Rockwell Medical(RMTI) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended March 31, 2025, were $18.914 million, a decrease of 16.5$22.676 million for the same period in 2024[14]. - Gross profit for Q1 2025 was $3.042 million, slightly down from$3.064 million in Q1 2024, resulting in a gross margin of 16.1%[14]. - The net loss for the three months ended March 31, 2025, was $1.515 million, compared to a net loss of$1.731 million for the same period in 2024, reflecting a 12.5% improvement[14]. - Basic and diluted net loss per share improved to $0.04 in Q1 2025 from$0.06 in Q1 2024[14]. - Comprehensive loss for Q1 2025 was $1,509 million, slightly improved from$1,706 million in Q1 2024, showing a reduction of approximately 11.5%[16]. - For the three months ended March 31, 2025, Rockwell Medical reported a net loss of $1.515 million, an improvement from a net loss of$1.731 million in the same period of 2024, representing a decrease of approximately 12.5%[23]. Assets and Liabilities - Total assets decreased to $53.961 million as of March 31, 2025, down from$59.208 million as of December 31, 2024[10]. - Total liabilities decreased to $22.439 million as of March 31, 2025, compared to$26.622 million as of December 31, 2024, indicating a reduction of 15.8%[10]. - Stockholders' equity decreased to $31.522 million as of March 31, 2025, from$32.586 million as of December 31, 2024[11]. - Total current liabilities decreased from $14,091 million as of December 31, 2024, to$11,205 million as of March 31, 2025, a reduction of approximately 20.5%[10]. - Total accrued liabilities decreased to $4.6 million as of March 31, 2025, from$6.3 million as of December 31, 2024, representing a reduction of approximately 26.9%[80]. Cash Flow and Liquidity - Cash and cash equivalents were $11.391 million as of March 31, 2025, down from$15.662 million as of December 31, 2024[10]. - Net cash used in operating activities for the three months ended March 31, 2025 was approximately $3.487 million, an increase of 46.5$2.380 million for the same period in 2024[23]. - Rockwell's net decrease in cash and cash equivalents for the three months ended March 31, 2025 was $4.271 million, compared to a decrease of$2.341 million for the same period in 2024[23]. - As of March 31, 2025, Rockwell had approximately $17.3 million in cash, cash equivalents, and investments available-for-sale, with working capital of$21.8 million[30]. - The company continues to explore capital-raising options, with $21.1 million available under its at-the-market facility[31]. Revenue Sources - Revenue from DaVita accounted for approximately 27$0.325 million, while concentrate product sales were $18.589 million, with U.S. sales accounting for$16.436 million and international sales $2.153 million[57]. - The company recognized$0.3 million of revenue from deferred license agreements during the three months ended March 31, 2025, as all remaining deferred revenue related to these agreements was recognized[54]. - A one-time, non-refundable payment of $0.9 million from DaVita was recorded as revenue during the three months ended March 31, 2025, to ensure supply continuity[55]. Expenses - The company incurred$711,000 in selling and marketing expenses for Q1 2025, up from $594,000 in Q1 2024, reflecting a 19.7$0 for Q1 2025, down from 18 million in Q1 2024, indicating a strategic shift in R&D spending[14]. - Stock-based compensation expense for the three months ended March 31, 2025, was 0.445 million, compared to $0.251 million for the same period in 2024, reflecting an increase of 77$0.3 million as of March 31, 2025, reflecting ongoing financial obligations related to this equity[82]. - The company issued a warrant to purchase 191,096 shares of common stock at an exercise price of $1.83 per share, with a fair value of approximately$0.2 million at issuance[90]. Compliance and Agreements - The company is currently in compliance with all covenants under its Loan Agreement with Innovatus, which includes an interest-only payment period for 36 months[32]. - The Company is required to maintain consolidated revenue from hemodialysis products at not less than 85.0% of projections for the trailing six-month period[112]. - The company has a Technology License Agreement with Charak for TPN products, which continues until at least February 1, 2034, with royalties based on net sales[103]. Market and Operations - Rockwell Medical operates in the hemodialysis market, manufacturing and distributing a range of hemodialysis products[48]. - The company operates in a single segment focused on the hemodialysis market, providing a range of products for dialysis providers worldwide[25].