Rockwell Medical(US:RMTI)2024-05-14 11:11Financial Performance - Net sales for the three months ended March 31, 2024, increased to $22.676 million, up 15.3% from $19.668 million in the same period of 2023[15] - Gross profit for the same period was $3.064 million, representing a gross margin of 13.5%, compared to $2.599 million and a margin of 13.2% in 2023[15] - The operating loss narrowed to $1.324 million for Q1 2024, compared to a loss of $1.427 million in Q1 2023, indicating improved operational efficiency[15] - Net loss for the three months ended March 31, 2024, was $1.731 million, slightly better than the net loss of $1.750 million in the prior year[15] - Basic and diluted net loss per share improved to $0.06 for Q1 2024, compared to $0.10 for Q1 2023[15] - For the three months ended March 31, 2024, Rockwell reported a net loss of $1.731 million, compared to a net loss of $1.750 million for the same period in 2023, representing a decrease of approximately 1.1%[28] - For the three months ended March 31, 2024, net revenue was $22.676 million, an increase from $19.668 million for the same period in 2023, representing a growth of approximately 10.2%[68] - Rockwell Medical's total stockholders' equity as of March 31, 2024, was $20.643 million, a decrease from $21.291 million at the beginning of the year[21] Assets and Liabilities - Total assets decreased to $50.723 million as of March 31, 2024, down from $52.173 million at the end of 2023[12] - Total liabilities decreased to $30.080 million as of March 31, 2024, compared to $30.882 million at December 31, 2023[12] - Cash and cash equivalents decreased to $6.642 million from $8.983 million at the end of 2023, reflecting cash usage in operations[11] - The company reported an increase in accounts receivable to $11.094 million, up from $10.901 million at the end of 2023, indicating higher sales volume[11] - Total current assets decreased to $26.7 million as of March 31, 2024, down from $28.8 million as of December 31, 2023[11] - Total inventory as of March 31, 2024, was $6.251 million, slightly up from $6.049 million as of December 31, 2023[79] - The company had total current concentrate inventory of $6.1 million as of March 31, 2024, with a reserve of $25,000[80] - As of March 31, 2024, accounts receivable net was $11.094 million, up from $10.901 million as of December 31, 2023[70] Cash Flow and Financing - Net cash used in operating activities for the three months ended March 31, 2024 was approximately $2.4 million, an improvement from $3.9 million in the same period of 2023[35] - Rockwell's net cash provided by financing activities was $178,000 for the three months ended March 31, 2024, compared to a net cash used of $631,000 in the same period of 2023[28] - The company may require additional capital to sustain operations and execute its strategic plan, with $10.4 million available under its at-the-market facility[36] - The company sold 358,210 shares under the ATM facility for net proceeds of $0.6 million during the three months ended March 31, 2024[96] - The Company entered into a Loan and Security Agreement with Innovatus for up to $35.0 million, with net drawdown proceeds of $21.2 million and closing costs of $1.3 million[118] Customer and Revenue Concentration - Rockwell's customer DaVita, Inc. accounted for approximately 44% of total net product sales for the three months ended March 31, 2024, highlighting significant customer concentration risk[61] - The company recognized $0.5 million in revenue expected to be recognized in future years related to remaining performance obligations as of March 31, 2024[73] - The company recognized revenue from drug products of $11,000 and concentrate products of $22.665 million for the three months ended March 31, 2024[68] - The company entered into an Amended Agreement with DaVita, which includes an increase in product pricing effective September 1, 2023, and a one-time payment of $0.4 million to be recorded as revenue in Q4 2023[66] Operational Efficiency and Cost Management - Research and product development expenses were significantly reduced to $18, down from $278 in Q1 2023, reflecting a strategic shift in spending[15] - The company has implemented cost containment activities while continuing to review operational plans and acquire new customers[36] - The company is currently in compliance with all covenants under its Loan Agreement with Innovatus as of March 31, 2024[37] - The company has utilized various financing methods in the past, but current market conditions may limit future funding availability[39] Stock and Equity - Rockwell's weighted average number of shares outstanding increased to 29,327,204 for the three months ended March 31, 2024, compared to 18,359,940 for the same period in 2023[45] - As of March 31, 2024, there were 29,556,474 shares of common stock issued and outstanding, an increase from 29,130,607 shares as of December 31, 2023[91] - The Series X Preferred Stock has accreted a total of $0.2 million as of March 31, 2024[87] - The company issued a warrant to purchase 191,096 shares of common stock with an exercise price of $1.83 per share on January 2, 2024[99] Future Outlook and Strategic Considerations - The company is assessing the impact of recent accounting pronouncements, including ASU 2023-07 and ASU 2023-09, on its financial reporting[49][50] - Rockwell Medical's operational plans are affected by global macroeconomic uncertainties, including trade tariffs and geopolitical tensions[38]