ImmuCell(US:ICCC)2025-11-13 21:08Financial Performance - Net cash provided by operating activities increased by approximately $1.6 million to $2 million for the nine-month period ended September 30, 2025, compared to $361,000 for the same period in 2024[129] - The company experienced a $4.5 million swing from a net loss to net income during the nine-month period ended September 30, 2025[129] - The company achieved a net operating income of $20,000 for the quarter ended September 30, 2025, compared to a net operating loss of $575,000 for the same quarter in 2024, reflecting a $595,000 improvement[198] - For the nine-month period ended September 30, 2025, the company reported a net operating income of $1.7 million, a significant turnaround from a net operating loss of $2.3 million in the prior year, resulting in a $4.0 million swing[198] - The company recorded a net loss of $140,000, or $0.02 per basic share, for the quarter ended September 30, 2025, compared to a net loss of $702,000, or $0.09 per basic share, in the same quarter of 2024[203] Assets and Equity - Total assets increased by $630,000 to $45.73 million as of September 30, 2025, compared to $45.1 million as of December 31, 2024[134] - Stockholders' equity rose by $2.28 million to $29.8 million as of September 30, 2025, compared to $27.52 million as of December 31, 2024[134] - Cash and cash equivalents increased by $128,000 to $3.89 million as of September 30, 2025, compared to $3.76 million as of December 31, 2024[134] - The company had aggregate debt outstanding of approximately $9.5 million as of September 30, 2025, down from $10.5 million as of December 31, 2024[133] Production Capacity and Investments - The company plans to invest approximately $3 million to increase annual production capacity for the First Defense® product line from approximately $30 million to $40 million or more[130] - The annual production capacity for the First Defense® product line was increased from approximately $16.5 million to approximately $30 million or more through significant investments made since 2014[135] - The construction of an additional 15,400 square feet for First Defense® aims to increase annual production capacity from approximately $30 million to $40 million[140] - Total investments in First Defense® and Re-Tain® from 2019 to September 30, 2025, amount to approximately $15.5 million, with an estimated completion cost of $5.3 million[144] Sales and Revenue - Sales revenue decreased by 8% in Q3 2025 compared to Q3 2024, with total product sales reported at $5.506 million[157] - Domestic sales increased by 6% during the nine-month period ended September 30, 2025, while international sales increased by 15%[157] - The Tri-Shield® product line accounted for 68% of total product sales in Q3 2025, generating $3.77 million, compared to 65% and $3.89 million in Q3 2024[160] - Total product sales for the nine-month period ended September 30, 2025, reached $20.02 million, a 6.8% increase from $18.74 million in the same period of 2024[160] Gross Margin and Expenses - The gross margin during the nine-month period ended September 30, 2025 would have been approximately 44.7% if scrap costs of $410,000 had been avoided[149] - Gross margin for the nine-month period ended September 30, 2025, was $8.54 million, representing 43% of product sales, up from 27% in 2024[164] - Sales and marketing expenses for Q3 2025 increased by 9% to $919,000, amounting to 17% of product sales, compared to 14% in Q3 2024[171] - Administrative expenses increased by 38% to $729,000 for the quarter ended September 30, 2025, compared to $528,000 in the same quarter of 2024, representing 13% of product sales[197] Product Development and Regulatory - The company is exploring potential partnerships for Re-Tain® to offset product development expenses after investing approximately $53 million over 26 years[128] - Product development expenses for Re-Tain® decreased by 12% to $694,000 in Q3 2025 compared to $786,000 in Q3 2024, and aggregated approximately 13% of product sales for both quarters[179] - During the nine-month period ended September 30, 2025, product development expenses decreased by 26% to $2.3 million compared to $3.1 million in the same period of 2024[179] - The FDA granted a zero milk-discard period for Re-Tain®, with expectations that any required discard period at launch will be significantly shorter than those for traditional antibiotics[178] Quality Control and Market Expansion - The company has implemented new quality control steps and manufacturing process improvements to mitigate future contamination risks[147] - The company sees significant opportunities for market expansion both domestically and internationally, aiming to displace more competition in North America[173] - The company is testing market acceptance of Re-Tain® in collaboration with Michigan State University, with studies expected to complete in Q1 2026[178] Inventory and Financial Controls - Work-in-Process inventory as of September 30, 2025, was valued at $5.95 million, with hyperimmunized colostrum being the largest component[169] - The company recorded a non-cash write-down of $156,000 in Q3 2025 to adjust the value of hyperimmunized colostrum to market value[169] - Inventory is valued at the lower of cost or net realizable value, with significant estimates involved in determining cost accounting[208] - There were no material changes in internal control over financial reporting during the quarter ended September 30, 2025[210] - Management evaluated the effectiveness of disclosure controls and procedures as of September 30, 2025, concluding they were effective[209]