KORU Medical Systems Files Q2 2024 10-Q Report

TL;DR

KORU Medical filed its Q2 10-Q. Check financials.

AI Summary

KORU Medical Systems, Inc. filed its quarterly report on Form 10-Q for the period ending June 30, 2024. The filing provides financial information and updates on the company's operations. Specific financial figures and operational details are available within the full report.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational status of KORU Medical Systems, crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags indicated in the provided metadata.

Key Numbers

• 20240630 — End of Reporting Period (Indicates the close of the fiscal quarter for which financial data is presented.)
• 20240807 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• KORU Medical Systems, Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240807 (date) — Filing date of the report
• 001-39086 (dollar_amount) — SEC file number

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common stock, $0.01 par value KRMD The Nasdaq Stock Marke
• $12,500 — 110,000 annually, to be paid quarterly $12,500 in cash and $15,000 in common stock. T
• $15,000 — o be paid quarterly $12,500 in cash and $15,000 in common stock. The Chairman of the B
• $22,500 — o be paid quarterly $12,500 in cash and $22,500 in common stock. Prior to May 9, 2024
• $2.08 — Weighted Average Exercise Price $2.08 - $3.96 3,037,500 6.64 years $ 3
• $3.96 — ted Average Exercise Price $2.08 - $3.96 3,037,500 6.64 years $ 3.36 1,

Filing Documents

• form_10-q.htm (10-Q) — 556KB
• 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
• 0001161697-24-000334.txt ( ) — 3841KB
• krmd-20240630.xsd (EX-101.SCH) — 46KB
• krmd-20240630_cal.xml (EX-101.CAL) — 45KB
• krmd-20240630_def.xml (EX-101.DEF) — 114KB
• krmd-20240630_lab.xml (EX-101.LAB) — 328KB
• krmd-20240630_pre.xml (EX-101.PRE) — 225KB
• form_10-q_htm.xml (XML) — 509KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Balance Sheets as of June 30, 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 16 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 21

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1A.

Risk Factors

Risk Factors 21 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) June 30, December 31, 2024 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 10,458,001 $ 11,482,240 Accounts receivable less allowance for credit losses of $ 24,777 as of June 30, 2024 and December 31, 2023 5,846,082 4,045,211 Inventory 2,588,750 3,481,301 Other receivables — 28,889 Prepaid expenses 472,864 1,218,288 TOTAL CURRENT ASSETS 19,365,697 20,255,929 Property and equipment, net 3,678,984 3,837,657 Intangible assets, net of accumulated amortization of $ 423,834 and $ 390,341 as of June 30, 2024 and December 31, 2023, respectively 745,084 754,361 Operating lease right-of-use assets 3,414,831 3,514,055 Deferred income tax assets, net of allowance for non-realization of deferred tax assets of $ 6,581,206 and $ 6,002,777 as of June 30, 2024 and December 31, 2023, respectively — — Other assets 98,970 98,970 TOTAL ASSETS $ 27,303,566 $ 28,460,972 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 1,595,691 $ 975,193 Accrued expenses 2,144,722 1,711,427 Note payable — 314,344 Other liabilities 447,788 512,520 Accrued payroll and related taxes 444,251 462,941 Financing lease liability – current 112,689 109,540 Operating lease liability – current 391,699 368,313 TOTAL CURRENT LIABILITIES 5,136,840 4,454,278 Financing lease liability, net of current portion 259,479 316,623 Operating lease liability, net of current portion 3,202,697 3,336,300 TOTAL LIABILITIES 8,599,016 8,107,201 STOCKHOLDERS' EQUITY Common stock, $ 0.01 par value, 75,000,000 shares authorized, 49,257,812 and 49,089,864 shares issued 45,819,286 and 45,669,362 shares outstanding as of June 30, 2024, and December 31, 2023, respectively 492,398 490,899 Additional paid-in capital 48,331,591 47,018,707

financial statements

financial statements. - 3 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 NET REVENUES $ 8,430,089 $ 6,935,931 $ 16,627,887 $ 14,328,536 Cost of goods sold 2,950,339 3,047,807 6,044,839 6,293,377 Gross Profit 5,479,750 3,888,124 10,583,048 8,035,159 OPERATING EXPENSES Selling, general and administrative 5,319,688 5,303,167 10,677,308 10,729,044 Research and development 1,134,232 1,596,614 2,609,907 3,161,483 Depreciation and amortization 217,864 212,919 449,233 426,036 Total Operating Expenses 6,671,784 7,112,700 13,736,448 14,316,563 Net Operating Loss ( 1,192,034 ) ( 3,224,576 ) ( 3,153,400 ) ( 6,281,404 ) Non-Operating Income/(Expense) Loss on currency exchange ( 10,680 ) ( 2,472 ) ( 22,159 ) ( 3,152 ) Loss on disposal of fixed assets, net — — ( 300 ) ( 56,279 ) Interest income, net 213,999 131,167 251,186 256,669 TOTAL OTHER INCOME 203,319 128,695 228,727 197,238 LOSS BEFORE INCOME TAXES ( 988,715 ) ( 3,095,881 ) ( 2,924,673 ) ( 6,084,166 ) Income Tax Benefit — 599,995 — 1,177,395 NET LOSS $ ( 988,715 ) $ ( 2,495,886 ) $ ( 2,924,673 ) $ ( 4,906,771 ) NET LOSS PER SHARE Basic $ ( 0.02 ) $ ( 0.05 ) $ ( 0.06 ) $ ( 0.11 ) Diluted $ ( 0.02 ) $ ( 0.05 ) $ ( 0.06 ) $ ( 0.11 ) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic 45,811,373 45,606,603 45,761,799 45,547,427 Diluted 45,811,373 45,606,603 45,761,799 45,547,427 The accompanying notes are an integral part of these

financial statements

financial statements. - 4 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) For the Six Months Ended June 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net Loss $ ( 2,924,673 ) $ ( 4,906,771 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation expense and warrant expense 1,314,384 1,681,955 Depreciation and amortization 449,233 426,036 Deferred income taxes — ( 1,177,395 ) Loss on disposal of fixed assets 300 56,279 Non-cash lease adjustments ( 10,994 ) ( 10,994 ) Changes in operating assets and liabilities: Accounts receivable ( 1,800,871 ) ( 239,590 ) Inventory 892,551 1,126,643 Prepaid expenses and other assets 774,313 687,994 Other liabilities ( 64,731 ) 5,916 Accounts payable 620,498 ( 817,169 ) Accrued payroll and related taxes ( 18,691 ) ( 119,776 ) Accrued expenses 433,296 ( 1,527,648 ) NET CASH USED IN OPERATING ACTIVITIES ( 335,385 ) ( 4,814,520 ) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment ( 257,367 ) ( 375,246 ) Purchases of intangible assets ( 24,216 ) ( 17,298 ) NET CASH USED IN INVESTING ACTIVITIES ( 281,583 ) ( 392,544 ) CASH FLOWS FROM FINANCING ACTIVITIES Payments on insurance finance indebtedness ( 314,344 ) ( 433,295 ) Payments on finance lease liability ( 53,995 ) ( 48,493 ) Payments for taxes related to net share settlement of equity awards ( 38,932 ) — NET CASH USED IN FINANCING ACTIVITIES ( 407,271 ) ( 481,788 ) NET DECREASE IN CASH AND CASH EQUIVALENTS ( 1,024,239 ) ( 5,688,852 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 11,482,240 17,408,257 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 10,458,001 $ 11,719,405 Supplemental Information Cash paid during the periods for: Interest $ 20,491 $ 20,165 Income taxes

financial statements

financial statements. - 5 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) Three and Six Months Ended June 30, 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 Issuance of stock-based compensation 41,138 411 136,020 — ( 38,932 ) 97,500 Compensation expense related to stock options — — 401,218 — — 401,218 Compensation related to restricted stock 55,061 551 63,434 — — 63,984 Issuance of warrants — — 13,032 — — 13,032 Net loss — — — ( 988,715 ) — ( 988,715 ) BALANCE, JUNE 30, 2024 49,239,788 $ 492,398 $ 48,331,591 $ ( 26,236,946 ) $ ( 3,882,493 ) $ 18,704,550 Three and Six Months Ended June 30, 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 Accrued compensation paid in shares 48,875 489 175,287 — — 175,776 Compensation expense related to stock options — — 535,059 — — 535,059 Compensation expense related to restricted stock awards 50,000 500 169,887 — — 170,387 Net loss

View Full Filing

View this 10-Q filing on SEC EDGAR