Electricor at Planet MicroCap Showcase: Strategic Growth Focus

On Wednesday, 23 April 2025, Electricor (NASDAQ:ECOR) presented its strategic growth plans at the Planet MicroCap Showcase: VEGAS 2025. The conference, led by CEO Dan Goldberger, highlighted Electricor’s robust revenue growth and strategic partnerships, alongside challenges in achieving cash positivity. The company, a leader in bioelectronic medicine, remains optimistic about future opportunities despite current financial hurdles.

Key Takeaways

• Electricor reported $25.2 million in revenue last year, with a five-year CAGR of over 60%.
• The company holds $12.2 million in cash but needs an additional $1.5 to $2 million in quarterly revenue to reach cash positivity.
• Strategic partnerships and acquisitions, such as with Neurometrics, are central to Electricor’s growth strategy.
• The flagship product, gammaCore Sapphire, is FDA-cleared for headache treatment, with expansion into other medical areas underway.
• Electricor is targeting significant market expansion, including elite athletes, first responders, and shift workers.

Financial Results

• Revenue for the last year reached $25.2 million, with a significant contribution from the gammaCore prescription product.
• The Truvega direct-to-consumer line generated $2.5 million, while the TACSTIM product accounted for $2 million.
• The company achieved an impressive gross margin of 85%, but reported a cash burn of $1.2 million last quarter.
• Electricor pays 25-30% commissions on sales and maintains a contribution margin of 60-65% on incremental revenue.

Operational Updates

• FDA clearance for gammaCore Sapphire focuses on treating migraines and cluster headaches.
• Key markets include the VA hospital system and the UK’s National Health Services, with ongoing efforts to expand commercial insurer coverage.
• The Truvega line is sold through trvega.com and Amazon, while TACSTIM is used by military special forces.
• Recent strategic moves include the acquisition of Neurometrics and distribution agreements with ReliefBen and Spark Biomedical.

Future Outlook

• Electricor is exploring new applications for its nVNS technology, targeting conditions like PTSD, substance abuse, and traumatic brain injuries.
• The company plans to conduct pivotal trials in PTSD and expand its market reach to Kaiser and major insurers like CMS, United, and Aetna.
• Expansion into new markets is a priority, with a focus on elite athletes and first responders.

Q&A Highlights

• CEO Dan Goldberger expressed confidence in the company’s growth, noting the potential for positive cash flow with increased revenue.
• Electricor is closely monitoring competitor Pulseto but believes the market can accommodate both companies.
• Despite minimal impact from China component costs, Electricor remains vigilant about supply chain expenses.

In conclusion, Electricor’s comprehensive strategy, detailed at the Planet MicroCap Showcase, positions the company for continued growth. Readers are encouraged to review the full transcript for more in-depth insights.

Full transcript - Planet MicroCap Showcase: VEGAS 2025:

Dan Goldberger, CEO, Electricor: Dan Goldberg from Electricor. Thank you. Sorry about the technical difficulties. My name is Dan Goldberger. I’m the CEO of Electrocor.

We call ourselves a commercial stage bioelectronic medicine and wellness company. Very, very important. The ticker is e c o r. There we go. I’m trying to get this into a smaller font, but this is what they gave me.

Overview is that the company is is starting to grow pretty rapidly. We’re very excited about our recent performance. Revenues for last year, 25,200,000.0. I know what our first quarter revenues are, but I can’t tell you about them yet. I’m excited about them.

Most of our business is in treating headache. We’re FDA cleared for acute treatment and, prevention of most types of headache, migraine, and cluster headaches are the largest demographics. A couple years ago, we launched a health and wellness product line that we’re now selling direct to consumer, and I’ll tell you a little bit about all of that. Five year CAGR of 60% plus. On the revenue line, 85% gross margins.

We’re not quite cash positive yet, but I can see it from here. Let’s see. Big business opportunities that I will tell you about, simple capital structure, no debt, all straight common. And, at our 10 k, we had $12,200,000 of cash. This is our flagship product.

I keep mine in my pocket. We call this the gammaCore sapphire. This is a noninvasive vagus nerve stimulator. As I mentioned, we’re FDA cleared to acutely treat and prevent headaches. Acute treatment means I take it out of my pocket.

There are two electrodes on the business end. I find my carotid artery. The vagus nerve travels in the same sheath as the carotid artery, and I hold it and it’s programmed to run for two minutes. So I get a two minute dose of electrical energy, completely noninvasive. For me personally, I can very quickly, reduce the discomfort from a headache In many cases, we can also completely abort that headache.

In prevention, it’s a little bit different protocol. We ask people to use it consistently twice a day, so think morning and evening. And the pivotal data showed a statistically significant reduction in the number of headache days for patients who used it consistently twice a day. So acute treatment means you keep it in your pocket, you can knock down a headache, prevention is a little bit more involved. This is not a drug.

This is electrical engineer electrical energy. You can use this as a standalone therapy, but because it’s not a drug you can also use it in addition to any other therapy whether it’s drugs or nutrition. Our largest customer is the VA hospital system in The United States. Our second largest customer is the National Health Services in The United Kingdom. In both cases, the treatment is free to the patient.

A doctor or a nurse writes a prescription. Prescription comes to us. We ship a handset directly to the patient, we have a customer service team that’ll usually do a Zoom call to do an in service for the patient, we send an invoice to the hospital, we get paid directly by the hospital. We’ve been working on well, we have about seven and a half million covered lives, through more, commercial, insurers. We’re working with, one very large managed care system that’ll add another 12 and a half, 13,000,000 covered lives.

We’re just getting started in there. And in 2026 and beyond, we have initiatives to go get additional coverage in other places. These are the family of products. I’ve been talking about the gammaCore Sapphire over here. We have these two general wellness products that we launched in recent years.

Truvega is a lower power, defeatured, noninvasive vagus nerve stimulator. We sell this direct to consumer through an ecommerce platform, trvega.com. Last year, revenues were 2 and a half million, so roughly 10% of our 25,000,000 in revenue last year. In February of this year, we went live on Amazon. We’re continuing to invest in direct to consumer awareness.

Increasingly, we’re using social media, all the tools as consumers you’re familiar with to build awareness, to drive eyeballs to the ecommerce site or more recently to Amazon, to drive consumer sales. So we’re very excited about the growth prospects for this product line. For the direct to consumers, we’re positioned as a health and wellness product so we market this for reducing stress or managing stress for improving the quality of sleep to boost clarity what the military calls cognitive enhancement. So a lot of what we do in Truvega came out of this product line that we call TACSTIM. We kinda looked into this.

We were not aware that the Air Force Research Laboratories, was doing a lot of work, with, bioelectronic medicine, candidly to make super soldiers. And so they were working with a cohort of, army of air force special forces drone pilots. And for the drone pilots who had access to vagus nerve stimulation, they were able to show that these kids, were working better. Right? They were they were faster at identifying a target.

They were better or more precise at telling the difference between a Humvee and a school bus, for example. Out of that, they came to us and said, you know, we really like your prescription product but these are these are air force and army special forces units. We need it in our own rugged, durable, black, hardened package. So, this TactSim product that we’re now selling to, in pilot deployment with some army and air force special forces units is it’s the electronics that are in here, but in a mil spec package. This was also about 2,000,000 of our revenue last year.

The air force is using this for accelerated training, sustained attention, reduced fatigue, improved mood. That’s kind of important to all of us, and so we see in the future significant opportunity for civilian crossover. Some of that is gonna go to our Truvega brand, but we’re seeing interest from elite athletes, from first responders, from, from folks who have a lot of shift workers. Stock analysts, several of the analysts that cover us use a version of tax stim to get through earnings season, and I’m fine with that. Coming back to our prescription pipeline, we have many indications and a huge bibliography of of data in primary headache.

The FDA has given us breakthrough designation to treat the symptoms of post traumatic stress disorder. VA hospital is our largest customer. Most of the PTSD data has come from the VA hospitals, and we’re starting to get a significant number of off label prescriptions for PTSD. We’re working with the agency to get an explicit label in PTSD. There’s a pivotal trial running in substance abuse.

We’re not paying for it. NIDA, the National Institute on Drug Abuse, is paying for it. We had data published last month in treating traumatic brain injuries, so mild concussions. There’s data coming out of Europe in Parkinson’s disease and acute stroke later this year. All of those trials are using this handset, the gammaCore handset.

So once that data comes out, if it’s supportive, each one of these possible indications is a dramatic increase in the total addressable market for our technology. In December, we announced the acquisition of a small public company called Neurometrics. Their ticker is n u r o. Don’t buy their stock, buy our stock. What we get with this acquisition is their Quell product line.

Initially, they have a prescription product for treating fibromyalgia. We are planning to plug that into the distribution channels that we already have in the VA hospital and certain managed care outfits, and, and it’ll roll right into, the additional, managed care and, and third party payer activities that we have going on in 2026 and beyond. They also have a product line for treating, pain, lower back pain, for treating lower extremity pain. And on the direct consumer side, they have a lot of data in exercise recovery which we think is also gonna be interesting to our military customers. So we think there’s a lot of, synergy, on the sales side and that we’ll be able to turn this into a major revenue contributor for electroCore.

So I mentioned Quell. We also have a distribution agreement with Relitex to sell their I’m sorry, with ReliefBen to sell Relitex, which is for treating nausea, post anesthesia, and secondary to chemotherapy. We have a distribution agreement recently announced with Spark Biomedical to sell their Sparrow product for treating the symptoms of substance abuse. So we’re trying to leverage the distribution channels that we’ve already built by adding product to our sales bag. We have a lot of patents, more in the pipeline, so, we’re we’re very confident that we can protect our non invasive vagus nerve stimulation franchise.

25,000,000 last year continuing to grow a healthy CAGR. Really the business started to grow aggressively as we came out of the came out of the pandemic and our sales guys could get in to speak to prescribers in various hospital settings, there’s still as much as we try to do ecommerce, there’s still nothing like showing up and giving a sales pitch in person. So we still have to do that. Same numbers, nine consecutive quarters of sequential revenue growth. I know what our first quarter numbers are.

Cash, we’re still using too much cash. 1,250,000.00 of cash used in operating activities. I hate to say we burned it, but we burned 1,200,000.0 in cash last quarter on $7,000,000 of revenue with 85% gross margin. We pay 25 to 30% commissions, so our cost associated with an incremental sale is 40 to 45%. In other words, the contribution margin from another dollar of revenue is, call it 60%, probably closer to 65.

And so we need another million and a half or 2,000,000 of quarterly revenue to be cash positive with our growth rates. You can see that we get there from here. No debt. It’s all straight common. In many cases, I I point out the prefunded warrants.

Two of our institutional investors explicitly report ownership of about 9.9% of the company, but they also have an additional five or six or 7% in the form of prefunded warrants. Many of these warrants down here are in the money, but I don’t think the options will ever get will ever get exercised. So I think about it as sort of a 8,000,000, 8 point 2 million fully diluted capitalization of the company. That’s me. Joshua Lev, was recently promoted to the chief financial officer position.

He’s been with the company five years. I’ve been with the company for five years. Peter Stotts, is one of the cofounders of the company. He’s a board certified anesthesiologist. He’s had a really distinguished academic career.

He’s a co inventor of many technologies including this one. He was very successful in private practice. He was the chief medical officer, for Premier Pain Centers which is I think the second or third largest chain of pain management clinics. So we’re very fortunate to have him as our part time chief medical officer. So that’s the story.

The ticker is ECOR. Revenues are growing. We’re knocking on the door of being cash positive. GAAP profitability will follow after that. This is my gammaCore sapphire, but you can go to triplew.truvega.com and buy your very own.

Any questions? Yes sir? Okay, thank you. This one requires a prescription. This is a higher power, device.

Right. Mhmm. Right. Exactly. So we’ve we’ve been watching Pulseto very carefully.

They have a very good product. They are a vagus nerve stimulator, so their method of action is consistent with what we do. Our therapy takes two minutes. The Pulseto is a wearable device which has pluses and minuses, and it takes a lot longer to get the same therapeutic effect that our two minute dose, does. Their pricing is pretty aggressive.

And at the end of the day, it’s a very, large market opportunity, even more so when you start looking at health and wellness. So there’s room for both of us. Yes, ma’am. Thank you. Yes.

The drugs drug therapy doesn’t work great. Exactly. So getting the data was key. Right? This is pilot data that’s now been published.

That gives us the confidence to start designing a pivotal trial and execute on a pivotal trial. Ideally, we’ll find third party financing to support that pivotal trial from somebody, maybe not our federal government this year, but, some academic or government money to sponsor a pivotal trial and then go through the regulatory process. In the meantime, doctors, especially in the VA hospital system where they already are quite comfortable using our technology, doctors can prescribe off label. The data that was presented last month in Toronto is doctor Michael Lement who’s in private practice in the Denver area. He has a cash pay practice, and he is prescribing to his cash pay patients for concussion out of his practice.

It’s just he’s prescribing off label, and insurance will not be available off label. To do a pivotal trial, executing it would take a year and a half. Class two, just like our headache product. Yes, sir. Yes.

That’s exactly the data that the young lady was talking about, which is a cohort of trauma victims overwhelmingly car accidents. Yes, sir. Rockaway, New Jersey. We have about $5 of components that come from China. So if that $5 doubles to $10 or $12, it’s it’s a couple points on our gross margin.

So we’re watching it, but it’s not really an issue for us. Yes, sir. Yes. Yeah. Our prescription products are and, recently the Truvega products are now you can go through a process to get a to use an FSA or HSA card.

Okay. Yes. Yes. Yeah. So so I got three minutes left.

I see it. So Kaiser is an initiative of ours. In about a year ago, we went on formulary to treat headache in Kaiser Northern California and Kaiser Southern California. We have a distribution partner that works that that manages the prescription adjudication, benefit plans, and deductibles, and co pays. So there’s a lot of arcane back office stuff that goes on when you work with a private insurer.

We’ve got most of that worked out. We have about 40 prescribers in the Kaiser system now, and that’s how you start. A couple of prescribers have success. They start prescribing it more vigorously for their own patients. They start talking to their colleague across the hall, and we’re in that very early stage of penetration with Kaiser.

We’re gonna use the success that we’ve had in the VA hospital system in Kaiser next year to talk to CMS about Medicare, to talk to United and Aetna about getting the usual large national players to to take it on. I think I’m out of time. Alright. Thank you all very much. Sorry about the technical difficulties.

Thank you to the folks at, Planet Microcap. Great meeting.

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