Rockwell Medical(US:RMTI)2021-08-16 21:13Financial Performance - Net sales for the three months ended June 30, 2021, were $15.137 million, a decrease of 4.8% compared to $15.896 million for the same period in 2020[12] - The company reported a net loss of $8.400 million for the three months ended June 30, 2021, compared to a net loss of $6.892 million for the same period in 2020, indicating an increase in losses of approximately 22%[12] - Gross profit for the six months ended June 30, 2021, was $140, compared to $1.994 million for the same period in 2020, indicating a significant decline in profitability[12] - Basic and diluted net loss per share for the three months ended June 30, 2021, was $0.09, compared to $0.10 for the same period in 2020[12] - The company reported a comprehensive loss of $16,157,000 for the first half of 2021, compared to $14,882,000 for the same period in 2020[14] - The company reported a net loss of $16.15 million for 2021, compared to a net loss of $14.88 million in 2020, indicating a year-over-year increase in losses of approximately 8.5%[22] Assets and Liabilities - Total assets decreased from $77.748 million as of December 31, 2020, to $63.684 million as of June 30, 2021, representing a decline of approximately 18%[10] - Total current liabilities rose significantly from $12.793 million as of December 31, 2020, to $34.038 million as of June 30, 2021, marking an increase of approximately 166%[10] - The company’s accumulated deficit increased from $337.406 million as of December 31, 2020, to $353.558 million as of June 30, 2021, representing a deterioration of about 4.8%[10] - As of June 30, 2021, the accumulated deficit was approximately $353.6 million, with stockholders' equity of $18.2 million[27] - The company had approximately $41 million in cash, cash equivalents, and investments available-for-sale as of June 30, 2021[27] Research and Development - Research and product development expenses increased to $2.416 million for the three months ended June 30, 2021, up from $1.616 million in the same period of 2020, reflecting a rise of 49.5%[12] - The company plans to advance its ferric pyrophosphate citrate (FPC) platform strategy outside of dialysis with a Phase II trial for iron deficiency anemia in 2021[25] Revenue Recognition and Agreements - The company recognizes revenue based on the transfer of control of products, with payment terms averaging 30 days for customers and 45 days for distributors[52] - The company recognized $9.1 million in revenue expected to be recognized in future years related to remaining performance obligations as of June 30, 2021, primarily from upfront payments[61] - The Baxter Agreement includes unfulfilled minimum commitments of product sales amounting to $6.2 million as of June 30, 2021, to be amortized through October 2, 2024[61] - The company recognized approximately $0.5 million and $1.0 million in revenue from the Baxter Agreement for the three and six months ended June 30, 2021, respectively[69] Stock-Based Compensation - The Company recognized total stock-based compensation expense of $433,000 for the three months ended June 30, 2021, compared to a negative expense of $1,461,000 for the same period in 2020[85] - The company recognized stock-based compensation expense of $0.1 million for the three months ended June 30, 2021, and $0.2 million for the six months ended June 30, 2021[88] - As of June 30, 2021, total unrecognized stock-based compensation expense related to unvested options was approximately $2.0 million, expected to be recognized over an estimated average term of 3.0 years[93] Operational Challenges - The COVID-19 pandemic has adversely affected the company's sales and marketing efforts, as well as research and development activities[32] - The company expects to require additional capital to sustain operations and execute its strategic plan, including the commercialization of Triferic and Triferic AVNU[29] - The company has utilized various financing methods to fund operations, but current market conditions may limit funding availability[33]