Equity financing which raised $17.3 million, net of expenses, through the sale of 8.8 million common shares plus warrants to purchase common shares. A warrant liability of $14.5 million was recorded at the financing date and revalued to $21.9 million at September 30, 2009. Subsequently the warrants were modified and the warrant liability was reclassified into stockholders equity. Further expansion into the United Kingdom market with a $300,000 order of ADVANCE Systems, including consumables, by the Company ™s orthopedic distributor. Reduction in consumables revenue to $5.6 million from $6.1 million in Q2 2009 reflecting seasonality and a decline in customer inventory replenishment likely due to overall economic conditions and health care uncertainty. FDA 510(k) clearance for the ASCEND Stimulator. Additional 510(k) submissions to expand intended use in support of commercial launch are planned for 2010. Chief Financial Officer added to management team. On October 30, the Physician Fee Schedule for 2010 was published by the Centers for Medicare and Medicaid Services (CMS) and included a new category I CPT code for nerve conduction studies performed with preconfigured electrode arrays such as are utilized with the NC-stat device.

During the third quarter we made important progress in strengthening our balance sheet, improving management depth, expanding our international business, and advancing ASCEND toward commercialization said Shai N. Gozani, M.D., Ph.D., NeuroMetrix President & CEO. Further, we were pleased that the recently published Medicare Physician Fee Schedule for 2010 included a CPT code for nerve conduction studies performed with the NC-stat device.

SOURCE NeuroMetrix