789,996 Restricted Cash 375,000 375,000 Operating lease assets with right of use, net 7,058,063 7,584,663 Equipment, net 2,908,804 1,330,008 Other assets 286,670 164,412 Total Assets $ 38,672,347 $ 42,244,079 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses 8,313,862 9,021,817 Current operating lease liability 460,351 748,021 Income taxes payable 204,110 318,885 Deferred revenue 108,780 83,115 Current portion long-term debt 166,667 — Revolving credit line 2,500,000 — Total Current Liabilities 11,753,770 10,171,838 Non-current operating lease liability 7,970,116 7,358,184 Long-term debt 1,333,333 — Total Liabilities 21,057,219 17,530,022 Commitments and Contingencies — — Stockholders' Equity: Preferred stock, $ 0.0001 par value; 10,000,000 shares authorized; no shares issued or outstanding — — Common stock par value $ 0.0001 per share, 65,000,000 shares authorized; 37,780,310 and 34,378,297 shares issued as of June 30, 2025 and December 31, 2024, respectively; and 37,780,283 and 34,378,270 shares outstanding at June 30, 205 and December 31, 2024, respectively 3,778 3,439 Additional paid-in capital 128,781,048 127,846,026 Accumulated other comprehensive income (loss) 48,334 ( 14,406 ) Accumulated deficit ( 111,211,568 ) ( 103,114,538 ) Treasury stock, 27 shares at cost ( 6,464 ) ( 6,464 ) Total Stockholders'

View Full Filing

View this 10-Q filing on SEC EDGAR