NeuroOne Medical (NMTC) Issues Letter to Shareholders

NeuroOne Medical Technologies Corporation (Nasdaq: NMTC) ("NeuroOne" or the "Company"), a medical technology company focused on improving surgical care options and outcomes for patients suffering from neurological disorders, has issued a letter to shareholders from CEO, Dave Rosa.

Dear Shareholders,

In recent months, NeuroOne has achieved several significant milestones, including the expansion of our commercial partnership with Zimmer Biomet, progress towards the submission of a 510(k) filing to treat facial pain, and continued product development momentum in areas of back pain management and drug delivery.

Most notably, the expansion of our partnership with Zimmer Biomet included exclusive distribution rights in the United States and certain additional countries for the OneRF^® Ablation System, which is the first and only FDA-cleared product that uses the same sEEG electrode for both diagnostic and therapeutic applications. The agreement included an upfront license payment of $3.0 million in November 2024 as well as established pricing and required product minimums.

Given the recent discussions around tariffs and global trade policy, we have also received questions regarding potential impacts on our supply chain. Investors should know that all of our key components are sourced and manufactured within the United States. Having a domestic-focused supply chain has been an intentional part of our operational strategy, and we do not anticipate any meaningful impact from current or proposed tariffs.

To execute on the opportunities in front of us, last week we successfully completed a capital raise with institutional investors totaling $8.3 million in net proceeds. Despite significant volatility across the broader capital markets, the offering was oversubscribed by well-respected financial institutions, did not include prohibitive and future dilutive financing mechanisms, and reflects continued institutional interest in our technology platform and long-term strategy.

With the proceeds from this offering, we believe the Company is now fully funded to operate through at least the end of fiscal year 2026, based on Zimmer making the minimum purchase requirements set forth in our expanded agreement. While our near-term focus remains on disciplined execution, if we achieve some of the key milestones currently in progress, we believe this capital could bring us to cash flow breakeven and support our long-term growth plans with no need for additional dilutive financing.

For instance, in March 2025, we accelerated the anticipated timeline of our 510(k) submission to the FDA for trigeminal nerve ablation to May 2025, which leverages the OneRF^® Technology Platform and will be used to create radiofrequency lesions for the treatment of pain, or for lesioning nerve tissue for functional neurosurgical procedures. With an estimated 100,000-200,000 patients suffering from facial pain in the U.S. alone, this market represents a significant opportunity for NeuroOne.

Other areas of growth include the Spinal Cord Stimulation (SCS) Percutaneous Paddle Lead Program and the sEEG-Based Drug Delivery Program. Both are solutions that utilize the OneRF^® platform for pain management and drug delivery, respectively. We are in advanced discussions with strategic partners which would further validate our technology, provide significant reach, and potentially, include upfront payments.

Today, we stand as a larger, more mature company than ever before as we ramp revenues and product margins. We have a world class strategic partner, the necessary capital to execute on our strategic growth initiatives and several upcoming milestones that present significant opportunities to grow shareholder value.

As we look ahead, we are reiterating our fiscal year 2025 guidance, with product revenues expected to increase to between $8.0-$10.0 million, representing an increase of between 132%-190% when compared to product revenue of $3.5 million in fiscal year 2024, and expanded product gross margin of between 47%-51%, compared to product gross margin of 31% in fiscal year 2024.

Thank you for your unwavering support and being part of the NeuroOne story as we work to drive significant shareholder value and execute on the opportunities ahead of us.

Sincerely,

Dave Rosa
President & CEO

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