KORU Medical Systems, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>KORU Medical Systems, Inc. has filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

KORU Medical Systems, Inc. (KRMD) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. KORU Medical Systems, Inc. filed a 10-Q report for the quarterly period ending March 31, 2024. The filing covers the period from January 1, 2024, to March 31, 2024. The company's fiscal year ends on December 31st. KORU Medical Systems, Inc. was formerly known as REPRO MED SYSTEMS INC, with a name change on July 3, 1992. The filing was made on May 1, 2024.

Why It Matters

For investors and stakeholders tracking KORU Medical Systems, Inc., this filing contains several important signals. This 10-Q filing provides investors with the latest financial and operational updates for KORU Medical Systems, Inc. for the first quarter of 2024. The report details the company's financial performance, including revenue, expenses, and any changes in assets and liabilities, which are crucial for evaluating its current business health and future prospects.

Risk Assessment

Risk Level: low — KORU Medical Systems, Inc. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant negative developments, indicating a low level of immediate risk from this specific filing.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand KORU Medical Systems, Inc.'s performance and outlook for Q1 2024.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly Report)
• 2024-05-01 — Filing Date (10-Q Filing)
• 1231 — Fiscal Year End (Company fiscal year)

Key Players & Entities

• KORU Medical Systems, Inc. (company) — Filer name
• REPRO MED SYSTEMS INC (company) — Former company name
• 0001161697-24-000226 (other) — Accession Number
• 2024-05-01 (date) — Filing Date
• 2024-03-31 (date) — Period of Report
• 1992-07-03 (date) — Date of name change

FAQ

Industry Context

KORU Medical Systems, Inc. operates in the Surgical & Medical Instruments & Apparatus industry (SIC 3841). This industry involves the manufacturing and distribution of medical devices and equipment.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file quarterly reports (Form 10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements within the 10-Q for revenue trends, profitability, and cash flow.
2. Review the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' section for insights into business performance and outlook.
3. Check for any new risk factors or updates to existing ones disclosed in the filing.

Key Dates

• 2024-05-01: Filing Date — Submission of the quarterly report (10-Q).
• 2024-03-31: Period End Date — End of the reporting quarter for the 10-Q.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly financial data for the year.

Key Financial Figures

• $0.01 — nge on which registered Common stock, $0.01 par value KRMD The Nasdaq Stock Marke
• $250,000 — t its uninsured bank cash balances over $250,000 into FDIC insured banks so there is no
• $250,000 m — insured banks so there is no more than $250,000 maintained at any one bank. As of March 3

Filing Documents

• form_10-q.htm (10-Q) — 479KB
• ex_31-1.htm (EX-31) — 7KB
• ex_31-2.htm (EX-31) — 7KB
• ex_32-1.htm (EX-32) — 3KB
• ex_32-2.htm (EX-32) — 3KB
• 0001161697-24-000226.txt (&nbsp;) — 3864KB
• krmd-20240331.xsd (EX-101.SCH) — 46KB
• krmd-20240331_cal.xml (EX-101.CAL) — 46KB
• krmd-20240331_def.xml (EX-101.DEF) — 125KB
• krmd-20240331_lab.xml (EX-101.LAB) — 330KB
• krmd-20240331_pre.xml (EX-101.PRE) — 238KB
• form_10-q_htm.xml (XML) — 513KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 3 4 5 6

Notes to Financial Statements

Notes to Financial Statements 7 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 ITEM 4.

Controls and Procedures

Controls and Procedures 20

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1A.

Risk Factors

Risk Factors 20 ITEM 6. Exhibits 21

Signatures

Signatures 22 - 2 - Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) KORU MEDICAL SYSTEMS, INC. BALANCE SHEETS (UNAUDITED) March 31, December 31, 2024 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 10,820,317 $ 11,482,240 Accounts receivable less allowance for doubtful accounts of $ 24,777 as of March 31, 2024 and $ 24,777 as of December 31, 2023 4,392,511 4,045,211 Inventory 3,147,312 3,481,301 Other receivables 288,714 28,889 Prepaid expenses 830,408 1,218,288 TOTAL CURRENT ASSETS 19,479,262 20,255,929 Property and equipment, net 3,755,530 3,837,657 Intangible assets, net of accumulated amortization of $ 406,801 and $ 390,341 as of March 31, 2024 and December 31, 2023, respectively 737,901 754,361 Operating lease right-of-use assets 3,428,885 3,514,055 Deferred income tax assets, net of allowance for non-realization of deferred tax assets of $ 6,391,452 and $ 6,002,777 for March 31, 2024 and December 31, 2023, respectively — — Other assets 98,970 98,970 TOTAL ASSETS $ 27,500,548 $ 28,460,972 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 1,774,185 $ 975,193 Accrued expenses 1,459,405 1,711,427 Note payable 159,031 314,344 Other liabilities 457,653 512,520 Accrued payroll and related taxes 519,441 462,941 Financing lease liability – current 111,103 109,540 Operating lease liability – current 372,109 368,313 TOTAL CURRENT LIABILITIES 4,852,927 4,454,278 Financing lease liability, net of current portion 288,253 316,623 Operating lease liability, net of current portion 3,241,837 3,336,300 TOTAL LIABILITIES 8,383,017 8,107,201 STOCKHOLDERS' EQUITY Common stock, $ 0.01 par value, 75,000,000 shares authorized, 49,143,589 and 49,089,864 shares issued 45,723,087 and 45,669,362 shares outstanding as of March 31, 2024, and December 31, 2023, respectively 491,436 490,899 Additional paid-in ca

financial statements

financial statements. - 3 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) Three Months Ended March 31, 2024 2023 NET REVENUES $ 8,197,798 $ 7,392,605 Cost of goods sold 3,094,500 3,245,570 Gross Profit 5,103,298 4,147,035 OPERATING EXPENSES Selling, general and administrative 5,357,620 5,425,877 Research and development 1,475,674 1,564,869 Depreciation and amortization 231,370 213,117 Total Operating Expenses 7,064,664 7,203,863 Net Operating Loss ( 1,961,366 ) ( 3,056,828 ) Non-Operating Income/(Expense) Loss on currency exchange ( 11,479 ) ( 680 ) Loss on disposal of fixed assets, net ( 300 ) ( 56,279 ) Interest income, net 37,187 125,502 TOTAL OTHER INCOME 25,408 68,543 LOSS BEFORE INCOME TAXES ( 1,935,958 ) ( 2,988,285 ) Income Tax Benefit — 577,400 NET LOSS $ ( 1,935,958 ) $ ( 2,410,885 ) NET LOSS PER SHARE Basic $ ( 0.04 ) $ ( 0.05 ) Diluted $ ( 0.04 ) $ ( 0.05 ) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic 45,712,224 45,487,593 Diluted 45,712,224 45,487,593 The accompanying notes are an integral part of these

financial statements

financial statements. - 4 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) For the Three Months Ended March 31, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net Loss $ ( 1,935,958 ) $ ( 2,410,885 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation expense and warrant expense 699,718 881,222 Depreciation and amortization 231,370 213,117 Deferred income taxes — ( 577,400 ) Loss on disposal of fixed assets 300 56,279 ROU landlord credit ( 5,497 ) ( 5,497 ) Changes in operating assets and liabilities: Increase in Accounts receivable ( 607,125 ) ( 647,994 ) Decrease / (Increase) in Inventory 333,989 ( 233,551 ) Decrease in Prepaid expenses and other assets 387,880 288,786 (Decrease) / Increase in Other liabilities ( 54,867 ) 4,207 Increase / (Decrease) in Accounts payable 798,992 ( 888,679 ) Increase / (Decrease) in Accrued payroll and related taxes 56,500 ( 41,984 ) Decrease in Accrued expenses ( 252,022 ) ( 1,298,204 ) NET CASH USED IN OPERATING ACTIVITIES ( 346,720 ) ( 4,660,583 ) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment ( 133,083 ) ( 272,605 ) Purchases of intangible assets ( 0 ) ( 11,232 ) NET CASH USED IN INVESTING ACTIVITIES ( 133,083 ) ( 283,837 ) CASH FLOWS FROM FINANCING ACTIVITIES Payments on indebtedness ( 155,313 ) ( 214,892 ) Payments on finance lease liability ( 26,807 ) ( 24,080 ) NET CASH USED IN FINANCING ACTIVITIES ( 182,120 ) ( 238,972 ) NET DECREASE IN CASH AND CASH EQUIVALENTS ( 661,923 ) ( 5,183,392 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 11,482,240 17,408,257 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 10,820,317 $ 12,224,865 Supplemental Information Cash paid during the periods for: Interest $ 12,296 $ 12,326 Inco

financial statements

financial statements. - 5 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) Three Months Ended March 31, 2024 Additional Total Common Stock Paid-in Retained Treasury Stockholders' Shares Amount Capital Deficit Stock Equity BALANCE, DECEMBER 31, 2023 49,089,864 $ 490,899 $ 47,018,707 $ ( 23,312,273 ) $ ( 3,843,562 ) $ 20,353,771 Issuance of stock-based compensation 53,725 537 123,267 — — 123,804 Compensation expense related to stock options — — 393,113 — — 393,113 Compensation related to Restricted Stock — — 130,676 — — 130,676 Issuance of warrants — — 52,125 — — 52,125 Net loss — — — ( 1,935,958 ) — ( 1,935,958 ) BALANCE, MARCH 31, 2024 49,143,589 $ 491,436 $ 47,717,888 $ ( 25,248,231 ) $ ( 3,843,562 ) $ 19,117,531 Three Months Ended March 31, 2023 Additional Total Common Stock Paid-in Retained Treasury Stockholders' Shares Amount Capital Deficit Stock Equity BALANCE, DECEMBER 31, 2022 48,861,891 $ 488,619 $ 44,252,117 $ ( 9,571,211 ) $ ( 3,843,562 ) $ 31,325,963 Issuance of stock-based compensation 48,875 489 175,287 — — 175,776 Compensation expense related to stock options — — 535,059 — — 535,059 Compensation related to Restricted Stock 50,000 500 169,887 170,387 Net loss — — — ( 2,410,885 ) — ( 2,410,885 ) BALANCE, MARCH 31, 2023 48,960,766 $ 489,608 $ 45,132,350 $ ( 11,982,096 ) $ ( 3,843,562 ) $ 29,796,300 - 6 - Table of Contents KORU MEDICAL SYSTEMS, INC. NOTES TO THE UNAUDITED FINANCIAL STATEMENTS NOTE 1 — NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS KORU MEDICAL SYSTEMS, INC. (the "Company," "KORU Medical," "we," "us" or "our") designs, manufactures and markets proprietary portable and innovative m

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