ImmuCell(ICCC) - 2025 Q2 - Quarterly Report

PART I: FINANCIAL INFORMATION ITEM 1. Unaudited Financial Statements Presents ImmuCell's unaudited financial statements and notes for Q2 2025 and FY2024, covering Balance Sheets, Operations, Equity, and Cash Flows Balance Sheets The balance sheets show the company's financial position, with total assets increasing to $46.72 million as of June 30, 2025, from $45.10 million as of December 31, 2024 | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Total Assets | $46,720,898 | $45,100,477 | | Total Liabilities | $16,853,470 | $17,582,290 | | Total Stockholders' Equity | $29,867,428 | $27,518,187 | - Cash and cash equivalents increased by 60% to $5,998,494 as of June 30, 2025, from $3,758,232 as of December 31, 2024[8] - Inventory increased to $8,294,426 as of June 30, 2025, from $7,112,623 as of December 31, 2024[8] Statements of Operations The company reported a significant turnaround, moving from a net loss in 2024 to net income in 2025 | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Product sales | $6,444,880 | $5,472,890 | $14,512,054 | $12,730,467 | | Gross margin | $2,817,924 | $1,230,486 | $6,171,896 | $3,525,845 | | Net operating income (loss) | $569,562 | $(1,386,607) | $1,687,187 | $(1,686,660) | | Net income (loss) | $501,880 | $(1,531,626) | $1,948,863 | $(1,969,494) | | Basic net income (loss) per share | $0.06 | $(0.20) | $0.22 | $(0.25) | - Product sales increased by 18% for the three-month period and 14% for the six-month period ended June 30, 2025, compared to the respective periods in 2024[10] - Gross margin significantly improved, increasing by 129% for the three-month period and 75% for the six-month period ended June 30, 2025, compared to the respective periods in 2024[10] Statements of Stockholders' Equity Stockholders' equity increased, primarily driven by net income, At-The-Market (ATM) offerings of common stock, and stock-based compensation | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Total Stockholders' Equity | $29,867,428 | $27,518,187 | | Net Income (Loss) (6-month) | $1,948,863 | $(1,969,494) | | ATM Offering Proceeds (6-month) | $281,446 | $252,749 | | Stock-based Compensation (6-month) | $118,929 | $179,131 | - The company issued 63,230 shares through an At-The-Market Offering during the six-month period ended June 30, 2025, generating net proceeds of $281,446[13] Statements of Cash Flows Net cash provided by operating activities significantly improved to $3.18 million for the six-month period ended June 30, 2025, compared to $1 million in the prior year | Cash Flow Activity | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash provided by operating activities | $3,175,334 | $1,000,285 | | Net cash used for investing activities | $(454,977) | $(176,597) | | Net cash used for financing activities | $(480,095) | $(478,144) | | Net increase in cash and cash equivalents | $2,240,262 | $345,544 | | Ending cash and cash equivalents | $5,998,494 | $1,324,285 | - Cash and cash equivalents increased by $2,240,262 during the six-month period ended June 30, 2025, reaching $5,998,494[16] - Investing activities saw an increase in cash used, primarily for the purchase of property, plant, and equipment[16] Notes to Unaudited Financial Statements The notes provide detailed disclosures on the company's business operations, significant accounting policies, and specific financial accounts 1. BUSINESS OPERATIONS ImmuCell Corporation, an animal health company, focuses on products for dairy and beef cattle, particularly the First Defense product line and Re-Tain - ImmuCell Corporation specializes in animal health products for dairy and beef cattle, with two main segments: Scours (First Defense product line) and Mastitis (Re-Tain)[21] - The company experienced production contamination events from Q3 2022 through April 2024, and another in Q2 2025, which led to a production slowdown and negatively impacted sales and gross margin[21] - Re-Tain, a treatment for subclinical mastitis, is under development and, if approved, would be a first-of-its-kind new animal drug unrelated to human-use antibiotics[21] 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This section outlines the significant accounting policies followed by ImmuCell Corporation, including the basis of presentation, valuation methods, and revenue recognition - The financial statements are prepared in accordance with GAAP, requiring management to make estimates and assumptions, particularly for inventory valuation, Re-Tain related assets, deferred tax assets, and costs of goods sold[22][50] - The company considers highly liquid investment instruments maturing within three months as cash equivalents and holds no cash or cash equivalents in excess of FDIC limits[23] - Revenue is recognized when control of promised goods is transferred to customers, typically at shipment, with immaterial product returns historically[41] 3. TRADE ACCOUNTS RECEIVABLE Trade accounts receivable decreased to $2.38 million as of June 30, 2025, from $3.77 million as of December 31, 2024 | Metric | June 30, 2025 | December 31, 2024 | | :----------------------- | :-------------- | :---------------- | | Trade accounts receivable | $2,378,823 | $3,771,133 | - No allowance for credit losses or product returns was recorded as of June 30, 2025, or December 31, 2024, reflecting a very low historical credit loss rate[53] 4. INVENTORY Total inventory increased to $8.29 million as of June 30, 2025, from $7.11 million as of December 31, 2024, primarily driven by finished goods | Inventory Component | June 30, 2025 | December 31, 2024 | | :------------------ | :-------------- | :---------------- | | Raw materials | $1,514,140 | $1,356,228 | | Work-in-process | $5,582,991 | $5,746,865 | | Finished goods | $1,197,295 | $9,530 | | Total | $8,294,426 | $7,112,623 | - Finished goods inventory saw a significant increase from $9,530 to $1,197,295, indicating a build-up of ready-to-sell products[55] [5. PRE