Nuwellis(NUWE) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $2.2 million, a decrease of 6% year-over-year but an increase of 29% sequentially[4] - Pro-forma revenue grew approximately 7% year-over-year after excluding one-time SeaStar medical revenue of $0.2 million from the prior year[5] - Gross margin was 65.2%, down from 70.0% in the prior year quarter due to unfavorable manufacturing utilization[6] - Operating expenses totaled $4.1 million, up 30% year-over-year, reflecting increased investment in rebuilding the U.S. sales force[7] - Operating loss was $2.7 million, compared to a loss of $1.5 million in the previous year[8] - Net loss for the nine months ended September 30, 2025, was $15,099,000, compared to a net loss of $9,697,000 for the same period in 2024, representing a 55.5% increase in losses[23] Cash Flow and Liquidity - The company ended the quarter with $3.1 million in cash and cash equivalents and remains debt-free[9] - Net cash used in operating activities was $7,780,000 for the nine months ended September 30, 2025, slightly improved from $8,087,000 in 2024[23] - Cash and cash equivalents at the end of the period were $3,094,000, up from $1,907,000 at the end of the same period in 2024, indicating a 62.3% increase[23] - Net cash provided by financing activities was $5,888,000, compared to $6,246,000 in the previous year, showing a decrease of 5.7%[23] - The company raised $1.9 million through an ATM facility during the quarter[4] - The company issued common stock and warrants from offerings, netting $3,999,000, an increase from $2,403,000 in 2024[23] - The company experienced a net decrease in cash and cash equivalents of $2,001,000, compared to a decrease of $1,893,000 in the prior year[23] Expense Management - Depreciation and amortization expenses decreased to $166,000 from $227,000, reflecting a 26.9% reduction[23] - Stock-based compensation expense decreased significantly to $103,000 from $374,000, a decline of 72.5%[23] Product Development and Market Expansion - All customer categories achieved year-over-year growth in circuit sales, indicating broader adoption across critical care, heart failure, and pediatrics[4] - The U.S. launch of a new 24-hour circuit and dual-lumen extended-length catheter enhances provider flexibility[4] - Pediatric product development accelerated through an NIH-funded collaboration and a newly issued U.S. patent[4] Warrant Liabilities - The change in fair value of warrant liabilities improved to a loss of $4,101,000 from a loss of $4,602,000, indicating a 10.9% improvement[23] - The reclassification of April 2024 warrants to equity was recorded as $0, down from $4,217,000 in 2024[23]