PR Newswire | Nov 6, 2020 10:00AM EST

Ended September 30, 2020

11/06 09:00 CST

MYOS RENS Technology Announces Net Revenues Increase 39% for the Three Months Ended September 30, 2020Net Revenues Increased 16% for the nine months ended September 30, 2020 CEDAR KNOLLS, N.J., Nov. 6, 2020

CEDAR KNOLLS, N.J., Nov. 6, 2020 /PRNewswire/ -- MYOS RENS Technology Inc. ("MYOS" or the "Company")(NASDAQ: MYOS), an advanced nutrition company and the owner of Fortetropin(r), a proprietary bioactive composition that helps build lean muscle, announced today its results for the three and nine months ended September 30, 2020.

"Q3 results have shown that Myos met the challenges of the new and uncertain "normal" with sensitivity, creativity and smarter, more aggressive marketing which helped us build deeper business relationships with our customers. This resulted in a significant increase in revenues while decreasing expenses during the quarter," said Joseph Mannello, CEO of MYOS. "These challenges have brought out the best in our staff and set the bar for even greater future results."

FINANCIAL HIGHLIGHTS

Three Months Ended September 30, 2020 Compared to September 30, 2019

Net revenues for the three months ended September 30, 2020 increased by $135 or 39% to $485 compared to net revenues of $350 for the three months ended September 30, 2019. This increase is primarily due to an increase of $243 of Myos Canine Muscle Formula offset by a decrease of $72 in White Label, $36 in Yolked, and $1 for our longevity products.

Cost of revenues for the three months ended September 30, 2020 increased by $74 or 42% to $248 compared to cost of revenues of $174 for the three months ended September 30, 2019. The increase is primarily due to costs related to an increase in our product sales of Canine Muscle Formula.

Gross profitincreased $61 or 35% to $237 for the three months ended September 30, 2020 compared to $176 for the three months ended September 30, 2019.

Operating expensesfor the three months ended September 30, 2020 decreased by $42 or 4% to $1,045, when compared to operating expenses of $1,087 for the three months ended September 30, 2019. The decrease primarily relates to a 31% decrease in selling, marketing and research expenses of $106 and a 3% decrease in personnel and benefits of $13, offset by an 18% increase in general and administrative of $77 relating primarily to an increase in professional fees of $140 relating to the reverse merger costs offset by a decrease in other business related costs of $63.

(amounts in thousands) Three Months Ended Change September 30,

2020 2019 Dollars %

Net revenues $ 485 $ 350 $ 135 39 %

Cost of revenues 248 174 74 42 %

Gross profit 237 176 61 35 %

Operating expenses:

Selling, marketing and research 233 339 (106) -31 %

Personnel and benefits 393 406 (13) -3 %

General and administrative 419 342 77 18 %

Total operating expenses 1,045 1,087 (42) -4 %

Operating loss (808) (911) 103 -21 %

Interest expense (7) (10) 3 -30 %

Net loss $ (815) $ (921) $ 106 -12 %

Nine Months Ended September 30, 2020 Compared to September 30, 2019

Net revenuesfor the nine months ended September 30, 2020 increased by $451 or 69% to $1,104 compared to net revenues of $653 for the nine months ended September 30, 2019. This increase is primarily due to an increase of $570 of Myos Canine Muscle Formula offset by a decrease of $72 for White Label, $36 for Yolked and $1 for our longevity products.

Cost of revenuesfor the nine months ended September 30, 2020 increased by $262 or 83% to $578 compared to cost of revenues of $316 for the nine months ended September 30, 2019. The increase is primarily due to costs related to our product sales of Myos Canine Muscle Formula.

Gross profitincreased $189 or 56% to $526 for the nine months ended September 30, 2020 compared to $337 for the nine months ended September 30, 2019.

Operating expensesfor the nine months ended September 30, 2020 decreased by $426 or 13% to $2,951, compared to operating expenses of $3,377 for the nine months ended September 30, 2019. The decrease is primarily due to a 30% decrease in selling, marketing and research expenses of $289 and an 11% decrease in general and administrative of $137.

(amounts in thousands) Nine Months Ended Change September 30,

2020 2019 Dollars %

Net revenues $ 1,104 $ 653 $ 451 69 %

Cost of revenues 578 316 262 83 %

Gross profit 526 337 189 56 %

Operating expenses:

Selling, marketing and research 662 951 (289) -30 %

Personnel and benefits 1,226 1,226 - -

General and administrative 1,063 1,200 (137) -11 %

Total operating expenses 2,951 3,377 (426) -13 %

Operating loss (2,425) (3,040) 615 -26 %

Interest expense (27) (31) 4 -11 %

Net loss $ (2,452) $ (3,071) $ 619 -20 %

BUSINESS HIGHLIGHTS:

"It was a great quarter for Myos," said Mr. Mannello. "Our team was able to grow revenues in each vertical while decreasing unnecessary expenses. There is an art to leveraging spend to get the most ROI, and we hit the sweet spot in Q3. Our momentum continues to build as our foundation gets stronger.

OTHER HIGHLIGHTS:

* Appointed the S3 Agency to implement public relations and social media efforts around the ability of Fortetropin(r), MYOS' proprietary ingredient, to improve muscle health. * Received approval from the American Association of Veterinary State Boards (AAVSB) to offer a Continuing Education Course to Veterinarians titled, "Nutritional Management of Canine Osteoarthritis" for 1 Credit Hour.

"On the corporate front, our merger with MedAvail is almost complete with the vote taking place on November 16th. This will give shareholders ownership in both an exciting public company, MedAvail, and a larger piece of a private company. Myos, as a private company, will have fewer expenses and a stronger balance sheet. As a significant shareholder in Myos I am very excited about the merger and what lies ahead for both companies.

"On November 16, 2020 there will be a virtual shareholder meeting for shareholders of record of October 2, 2020, to vote the proposals in the Proxy Statement/Prospectus/Information Statement filed with the U.S. Securities and Exchange Commission by MYOS on October 15, 2020 in connection with the merger with MedAvail.

"I want to thank all of you for your continued support and wish you and your families continued health and safety during these trying times," said Mr. Mannello.

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

September 30, December 31,

2020 2019

ASSETS (Unaudited)

Current assets:

Cash $ 791 $ 64

Accounts receivable, net 60 5

Inventories, net 1,368 1,666

Prepaid expenses 94 23

Total current assets 2,313 1,758

Operating lease right of use asset 151 192

Deferred offering costs - 95

Fixed assets, net 78 97

Intangible assets, net 739 896

Total assets $ 3,281 $ 3,038

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable $ 127 $ 277

Accrued expenses and other current liabilities 4 230

Operating lease liabilities - current portion 62 46

Related party promissory note payable and accrued 661 1,159interest

Total current liabilities 854 1,712

Long-term liabilities:

Note Payable PPP loan 310 -

Operating lease liabilities - net of current 95 146portion

Total liabilities 1,259 1,858

Commitments and contingencies (Note 11)

Stockholders' equity:

Preferred stock, $0.001 par value; 500,000 sharesauthorized; no shares issued and outstanding

Common stock, $0.001 par value; 15,000,000 sharesauthorized; 11,846,795 and 9,176,908 shares 12 9issued and outstanding at September 30, 2020 andDecember 31, 2019, respectively

Additional paid-in capital 43,787 40,496

Accumulated deficit (41,777) (39,325)

Total stockholders' equity 2,022 1,180

Total liabilities and stockholders' equity $ 3,281 $ 3,038

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except share and per share amounts)

Three Months Ended Nine Months Ended

September 30, September 30,

2020 2019 2020 2019

Net revenues $ 485 $ 350 $ 1,104 653

Cost of revenues 248 174 578 316

Gross profit 237 176 526 337

Operating expenses:

Selling, marketing and 233 339 662 951research

Personnel and benefits 393 406 1,226 1,226

General and 419 342 1,063 1,200administrative

Total operating 1,045 1,087 2,951 3,377expenses

Operating loss (808) (911) (2,425) (3,040)

Interest expense, net (7) (10) (27) (31)

Net loss $ (815) $ (921) $ (2,452) $ (3,071)

Net loss per shareattributable to commonshareholders:

Basic and diluted $ (0.07) $ (0.10) $ (0.22) $ (0.35)

Weighted averagenumber of commonshares outstanding:

Basic and diluted 11,846,795 9,173,851 10,996,891 8,675,666

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in thousands)

Nine Months Ended

September 30,

2020 2019

Cash Flows From Operating Activities:

Net loss $ (2,452) $ (3,071)

Adjustments to reconcile net loss to net cash used inoperating activities:

Depreciation 19 20

Amortization 157 262

Stock-based compensation 236 93

Non-cash lease expense 41 -

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable (55) 34

Decrease in other current asset - 1,124

Decrease in inventories 298 51

Increase in prepaid expenses and other assets (71) (88)

Decrease in operating lease liabilities (35) -

Decrease in other asset bond deposit - 50

Increase in deferred revenue - 20

Increase in accrued interest on promissory note payable 27 29

Decrease in accounts payable and accrued expenses (376) (428)

Net cash used in operating activities (2,211) (1,904)

Cash Flows From Financing Activities:

Proceeds from registered direct offering of common stock, 1,298 438net

Proceeds from related party promissory note 300 -

Proceeds from note payable PPP loan 310 -

Deferred offering costs from at-the market transaction - (3)

Proceeds from issuance of common stock in private 1,030 1,850placement

Net cash provided by financing activities 2,938 2,285

Net increase in cash 727 381

Cash at beginning of period 64 15

Cash at end of period $ 791 $ 396

Supplemental schedule of non-cash investing and financingactivities:

Conversion of related party promissory note payable into 825 250shares of common stock

Reclassification of deferred offering costs to additional 95 16paid in capital

MYOS RENS TECHNOLOGY INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(in thousands, except share amounts)

Nine Months Ended September 30, 2020

Common Stock Additional Accumulated Total paid-in stockholders'

Shares Amount capital deficit equity

Balance atDecember 31, 9,176,908 $ 9 $ 40,496 $ (39,325) $ 1,1802019

Proceeds fromsale of common 964,102 1 1,202 - 1,203stock, net

Proceeds fromprivate 851,240 1 1,029 - 1,030placement ofcommon stock

Issuance ofcommon stockupon exchange of 681,818 1 824 - 825related partypromissory notepayable

Stock-basedcompensation - - 27 - 27expense

Issuance ofrestricted 172,727 - 209 - 209common stock

Net loss - - - (2,452) (2,452)

Balance atSeptember 30, 11,846,795 $ 12 $ 43,787 $ (41,777) $ 2,0222020

Nine Months Ended September 30, 2019

Common Stock Additional Accumulated Total paid-in stockholders'

Shares Amount capital deficit equity

Balance atDecember 31, 7,481,723 $ 8 $ 37,880 $ (35,067) $ 2,8212018

Proceeds fromsale of common 111,129 - 211 - 211stock

Proceeds fromprivate 1,267,123 1 1,849 - 1,850placement ofcommon stock

Issuance ofcommon stockupon exchange of 171,233 - 250 - 250related partypromissory notepayable

Stock-basedcompensation - - 93 - 93expense

Issuance ofrestricted 145,700 - 211 - 211common stock

Net loss - - - (3,071) (3,071)

Balance atSeptember 30, 9,176,908 $ 9 $ 40,494 $ (38,138) $ 2,3652019

Three Months Ended September 30, 2020

Common Stock Additional Accumulated Total paid-in stockholders'

Shares Amount capital deficit equity

Balance at June 11,846,795 $ 12 $ 43,778 $ (40,962) $ 2,82830, 2020

Stock-basedcompensation - - 9 9expense

Net loss - (815) (815)

Balance atSeptember 30, 11,846,795 $ 12 $ 43,787 $ (41,777) $ 2,0222020

Three Months Ended September 30, 2019

Common Stock Additional Accumulated Total paid-in stockholders'

Shares Amount capital deficit equity

Balance at June 9,170,658 $ 9 $ 40,462 $ (37,217) $ 3,25430, 2019

Stock-basedcompensation - - 22 - 22expense

Issuance ofrestricted 6,250 - 10 - 10common stock

About MYOS RENS Technology Inc.MYOS RENS Technology Inc. (MYOS), "The Muscle Company(r)", is a Cedar Knolls, NJ-based advanced nutrition company that develops and markets products that improve muscle health and performance. MYOS is the owner of Fortetropin(r), a fertilized egg yolk-based product manufactured via a proprietary process to retain and optimize its biological activity. Fortetropin has been clinically shown to increase muscle size, lean body mass and reduce muscle atrophy. MYOS believes Fortetropin has the potential to redefine existing standards of physical health and wellness and produces muscle health support products featuring Fortetropin under the names of Yolked(r), Physician Muscle Health Formula(r), MYOS Canine Muscle Formula(r), (Regular & Vet Strength) and Qurr(r). For more information, please visit www.myosrens.com.

Forward-Looking StatementsAny statements in this release that are not historical facts are forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements involve risks and uncertainties, including but not limited to those relating to product and customer demand, market acceptance of our products, the ability to create new products through research and development, the successful results of strategic initiatives, the success of our products, including Yolked(r), Physician Muscle Health Formula(r), MYOS Canine Muscle Formula(r), Qurr(r), and MYOS Enteral Nutrition Formula(tm), the success of our research and development, the results of the clinical evaluation of Fortetropin(r) and its effects, the ability to enter into new partnership opportunities and the success of our existing partnerships, the ability to generate revenue and cash flow from sales of our products, the ability to increase our revenue and gross profit margins, the ability to achieve a sustainable, profitable business, the effect of adverse economic conditions, including as a result of the COVID-19 pandemic, the ability to consummate the Merger Agreement with MedAvail, Inc., the ability to protect our intellectual property rights, competition from other providers and products, the continued listing of our securities on the Nasdaq Stock Market, risks in product development, our ability to raise capital to fund continuing operations, and other factors discussed from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made except as required by law.

These statements have not been evaluated by the Food and Drug Administration. Our products are not intended to diagnose, treat, cure or prevent any disease.

Investor Relations:MYOS RENS Technology Joanne GoodfordPhone: 973-509-0444 Email: jgoodford@myoscorp.com

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