Financial Performance - Third-quarter net revenue was $3.5 million, an 8% increase from Q2 2024 but a 6% decrease compared to Q3 2023[2] - The company achieved a net income of $0.2 million, compared to a net loss of $0.2 million in the same period last year[2] - Adjusted EBITDA for the quarter was $295,000, a significant increase from $11,000 in Q3 2023[9] - Gross margins improved to 61% in Q3 2024, up from 59% in Q3 2023, due to better terms with the largest supplier[5] - Selling, general and administrative expenses decreased to $1.7 million from $2.1 million in the same period last year, attributed to lower stock compensation and bonus accruals[7] Cash Flow and Assets - Cash and cash equivalents as of September 30, 2024, were $2.5 million, down from $4.3 million at the end of 2023, primarily due to operating losses in the first half of 2024[10] - Total current assets decreased to $7,356,000 from $8,405,000, a decline of approximately 12.5%[22] - Cash and cash equivalents decreased to $2,457,000 from $4,307,000, a decline of approximately 42.9%[22] - Accounts receivable increased to $1,691,000 from $1,496,000, an increase of approximately 13.0%[22] - Inventory increased to $3,099,000 from $2,470,000, an increase of approximately 25.4%[22] Liabilities and Equity - Total liabilities decreased to $2,212,000 from $3,503,000, a decline of approximately 37.0%[22] - Current liabilities decreased to $1,058,000 from $2,113,000, a decline of approximately 50.0%[22] - Lease liabilities decreased to $1,154,000 from $1,390,000, a decline of approximately 17.0%[22] - Total stockholders' equity decreased to $8,174,000 from $8,358,000, a decline of approximately 2.2%[22] - Accumulated deficit increased to $(144,681,000) from $(144,406,000) indicating a deeper loss[22] - Additional paid-in capital increased slightly to $152,844,000 from $152,754,000[22] Operational Focus - The South Central region underperformed, leading to a reorganization, despite overall solid growth in most sales regions[3] - The company is preparing to launch digital support for filter installation and is enhancing service capabilities to improve customer compliance with filter change schedules[3] - Nephros is focused on maintaining positive cash flow and profitability while managing expenses and improving operational efficiency[19] Research and Development - Research and development expenses remained stable at $0.2 million for both Q3 2024 and Q3 2023[6]
Nephros(NEPH) - 2024 Q3 - Quarterly Results