Rockwell Medical(US:RMTI)2025-11-12 12:05Financial Performance - For the three months ended September 30, 2025, net sales were $15,927,000, a decrease of 43.8% compared to $28,316,000 for the same period in 2024[13] - Gross profit for the nine months ended September 30, 2025, was $7,817,000, down 43.6% from $13,853,000 in the same period of 2024[13] - The company reported a net loss of $1,753,000 for the three months ended September 30, 2025, compared to a net income of $1,664,000 for the same period in 2024[16] - The company’s operating loss for the nine months ended September 30, 2025, was $4,293,000, compared to an operating income of $1,127,000 for the same period in 2024[13] - Basic net loss per share for the three months ended September 30, 2025, was $(0.05), compared to a basic net income per share of $0.05 for the same period in 2024[13] - For the nine months ended September 30, 2025, Rockwell Medical reported a net loss of $4,760,000 compared to a net income of $276,000 for the same period in 2024[22] - The comprehensive loss for the same period was $1,737,000, contrasting with a comprehensive income of $1,677,000 in the prior year, reflecting a negative shift in overall financial health[16] Assets and Liabilities - Total assets decreased to $57,486,000 as of September 30, 2025, from $59,208,000 as of December 31, 2024, reflecting a decline of 2.9%[10] - Total liabilities decreased significantly to $20,466,000 as of September 30, 2025, down 23% from $26,622,000 as of December 31, 2024[10] - Stockholders' equity increased to $37,020,000 as of September 30, 2025, up 13.9% from $32,586,000 as of December 31, 2024[11] - The accumulated deficit increased to $402,438,000 as of September 30, 2025, from $400,685,000 as of June 30, 2025[18] - As of September 30, 2025, total current assets were $37.5 million, slightly up from $37.0 million as of December 31, 2024[10] Cash Flow and Capital Raising - Cash flows from operating activities resulted in a net cash used of $2,950,000 for the nine months ended September 30, 2025, compared to a net cash provided of $3,337,000 in 2024[22] - The company had cash and cash equivalents of $13,610,000 as of September 30, 2025, down from $15,662,000 as of December 31, 2024[10] - The company issued 4,964,636 shares of common stock, raising $7,800,000 net of offering costs during the quarter[18] - The company may require additional capital to sustain operations and has $13.1 million available under its at-the-market facility for potential capital raising[30] Inventory and Expenses - Rockwell Medical's inventory increased by $1,875,000 in the nine months ended September 30, 2025, while it decreased by $331,000 in the same period of 2024[22] - The company reported a write-off of inventory amounting to $178,000 in 2025, while there was no such write-off in 2024[22] - The company incurred severance and closure-related costs of $0.5 million and $0.8 million during the three and nine months ended September 30, 2025, respectively[40] - The total lease expense for the nine months ended September 30, 2025, was $2.264 million, compared to $2.081 million for the same period in 2024, reflecting an increase of approximately 8.8%[110] Stock-Based Compensation - Stock-based compensation for the quarter was recorded at $532,000, contributing to the overall expenses[18] - The company recognized total stock-based compensation expense of $1,359,000 for the nine months ended September 30, 2025, an increase of 49.2% from $910,000 for the same period in 2024[90] - The company granted 717,000 restricted stock units with a market condition during the nine months ended September 30, 2025, with a grant date fair value of $0.6 million[93] Market and Customer Information - Revenue from sales to DaVita, Inc. represented approximately 12% of total revenues for the three months ended September 30, 2025, down from 52% in the same period of 2024[50] - The company has a diverse customer mix, with no single customer accounting for more than 10% of total revenues for the three months ended September 30, 2025[50] - The company operates in one market segment, the hemodialysis market, focusing on the manufacture and distribution of hemodialysis products[70] Debt and Financing - The Term Loans bore an initial interest rate of 8.75% per annum, with a maturity scheduled for March 16, 2025[114] - As of September 30, 2025, the outstanding balance of the Term Loans was $8.7 million, net of unamortized issuance costs and discount of $0.5 million, including $0.8 million of premium accretion and paid-in-kind interest of $0.3 million[119] - The Company is currently in compliance with all covenants under its Loan Agreement with Innovatus, which was amended to extend the maturity date to January 1, 2029[31] Economic and Operational Challenges - The company is unable to quantify the potential effects of global economic and political instability on its future operations[32] - The global macroeconomic environment remains uncertain, potentially affecting the company's future operations[32] - The company is assessing the impact of recent accounting pronouncements on its consolidated financial statements[43]