electroCore(US:ECOR)2025-11-05 21:26Financial Performance - Net sales for Q3 2025 reached $8.689 million, a 32.5% increase from $6.554 million in Q3 2024[16] - Gross profit for Q3 2025 was $7.470 million, compared to $5.489 million in Q3 2024, reflecting a 36.1% increase[16] - Total operating expenses for Q3 2025 were $10.354 million, up from $8.140 million in Q3 2024, representing a 27.2% increase[16] - The net loss for Q3 2025 was $3.405 million, compared to a net loss of $2.497 million in Q3 2024, indicating a 36.3% increase in losses[16] - For the nine months ended September 30, 2025, the net loss was $10.931 million, compared to a net loss of $8.658 million for the same period in 2024, representing an increase of approximately 26.2%[25] - Total net sales for the three months ended September 30, 2025 were $8.7 million, a 32.4% increase from $6.6 million in the same period of 2024[48] - For the nine months ended September 30, 2025, total net sales reached $22.8 million, up 25.9% from $18.1 million in 2024[48] Expenses and Liabilities - Total operating expenses for Q3 2025 were $10.354 million, up from $8.140 million in Q3 2024, representing a 27.2% increase[16] - Research and development expenses for Q3 2025 were $662 thousand, up from $521 thousand in Q3 2024, a 27% increase[16] - Selling, general and administrative expenses for Q3 2025 were $9.692 million, compared to $7.619 million in Q3 2024, a 27.3% increase[16] - Accrued expenses and other current liabilities increased to $8,607,000 as of September 30, 2025, compared to $6,964,000 as of December 31, 2024[59] - Current liabilities increased to $12.141 million as of September 30, 2025, from $9.152 million at December 31, 2024[13] Cash and Assets - Cash and cash equivalents increased to $7.857 million as of September 30, 2025, from $3.450 million at December 31, 2024[13] - Total assets grew to $21.412 million as of September 30, 2025, compared to $20.471 million at December 31, 2024[13] - As of September 30, 2025, cash, cash equivalents, and restricted cash totaled $8.107 million, up from $3.700 million at December 31, 2024, reflecting a significant increase of approximately 118.5%[31] - As of September 30, 2025, the Company's cash position totaled $13.2 million, an increase from $12.2 million as of December 31, 2024[38][49] Stock and Equity - The company’s total stockholders' equity (deficit) as of September 30, 2025, was $(1.073) million, compared to $(188.021) million as of March 31, 2025, showing a significant improvement[22] - Stock-based compensation for the nine months ended September 30, 2025, was $1.460 million, slightly higher than $1.356 million in 2024, indicating a year-over-year increase of about 7.7%[25] - The company reported a basic net loss per share for the nine months ended September 30, 2025, with 2,899 total common stock equivalents considered in the diluted loss per share calculation[82] Market Operations - The company has paused operations in Germany, with sales in Europe managed by electroCore UK Ltd, indicating a strategic shift in market operations[27] - Sales to the United States Department of Veterans Affairs accounted for 69.9% of net sales for the three months ended September 30, 2025, compared to 72.9% in 2024[44] Financing and Agreements - The Loan and Security Agreement with Avenue provides for term loans of up to $12.0 million, with $7.5 million already advanced[41] - The Company secured a Loan and Security Agreement with Avenue for term loans totaling up to $12 million, with an initial tranche of $7.5 million[64] - The principal balance of the Term Loans bears interest at a variable rate, with a minimum of 12.5%[66] - The Company entered into a Sales Agreement allowing for the sale of up to $20 million in common stock, with $217,000 raised from the sale of 14,265 shares during the nine months ended September 30, 2025[78] Acquisitions and Investments - The company completed the acquisition of NURO on May 1, 2025, with contingent value rights potentially entitling holders to cash payments based on future sales[90] - Approximately $221,000 was distributed to former holders of NURO common stock under the CVR Agreement in October 2025[95] - The company incurred $120,000 in expenses for educational grants to the Vagus Nerve Society during the nine months ended September 30, 2025[99] Segment Information - The company operates as a single segment focused on Bioelectronic Innovations, with performance evaluated based on loss from operations[100] - Bioelectronic Innovations segment net sales for Q3 2025 reached $8.689 billion, a 32.5% increase from $6.554 billion in Q3 2024[102] - Gross profit for the segment in Q3 2025 was $7.470 billion, up 36.1% from $5.489 billion in Q3 2024[102] - Total operating expenses for the segment increased to $10.354 billion in Q3 2025, compared to $8.140 billion in Q3 2024, reflecting a 27.2% rise[102] - The loss from operations for Q3 2025 was $2.884 billion, compared to a loss of $2.651 billion in Q3 2024[102] Foreign Currency Exposure - The company is exposed to foreign currency fluctuations, particularly with sales in British Pound Sterling and Japanese Yen, which may impact competitiveness[171] - The company does not hedge its foreign currency exchange rate risk, which could affect financial results[173]