KORU Medical Systems(US:KRMD)2025-11-12 21:07Financial Performance - For the three months ended September 30, 2025, net revenues increased to $10,402,163, representing a 27.2% growth compared to $8,179,977 for the same period in 2024[12] - Gross profit for the three months ended September 30, 2025, was $6,264,571, up from $5,185,991 in the prior year, indicating a gross margin improvement[12] - The net loss for the three months ended September 30, 2025, was $777,966, a decrease from the net loss of $1,580,817 in the prior year, showing improved financial performance[12] - For the nine months ended September 30, 2025, the net loss was $2,151,070, a decrease of 52.2% compared to a net loss of $4,505,490 for the same period in 2024[15] - Net loss for Q3 2025 decreased to $0.8 million, a 50.8% improvement compared to a net loss of $1.6 million in Q3 2024[85] - Net loss decreased by $2.4 million to $2.2 million, representing a 52.3% improvement compared to the prior year[92] Revenue Breakdown - Total revenue for the three months ended September 30, 2025, was $10,402,163, an increase of 27.3% compared to $8,179,977 for the same period in 2024[41] - Domestic revenue for the three months ended September 30, 2025, was $6,706,639, a decrease of 4.5% from $7,022,811 in 2024, while international revenue increased significantly to $3,695,524 from $1,157,166[41] - For the nine months ended September 30, 2025, total revenue reached $30,232,038, up 21.5% from $24,807,864 in 2024[41] - Domestic core revenues decreased by 5.0% to $6.1 million, while international core revenues surged by 229.6% to $3.7 million[79] - Domestic core revenues rose by 8.6% to $20.1 million, while international core revenues surged by 82.9% to $8.3 million[86] Expenses and Costs - Operating expenses for the three months ended September 30, 2025, totaled $7,132,250, compared to $6,889,288 in the same period of 2024, reflecting a 3.5% increase[12] - Selling, general and administrative expenses increased by $1.5 million, or 9.7%, primarily due to higher compensation and legal fees[89] - Research and development expenses decreased by $0.9 million, or 21.7%, due to lower project spending and severance-related expenses[90] - The company incurred tariff-related charges of $0.1 million during Q3 2025, expecting a gross margin impact of less than 100 basis points annually[77] Assets and Liabilities - Total current assets as of September 30, 2025, were $19,419,296, slightly up from $19,132,410 as of December 31, 2024[9] - Cash and cash equivalents decreased to $8,464,019 as of September 30, 2025, down from $9,580,947 at the end of 2024[9] - Total liabilities as of September 30, 2025, were $10,638,701, up from $10,404,836 as of December 31, 2024, reflecting an increase in financial obligations[10] - Total stockholders' equity decreased to $16,464,825 as of September 30, 2025, from $16,813,679 as of December 31, 2024, indicating a decline in shareholder value[10] - Total stockholders' equity as of September 30, 2025, was $16,464,825, a decrease from $20,353,771 at the end of 2024[17] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025, was $632,351, a reduction from $1,259,333 in the prior year[15] - The company had a net decrease in cash and cash equivalents of $1,116,928 for the nine months ended September 30, 2025, compared to a decrease of $2,675,930 in the same period of 2024[15] - Cash on hand was approximately $8.5 million as of September 30, 2025, with inventory increasing by $1.6 million to $4.4 million[93][94] - Net cash used in investing activities was $0.5 million, primarily for manufacturing equipment purchases[100] - Net cash gained from financing activities was $0.04 million, mainly from employee stock option exercises[101] Stock-Based Compensation - The company reported stock-based compensation expense of $1,740,727 for the nine months ended September 30, 2025, compared to $1,924,131 in the same period of 2024[15] - Total stock-based compensation expense for time-vested stock options was $775,966 for the nine months ended September 30, 2025[50] - The company issued 183,881 shares of stock-based compensation during the nine months ended September 30, 2025[17] - The company has $3,210,584 of unrecognized compensation cost related to unvested employee restricted stock awards, RSUs, and PSUs, expected to be recognized over a weighted-average period of 26 months[57] Loans and Credit Facilities - The company entered into a loan agreement providing for a $5,000,000 revolving credit facility and a $5,000,000 term loan facility, with no outstanding borrowings as of September 30, 2025[58] Asset Management - The company has recognized total property and equipment of $8,283,277 as of September 30, 2025, an increase from $7,763,422 as of December 31, 2024[44] - The company did not record any impairment losses for the three or nine months ended September 30, 2025, indicating stable asset performance[43] Lease Obligations - Operating lease costs for the three months ended September 30, 2025, were $130,785, compared to $116,772 in 2024, reflecting an increase in lease expenses[60] - The weighted average remaining lease term for operating leases decreased from 5.1 years in 2024 to 4.3 years in 2025[62] - Total undiscounted lease payments amounted to $3.6 billion, with total lease liabilities at $3.1 billion for operating leases[62]