Solana Company Q2 FY2024 earnings call

• Partnered with Lovell Government Services to make PoNS therapy accessible to MS patients in VA and federal agencies.
• PoNS approved in VA and DoD supply schedules with specific pricing.
• Received first third-party reimbursement of $23,900 for a PoNS device.
• CMS assigned HCPCS codes for PoNS controller and mouthpiece, argued for higher reimbursement rates.
• Built sales rep organization covering 13 states for VA sites.
• Made progress on stroke registrations, with enrollment in open label studies and investigator-initiated placebo controlled study.
• Started additional Canadian studies for stroke and TBI/MS.

Total revenue for the second quarter of 2024 was $182,000, a decrease from $256,000 in the second quarter of 2023. Cost of revenue for Q2 2024 was $118,000 compared to $184,000 in the prior year. Selling, general and administrative expenses were $2.5 million in Q2 2024 vs $2.6 million in Q2 2023. Research and development expenses were $0.9 million in Q2 2024 vs $0.7 million in Q2 2023. Net loss for Q2 2024 was $1.6 million or $0.64 per basic and diluted common share. Cash burn from operations was flat at $5.9 million for the six months ended June 30, 2024. As of June 30, 2024, cash was $6.4 million with no debt.

• Anticipate significantly boost revenues later this year with expected Medicare reimbursement effective Oct 1, 2024, leading to pathway to positive cash flow.
• Warrants could provide proceeds to fund operations into next year if exercised.

• Forward-looking statements based on current expectations involve inherent risks that could cause actual results to differ materially, including those in recent SEC filings.

Q: Once the final price determination is received from CMS, do you have a pipeline of patients? And impact on initial sales? Follow-up on stroke.

A: We have a long list of Medicare patients with prescribers waiting for CMS and Medicare reimbursement. On stroke, enrollment is on track and on target for submitting to FDA in first half of 2025 using second FDA breakthrough designation.

Q: Where are you with potential studies or expansion for TBI?

A: Still investigating expansion into TBI, mentioned Pacific Blue Cross study showing cost benefits of PoNS therapy for TBI patients