KORU Medical Systems Files Q3 2024 10-Q Report

TL;DR

KORU Medical Systems filed its Q3 2024 10-Q, check financials for latest performance.

AI Summary

KORU Medical Systems, Inc. filed a 10-Q report for the period ending September 30, 2024. The filing details financial performance and operational updates for the company, which is involved in the surgical and medical instruments and apparatus industry. Specific financial figures and operational details are presented within the report.

Why It Matters

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

Risk Assessment

Risk Level: medium — As a publicly traded company in the medical device sector, KORU Medical Systems faces inherent risks related to regulatory approvals, market competition, and financial performance, all of which are detailed in its SEC filings.

Key Numbers

• 20240930 — Reporting Period End Date (The 10-Q report covers financial data up to this date.)
• 20241113 — Filing Date (The date the 10-Q report was officially filed with the SEC.)
• 1231 — Fiscal Year End (Indicates the end of KORU Medical Systems' fiscal year.)

Key Players & Entities

• KORU Medical Systems, Inc. (company) — Filer of the 10-Q report
• 0000704440 (company) — Central Index Key for KORU Medical Systems, Inc.
• 3841 (company) — Standard Industrial Classification code for Surgical & Medical Instruments & Apparatus
• NY (company) — State of incorporation for KORU Medical Systems, Inc.
• 100 CORPORATE DRIVE, MAHWAH, NJ 07430 (company) — Business and mailing address for KORU Medical Systems, Inc.
• REPRO MED SYSTEMS INC (company) — Former company name for KORU Medical Systems, Inc.

FAQ

Key Financial Figures

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• $12,500 — 110,000 annually, to be paid quarterly $12,500 in cash and $15,000 in common stock. Th
• $15,000 — o be paid quarterly $12,500 in cash and $15,000 in common stock. The Chairman of the Bo
• $22,500 — o be paid quarterly $12,500 in cash and $22,500 in common stock. Prior to May 9, 2024 i

Filing Documents

• form_10-q.htm (10-Q) — 546KB
• 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
• 0001161697-24-000441.txt ( ) — 3678KB
• krmd-20240930.xsd (EX-101.SCH) — 45KB
• krmd-20240930_cal.xml (EX-101.CAL) — 44KB
• krmd-20240930_def.xml (EX-101.DEF) — 107KB
• krmd-20240930_lab.xml (EX-101.LAB) — 321KB
• krmd-20240930_pre.xml (EX-101.PRE) — 218KB
• form_10-q_htm.xml (XML) — 462KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION ITEM 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 3 4 5 6-7

Notes to Financial Statements

Notes to Financial Statements 8 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 21 ITEM 4.

Controls and Procedures

Controls and Procedures 22

OTHER INFORMATION

PART II. OTHER INFORMATION ITEM 1A.

Risk Factors

Risk Factors 22 ITEM 6. Exhibits 22

Signatures

Signatures 23 - 2 - Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) KORU MEDICAL SYSTEMS, INC. BALANCE SHEETS September 30, December 31, 2024 2023 (UNAUDITED) ASSETS CURRENT ASSETS Cash and cash equivalents $ 8,806,310 $ 11,482,240 Accounts receivable less allowance for credit losses of $ 0 as of September 30, 2024 and $ 24,777 as of December 31, 2023 5,164,700 4,045,211 Inventory 3,928,318 3,481,301 Other receivables 74,312 28,889 Prepaid expenses 955,213 1,218,288 TOTAL CURRENT ASSETS 18,928,853 20,255,929 Property and equipment, net 4,552,176 3,837,657 Intangible assets, net of accumulated amortization of $ 441,186 and $ 390,341 as of September 30, 2024 and December 31, 2023, respectively 746,302 754,361 Operating lease right-of-use assets 3,063,731 3,514,055 Other assets 98,970 98,970 TOTAL ASSETS $ 27,390,032 $ 28,460,972 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 1,670,300 $ 975,193 Accrued expenses 2,792,967 1,711,427 Note payable 401,993 314,344 Other liabilities 181,745 512,520 Accrued payroll and related taxes 766,867 462,941 Financing lease liability – current 114,297 109,540 Operating lease liability – current 395,954 368,313 TOTAL CURRENT LIABILITIES 6,324,123 4,454,278 Financing lease liability, net of current portion 230,332 316,623 Operating lease liability, net of current portion 3,102,097 3,336,300 TOTAL LIABILITIES 9,656,552 8,107,201 STOCKHOLDERS' EQUITY Common stock, $ 0.01 par value, 75,000,000 shares authorized, 49,275,830 and 49,059,583 shares issued 45,837,304 and 45,639,081 shares outstanding as of September 30, 2024, and December 31, 2023, respectively 492,758 490,899 Additional paid-in capital 48,940,978 47,018,707 Treasury stock, 3,438,526 and 3,420,502 shares as of September 30, 2024 and December 31, 2023, respectively, at cost ( 3,882,493 ) ( 3,843,5

financial statements

financial statements. - 3 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 NET REVENUES $ 8,179,977 $ 7,003,198 $ 24,807,864 $ 21,331,734 Cost of goods sold 2,993,986 2,661,021 9,038,825 8,954,398 Gross Profit 5,185,991 4,342,177 15,769,038 12,377,336 OPERATING EXPENSES Selling, general and administrative 5,127,658 4,623,928 15,804,966 15,352,972 Research and development 1,533,845 1,293,256 4,143,751 4,454,739 Depreciation and amortization 227,785 216,014 677,019 642,050 Total Operating Expenses 6,889,288 6,133,198 20,625,736 20,449,761 Net Operating Loss ( 1,703,297 ) ( 1,791,021 ) ( 4,856,698 ) ( 8,072,425 ) Non-Operating Income/(Expense) Gain/(Loss) on currency exchange 9,485 ( 9,390 ) ( 12,674 ) ( 12,542 ) Loss on disposal of fixed assets, net — ( 3,527 ) ( 300 ) ( 59,806 ) Interest income, net 112,995 135,429 364,183 392,098 TOTAL OTHER INCOME 122,480 122,512 351,208 319,750 LOSS BEFORE INCOME TAXES ( 1,580,817 ) ( 1,668,509 ) ( 4,505,490 ) ( 7,752,675 ) Income Tax Benefit — 300,247 — 1,477,642 NET LOSS $ ( 1,580,817 ) $ ( 1,368,262 ) $ ( 4,505,490 ) $ ( 6,275,033 ) NET LOSS PER SHARE Basic & Diluted $ ( 0.03 ) $ ( 0.03 ) $ ( 0.10 ) $ ( 0.14 ) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING Basic & Diluted 45,851,019 45,639,081 45,791,756 45,578,314 The accompanying notes are an integral part of these

financial statements

financial statements. - 4 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) For the Nine Months Ended September 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net Loss $ ( 4,505,490 ) $ ( 6,275,033 ) Adjustments to reconcile net loss to net cash used in operating activities: Stock-based compensation expense and warrant expense 1,924,131 2,379,613 Depreciation and amortization 677,019 642,050 Deferred income taxes — ( 1,477,643 ) Loss on disposal of fixed assets 300 59,806 Non-cash lease adjustments 243,762 ( 16,489 ) Changes in operating assets and liabilities: Accounts receivable ( 1,119,490 ) ( 332,975 ) Inventory ( 447,017 ) 1,727,954 Prepaid expenses and other assets 217,652 87,540 Other liabilities ( 330,773 ) 243,283 Accounts payable 695,107 ( 1,446,180 ) Accrued payroll and related taxes 303,927 ( 149,872 ) Accrued expenses 1,081,539 ( 1,431,412 ) NET CASH USED IN OPERATING ACTIVITIES ( 1,259,333 ) ( 5,989,358 ) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment ( 1,340,994 ) ( 586,897 ) Purchases of intangible assets ( 42,786 ) ( 19,312 ) NET CASH USED IN INVESTING ACTIVITIES ( 1,383,780 ) ( 606,209 ) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings from insurance finance indebtedness 487,516 565,172 Payments on insurance finance indebtedness ( 399,867 ) ( 532,441 ) Payments on finance lease liability ( 81,534 ) ( 73,243 ) Payments for taxes related to net share settlement of equity awards ( 38,932 ) — NET CASH USED IN FINANCING ACTIVITIES ( 32,817 ) ( 40,512 ) NET DECREASE IN CASH AND CASH EQUIVALENTS ( 2,675,930 ) ( 6,636,079 ) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 11,482,240 17,408,257 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 8,806,310 $ 10,772,178 Supplemental Information Cash

financial statements

financial statements. - 5 - Table of Contents KORU MEDICAL SYSTEMS, INC. (UNAUDITED) Three and Nine Months Ended September 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 Issuance of stock-based compensation 36,042 360 97,140 — — 97,500 Compensation expense related to stock options — — 305,376 — — 305,376 Compensation related to restricted stock — — 193,839 — — 193,839 Issuance of warrants — — 13,032 — — 13,032 Net loss — — — ( 1,580,817 ) — ( 1,580,817 ) BALANCE, SEPTEMBER 30, 2024 49,275,830 $ 492,758 $ 48,940,978 $ ( 27,817,763 ) $ ( 3,882,493 ) $ 17,733,480 - 6 - Table of Contents Three and Nine Months Ended September 30, 2023 Additional

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