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Nephros(NEPH) - 2024 Q3 - Quarterly Results
NEPHNephros(NEPH)2024-11-13 21:15

Financial Performance - Third-quarter net revenue was 3.5million,an83.5 million, an 8% increase from Q2 2024 but a 6% decrease compared to Q3 2023[2] - The company achieved a net income of 0.2 million, compared to a net loss of 0.2millioninthesameperiodlastyear[2]−AdjustedEBITDAforthequarterwas0.2 million in the same period last year[2] - Adjusted EBITDA for the quarter was 295,000, a significant increase from 11,000inQ32023[9]−Grossmarginsimprovedto6111,000 in Q3 2023[9] - Gross margins improved to 61% in Q3 2024, up from 59% in Q3 2023, due to better terms with the largest supplier[5] - Selling, general and administrative expenses decreased to 1.7 million from 2.1millioninthesameperiodlastyear,attributedtolowerstockcompensationandbonusaccruals[7]CashFlowandAssets−CashandcashequivalentsasofSeptember30,2024,were2.1 million in the same period last year, attributed to lower stock compensation and bonus accruals[7] Cash Flow and Assets - Cash and cash equivalents as of September 30, 2024, were 2.5 million, down from 4.3millionattheendof2023,primarilyduetooperatinglossesinthefirsthalfof2024[10]−Totalcurrentassetsdecreasedto4.3 million at the end of 2023, primarily due to operating losses in the first half of 2024[10] - Total current assets decreased to 7,356,000 from 8,405,000,adeclineofapproximately12.58,405,000, a decline of approximately 12.5%[22] - Cash and cash equivalents decreased to 2,457,000 from 4,307,000,adeclineofapproximately42.94,307,000, a decline of approximately 42.9%[22] - Accounts receivable increased to 1,691,000 from 1,496,000,anincreaseofapproximately13.01,496,000, an increase of approximately 13.0%[22] - Inventory increased to 3,099,000 from 2,470,000,anincreaseofapproximately25.42,470,000, an increase of approximately 25.4%[22] Liabilities and Equity - Total liabilities decreased to 2,212,000 from 3,503,000,adeclineofapproximately37.03,503,000, a decline of approximately 37.0%[22] - Current liabilities decreased to 1,058,000 from 2,113,000,adeclineofapproximately50.02,113,000, a decline of approximately 50.0%[22] - Lease liabilities decreased to 1,154,000 from 1,390,000,adeclineofapproximately17.01,390,000, a decline of approximately 17.0%[22] - Total stockholders' equity decreased to 8,174,000 from 8,358,000,adeclineofapproximately2.28,358,000, a decline of approximately 2.2%[22] - Accumulated deficit increased to (144,681,000) from (144,406,000)indicatingadeeperloss[22]−Additionalpaid−incapitalincreasedslightlyto(144,406,000) indicating a deeper loss[22] - Additional paid-in capital increased slightly to 152,844,000 from 152,754,000[22]OperationalFocus−TheSouthCentralregionunderperformed,leadingtoareorganization,despiteoverallsolidgrowthinmostsalesregions[3]−Thecompanyispreparingtolaunchdigitalsupportforfilterinstallationandisenhancingservicecapabilitiestoimprovecustomercompliancewithfilterchangeschedules[3]−Nephrosisfocusedonmaintainingpositivecashflowandprofitabilitywhilemanagingexpensesandimprovingoperationalefficiency[19]ResearchandDevelopment−Researchanddevelopmentexpensesremainedstableat152,754,000[22] Operational Focus - The South Central region underperformed, leading to a reorganization, despite overall solid growth in most sales regions[3] - The company is preparing to launch digital support for filter installation and is enhancing service capabilities to improve customer compliance with filter change schedules[3] - Nephros is focused on maintaining positive cash flow and profitability while managing expenses and improving operational efficiency[19] Research and Development - Research and development expenses remained stable at 0.2 million for both Q3 2024 and Q3 2023[6]