KORU Medical Systems(US:KRMD)2025-05-07 20:22Revenue and Profitability - The company reported net revenues of $9.6 million for Q1 2025, a 17.5% increase from $8.2 million in Q1 2024, driven by a 16.4% growth in domestic core revenues and a 35.6% increase in international core revenues [75]. - Gross profit for Q1 2025 was $6.0 million, an 18.5% increase from $5.1 million in Q1 2024, with a gross margin of 62.8%, up from 62.3% in the prior year [76][81]. - The company experienced a net loss of $1.2 million in Q1 2025, a 39.8% improvement from a net loss of $1.9 million in Q1 2024 [85]. Expenses - Operating expenses increased to $7.3 million in Q1 2025, compared to $7.1 million in Q1 2024, primarily due to a rise in selling, general, and administrative expenses [77][83]. - Selling, general, and administrative expenses rose by 11.2% to $6.0 million in Q1 2025, driven by increased compensation-related expenses and legal fees [83]. - Research and development expenses decreased by 24.5% to $1.1 million in Q1 2025, primarily due to timing of project spending [84]. Cash Flow and Investments - Cash on hand as of March 31, 2025, was $8.7 million, with inventory increasing to $3.3 million, reflecting a $0.5 million rise from December 31, 2024 [86][87]. - Net cash used in operating activities was $0.2 million for Q1 2025, an improvement from $0.3 million in Q1 2024, primarily due to a lower net loss and changes in working capital [90][91]. - The company invested $0.4 million in capital expenditures for manufacturing equipment related to new consumables production lines in Q1 2025 [92]. - The company anticipates that cash on hand and cash flows from operations will be sufficient to meet requirements for at least the next twelve months [88]. Accounting and Market Risk - No significant accounting policies have been adopted that would impact the financial statements [94]. - There are no applicable quantitative and qualitative disclosures about market risk [95].