KORU Medical Systems(KRMD) - 2024 Q3 - Quarterly Report

Financial Performance - The company reported net revenues of $8.2 million for Q3 2024, a 16.8$7.0 million in Q3 2023, driven by a 11.7% growth in domestic core and a 275.6% increase in novel therapies[64]. - Gross profit for Q3 2024 was $5.2 million, up 19.4$4.3 million in Q3 2023, with a gross margin of 63.4%, compared to 62.0% in the prior year[65]. - Operating expenses for Q3 2024 increased to $6.9 million, a 12.3$6.1 million in Q3 2023, primarily due to higher selling, general, and administrative expenses[66]. - The company reported a net loss of $1.58 million for Q3 2024, compared to a net loss of$1.37 million in Q3 2023, reflecting an increase in operating expenses[72]. - For the nine months ended September 30, 2024, total net revenues reached $24.8 million, a 16.3$21.3 million in the same period in 2023[73]. - Gross profit increased by $3.4 million, or 27.4$15.8 million for the nine months ended September 30, 2024, compared to $12.4 million in the same period in 2023[75]. - Net loss decreased by$1.8 million to $4.5 million for the nine months ended September 30, 2024, representing a 28.2$6.3 million in the same period in 2023[78]. Revenue Breakdown - Domestic core revenues for the nine months ended September 30, 2024, were $18.6 million, a 9.9$16.9 million in the prior year[73]. - International core revenues increased by 38.4% to $4.5 million for the nine months ended September 30, 2024, driven by higher consumable and pump volumes[73]. - Novel therapies revenues for the nine months ended September 30, 2024, increased by 46.3$1.7 million, attributed to Phase III clinical trial orders and milestone completions[73]. - Koru Medical Systems reported a revenue increase of 15% year-over-year, reaching $12 million for the quarter[94]. - Koru Medical Systems anticipates a revenue guidance of$50 million for the upcoming fiscal year, representing a 25% increase compared to the previous year[94]. Operational Efficiency - The company’s gross margin for the nine months ended September 30, 2024, was not specified but reflects overall growth in gross profit driven by increased sales[74]. - Gross margin improved to 63.6% in the first nine months of 2024, up from 58.0% in the same prior year period, driven by increased manufacturing efficiencies[75]. - Koru Medical Systems reported a gross margin of 60%, reflecting improved operational efficiencies[94]. Expenses and Cash Flow - Total operating expenses rose by $0.2 million, or 0.9$20.6 million for the nine months ended September 30, 2024, compared to $20.4 million in the same period in 2023[76]. - Cash on hand was$8.8 million as of September 30, 2024, with expectations that it will be sufficient to meet requirements for at least the next twelve months[79]. - Net cash used in operating activities was $1.3 million for the nine months ended September 30, 2024, a significant decrease from$6.0 million in the same period in 2023[84]. - Net cash used in investing activities was $1.4 million for the nine months ended September 30, 2024, primarily for capital expenditures related to new consumables production lines[86]. Future Outlook and Strategy - The company continues to face uncertainties related to global health crises, inflation, and regulatory compliance, which may impact future performance[60]. - The company plans to continue investing in research and development and manufacturing equipment to support future growth and product quality[79]. - Future capital requirements may vary and could necessitate drawing on credit facilities or raising additional capital[81]. - Koru Medical Systems is investing$3 million in R&D for new product development, focusing on innovative medical delivery systems[94]. - Koru Medical Systems plans to expand its market presence in Europe, targeting a 30% increase in sales in that region over the next year[94]. - The company is exploring potential acquisition opportunities to enhance its product portfolio and market reach[94]. - The company has launched a new product line that is expected to contribute an additional $5 million in revenue over the next two quarters[94]. - The company is implementing a new marketing strategy aimed at increasing brand awareness, with a budget allocation of$1 million for the next quarter[94].