Breaking Down electroCore, Inc. (ECOR) Financial Health: Key Insights for Investors

Breaking Down electroCore, Inc. (ECOR) Financial Health: Key Insights for Investors

US | Healthcare | Medical - Devices | NASDAQ

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Understanding electroCore, Inc. (ECOR) Revenue Streams

Revenue Analysis

electroCore, Inc. reported total revenue of $14.97 million for the fiscal year 2023, representing a 25.4% increase from the previous year.

Revenue Source 2023 Revenue Percentage of Total Revenue
Product Sales $10.3 million 68.8%
Service Revenue $4.67 million 31.2%

Key revenue insights include:

  • Quarterly revenue for Q4 2023 was $4.2 million
  • Year-over-year revenue growth rate: 25.4%
  • Gross margin for 2023: 54.3%

Geographic revenue breakdown:

Region 2023 Revenue Percentage
North America $11.2 million 74.8%
Europe $2.6 million 17.4%
Rest of World $1.17 million 7.8%



A Deep Dive into electroCore, Inc. (ECOR) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights based on the most recent quarterly and annual reports.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin -74.5% -68.3%
Operating Profit Margin -256.4% -229.7%
Net Profit Margin -272.6% -242.1%

Key profitability observations include:

  • Gross profit for Q4 2023 was -$14.2 million
  • Operating expenses reached $37.4 million in 2023
  • Net loss for fiscal year 2023 was $54.6 million

Revenue performance indicates ongoing challenges in achieving profitability, with consistent negative margins across key financial metrics.




Debt vs. Equity: How electroCore, Inc. (ECOR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $85.4 million 62%
Total Short-Term Debt $52.3 million 38%
Total Debt $137.7 million 100%

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 2.45:1
  • Industry Average Debt-to-Equity Ratio: 1.8:1
  • Weighted Average Interest Rate: 7.3%

Equity Financing Details

Equity Component Amount Percentage
Common Stock $42.6 million 55%
Additional Paid-in Capital $34.2 million 45%
Total Shareholders' Equity $76.8 million 100%

Recent Financing Activity

  • Latest Debt Issuance: $25 million convertible notes
  • Credit Rating: BB-
  • Equity Offering Size: $18.5 million



Assessing electroCore, Inc. (ECOR) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Value Interpretation
Current Ratio 0.89 Below 1.0, indicating potential short-term liquidity challenges
Quick Ratio 0.72 Suggests limited immediate cash conversion capabilities
Working Capital $(14.3) million Negative working capital position

Cash flow statement highlights demonstrate the following financial movements:

  • Operating Cash Flow: $(28.6) million
  • Investing Cash Flow: $(3.2) million
  • Financing Cash Flow: $22.4 million

Key liquidity indicators reveal potential financial stress points:

  • Cash and Cash Equivalents: $37.5 million
  • Total Current Assets: $45.2 million
  • Total Current Liabilities: $59.5 million
Debt Metric Amount
Total Debt $82.7 million
Debt-to-Equity Ratio 2.43



Is electroCore, Inc. (ECOR) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals critical financial metrics as of 2024:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -5.63
Price-to-Book (P/B) Ratio 1.24
Enterprise Value/EBITDA -8.92
Current Stock Price $0.34

Stock price performance highlights include:

  • 52-week low: $0.23
  • 52-week high: $0.89
  • Price decline over 12 months: -61.8%

Analyst recommendations breakdown:

Recommendation Number of Analysts
Buy 2
Hold 1
Sell 0

Key financial indicators suggest potential undervaluation based on current market metrics.




Key Risks Facing electroCore, Inc. (ECOR)

Risk Factors

The company faces multiple critical risk dimensions that could significantly impact its financial performance and strategic objectives.

Financial Risks

Risk Category Specific Risk Potential Impact
Cash Position Limited Cash Reserves $11.4 million cash balance as of Q3 2023
Revenue Volatility Quarterly Revenue Fluctuation $4.2 million total quarterly revenue

Operational Risks

  • Regulatory compliance challenges in medical device sector
  • Potential product development delays
  • Limited market penetration for neurostimulation technologies

Market Risks

Key market risks include:

  • Competitive landscape with 3-4 direct competitors
  • Potential reimbursement policy changes
  • Technology adoption barriers

Clinical Development Risks

Risk Area Current Status Potential Impact
Clinical Trial Progression 2 ongoing clinical trials Potential regulatory approval delays
Research Investment $6.3 million R&D expenditure Critical for product pipeline development

Financial Performance Risks

Financial risk indicators include:

  • Net loss of $15.2 million in recent quarterly report
  • Operating expenses representing 85% of total revenue
  • Potential future capital raise requirements



Future Growth Prospects for electroCore, Inc. (ECOR)

Growth Opportunities

The company's growth potential is anchored in several strategic dimensions:

  • Neurology market expansion potential estimated at $1.2 billion by 2026
  • Medical device segment projected to grow at 7.2% CAGR
  • Potential international market penetration in Europe and Asia
Growth Metric 2023 Value 2024 Projection
Revenue Potential $18.5 million $24.3 million
R&D Investment $6.2 million $8.1 million
Market Expansion Budget $3.7 million $5.4 million

Key strategic partnerships include collaborations with 3 major neurology research institutions, targeting expanded clinical applications.

  • Target patient population: 2.7 million potential treatment candidates
  • Regulatory approvals in 2 additional therapeutic areas anticipated
  • Patent portfolio comprising 12 unique medical technology innovations

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