KORU Medical Systems(US:KRMD)2025-08-06 20:11Financial Performance - The company reported net revenues of $10.2 million for Q2 2025, a 20.9% increase from $8.4 million in Q2 2024, driven by a 15.3% growth in domestic core and a 33.9% growth in international core revenues[75]. - Gross profit for Q2 2025 was $6.5 million, an 18.2% increase compared to $5.5 million in Q2 2024, with a gross margin of 63.5%, down from 65.0% in the prior year due to a one-time inventory valuation adjustment[76]. - For the six months ended June 30, 2025, total net revenues increased by 19.3% to $19.8 million, with domestic core revenues rising by 15.8% to $14.0 million and international core revenues increasing by 34.8% to $4.6 million[86]. - Gross profit for the first half of 2025 was $12.5 million, an 18.3% increase from $10.6 million in the same period of 2024, with a gross margin of 63.1%[87]. - The net loss for Q2 2025 decreased to $206,867, a 79.1% improvement from a net loss of $988,715 in Q2 2024, attributed to increased gross profit[84]. - Net loss decreased by $1.6 million, or 53.1%, to $1.4 million for the six months ended June 30, 2025, driven by an increase in gross profit of $1.9 million, or 18.3%[90]. Operating Expenses - Operating expenses for Q2 2025 were $6.8 million, a slight increase of 1.7% from $6.7 million in Q2 2024, primarily due to higher selling, general, and administrative expenses[77]. - Selling, general and administrative expenses increased by $0.7 million, or 6.2%, to $11.3 million for the six months ended June 30, 2025, compared to the prior year[88]. - Total operating expenses increased by $0.3 million, or 2.5%, to $14.1 million for the six months ended June 30, 2025[88]. - Research and development expenses increased by 5.3% to $1.2 million in Q2 2025, driven by higher temporary headcount spend related to new product development[83]. - Research and development expenses decreased by $0.3 million, or 11.5%, to $2.3 million for the six months ended June 30, 2025, primarily due to lower project spending[89]. Cash Flow and Financial Position - Cash on hand was $8.1 million as of June 30, 2025, with expectations that it will be sufficient to meet requirements for at least the next twelve months[91]. - Net cash used in operating activities was $0.7 million for the six months ended June 30, 2025, compared to $0.3 million in the prior year[95]. - Net cash used in investing activities was $0.5 million for the six months ended June 30, 2025, primarily for capital expenditures related to manufacturing equipment[97]. - Net cash used in financing activities was $0.4 million for the six months ended June 30, 2025, due to payments on a note payable for insurance premium financing[98]. - Future capital requirements may vary and could necessitate drawing on credit facilities or seeking additional financing[93]. Inventory and Tariff Impact - Inventory position increased by $1.1 million to $3.9 million at June 30, 2025, compared to December 31, 2024[92]. - The company incurred tariff-related charges of $0.1 million in Q2 2025, expecting a gross margin impact of less than 100 basis points on an annualized basis[77]. Market Focus - The company is focused on expanding its market presence and enhancing its product offerings in the subcutaneous drug delivery market[73]. - The company’s revenues from pharma services and clinical trials increased by 42.1% to $0.9 million in Q2 2025, primarily due to higher revenues from product sales for clinical trials[79].