Financial Data and Key Metrics Changes - Net sales for Q1 2025 were $18.9 million, a 17% decrease from $22.7 million in Q1 2024, primarily due to the largest customer transitioning to another supplier [12] - Gross profit for Q1 2025 was $3 million, consistent with Q1 2024, while gross margin increased to 16% from 14% in the same period last year [13] - Net loss for Q1 2025 was $1.5 million, an improvement from a net loss of $1.7 million in Q1 2024 [13] - Cash and cash equivalents decreased to $17.3 million from $21.6 million at the end of 2024, attributed to timing of payments and seasonal expenses [14] Business Line Data and Key Metrics Changes - The addition of a single-use bicarbonate cartridge technology to the product portfolio represents a growth opportunity in the dialysis products market [9] - The company continues to diversify its customer base, signing new contracts with leading hemodialysis providers [5] Market Data and Key Metrics Changes - Approximately 90% of revenue comes from U.S. dialysis providers, with only 10% generated internationally, and only one country is affected by recent U.S. tariff actions [8] - The company is actively pursuing business development opportunities to strengthen its position in the renal market and expand internationally [10] Company Strategy and Development Direction - The company aims to maintain a long-term arrangement with its largest customer, albeit at a smaller scale than previously [20] - Rockwell Medical is focused on expanding its customer base both domestically and internationally, particularly in Latin America and the West Coast of the U.S. [30][31] - The company is optimistic about the at-home dialysis market, which is expected to grow and provide higher margins [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the largest customer's transition but expressed confidence in the guidance provided for 2025 [21] - The second quarter is anticipated to be the low point for revenue, with expectations of improvement in subsequent quarters [22] Other Important Information - The company is monitoring the impact of a recent cyber attack in the industry but has not experienced direct implications on its systems [6] - The company has reiterated its projected guidance for 2025, with net sales expected between $65 million and $70 million [11] Q&A Session Summary Question: What are the scenarios arising from negotiations with the largest customer? - Management indicated that negotiations are ongoing to maintain some level of service, likely at a smaller scale than before [20] Question: What is the revenue cadence expected for the remainder of 2025? - Management stated it is difficult to predict but expressed confidence in the guidance provided, with Q2 likely being the low point [21][22] Question: What is the status of the at-home dialysis market? - The at-home market is progressing as expected, with increasing sales and higher margins anticipated [24] Question: What are the opportunities for international market expansion? - The company sees significant opportunities in Latin America and is exploring expansion into the West Coast of the U.S. [30][31] Question: How much revenue can be replaced from new customers? - Management believes there are enough opportunities among small independent dialysis providers to replace a significant portion of lost revenue [33] Question: Is the revenue guidance based on the current customer base? - Yes, the guidance is based on the current customer base, with potential upside from new customers [35]

Financial Data and Key Metrics Changes - For the full year of 2024, the company generated net sales of $101,500,000, representing a 21% increase over net sales of $83,600,000 for 2023 [5][22] - Gross margin for the full year 2024 was 17%, an improvement from 10% in 2023 [23] - Adjusted EBITDA for the full year 2024 was a positive $5,200,000, representing a $9,000,000 improvement over a negative adjusted EBITDA of $3,900,000 in 2023 [25] Business Line Data and Key Metrics Changes - Net product sales for the full year 2024 were $101,400,000, a 27% increase over 2023, driven by new customers from the Evoqua acquisition and a large order from the largest customer [22] - Gross profit for Q4 2024 was $3,600,000, a 27% increase over Q4 2023 [23] Market Data and Key Metrics Changes - The company has expanded its distribution agreement with Nephro Group Dialysis Centers in the Philippines, becoming the exclusive supplier of all dry hemodialysis concentrate products [16] - International sales continue to grow, with products sold in over 30 countries [16] Company Strategy and Development Direction - The company aims to diversify its customer base and product portfolio while optimizing its business operations [10][72] - Plans for 2025 include targeting additional customers representing an estimated 14,500,000 gallons of potential business [19] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a transition year but aims to return to growth within the same year [36] - The transition away from the largest customer is expected to result in a loss of approximately $34,000,000 in revenue compared to 2024 [8] Other Important Information - The company terminated its agreement with a third-party contract manufacturer, which will save over $2,000,000 annually in fixed overhead costs [9][24] - Cash, cash equivalents, and investments at the end of 2024 were $21,600,000, an increase from $10,900,000 at the end of 2023 [26] Q&A Session Summary Question: Revenue from the largest customer in 2025 - The largest customer historically generated around $45,000,000, and the expected decline of $34,000,000 is a good way to think about the revenue guidance for 2025 [30][31] Question: Transition year and expense reductions - Management views 2025 as a transition year but aims for growth within the same year, with expense reductions being implemented to mirror the decline in volume [34][36] Question: Factors leading to the largest customer's pivot - The decision by the largest customer to diversify its supplier base was made prior to the current management's arrival, and there are no current issues with other customers [44][46] Question: Growth of the bicarbonate cartridge business - The strategy is to introduce the new bicarbonate cartridge product to the existing customer base, with expectations for short-term sales growth in 2025 [49] Question: Guidance assumptions and international expansion - The revenue guidance for 2025 assumes the largest customer will transition away completely, and any agreements reached would be upside to the guidance [54][56]

Financial Data and Key Metrics Changes - For the full year of 2024, the company generated net sales of $101,500,000, representing a 21% increase over net sales of $83,600,000 for 2023 [5][22] - Gross margin for the full year 2024 was 17%, an improvement from 10% in 2023 [23] - Adjusted EBITDA for the full year of 2024 was a positive $5,200,000, representing a $9,000,000 improvement over a negative adjusted EBITDA of $3,900,000 in 2023 [25] Business Line Data and Key Metrics Changes - Net product sales for the full year 2024 were $101,400,000, a 27% increase over 2023, driven by new customers from the Evoqua acquisition and a large order from the largest customer [22] - Gross profit for Q4 2024 was $3,600,000, a 27% increase over Q4 2023 [23] Market Data and Key Metrics Changes - The company has expanded its international sales, currently selling products in over 30 countries [17] - The single-use bicarbonate disposables market represents an approximate $100,000,000 opportunity, one of the fastest-growing segments within the dialysis products market [18] Company Strategy and Development Direction - The company aims to diversify its customer base and product portfolio while optimizing its business operations [10][72] - Plans for 2025 include targeting additional customers representing an estimated 14,500,000 gallons of potential business [20] Management's Comments on Operating Environment and Future Outlook - Management views 2025 as a transition year but aims to return to growth within the same year [36] - The transition away from the largest customer is expected to result in a loss of approximately $34,000,000 in revenue compared to 2024 [8] Other Important Information - The company terminated its agreement with a third-party contract manufacturer, which will save over $2,000,000 annually in fixed overhead costs [9][24] - Cash, cash equivalents, and investments at the end of 2024 were $21,600,000, an increase from $10,900,000 at the end of 2023 [26] Q&A Session Summary Question: Revenue from the largest customer in 2025 - The largest customer historically generated around $45,000,000, and with the expected transition, a loss of $34,000,000 is anticipated, leading to a revenue estimate of approximately $11,000,000 from this customer in 2025 [30][31] Question: Discussions with the largest customer - The transition is to diversify their supplier base, and discussions are ongoing regarding future volume commitments, which are not included in the current guidance [32][33] Question: Transition year and expense reductions - 2025 is viewed as a transition year, with plans to return to growth, and expense reductions will be implemented to align with the expected decline in volume [34][35] Question: Factors leading to the largest customer's decision - The decision to pivot away was made prior to the current management's arrival, and there are no current issues with other customers [44][46] Question: Growth strategy for the bicarbonate cartridge business - The strategy involves introducing the product to the existing customer base, with expectations for growth as customers switch to compatible machines [48][49] Question: Guidance and revenue offset strategies - The guidance for 2025 assumes the largest customer will transition away completely, and any successful negotiations would be considered upside to the guidance [54][56]