KORU Medical Systems, Inc. Announces 2024 Q2 Financial Results, a Record Quarter With 22% Revenue Growth; Raises Full Year 2024 Guidance
KORU Medical Systems (NASDAQ: KRMD) announced a record second quarter for 2024, achieving 22% revenue growth. The company's net revenues hit $8.4 million, driven by a 20% growth in core business and geographic expansion. Gross profit increased by 41% to $5.5 million with a gross margin of 65%, showing a year-over-year improvement of 890 basis points. Ending cash balance was $10.5 million with a quarterly cash usage of $0.3 million.
KORU raised its full-year 2024 revenue guidance to $32.0-$32.5 million, representing a growth of 12-14%, and gross margin guidance to 61-62%. Business highlights include regulatory clearance for the FreedomEdge® Infusion System in Japan, progress in oncology biologics, and entry into a Phase III clinical trial for nephrology. Despite the positive earnings, the company reported a net loss of $1.0 million or ($0.02) per diluted share, a significant reduction from the previous year's loss of $2.5 million.
KORU Medical Systems (NASDAQ: KRMD) ha annunciato un record nel secondo trimestre del 2024, registrando una Crescita del fatturato del 22%. I ricavi netti dell'azienda hanno raggiunto $8.4 milioni, sostenuti da una crescita del 20% nel business principale e dall'espansione geografica. L'utile lordo è aumentato del 41% a $5.5 milioni, con un margine lordo del 65%, mostrando un miglioramento rispetto all'anno precedente di 890 punti base. Il saldo di cassa finale era di $10.5 milioni con un utilizzo di cassa trimestrale di $0.3 milioni.
KORU ha alzato la sua guida sul fatturato per l'intero anno 2024 a $32.0-$32.5 milioni, rappresentando una crescita del 12-14%, e la guida sul margine lordo a 61-62%. Tra i principali risultati aziendali vi sono l'approvazione regolatoria per il FreedomEdge® Infusion System in Giappone, progressi nei biologici oncologici e l'ingresso in una sperimentazione clinica di Fase III per la nefrologia. Nonostante i guadagni positivi, l'azienda ha riportato una perdita netta di $1.0 milione o ($0.02) per azione diluita, una significativa riduzione rispetto alla perdita dell'anno precedente di $2.5 milioni.
KORU Medical Systems (NASDAQ: KRMD) anunció un récord en el segundo trimestre de 2024, logrando un crecimiento del 22% en ingresos. Los ingresos netos de la compañía alcanzaron $8.4 millones, impulsados por un crecimiento del 20% en el negocio principal y la expansión geográfica. La ganancia bruta aumentó un 41% a $5.5 millones con un margen bruto del 65%, mostrando una mejora interanual de 890 puntos básicos. El saldo de efectivo final era de $10.5 millones con un uso de efectivo trimestral de $0.3 millones.
KORU elevó su guía de ingresos para todo el año 2024 a $32.0-$32.5 millones, representando un crecimiento del 12-14%, y la guía de margen bruto a 61-62%. Los aspectos destacados del negocio incluyen la aprobación regulatoria para el FreedomEdge® Infusion System en Japón, avances en biológicos oncológicos y la entrada en un ensayo clínico de Fase III para nefrología. A pesar de los resultados positivos, la compañía reportó una pérdida neta de $1.0 millón o ($0.02) por acción diluida, una reducción significativa en comparación con la pérdida del año anterior de $2.5 millones.
KORU Medical Systems (NASDAQ: KRMD)는 2024년 2분기 기록적인 실적을 발표하며 22%의 수익 성장을 달성했습니다. 회사의 총 수익은 $8.4 백만에 도달했고, 이는 핵심 사업의 20% 성장과 지리적 확장에 의해 추진되었습니다. 총 이익은 41% 증가하여 $5.5 백만을 기록했으며, 총 이익률은 65%로 전년도 대비 890 베이시스 포인트 향상되었습니다. 기말 현금 잔액은 $10.5 백만이며, 분기 현금 사용량은 $0.3 백만이었습니다.
KORU는 2024년 전체 연도 매출 가이드를 $32.0-$32.5 백만으로 상향 조정하며, 이는 12-14%의 성장을 나타내고, 총 이익률 가이드는 61-62%입니다. 주요 사업 성과에는 일본에서의 FreedomEdge® Infusion System에 대한 규제 승인, 종양학 생물학의 진전, 그리고 신장학을 위한 3상 임상 시험 진입이 포함됩니다. 긍정적인 수익에도 불구하고 회사는 $1.0 백만의 순손실 또는 희석 주당 ($0.02)을 보고하며, 이는 지난해 $2.5 백만의 손실에 비해 상당히 감소한 수치입니다.
KORU Medical Systems (NASDAQ: KRMD) a annoncé un deuxième trimestre record pour 2024, réalisant une croissance des revenus de 22%. Les revenus nets de la société ont atteint 8,4 millions de dollars, soutenus par une croissance de 20% de l'activité principale et une expansion géographique. Le bénéfice brut a augmenté de 41% à 5,5 millions de dollars avec une marge brute de 65%, montrant une amélioration d'une année sur l'autre de 890 points de base. Le solde de trésorerie à la fin de la période était de 10,5 millions de dollars avec une utilisation de trésorerie trimestrielle de 0,3 million de dollars.
KORU a relevé ses prévisions de revenus pour l'année 2024 à 32,0-32,5 millions de dollars, représentant une croissance de 12-14%, et a fixé ses prévisions de marge brute à 61-62%. Parmi les faits marquants des affaires figure l'autorisation réglementaire pour le FreedomEdge® Infusion System au Japon, des progrès dans les biologiques oncologiques et l'entrée dans un essai clinique de phase III pour la néphrologie. Malgré les résultats positifs, l'entreprise a signalé une perte nette de 1,0 million de dollars ou ($0,02) par action diluée, ce qui représente une réduction significative par rapport à la perte de 2,5 millions de dollars de l'année précédente.
KORU Medical Systems (NASDAQ: KRMD) hat ein Rekord zweiten Quartal 2024 bekannt gegeben und ein Umsatzwachstum von 22% erzielt. Die Nettoumsätze des Unternehmens erreichten 8,4 Millionen US-Dollar, angetrieben durch ein Wachstum von 20% im Kerngeschäft und geografische Expansion. Der Bruttogewinn stieg um 41% auf 5,5 Millionen US-Dollar bei einer Bruttomarge von 65%, was eine jährliche Verbesserung von 890 Basispunkten zeigt. Der Endbestand an liquiden Mitteln betrug 10,5 Millionen US-Dollar mit einem quartalsweisen Cash-Verbrauch von 0,3 Millionen US-Dollar.
KORU hat die Umsatzprognose für das Gesamtjahr 2024 auf 32,0-32,5 Millionen US-Dollar angehoben, was einem Wachstum von 12-14% entspricht, und die Prognose für die Bruttomarge auf 61-62%. Zu den geschäftlichen Höhepunkten zählen die regulatorische Genehmigung für das FreedomEdge® Infusion System in Japan, Fortschritte bei Onkologie-Biologika und der Eintritt in eine Phase-III-Studie für Nephrologie. Trotz der positiven Gewinne berichtete das Unternehmen von einem Nettoverlust von 1,0 Millionen US-Dollar oder ($0,02) pro verwässerter Aktie, was einen signifikanten Rückgang im Vergleich zum Verlust des Vorjahres von 2,5 Millionen US-Dollar darstellt.
- 22% increase in net revenues to $8.4 million.
- 41% increase in gross profit to $5.5 million.
- Raising full-year 2024 revenue guidance to $32.0-$32.5 million.
- Improvement in gross margin to 65%.
- Ending cash balance of $10.5 million.
- Regulatory clearance for FreedomEdge® Infusion System in Japan.
- Entered Phase III clinical trial for nephrology.
- Net loss of $1.0 million or ($0.02) per diluted share.
Insights
KORU Medical's Q2 2024 results demonstrate strong financial performance and positive momentum. The
The company's raised guidance for 2024, projecting
However, investors should note the company is still operating at a net loss, albeit reduced from the previous year. The path to profitability and sustained positive cash flow will be important to monitor in upcoming quarters.
KORU Medical's progress in novel therapies is noteworthy. The company has advanced in oncology and nephrology applications, potentially expanding its market reach. The successful feasibility for an oncology biologic, with a pathway to infusion clinic entry in 2025 and the Phase III trial for an expanded nephrology indication (expected launch in 2026) demonstrate a robust pipeline.
The collaboration with SCHOTT Pharma for large volume subcutaneous infusion optimization could lead to innovative drug delivery solutions. Additionally, the regulatory clearance of the FreedomEdge® Infusion System in Japan opens up a significant new market.
These developments suggest KORU is actively diversifying its product portfolio and expanding its geographical footprint, which could drive long-term growth. However, investors should be aware that clinical trials and new market entries often involve significant costs and regulatory hurdles.
KORU Medical's performance indicates strong market dynamics in the subcutaneous infusion sector. The
The company's progress in novel therapies, including oncology and nephrology applications, could open up new market segments beyond its traditional immunoglobulin focus. This diversification strategy could help mitigate risks associated with market concentration.
However, investors should consider potential challenges such as competition in the expanding market and the need for continued innovation to maintain market share. The company's ability to execute on its pipeline and maintain its growth trajectory in core markets will be critical for long-term success.
Financial Highlights
-
Second quarter 2024 net revenues of
$8.4 million 22% increase over the prior year with record-high quarterly revenues -
Core business (
U.S. and International) growth of20% over the prior year driven by overall SCIg market growth, share gains, and geographic expansion -
Gross profit of
$5.5 million 41% increase over the prior year, and gross margin of65% , reflecting year-over-year improvement of 890 basis points -
Ending cash balance of
$10.5 million $0.3 million -
Raising full year 2024 revenue guidance to
$32.0 -$32.5 million -14% ; raising full year gross margin guidance to 61-62%
Business Highlights
-
Received regulatory clearance of FreedomEdge® Infusion System for use in
Japan - Successfully passed feasibility for oncology biologic, progressing pathway to an infusion clinic entry in 2025
- Entered Phase III clinical trial for an expanded nephrology indication expected to launch in 2026
- Announced collaboration with SCHOTT Pharma to drive market expansion and optimize drug delivery in large volume subcutaneous infusion
“We delivered a great quarter, highlighted by strong double-digit growth, progress in our Novel Therapies pipeline and increased operating leverage,” said Linda Tharby, KORU Medical’s President and CEO. “Our US Core business continues to capture share gains in a growing SCIg market. Internationally, we are increasing penetration and expanding in new geographies. We also continue to progress our Novel Therapies pipeline collaborations with a clear line of sight to multiple commercial launches over the next several years. We have accomplished this while also delivering on gross margin expansion and operating leverage. I’m proud of the KORU team and, as a result of our strong performance in the first half of 2024 and our confidence in continued execution moving forward, we are raising our full year 2024 revenue and gross margin guidance.”
2024 Second Quarter Financial Results
|
|
Three Months Ended June 30, |
|
Change from Prior Year |
|
% of Net Revenues |
|
||||||||||||
|
|
2024 |
|
2023 |
|
$ |
|
% |
|
2024 |
|
2023 |
|
||||||
Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Domestic Core |
|
$ |
6,156,098 |
|
$ |
5,388,172 |
|
$ |
767,926 |
|
14.3 |
% |
|
73.0 |
% |
|
77.7 |
% |
|
International Core |
|
|
1,628,191 |
|
|
1,117,004 |
|
|
511,187 |
|
45.8 |
% |
|
19.3 |
% |
|
16.1 |
% |
|
Total Core |
|
|
7,784,289 |
|
|
6,505,176 |
|
|
1,279,113 |
|
19.7 |
% |
|
92.3 |
% |
|
93.8 |
% |
|
Novel Therapies |
|
|
645,800 |
|
|
430,754 |
|
|
215,046 |
|
49.9 |
% |
|
7.7 |
% |
|
6.2 |
% |
|
Total |
|
$ |
8,430,089 |
|
$ |
6,935,930 |
|
$ |
1,494,159 |
|
21.5 |
% |
|
100 |
% |
|
100 |
% |
|
Total net revenues increased
Gross profit increased
Total operating expenses for the second quarter of 2024 were
Net loss for the second quarter of 2024 was
Cash and cash equivalents were
2024 Guidance
-
Raising full year 2024 net revenue guidance to
$32.0 $32.5 -14% ; increased from previously issued guidance of$31.2 $32.2 million 10% to13% -
Raising full year 2024 gross margin guidance to
61% -62% ; increased from previously issued guidance of59% -61% -
Reaffirming guidance of 2024 year-end cash balance greater than
$8.0 million
Conference Call and Webcast Details
The Company will host a live conference call and webcast to discuss these results and provide a corporate update on Wednesday, August 7, 2024, at 4:30 PM ET.
To participate in the call, please dial (877) 407-0784 (domestic) or (201) 689-8560 (international). The live webcast will be available on the IR Calendar on the News/Events page of the Investors section of KORU Medical’s website.
Non-GAAP Measures
This press release includes the non-GAAP financial measures “adjusted diluted EPS” and “adjusted EBITDA” that are not in accordance with, nor an alternate to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. These non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on KORU Medical’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. Non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial results. Reconciliations of the Company’s non-GAAP measures are included at the end of this press release.
About KORU Medical Systems
KORU Medical develops, manufactures, and commercializes innovative and patient-centric large volume subcutaneous infusion solutions that improve quality of life for patients around the world. The FREEDOM Syringe Infusion System (“the FREEDOM System”) currently includes the FREEDOM60® and FreedomEdge® Syringe Infusion Drivers, Precision Flow Rate Tubing™ and HIgH-Flo Subcutaneous Safety Needle Sets™. These devices are used for infusions administered in the home and alternate care settings. For more information, please visit www.korumedical.com.
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All statements that are not historical fact are forward-looking statements, including, but not limited to, oncology biologic clinic entry, launch an expanded nephrology indication, success of Novel Therapies collaborations and related commercial launches, financial guidance and expected operating performance for fiscal 2024. Forward-looking statements discuss the Company’s current expectations and projections relating to its financial position, results of operations, plans, objectives, future performance, and business. Forward-looking statements can be identified by words such as “guidance”, “expect”, “plan”, “believe” and “will”. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, uncertainties associated with SCIg market growth, prefilled syringe penetration, plasma supply, clinical trial activity and success, approval and commercialization of new drug indications, the Company’s EU certification, the shift to increased healthcare delivery in the home, new patient diagnoses, customer ordering patterns, global health crises, innovation and competition, labor and supply price increases, inflationary impacts, labor supply, and those risks and uncertainties included under the captions “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 , which is on file with the SEC and available on our website at www.korumedical.com/investors and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of August 7, 2024. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
KORU MEDICAL SYSTEMS, INC. BALANCE SHEETS (UNAUDITED) |
|||||||
|
|
|
|
|
|
||
|
|
June 30, |
|
December 31, |
|
||
|
|
2024 |
|
2023 |
|
||
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
10,458,001 |
|
$ |
11,482,240 |
|
Accounts receivable less allowance for credit losses of |
|
|
5,846,082 |
|
|
4,045,211 |
|
Inventory |
|
|
2,588,750 |
|
|
3,481,301 |
|
Other receivables |
|
|
— |
|
|
28,889 |
|
Prepaid expenses |
|
|
472,864 |
|
|
1,218,288 |
|
TOTAL CURRENT ASSETS |
|
|
19,365,697 |
|
|
20,255,929 |
|
Property and equipment, net |
|
|
3,678,984 |
|
|
3,837,657 |
|
Intangible assets, net of accumulated amortization of |
|
|
745,084 |
|
|
754,361 |
|
Operating lease right-of-use assets |
|
|
3,414,831 |
|
|
3,514,055 |
|
Deferred income tax assets, net of allowance for non-realization of deferred tax assets of |
|
|
— |
|
|
— |
|
Other assets |
|
|
98,970 |
|
|
98,970 |
|
TOTAL ASSETS |
|
$ |
27,303,566 |
|
$ |
28,460,972 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,595,691 |
|
$ |
975,193 |
|
Accrued expenses |
|
|
2,144,722 |
|
|
1,711,427 |
|
Note payable |
|
|
— |
|
|
314,344 |
|
Other liabilities |
|
|
447,788 |
|
|
512,520 |
|
Accrued payroll and related taxes |
|
|
444,251 |
|
|
462,941 |
|
Financing lease liability – current |
|
|
112,689 |
|
|
109,540 |
|
Operating lease liability – current |
|
|
391,699 |
|
|
368,313 |
|
TOTAL CURRENT LIABILITIES |
|
|
5,136,840 |
|
|
4,454,278 |
|
Financing lease liability, net of current portion |
|
|
259,479 |
|
|
316,623 |
|
Operating lease liability, net of current portion |
|
|
3,202,697 |
|
|
3,336,300 |
|
TOTAL LIABILITIES |
|
|
8,599,016 |
|
|
8,107,201 |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Common stock, |
|
|
492,398 |
|
|
490,899 |
|
Additional paid-in capital |
|
|
48,331,591 |
|
|
47,018,707 |
|
Treasury stock, 3,438,526 shares as of June 30, 2024 and December 31, 2023, at cost |
|
|
(3,882,493 |
) |
|
(3,843,562 |
) |
Accumulated deficit |
|
|
(26,236,946 |
) |
|
(23,312,273 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
18,704,550 |
|
|
20,353,771 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
27,303,566 |
|
$ |
28,460,972 |
|
KORU MEDICAL SYSTEMS, INC. STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
|
|
June 30, |
|
June 30, |
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REVENUES |
|
$ |
8,430,089 |
|
$ |
6,935,931 |
|
$ |
16,627,887 |
|
$ |
14,328,536 |
|
Cost of goods sold |
|
|
2,950,339 |
|
|
3,047,807 |
|
|
6,044,839 |
|
|
6,293,377 |
|
Gross Profit |
|
|
5,479,750 |
|
|
3,888,124 |
|
|
10,583,048 |
|
|
8,035,159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
5,319,688 |
|
|
5,303,167 |
|
|
10,677,308 |
|
|
10,729,044 |
|
Research and development |
|
|
1,134,232 |
|
|
1,596,614 |
|
|
2,609,907 |
|
|
3,161,483 |
|
Depreciation and amortization |
|
|
217,864 |
|
|
212,919 |
|
|
449,233 |
|
|
426,036 |
|
Total Operating Expenses |
|
|
6,671,784 |
|
|
7,112,700 |
|
|
13,736,448 |
|
|
14,316,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Loss |
|
|
(1,192,034 |
) |
|
(3,224,576 |
) |
|
(3,153,400 |
) |
|
(6,281,404 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Operating Income/(Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on currency exchange |
|
|
(10,680 |
) |
|
(2,472 |
) |
|
(22,159 |
) |
|
(3,152 |
) |
Loss on disposal of fixed assets, net |
|
|
— |
|
|
— |
|
|
(300 |
) |
|
(56,279 |
) |
Interest income, net |
|
|
213,999 |
|
|
131,167 |
|
|
251,186 |
|
|
256,669 |
|
TOTAL OTHER INCOME |
|
|
203,319 |
|
|
128,695 |
|
|
228,727 |
|
|
197,238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES |
|
|
(988,715 |
) |
|
(3,095,881 |
) |
|
(2,924,673 |
) |
|
(6,084,166 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
|
— |
|
|
599,995 |
|
|
— |
|
|
1,177,395 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
$ |
(988,715 |
) |
$ |
(2,495,886 |
) |
$ |
(2,924,673 |
) |
$ |
(4,906,771 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.02 |
) |
$ |
(0.05 |
) |
$ |
(0.06 |
) |
$ |
(0.11 |
) |
Diluted |
|
$ |
(0.02 |
) |
$ |
(0.05 |
) |
$ |
(0.06 |
) |
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
45,811,373 |
|
|
45,606,603 |
|
|
45,761,799 |
|
|
45,547,427 |
|
Diluted |
|
|
45,811,373 |
|
|
45,606,603 |
|
|
45,761,799 |
|
|
45,547,427 |
|
KORU MEDICAL SYSTEMS, INC. STATEMENTS OF CASH FLOWS (UNAUDITED) |
|||||||
|
|
|
|
|
|
|
|
|
|
For the
|
|
||||
|
|
June 30, |
|
||||
|
|
2024 |
|
2023 |
|
||
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Net Loss |
|
$ |
(2,924,673 |
) |
$ |
(4,906,771 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
Stock-based compensation expense and warrant expense |
|
|
1,314,384 |
|
|
1,681,955 |
|
Depreciation and amortization |
|
|
449,233 |
|
|
426,036 |
|
Deferred income taxes |
|
|
— |
|
|
(1,177,395 |
) |
Loss on disposal of fixed assets |
|
|
300 |
|
|
56,279 |
|
Non-cash lease adjustments |
|
|
(10,994 |
) |
|
(10,994 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
|
(1,800,871 |
) |
|
(239,590 |
) |
Inventory |
|
|
892,551 |
|
|
1,126,643 |
|
Prepaid expenses and other assets |
|
|
774,313 |
|
|
687,994 |
|
Other liabilities |
|
|
(64,731 |
) |
|
5,916 |
|
Accounts payable |
|
|
620,498 |
|
|
(817,169 |
) |
Accrued payroll and related taxes |
|
|
(18,691 |
) |
|
(119,776 |
) |
Accrued expenses |
|
|
433,296 |
|
|
(1,527,648 |
) |
NET CASH USED IN OPERATING ACTIVITIES |
|
|
(335,385 |
) |
|
(4,814,520 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(257,367 |
) |
|
(375,246 |
) |
Purchases of intangible assets |
|
|
(24,216 |
) |
|
(17,298 |
) |
NET CASH USED IN INVESTING ACTIVITIES |
|
|
(281,583 |
) |
|
(392,544 |
) |
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Payments on insurance finance indebtedness |
|
|
(314,344 |
) |
|
(433,295 |
) |
Payments on finance lease liability |
|
|
(53,995 |
) |
|
(48,493 |
) |
Payments for taxes related to net share settlement of equity awards |
|
|
(38,932 |
) |
|
— |
|
NET CASH USED IN FINANCING ACTIVITIES |
|
|
(407,271 |
) |
|
(481,788 |
) |
|
|
|
|
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
|
(1,024,239 |
) |
|
(5,688,852 |
) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
|
11,482,240 |
|
|
17,408,257 |
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
10,458,001 |
|
$ |
11,719,405 |
|
|
|
|
|
|
|
|
|
Supplemental Information |
|
|
|
|
|
|
|
Cash paid during the periods for: |
|
|
|
|
|
|
|
Interest |
|
$ |
20,491 |
|
$ |
20,165 |
|
Income taxes |
|
$ |
— |
|
$ |
3,160 |
|
|
|
|
|
|
|
|
|
Schedule of Non-Cash Operating, Investing and Financing Activities: |
|
|
|
|
|
|
|
Issuance of common stock as compensation |
|
$ |
221,182 |
|
$ |
266,023 |
|
KORU MEDICAL SYSTEMS, INC. SUPPLEMENTAL INFORMATION (UNAUDITED) |
|||||||||||||
A reconciliation of our non-GAAP measures is below: |
|||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|
||||||||
Reconciliation of GAAP Net (Loss) |
|
June 30, |
|
June 30, |
|
||||||||
to Non-GAAP Adjusted EBITDA: |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||
GAAP Net Loss |
|
$ |
(988,715 |
) |
$ |
(2,495,886 |
) |
$ |
(2,924,673 |
) |
$ |
(4,906,771 |
) |
Tax (Benefit)/Expense |
|
|
(189,754 |
) |
|
(599,995 |
) |
|
(578,429 |
) |
|
(1,177,395 |
) |
Allowance for DTA |
|
|
189,754 |
|
|
— |
|
|
578,429 |
|
|
— |
|
Reorganization Charges |
|
|
— |
|
|
— |
|
|
99,329 |
|
|
— |
|
Depreciation and Amortization |
|
|
217,864 |
|
|
212,919 |
|
|
449,233 |
|
|
426,036 |
|
Interest (Income)/Expense, Net |
|
|
(213,999 |
) |
|
(188,126 |
) |
|
(251,186 |
) |
|
(256,669 |
) |
Stock-based Compensation Expense |
|
|
614,666 |
|
|
800,733 |
|
|
1,314,384 |
|
|
1,681,955 |
|
Non-GAAP Adjusted EBITDA |
|
$ |
(370,184 |
) |
$ |
(2,270,355 |
) |
$ |
(1,312,913 |
) |
$ |
(4,232,844 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares |
|
|
45,811,373 |
|
|
45,606,603 |
|
|
45,761,799 |
|
|
45,547,427 |
|
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||
Reconciliation of Reported Diluted EPS |
|
June 30, |
|
June 30, |
|||||||||
to Non-GAAP Adjusted Diluted EPS: |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||
Reported Diluted Earnings Per Share |
|
$ |
(0.02 |
) |
$ |
(0.05 |
) |
$ |
(0.06 |
) |
$ |
(0.11 |
) |
Depreciation and Amortization |
|
|
0.00 |
|
|
0.00 |
|
|
0.01 |
|
|
0.01 |
|
Stock-based Compensation Expense |
|
|
0.01 |
|
|
0.02 |
|
|
0.03 |
|
|
0.04 |
|
Tax (Expense) Adjustment |
|
|
0.00 |
|
|
(0.01 |
) |
|
0.00 |
|
|
(0.03 |
) |
Non-GAAP Adjusted Diluted Earnings Per Share |
|
$ |
(0.01 |
) |
$ |
(0.04 |
) |
$ |
(0.02 |
) |
$ |
(0.09 |
) |
*Numbers presented are rounded to the nearest whole cent
Allowance for nonrealization of deferred tax assets (DTA). We have excluded the effect of recording a full valuation allowance on our deferred tax assets in the second quarter ended 2024 in the amount of
Reorganization Charges. We have excluded the effect of reorganization charges in calculating our non-GAAP measures. In 2024 we incurred severance expenses related to the reorganization of the leadership team, which we would not have otherwise incurred in periods presented as part of continuing operations.
Stock-based Compensation Expense. We have excluded the effect of stock-based compensation expense in calculating our non-GAAP measures. We record non-cash compensation expenses related to grants of equity-based awards for executives, employees, consultants, and directors. Depending upon the size, timing and the terms of the grants, the non-cash compensation expense may vary significantly but is expected to recur in future periods.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807956523/en/
Investor Contact:
Louisa Smith
investor@korumedical.com
Source: KORU Medical Systems, Inc.
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