New initiative accelerates cross-industry engagement, expands educational reach to drive long-term growth in water quality solutionsSOUTH ORANGE, N.J., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Nephros, Inc. (Nasdaq: NEPH), a leader in point-of-use water filtration, today announced the launch of the Nephros Water Institute, a dedicated education initiative established to formalize the company’s leadership in industry education. In 2025, Nephros accelerated its national education efforts under the direction of Brian ...

Group 1 - SoftBank and OpenAI have formed a 50-50 joint venture named "Crystal Intelligence" to sell enterprise AI tools in Japan [1] - The partnership raises questions about the real economic value generated by major AI deals, as SoftBank is a significant investor in OpenAI [1] - There is skepticism regarding the sustainability of the current investment model in the AI sector, as discussed in the TechCrunch Equity podcast [2] Group 2 - Andreessen Horowitz is shutting down its Talent x Opportunity fund, which reflects broader trends in investment strategies [3] - The involvement of former FTC chair Lina Khan in NYC mayor-elect Zohran Mamdani's transition team may impact regulations affecting Big Tech, ride-hailing, and autonomous vehicles [3] - Box CEO Aaron Levie expressed concerns about the potential AI bubble and highlighted the shift from training to inference as a potentially reassuring development [3] - Beta Technologies successfully completed a $1 billion IPO, indicating a positive trend in the public market despite ongoing large M&A deals [3]

Financial Data and Key Metrics Changes - The company reported third-quarter net revenue of $4.8 million, a 35% increase compared to the same period in 2024, marking the second-highest quarter ever [4][7] - Gross margins for the quarter were 61%, consistent with the same quarter in 2024, despite increased inventory handling expenses [7][8] - Net income for the quarter was $337,000, compared to $183,000 in the same period last year, indicating the fifth consecutive quarter of profitability [8][10] - Adjusted EBITDA for the quarter was positive $418,000, up from $295,000 during the same period in 2024 [8][10] - For the nine months ending September 30, 2025, sales increased by 37% to $14.1 million from $10.3 million in the prior year [9][10] Business Line Data and Key Metrics Changes - The programmatic business and service revenue showed significant growth, contributing to the overall revenue increase [7][9] - Active customer sites grew to over 1,650 as of September 30, 2025, reflecting strong customer retention [7][8] Market Data and Key Metrics Changes - The company is expanding into new verticals such as municipalities, dialysis centers, and labs with its PFAS removal solution, which is expected to drive future growth [5][6] - The tracking app has expanded its geographical reach, enhancing customer engagement and repeat business [26][27] Company Strategy and Development Direction - The company aims to scale successful initiatives, pursue new opportunities, and maintain a focus on its mission of improving water quality and infection control [6][11] - The introduction of the PFAS removal solution is seen as a strategic move to enter new markets and address emerging regulatory needs [5][16] - The company is focused on operational discipline and strategic focus as it expands into dental, municipal, and government facilities [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future, citing strong customer retention, a record number of active sites, and a robust innovation pipeline [6][11] - The company is well-positioned to sustain growth and broaden market reach, supported by a strong balance sheet and zero debt [6][10] Other Important Information - Research and development expenses increased to $338,000 in the third quarter of 2025, reflecting higher employee bonuses and increased headcount [7][8] - Sales, general, and administrative expenses rose to $2.2 million, a 30% increase due to higher sales commissions and employee bonuses [8][10] Q&A Session Summary Question: Insights on the new PFAS filtration solution and its revenue impact - Management highlighted that the PFAS solution opens new market opportunities and addresses customer needs beyond traditional patient care settings [13][16] Question: Largest driver of growth for 2026 - The focus remains on growing the core infection control product line while leveraging new products to meet stringent hospital regulations [17][19] Question: Update on the tracking app and its contribution to growth - The tracking app is enhancing customer value and creating more touchpoints, contributing to core programmatic growth [24][26] Question: Market penetration strategies for PFAS and microplastics - The company is exploring direct sales and distribution partnerships to penetrate new markets, focusing on educating customers about water quality needs [32][36] Question: Impact of Legionella disease publicity on the quarter - Increased awareness of Legionella has led to more inquiries, although it is not the most costly issue healthcare networks face [38][40] Question: Growth in newer areas like laboratories and government buildings - The company is seeing success in deploying solutions in various sectors, including correctional facilities and schools, which share similar buying criteria to hospitals [42][44]

Core Insights - Nephros, Inc. reported a net revenue of $4.8 million for Q3 2025, marking a 35% increase from $3.5 million in Q3 2024, and achieved profitability for the fourth consecutive quarter [1][2][3] Financial Performance - Net income for Q3 2025 was $337,000, an 84% increase from $183,000 in Q3 2024 [2][7] - Adjusted EBITDA for Q3 2025 rose 42% to $418,000 compared to $295,000 in Q3 2024 [2][7] - For the nine months ended September 30, 2025, net revenue increased 37% to $14.1 million from $10.3 million in the same period of 2024 [8][12] - Net income for the nine months was $1.1 million, a turnaround from a net loss of $275,000 in the same period of 2024 [12] Revenue Breakdown - Core programmatic revenue grew by 51% in Q3 2025 compared to Q3 2024, driven by strong reorders and new active sites [3][8] - Service revenue also saw significant growth, contributing to the overall increase in net revenue [3][8] Cost and Expenses - Cost of goods sold for Q3 2025 was $1.9 million, up from $1.4 million in Q3 2024, maintaining a gross margin of 61% [4] - Selling, general, and administrative expenses increased by 30% to approximately $2.2 million due to higher sales commissions and employee bonuses [5] - Research and development expenses rose 80% to approximately $0.3 million, reflecting increased employee bonuses and salary expenses [6] Cash Position - As of September 30, 2025, Nephros had cash and cash equivalents of approximately $5.2 million, up from $3.8 million at the end of 2024, and remains debt-free [13]

Financial Performance - Total net revenues for Q3 2025 increased by 35% to $4,764,000 compared to $3,518,000 in Q3 2024[107] - Operating income increased by 52% to $314,000 compared to $206,000 in the previous year[107] - Net income for Q3 2025 was $337,000, an 84% increase from $183,000 in Q3 2024[107] - Net revenues increased by $1.2 million, or 35%, for the three months ended September 30, 2025, driven by higher programmatic revenue and service revenue growth[108] - Total net revenues for the nine months ended September 30, 2025, increased by $3.8 million, or 37%, compared to the same period in 2024, driven by programmatic and emergency response revenue growth[116] Gross Margin - Gross margin remained stable at 61%, with a gross margin increase of 36% to $2,915,000 from $2,149,000[107] - Gross margin was approximately 61% for the three months ended September 30, 2025, consistent with the same period in 2024[109] - Gross margin increased to approximately 63% for the nine months ended September 30, 2025, compared to approximately 61% for the same period in 2024[117] Expenses - Research and development expenses rose by 80% to $338,000, up from $188,000, indicating a focus on innovation[107] - Selling, general and administrative expenses increased by approximately $508,000, or 30%, for the three months ended September 30, 2025, primarily due to higher sales commissions and employee bonuses[110] - Research and development expenses increased approximately $150,000, or 80%, due to higher employee bonuses and salary expenses[111] - Selling, general and administrative expenses increased by $880,000, or 15%, for the nine months ended September 30, 2025, due to higher sales commissions and employee bonuses[118] - Research and development expenses increased by $290,000, or 44%, primarily due to higher employee bonuses and salary expenses[119] Cash Flow - Net cash provided by operating activities was $1.4 million for the nine months ended September 30, 2025, compared to net cash used in operating activities of approximately $1.8 million for the same period in 2024[127] - Cash and cash equivalents increased to $5.171 million as of September 30, 2025, compared to $3.760 million as of December 31, 2024[124] Product Development and Market Expansion - The company’s ultrafilters and microfilters are FDA 510(k)-cleared Class II medical devices, ensuring validated performance in critical-use environments[79] - Nephros has expanded its product portfolio with a new solution for Total PFAS reduction, addressing emerging waterborne contaminants[80] - The company anticipates growth in commercial markets, particularly in food service and hospitality sectors, following a new supply agreement with Donastar[97] - Nephros filters are increasingly relevant in schools and federally regulated facilities due to their Total PFAS reduction capabilities[86] - The company expects future revenue from the commercial market to potentially surpass its infection control revenue as demand for water testing and filtration grows[99]

Core Viewpoint - Nephros, Inc. will announce its third-quarter financial results on November 6, 2025, and will host a conference call to discuss these results [1]. Company Overview - Nephros, Inc. is a leading water technology company focused on providing filtration solutions for medical and commercial markets [1][2]. - The company is dedicated to enhancing the human relationship with water through innovative and accessible technology [2]. - Nephros offers a range of water filtration products and services, along with water-quality education, as part of a comprehensive approach to water safety [2]. Conference Call Details - The conference call will take place on November 6, 2025, at 4:30 PM ET, with domestic access available at 1 (844) 808-7106 and international access at 1 (412) 317-5285 [1]. - An audio archive of the call will be available shortly after the event on the Nephros Investor Relations page, with a replay accessible until November 13, 2025 [2].

Core Insights - The article highlights stocks reaching new 52-week highs, indicating market recognition of strong fundamentals and potential catalysts for growth [1][2]. Company Summaries Cogent Biosciences Inc. (COGT) - Cogent Biosciences plans to file its first New Drug Application for Bezuclastinib by the end of 2025, targeting non-advanced systemic mastocytosis [3]. - A phase III trial comparing Bezuclastinib with Sutent is ongoing, with results expected in the second half of 2025 [4]. - The stock reached a 52-week high of $16.99, up from $7.25 when last featured [5]. Assembly Biosciences Inc. (ASMB) - Assembly Biosciences is advancing four key development programs, with ABI-5366 expected to enter phase 2 studies in mid-2026 [6]. - Interim data for ABI-1179 is anticipated this fall, while ABI-6250 is in a phase 1a trial [7]. - The stock hit a 52-week high of $28, up from $14.53 when last featured [8]. Compass Therapeutics Inc. (CMPX) - Compass Therapeutics is conducting a phase 2/3 study of Tovecimig for advanced biliary tract cancer, with analyses of secondary endpoints expected in Q1 2026 [9][10]. - The stock reached a 52-week high of $4.39, up from $2.91 when last featured [11]. NewAmsterdam Pharma Company N.V. (NAMS) - NewAmsterdam Pharma is developing Obicetrapib as a cholesterol-lowering therapy, with positive data from the BROADWAY trial [12][13]. - The company has completed two additional phase III trials and submitted marketing applications to the EMA [16]. - The stock reached a 52-week high of $39.76, up from $21.56 when last featured [17]. Mineralys Therapeutics Inc. (MLYS) - Mineralys is developing Lorundrostat for uncontrolled hypertension, with a pivotal phase III trial achieving its primary endpoint [19]. - A phase II trial for overweight participants with OSA is ongoing, with topline results expected in 1H 2026 [20]. - The stock hit a 52-week high of $43.88, up from $10.34 when last featured [20]. Kymera Therapeutics Inc. (KYMR) - Kymera is set to report data from its phase I trial of KT-621 this quarter, with phase 2b studies planned for late 2025 and early 2026 [21][22]. - The stock reached a 52-week high of $60, up from $40 when last featured [22]. Insmed Inc. (INSM) - Insmed has two approved drugs and is conducting a phase 3 trial of Arikayce, with topline results expected in 1H 2026 [24][25]. - The stock hit a high of $166.54, up from $76.54 when last featured [26]. Adaptive Biotechnologies Corp. (ADPT) - Adaptive Biotechnologies expects MRD revenue between $190 million and $200 million for 2025, up from $145.5 million in 2024 [28][29]. - The stock reached a 52-week high of $15.94, up from $9.80 when last featured [29]. BridgeBio Pharma Inc. (BBIO) - BridgeBio has upcoming topline results from the FORTIFY and CALIBRATE studies expected in Fall 2025 [30]. - The stock reached a 3-year high of $56.24, up from $25.10 when last featured [31]. Tarsus Pharmaceuticals Inc. (TARS) - Tarsus reported strong sales for Xdemvy, with Q2 2025 sales of $102.7 million, compared to $40.8 million in Q2 2024 [32]. - The stock hit an all-time high of $70.15, up from $25.01 when last featured [34]. Palvella Therapeutics Inc. (PVLA) - Palvella's QTORIN is under development for various skin diseases, with a phase 2 trial expected to report data in mid-December 2025 [35][36]. - The stock reached a 52-week high of $76.76, up from $25 when last featured [36]. Merus N.V. (MRUS) - Merus agreed to be acquired by Genmab for $97 per share, with the deal expected to close in early Q1 2026 [37]. - The stock was at $39.71 when last featured [39]. Nephros Inc. (NEPH) - Nephros reported net revenue of $4.4 million for Q2 2025, marking its third consecutive quarter of profitability [40][41]. - The stock hit a 52-week high of $5.98, up from $2.93 when last featured [42].

Core Insights - Nephros, Inc. has launched a new filter aimed at reducing Total PFAS in drinking water, addressing increasing regulatory and public health concerns regarding these contaminants [1][3]. Company Overview - Nephros is a leading provider of filtration solutions for medical and commercial markets, utilizing advanced hollow-fiber technology to ensure high water quality [5]. Product Features - The Nephros 19-Series PFAS Filter is designed to reduce a broader spectrum of contaminants compared to traditional filters, which typically only target PFOA and PFOS [3]. - The filter has been independently tested to meet NSF Standards 42 and 53, validating its effectiveness in reducing Total PFAS, including PFOA and PFOS, as well as other hazardous contaminants like lead and asbestos [6]. - It has a capacity of 3,145 gallons and a flow rate of 1.63 gallons per minute, providing long-term protection against health-threatening waterborne contaminants [6]. Target Markets - The 19-Series PFAS Filter is particularly suited for industries where water safety is critical, such as healthcare, education, foodservice, and manufacturing [4].

Core Insights - Kopin (KOPN) and Nephros (NEPH) are rapidly moving stocks, with KOPN rising 60 positions and NEPH 52 positions in Barchart's Top 100 Stocks to Buy [1] - Kopin's stock has increased by 62% in the past month and 163% in 2025, attracting retail investors due to its penny stock status [2] - Nephros reached a 52-week high of $5.59, with a 377% appreciation over the past 36 months, outperforming Kopin's 253% return [3] Company Overview: Kopin (KOPN) - Kopin specializes in microdisplay technologies and optical systems, with applications in defense and medical sectors [4] - In 2024, 82% of Kopin's revenue, amounting to $50.3 million, came from defense industry customers, a significant increase from 56% in 2023 and 52% in 2022 [5] - The concentration of revenue sources is notable, with the top two customers accounting for 76% of its 2024 revenue, the largest being DRS Network & Imaging Systems, LLC at 65% [6]

[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) [Q2 2025 Highlights](index=1&type=section&id=Q2%202025%20Highlights) Nephros achieved **third consecutive quarter of profitability** in Q2 2025, with **net revenue up 36%** year-over-year Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | Change (%) | | :------------------- | :------ | :------ | :--------- | | Net Revenue | $4.4M | $3.3M | 36% | | Net Income (Loss) | $237K | ($289K) | N/A | | Adjusted EBITDA | $355K | ($133K) | N/A | - Achieved **third consecutive quarter of profitability**[3](index=3&type=chunk) - Programmatic sales reached an **all-time high**, supported by a new installation and replacement program driving reliable reorder volume[3](index=3&type=chunk) - Dialysis water segment delivered its **second-highest performance on record**, securing the **largest dialysis filtration purchase order in company history**[3](index=3&type=chunk) [YTD June 30, 2025 Highlights](index=1&type=section&id=YTD%20June%2030%2C%202025%20Highlights) Nephros showed **significant YTD growth**, with **net revenue up 37%** and a shift to **positive net income** YTD June 30, 2025 Key Financial Metrics | Metric | YTD 2025 | YTD 2024 | Change (%) | | :------------------- | :------- | :------- | :--------- | | Net Revenue | $9.3M | $6.8M | 37% |\ | Net Income (Loss) | $795K | ($458K) | N/A |\ | Adjusted EBITDA | $1.0M | ($228K) | N/A | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO highlighted **disciplined execution** and **innovation** driving growth in programmatic business and active sites - Results reflect **disciplined execution**, operational excellence, and consistent investment in growth-driving innovation[3](index=3&type=chunk) - **Trailing 12-month revenue grew from $13.8 million to $16.7 million** over the past two years[3](index=3&type=chunk) - **Active-site counts reached all-time highs** across infection control, dialysis water, and commercial segments[3](index=3&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) [Three Months Ended June 30, 2025](index=2&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025) Nephros reported **significant Q2 revenue growth** and **improved profitability**, driven by programmatic sales [Net Revenue](index=2&type=section&id=Net%20Revenue%20(Q2)) Q2 2025 Net and Programmatic Revenue | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--------- | :------ | :------ | :--------- | | Net Revenue | $4.4M | $3.3M | 36% | | Programmatic Revenue | N/A | N/A | 31% | - **Core programmatic revenue grew by 31% year-over-year**, reflecting strong reorders and new active sites[6](index=6&type=chunk) [Cost of Goods Sold & Gross Margin](index=2&type=section&id=Cost%20of%20Goods%20Sold%20%26%20Gross%20Margin%20(Q2)) Q2 2025 Cost of Goods Sold and Gross Margin | Metric | Q2 2025 | Q2 2024 | Change (%) | | :---------------- | :------ | :------ | :--------- | | Cost of Goods Sold | $1.6M | $1.3M | 21% | | Gross Margin | 63% | 59% | +4 ppts | - Increase in gross margin primarily driven by a **reduction in shipping costs and inventory reserve adjustments**[7](index=7&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses%20(Q2)) Q2 2025 Operating Expenses | Expense Category | Q2 2025 | Q2 2024 | Change (%) | | :----------------------- | :------ | :------ | :--------- | | Selling, General & Admin | $2.2M | $1.9M | 13% | | Research & Development | $0.3M | $0.3M | 0% | | Depreciation & Amortization | $35K | $34K | 3% | - Increase in SG&A due to **higher sales commissions from increased revenue, higher employee bonus accruals, and increased stock-based compensation**[8](index=8&type=chunk) [Net Income & Adjusted EBITDA](index=2&type=section&id=Net%20Income%20%26%20Adjusted%20EBITDA%20(Q2)) Q2 2025 Net Income and Adjusted EBITDA | Metric | Q2 2025 | Q2 2024 | | :---------------- | :------ | :------ | | Net Income (Loss) | $0.2M | ($0.3M) | | Adjusted EBITDA | $0.4M | ($0.1M) | - **Achieved net income for the third consecutive quarter**, a significant improvement from a net loss in the prior year[9](index=9&type=chunk) [Six Months Ended June 30, 2025](index=2&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) Nephros sustained **strong YTD performance**, with **substantial revenue growth** and a shift to **profitability** [Net Revenue](index=2&type=section&id=Net%20Revenue%20(YTD)) YTD June 30, 2025 Net and Programmatic Revenue | Metric | YTD 2025 | YTD 2024 | Change (%) | | :--------- | :------- | :------- | :--------- | | Net Revenue | $9.3M | $6.8M | 37% | | Programmatic Revenue | N/A | N/A | 27% | - **Core programmatic revenue grew by 27% year-over-year**, driven by strong reorders and new active sites[11](index=11&type=chunk) [Cost of Goods Sold & Gross Margin](index=2&type=section&id=Cost%20of%20Goods%20Sold%20%26%20Gross%20Margin%20(YTD)) YTD June 30, 2025 Cost of Goods Sold and Gross Margin | Metric | YTD 2025 | YTD 2024 | Change (%) | | :---------------- | :------- | :------- | :--------- | | Cost of Goods Sold | $3.3M | $2.7M | 25% | | Gross Margin | 64% | 61% | +3 ppts | - Increase in gross margin primarily driven by **lower product costs from a more favorable product mix and a reduction in inventory reserve adjustments**[12](index=12&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses%20(YTD)) YTD June 30, 2025 Operating Expenses | Expense Category | YTD 2025 | YTD 2024 | Change (%) | | :----------------------- | :------- | :------- | :--------- | | Selling, General & Admin | $4.5M | $4.1M | 9% | | Research & Development | $0.6M | $0.5M | 20% | | Depreciation & Amortization | $74K | $67K | 10% | - Increase in SG&A primarily driven by **higher sales commission expense, increased employee bonus accruals, and higher stock-based compensation expense**[12](index=12&type=chunk) [Net Income & Adjusted EBITDA](index=3&type=section&id=Net%20Income%20%26%20Adjusted%20EBITDA%20(YTD)) YTD June 30, 2025 Net Income and Adjusted EBITDA | Metric | YTD 2025 | YTD 2024 | | :---------------- | :------- | :------- | | Net Income (Loss) | $0.8M | ($0.5M) | | Adjusted EBITDA | $1.0M | ($0.2M) | [Cash and Cash Equivalents](index=3&type=section&id=Cash%20and%20Cash%20Equivalents%20(YTD)) Cash and Cash Equivalents | Metric | June 30, 2025 | Dec 31, 2024 | | :---------------------- | :------------ | :----------- | | Cash and Cash Equivalents | $5.1M | $3.8M | - **Company remains debt-free** as of June 30, 2025[15](index=15&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Adjusted EBITDA Definition](index=3&type=section&id=Adjusted%20EBITDA%20Definition) Adjusted EBITDA is a **non-GAAP measure** used to assess financial trends, excluding non-cash and non-recurring items - **Adjusted EBITDA is calculated by excluding interest, tax, non-recurring expenses/income, and non-cash items (depreciation, amortization, non-cash inventory write-offs, non-cash compensation) from GAAP net income (loss)**[16](index=16&type=chunk) - Management presents Adjusted EBITDA in connection with net income (loss) and urges investors **not to rely on it in isolation due to its inherent limitations**[20](index=20&type=chunk) [Adjusted EBITDA Reconciliation (Three Months)](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation%20(Three%20Months)) Reconciliation of **Q2 net income (loss) to Adjusted EBITDA**, detailing various adjustments Adjusted EBITDA Reconciliation (Three Months) | (in $ thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | | Net income (loss) | 237 | (289) | | Adjustments: | | | | Depreciation of property and equipment | 13 | 11 | | Amortization of other assets | 20 | 24 | | Interest expense | 1 | - | | Interest income | (31) | (21) | | Income taxes | 9 | - | | Non-cash stock-based compensation | 71 | 35 | | Non-cash inventory impairments | 35 | 107 | | **Adjusted EBITDA Income (loss)** | **355** | **(133)** | [Adjusted EBITDA Reconciliation (Six Months)](index=4&type=section&id=Adjusted%20EBITDA%20Reconciliation%20(Six%20Months)) Reconciliation of **YTD net income (loss) to Adjusted EBITDA**, detailing various adjustments Adjusted EBITDA Reconciliation (Six Months) | (in $ thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :----------------------------- | :----------------------------- | | Net Income (loss) | 795 | (458) | | Adjustments: | | | | Depreciation of property and equipment | 30 | 22 | | Amortization of other assets | 43 | 47 | | Interest expense | 1 | 1 | | Interest income | (44) | (46) | | Income taxes | 9 | - | | Non-cash stock-based compensation | 147 | 26 | | Non-cash inventory impairments | 41 | 180 | | **Adjusted EBITDA Income (loss)** | **1,022** | **(228)** | [Company Information](index=4&type=section&id=Company%20Information) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Nephros hosted a conference call to discuss **financial results and business overview**, with replay options - **Conference call held on August 7, 2025, at 4:30 PM ET**[21](index=21&type=chunk) - **Audio archive available on Nephros Investor Relations page; replay accessible until August 15, 2025**[22](index=22&type=chunk) [About Nephros](index=5&type=section&id=About%20Nephros) Nephros, Inc. is a **water technology company** offering filtration products and education for healthcare and commercial markets - **Committed to improving the human relationship with water through leading, accessible technology**[23](index=23&type=chunk) - **Offers innovative water filtration products and services, and water-quality education**[23](index=23&type=chunk) - **Serves healthcare and commercial markets with proactive and emergency water management solutions**[23](index=23&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section outlines **risks and uncertainties** that could cause actual results to differ from forward-looking statements - **Statements regarding future revenue growth, product reorders, operational activities, and ability to realize net income are subject to risks**[25](index=25&type=chunk) - **Actual results could differ due to factors like sales organization development, emergency response sales, U.S. tariffs, inflation, competition, capital availability, dependence on third parties, and regulatory reforms**[25](index=25&type=chunk) - **Investors are cautioned not to place undue reliance on forward-looking statements, and the company does not undertake to update them except as required by law**[25](index=25&type=chunk) [Investor Relations Contacts](index=5&type=section&id=Investor%20Relations%20Contacts) Contact information for **investor relations inquiries**, including PCG Advisory and Nephros representatives - **Kirin Smith, President of PCG Advisory, Inc., and Robert Banks, CEO of Nephros, Inc., are listed as investor relations contacts**[26](index=26&type=chunk) [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Balance Sheets](index=6&type=section&id=Balance%20Sheets) Unaudited balance sheets show **increased assets and equity**, with a **healthy cash position and no debt** Consolidated Balance Sheet Highlights | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $5,074 | $3,760 | | Total current assets | $9,578 | $8,298 | | TOTAL ASSETS | $12,243 | $11,210 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Total current liabilities | $1,772 | $1,562 | | TOTAL LIABILITIES | $2,644 | $2,625 | | TOTAL STOCKHOLDERS' EQUITY | $9,599 | $8,585 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $12,243 | $11,210 | - **Cash and cash equivalents increased by $1.314 million from December 31, 2024, to June 30, 2025**[28](index=28&type=chunk) - **Accumulated deficit decreased from ($144,332) thousand to ($143,537) thousand, reflecting improved profitability**[30](index=30&type=chunk) [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) Unaudited statements highlight **significant revenue growth** and a shift to **net income** for both periods Statements of Operations (Three Months) | (in thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total net revenues | $4,419 | $3,252 | $9,296 | $6,774 | | Cost of goods sold | $1,624 | $1,340 | $3,347 | $2,675 | | Gross margin | $2,795 | $1,912 | $5,949 | $4,099 | | Total operating expenses | $2,547 | $2,229 | $5,135 | $4,616 | | Operating income (loss) | $248 | ($317) | $814 | ($517) | | Net income (loss) | $237 | ($289) | $795 | ($458) | | Net income (loss) per common share, basic | $0.02 | ($0.03) | $0.07 | ($0.04) | - **Product revenues were the primary driver of total net revenues, showing strong growth in both periods**[32](index=32&type=chunk) - **Gross margin improved from 59% to 63% for the quarter and from 61% to 64% for the six-month period**[7](index=7&type=chunk)[12](index=12&type=chunk)