KORU Medical Systems(KRMD) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter 2024 net revenues were $8.2 million, a 17% increase compared to the prior year period[2] - Core business growth (U.S. and International) was 11%, while novel therapies growth reached 276% over the prior year[2] - Gross profit for Q3 2024 was $5.2 million, a 19% increase year-over-year, with a gross margin of 63.4%, up 140 basis points[4] - Full year 2024 net revenue guidance raised to $32.75 - $33.25 million, representing growth of 15% - 17% over the prior year[7] - Full year 2024 gross margin guidance increased to 62% - 63%, an improvement of 340 - 440 basis points over the prior year[7] - Novel therapies revenues for Q3 2024 were $0.6 million, a 275.6% increase year-over-year, driven by clinical trial orders[3] - Net revenues for the three months ended September 30, 2024, were $8,179,977, representing a 16.8% increase from $7,003,198 in the same period of 2023[14] - Gross profit for the nine months ended September 30, 2024, was $15,769,038, up 27.0% from $12,377,336 in the prior year[14] Expenses and Losses - Total operating expenses for Q3 2024 were $6.9 million, a 12.3% increase over the prior year, primarily due to new hires and bonus accruals[5] - Net loss for Q3 2024 was $1.6 million, compared to a net loss of $1.4 million in the prior year[6] - Total operating expenses for the nine months ended September 30, 2024, were $20,625,736, slightly up from $20,449,761 in the previous year[15] - The company reported a net loss of $(1,580,817) for the three months ended September 30, 2024, compared to $(1,368,262) in the same period of 2023[14] - The net operating loss for the nine months ended September 30, 2024, was $(4,856,698), an improvement from $(8,072,425) in the same period of 2023[14] Cash Flow and Assets - Year-to-date cash burn improved by 60% to $2.7 million, with an ending cash balance of $8.8 million[2] - Cash and cash equivalents at the end of the period were $8,806,310, down from $10,772,178 a year earlier, indicating a decrease of 18.2%[15] - The company experienced a net cash used in operating activities of $(1,259,333) for the nine months ended September 30, 2024, compared to $(5,989,358) in the same period of 2023, showing a significant improvement[15] - Total assets as of September 30, 2024, were $27.39 million, down from $28.46 million at the end of 2023[11] Equity and Valuation - Total stockholders' equity decreased to $17,733,480 as of September 30, 2024, down from $20,353,771 at the end of 2023, reflecting a decline of 12.9%[13] - A deferred tax asset valuation allowance of $0.3 million was excluded from the third quarter ended 2024, while no allowance was necessary in the third quarter ended 2023[18] Research and Development - Research and development expenses for the three months ended September 30, 2024, were $1,533,845, a 18.6% increase from $1,293,256 in the same period of 2023[14] Earnings Per Share - Reported diluted earnings per share (EPS) for September 2024 was $(0.03), compared to $(0.10) in September 2023[17] - Non-GAAP adjusted diluted EPS for September 2024 was $(0.01), down from $(0.05) in September 2023[17] Other Financial Metrics - Non-GAAP adjusted EBITDA for the nine months ended September 30, 2024, was $(1,747,407), an improvement from $(5,067,749) in the same period of 2023[16] - The company incurred reorganization charges related to leadership team severance expenses in 2024, impacting non-GAAP measures[19] - Stock-based compensation expense was recorded, with non-cash compensation expected to recur in future periods[20]