NEUROMETRIX, INC. (NASDAQ:NURO) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05 Costs Associated with Exit or Disposal Activities.
NEUROMETRIX, INC. (NASDAQ:NURO) Files An 8-K Costs Associated with Exit or Disposal Activities
On June 27, 2019, NeuroMetrix, Inc. issued a press release reporting on its strategy of optimizing its commercial products while reducing operating costs and preserving cash. The Company is focused on supporting its DPNCheck product line, managing its existing Quell business while evaluating alternative therapeutic applications for the core technology, maintaining its strategic collaboration with GlaxoSmithKline, and attempting to negotiate a settlement of the previously disclosed and ongoing Federal Trade Commission (FTC) investigation which is centered on Quell advertising. The text of the press release is filed as Exhibit 99.1 hereto and incorporated herein by reference.
The Company has implemented a reduction in force affecting 11 employees, all of whom have ceased employment with the Company. The estimated total cost of severance-related expenses was approximately $0.2 million. This reduction in force combined with earlier staffing adjustments have reduced the Company’s workforce by over 50% since the beginning of 2019. The Company also reported plans to sublet its corporate office and consolidate operations at its manufacturing and fulfillment facility. Estimated relocation costs are approximately $0.2 million. Further, inventory charges related to excess Quell stock are estimated to be approximately $2.0 million. These estimated charges are subject to a number of assumptions and actual results may differ. The Company may also incur other charges not currently contemplated due to events that may occur as a result of, or associated with, the restructuring. It is also likely that the Company will incur charges associated with the settlement of the FTC matter.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
NeuroMetrix, Inc. Exhibit
EX-99.1 2 a8k20190627ex991.htm EXHIBIT 99.1 Exhibit EXHIBIT 99.1NeuroMetrix Provides Strategic Update WALTHAM,…
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EX-99.1 2 a8k20190627ex991.htm EXHIBIT 99.1 Exhibit EXHIBIT 99.1NeuroMetrix Provides Strategic Update WALTHAM,…
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hereAbout NEUROMETRIX, INC. (NASDAQ:NURO)
NeuroMetrix, Inc. (NeuroMetrix) is a health-care company that develops wearable medical technology and point-of-care tests that help patients and physicians manage chronic pain, nerve diseases and sleep disorders. The Company operates through the sale of medical equipment and consumables segment. Its products are sold in the United States and selected overseas markets. It has two principal product lines: Wearable neuro-stimulation therapeutic devices and Point-of-care neuropathy diagnostic tests. The Company’s products consist of a medical device used in conjunction with a consumable electrode or biosensor. Its products include Quell, which is a wearable device for relief of chronic intractable pain; SENSUS, which is a prescription neuro-stimulation device; DPNCheck, which is a nerve conduction test that is used to evaluate systemic neuropathies, and ADVANCE System, which is a platform for the performance of nerve conduction studies.
